- There’s been a 27% increase in IoT startups and related businesses on Crunchbase in just a year, growing from 26,792 in 2019 to 34,120 today.
- IoT startup funding achieved a 15% year-over-year increase from Q1, 2019 to Q1, 2020, reaching $4.7B for the latest calendar quarter according to Venture Scanner’s IoT Q1 Funding Update.
- Consumer connected cars and networkable printing and photocopying are the two IoT use cases that predicted to produce $72B and $38B, respectively, in 2020 according to Gartner’s latest forecast.
- The worldwide commercial IoT market is forecast to grow from $385B in 2019 to $687B in 2025, attaining a CAGR of 10.1% according to Technology Business Research’s latest forecast.
IoT startups see opportunity in the inefficient, time-consuming approaches complex industries rely on to get work done. There are over 34,000 IoT startups in Crunchbase alone, competing across enterprise and automotive IoT, commercial, automotive, manufacturing, retail & wholesale trade, and transportation industries.
COVID-19’s hard economic reset has hit the industries IoT startups rely on particularly hard. Automotive, retail & wholesale trade, and transportation are among the hardest hit. IoT revenue projections for the transportation industry this year dropped from $43B in value to $34B according to Gartner’s latest estimates. Enterprise and Automotive IoT dropped from $393B to $351B in market value in the first few months of this year. Healthcare provider IoT revenue forecasts are among the most optimistic, predicted to increase from $25B to $29B this year.
The Top 20 IoT Startups To Watch In 2020
Based on a methodology that equally weighs a startup’s ability to attract new customers, current and projected revenue growth, ability to adapt their solutions to growing industries and position in their chosen markets, the following are the top 20 startups to watch in 2020:
1. Armis Security – Armis’ mission is to enable enterprises to adopt new connected devices without fear of compromise by cyber-attack. What makes Armis unique and worth watching is the quickness that they turn concepts into products and successful track record innovating their platform. Armis is an enterprise-grade security platform that discovers devices on and off the network, continuously analyzes endpoint behavior to identify risks and attacks, and protects critical information and systems by identifying suspicious or malicious devices and quarantining them. Their Risk Engine can analyze device behavior to identify threats or attacks and protect essential business information and systems. They’re known for in-depth expertise in the asset inventory, risk management, detection & response, and assisting customers in creating Zero Trust frameworks to protect all devices relied on. Founded in 2015, the company has active customers in finance, healthcare, manufacturing, and high technology industries. The following is a graphic of the Armis deployment architecture: