The Internet of Things (IoT) is here to stay, whether in our homes, offices, warehouses or vehicles. And the market is opening up big opportunities, with Gartner forecasting the IoT market to soar from $546 billion USD in 2022 to $991 billion USD by 2028. What’s more, the underlying technology is evolving all the time. This means channel companies need to be smart about how they develop offerings and identifying the key vendors to partner with.
So, how is the IoT market changing? Kushal Shah, business development director, mobile virtual network operators, BT Wholesale, explained, “Advances in connectivity solutions, the sunsetting of 2G and 3G, and the journey towards the Public Switched Telephone Network (PSTN) switch-off all mean the IoT market landscape is changing amidst continued exponential growth. This rapid pace is transforming the industry, but there’s no one solution in demand – it is driven by use cases across a range of sectors.”
For Tony Guerion, CEO, Cellhire, one big driver of the IoT wave is the potential to make efficiencies. He said, “Businesses around the world are continually seeking new methods to enhance efficiency and minimise costs. As a result, they are increasingly turning towards implementing automation wherever possible.
“Nearly every industry, including manufacturing, logistics, retail and healthcare, is using automation to streamline processes thanks to IoT devices, delivering transformation and real-time data that makes automation possible. From sensors relaying temperature and pressure readings to security cameras providing around-the-clock protection for business premises, these technologies are becoming more and more pivotal.”
Guerion added that, with the explosive growth in IoT devices and businesses becoming increasingly reliant on them for success, the demand for “robust and effective connectivity” is also growing. Guerion argued that the onset of 5G will be the gamechanger for the market.
He said, “The adoption of 5G is revolutionising IoT connectivity. With faster data speeds, lower latency and higher capacity, businesses can take advantage of these benefits to create new opportunities and enhance current processes. Thanks to 5G, IoT devices can transmit and process more data, leading to more responsive and intelligent systems. This technology addresses previous challenges, such as latency, and has enabled advancements in critical applications like remote surgery and automated vehicles, where ultra-low latency is crucial for success. Ultimately, 5G is paving the way for previously unattainable innovations.”
Educating decision-makers on their options and the results they could expect will be key. Darren Garland, managing director, Alliot Technologies, commented, “The IoT market is evolving at a rapid pace. Coverage of cellular IoT is becoming more widespread and the number of IoT devices are growing exponentially.
“Education is improving in that people are now recognising IoT encompasses a lot of different technology even within cellular. 5G, 4G, GSM – which is soon to be switched off, Cat-M1/LTEM, and NB-IoT. All of these have unique USPs.”
Garland explained that creating end-to-end solutions will be critical for channel partners. He said, “Adoption within the Channel, however, continues to be slow. We are seeing little traction from channel partners. Lots are continuing to focus on connectivity rather than the full end-to-end solution.
“More and more end users are beginning to look at solution-based offers rather than having to purchase from multiple suppliers to deliver an end-to-end product.
Market fragmentation
One key challenge for the Channel in developing compelling IoT solutions is to address the fragmentation in the market. Antony Byford, vice president of cloud collaboration and IoT, Westcon-Comstor, said, “The market has been fragmented for several years now, with multiple providers offering end-to-end solutions.
“This fragmentation is accelerating and deepening due to the sheer number of startups entering the market, making it even harder for buyers to distinguish between options and identify the right solution for them.”
Yet the market has huge potential for the Channel. Andrew Wilford, managing director for mobile, Giacom, explained, “The IoT market is going through significant transformation and rapid evolution, characterised by a broadening scope rather than a fundamental change.
“The perception of IoT has shifted from merely involving high quantity, small-data, mass rollouts, to include hundreds of use cases across all key verticals. These include numerous large data consumption opportunities such as CCTV, Wi-Fi for public transport and Fixed Wireless Access (FWA) which now commonly use SIMs instead of traditional fixed connectivity services.
“A crucial aspect of understanding the IoT market is recognising its extensive scope. IoT is fundamentally about connecting things, which requires multiple components to deliver comprehensive solutions. The components include various connectivity options such as fixed, cellular, wireless and satellite, as well as hardware, applications and data storage, and usage mechanisms.”
Wilford added that cellular connectivity, in particular, has become practically synonymous with IoT. Shifts within the cellular connectivity market will be helpful in delivering viable projects.
Wilford said, “The retirement of 2G and 3G networks alongside the rollout of low latency 5G and standalone 5G, is paving the way for new technologies and smarter, efficiency-enhancing devices daily. This has further cemented cellular as a viable option for delivering high speed, resilient connectivity solutions.
“Additionally, advancements such as eSIM and iSIM are changing the cellular IoT market by enabling even faster deployments, removing the need to install physical SIMs.”
Costs under the microscope
In terms of which IoT solutions are in demand, cost-benefits are swaying decision makers. Guerion, from Cellhire, said, “The IoT market is growing rapidly in almost every industry. The need for greater visibility provided through data is essential to allow businesses to drive efficiencies, save costs, and ultimately stay competitive in a very turbulent economic environment.”
Guerion pointed to the agriculture sector, where costs for seeds and fertiliser are at an all-time high, so farmers need to be precise in ensuring maximum returns. He explained, “IoT devices are employed across the industry to help drive this. From measuring nutrient levels in the soil to tracking rainfall and resultant moisture levels, IoT devices provide farmers with critical data to help them take the most informed and effective steps to optimise their outputs.”
He also said the construction industry is finding IoT devices are indispensable from the very beginning of a project, delivering essential data and elevating safety standards. Those benefits, Guerion explained, are “reducing injuries and fatalities across the sector”.
For Mike van Bunnens, managing director, Comms365, the IoT is about delivering data analytics and insights for decision makers. He commented, “The IoT market is growing rapidly, especially in security, healthcare, construction, retail, agriculture and logistics, as well as a marked increase in government projects to create smarter cities with many focused on traffic and waste management.
“All sectors can realise the benefits of introducing IoT solutions, with many typical office premises taking advantage of energy-saving solutions for example. Essentially, if an aspect of business operations can be measured remotely, it can be optimised by IoT and powerful data analytics can provide valuable client insights to drive decision-making.”
Adrian Sunderland, CEO, Jola, added, “Some of the most popular IoT solutions that we find our resellers are involved in are vehicle telemetry and tracking, connected security and fire systems, machine monitoring, asset tracking, smart healthcare and smart city applications.”
Finding the opportunities
Ensuring customers have the connectivity to underpin their IoT deployments will be critical to success. Shah, from BT Wholesale, said, “You can’t have IoT without rock-solid connectivity. As society becomes more reliant on services supported by IoT, coverage and reliability become critical. IoT customers need this coverage and reliability for many use cases like utilities and healthcare to ensure that the things in IoT can always be connected and the data can reach its destination without fail.
“What’s more, network traffic and the demand for data-hungry applications like IoT will continue to increase – by 2030, the number of IoT enabled devices is set to grow to more than 32.1 billion – so efficient bandwidth is also crucial. Customers are looking for high speeds, low latency and the best performance when it comes to connectivity. Investing in higher bandwidth solutions as well as diversifying with 5G provides huge opportunity for the Channel.”
Sunderland, from Jola, also discussed the vital importance of getting the underlying connectivity right. He said, “There is no reason why the Channel can’t be involved in any type of IoT opportunity by partnering with the right suppliers. Jola provides IoT connectivity, IoT hardware and IoT solutions through our 1,400 channel partners. Where we don’t have all the elements required for an end-to-end solution, we can help direct a reseller to the vendor partner that can provide the missing pieces of the puzzle.
“With IoT connectivity, the most common requirement is for multi-network unsteered SIMs to provide resilience and best coverage. Typically, mobile operators cannot provide these themselves. The Channel has the opportunity to provide the right SIM for their customers without being tied to any single mobile operator’s network footprint or product portfolio.”
If channel companies get their IoT offerings right, they can be used to replace revenue streams that are declining. Donnovan Labuschagne, operations manager, Fidelity Group, said, “IoT is a great revenue stream to substitute traditional telecoms revenue on products that are no longer supported, such as ADSL. The Channel can capitalise on offering specialised IoT connectivity solutions, including 5G, LPWAN, and NB-IoT technologies as connectivity. IoT service wraps and software-as-a-service are great ways to allow your IoT offering to stand out from the competition and add additional revenue to your IoT income stream.”
Channel partners also need to ensure they are offering customers the best devices for their particular use case. Josh Mickolio, technology business development manager, wireless and IoT, Digikey Electronics, explained, “As an industry, sometime between the year 2000 and today, we went from 2G to 5G cellular connectivity, 802.11b to Wi-Fi 7, Bluetooth v1.2 to v5.4, processing became inexpensive and powerful, not to mention thousands of other innovations. This was realistically in a blink of an eye for tech.
“It’s hard to dispute that this is one of the most exciting times in our history. Products like the XCORE.AI XS3 have great technology and performance specs, yes, but what they really offer is scalability, flexibility, and the ability for companies to continue to innovate well past product launch. As an electronics distributor we have what I think is the best seat in the house, we get to see what customers are building now and what suppliers are building for the future.”
Perfect partners
So, how can resellers and MSPs identify the best IoT vendor partners for their business? Wilford, from Giacom, discussed the key considerations.
He said, “Resellers and MSPs should look for vendors with a proven track record of supporting a partner’s success. These vendors typically offer compelling and competitive propositions, complete partner enablement through self-serve platforms, and efficient order journeys.
“Additionally, the best vendors provide induction programmes to sufficiently educate partners and offer dedicated support, mentoring partners throughout their cellular IoT journey. A wealth of informative collateral, white-label content and even marketing strategy guidance from the vendor will also significantly contribute to the success of a partner.”
Comms365’s van Bunnens added, “Resellers and MSPs must consider factors like technology compatibility, customer demographics, security expertise, plus the level of sales and marketing support offered, and the training provided by the vendor to upskill a reseller’s team.”
For Garland, from Alliot Technologies, the choice for resellers depends on how specialist they want to be. He said, “We find that many solutions begin with a requirement for a specific set of data, the solution will then develop from there.
“Our recommendation would be to first of all partner with an IoT solutions provider like Alliot Technologies who can assist you with developing a solution that will deliver what your customers require. The industry is still very much in its infancy; to select just one vendor partner right now could limit your success.”
Garland added that his company works with more than 40 vendor partners to design and deliver the best solutions for customer requirements. He emphasised how channel companies should approach this. He said, “Don’t be afraid of asking for advice and looking at what projects have been deployed before for confirmation of what the end result looks like. Lots of projects have now been commercially deployed so it is highly likely that something similar has been completed. It is a great time to get into the LPWan sector now commercial deployments are happening. It is proven and is early enough to become a USP of your business.”
Byford, from Westcon-Comstor, discussed how he sees the role of a distributor. He said, “As the IoT market starts to consolidate, a distributor needs to understand the changing nature of the market and the importance of adopting an ecosystem approach in unlocking new opportunities for channel partners.”
Securing the IoT
Looking ahead, there is likely to be a greater emphasis for the industry on securing the IoT. Cybersecurity breaches can put an unwanted spotlight on organisations, and it is vital that IoT deployments do not become a weak link for hackers looking for a way in.
Wilford, from Giacom, explained, “Security is a critical component of many IoT solutions, and choosing the right partner and solution is key. Providing a simple internet connection may seem straight forward but, in many cases, private IP addresses and solutions deployed with VPNs are necessary to meet compliance requirements. Selecting a vendor that can offer these security measures is important for ensuring a robust and compliant IoT solution.”
Advancements in edge computing are paving the way for further improvements to security solutions. Westcon-Comstor’s Byford said, “For me, a lot of exciting innovations and potential around IoT is happening at the edge. Indeed, edge computing, with its ability to offer real-time access to network information combined with ultra-low latency and high bandwidth, is playing an increasingly important role in the IoT space, and this creates exciting new opportunities for the Channel. At the same time there is a huge need for best-of-breed cybersecurity within an IoT environment, creating opportunity for network security vendors.
“Many are rising to this, for example by offering DDoS detection solutions that work to prevent attacks at the network edge. The key to unlocking the potential of IoT and the intelligent edge for the Channel lies in partners having the ability to deliver innovative, scalable and secure IoT applications to their customers, driving recurring revenues around the critical technologies of the IoT ecosystem, from security and analytics to edge computing and connectivity.”
Winning the race
With further IoT adoption expected in the years ahead, getting out to your customers now will help ensure they are with you for the long-term.
Cellhire’s Guerion emphasised the importance of capturing market share while you can. He said, “IoT is here to stay, and with its growth comes a new demand for robust connectivity.
“Channel partners who are integrating IoT connectivity into their solution offerings are gaining an early advantage, staying ahead of their competitors, and opening up new conversations with existing customers. This approach allows them to capture market share and generate new revenue streams.”
There is the potential to use your IoT offerings to provide financial stability for your business going forward.
Guerion explained, “By establishing reliable IoT connectivity solutions, channel partners can lock in recurring revenue streams over extended periods, providing financial stability and growth. As further devices are added, channel partners can continually expand their portfolio, while strengthening the relationship with their customers, leading to further opportunities for growth and additional revenues.”
This market report appeared in our September 2024 print issue. You can read the magazine in full here.