In this article, we’ll zoom in on five key areas where IoT innovators could thrive.
The Internet of Things (IoT) has evolved from a buzzword to a transformative force that’s reshaping industries across the globe. In this article, we’ll zoom in on five key areas where IoT innovators could thrive.
1. Smart Home Solutions
One of the most accessible and tangible IoT domains is smart home technology. From thermostats that learn your preferences to voice-activated virtual assistants, IoT has revolutionized our homes. Smart home device adoption has surged, with Statista projecting that the number of connected devices in smart homes will reach over 1.6 billion by 2025.
Startups like Nest, now part of Google, have gained remarkable success by offering innovative smart thermostats that not only enhance comfort but also conserve energy. These technologies are in high demand as they offer tangible benefits to consumers, from energy savings to improved security.
That said, home solutions are by far the most obvious IoT market, which makes it one of the most competitive. Because of this, for early-stage companies, it might be a good idea to explore niche, non-obvious device ideas.
Example Business Idea: a device able to track movement within your home and draw heat maps in order to help you with making more practical furniture layout and interior design decisions.
2. Industrial IoT (IIoT) – Manufacturing And Logistics
Industrial IoT (IIoT) is radically altering the landscape of manufacturing and supply chain logistics. By integrating sensors and data analytics into industrial processes, IIoT optimizes operations, minimizes downtime, and bolsters safety measures. McKinsey estimated that IIoT applications could have an economic impact of up to $3.7 trillion annually by 2025.
In this space, companies like Sigfox have risen to prominence by developing low-power, wide-area networks (LPWANs) that facilitate cost-effective, large-scale connectivity for industrial devices. Startups have immense potential in creating specialized IIoT solutions that cater to specific niche industry needs, such as predictive maintenance, real-time monitoring, supply chain optimization, and others.
Example Business Idea: A supply chain visibility platform that provides end-to-end visibility into the supply chain, enabling businesses to track and manage goods in real time.
3. Healthcare IoT
Healthcare IoT is at the forefront of improving patient care and healthcare management. Wearables, remote patient monitoring devices, and IoT-enabled medical equipment are making healthcare more personalized and efficient. According to a report by MarketsandMarkets, the global healthcare IoT market is projected to reach $188 billion by 2026. The demand for innovative healthcare IoT solutions is likely to soar as the population ages and healthcare becomes more digitized.
Healthcare IoT could also have a low barrier to entry as early-stage startups could develop apps that use the improving tech of the already immensely popular smart watches and other wearable devices.
Example Business Idea: offer data analytics tools for healthcare institutions to derive valuable insights from IoT-generated patient data, improving patient care and outcomes.
4. Retail IoT
Retail IoT is revolutionizing the way we shop. With IoT, retailers can offer personalized shopping experiences, optimize inventory management, and streamline supply chains. This technology is not only enhancing customer engagement but also driving operational efficiency. The global IoT in the retail market is predicted to reach $297.44 billion by 2030, according to Grand View Research. Startups in this domain have the opportunity to innovate in areas such as in-store analytics, inventory management, and customer engagement solutions.
Amazon Go, Amazon’s cashierless store concept, is a good example of how IoT can redefine the retail sector.
Example Business Idea: Eye-tracker devices on store shelves could collect and analyze the viewing patterns of customers in order to optimize store layouts.
5. Environmental Monitoring with IoT
IoT is playing a pivotal role in environmental monitoring and conservation. By deploying IoT sensors in natural habitats and urban areas, valuable data on air quality, water quality, and wildlife behavior can be collected. This data aids in early detection of environmental issues and informs conservation efforts.
Startups like Conservation Metrics are using IoT to gather critical data for wildlife conservation. Their solutions enable researchers to better understand and protect endangered species by tracking and analyzing their habitats and behaviors.
The growing concern for the environment and the need for actionable data make this a promising niche for innovative startups. That said, naturally, the growth promise of a particular market is only one of many factors you need to consider when you choose the right niche for your startup project.