IoT News Roundup

Machina Research lowers IoT growth forecast; Verizon steers toward connected transportation with logistics industry buys; Murata announces new LoRa module; NIST issues security-focused IoT report; new product and features from Loopd.
By Mary Catherine O'Connor
Aug 05, 2016

Machina Research Forecasts $3 Trillion IoT Market by 2025
Market research firm Machina Research this week released its annual forecast on the global Internet of Things market, reporting that the total number of IoT connections will grow from 6 billion in 2015 to 27 billion in 2025, a compound annual growth rate (CAGR) of 16 percent. That represents a slightly lower estimate from 2015, when the firm predicted that the number of connections would grow from 5 billion in 2014 to 27 billion in 2024—a CAGR of 18 percent.

This year's report also reveals slight shifts in the type of connections that will comprise the IoT. It predicts that by 2025, short-range technology (such as Wi-Fi or ZigBee) will account for 72 percent of those connections—a slight uptick from the 71 percent they account for now, and a reversal from the decline to 69 percent that Machina predicted in the forecast it released in 2015. And while last year, Machina said that by 2025, 14 percent of connections would be enabled by low-power wide-area network (LPWA) radios such as those developed by Sigfox and the LoRa Alliance, the 2016 report scaled that back slightly, to 11 percent.

As for revenues, Machina expects the global IoT market to generate $3 trillion by 2025, with $1.3 trillion generated by end users through the sales of devices, connectivity and applications and the remainder generated by "upstream and downstream IoT-related sources such as application development, systems integration, hosting and data monetization," according to the 2016 report. But as Fortune notes, the $1.3 trillion estimate for 2025 in this year's report is down from the $1.6 trillion that Machina cited in last year's study. That lower forecast is partly due to the larger-than-expected role that smartphones are playing in the IoT, Machina analyst Margaret Ranken told the magazine. End users are relying increasingly on applications running on their phones, and are using the phones' integrated sensors for such things as navigation and health applications, rather than using separate devices, such as dedicated navigation computers for drivers or fitness trackers, for the same uses.

Verizon Bolsters Position in Transportation Sector With Fleetmatics Deal
Telecommunications company Verizon Communications announced this week that it has entered into a definitive agreement under which it will acquire Fleetmatics Group, a provider of fleet and workforce management software, for $60.00 per share in cash. The agreement represents a value of approximately $2.4 billion.

Fleetmatics' software taps into GPS receivers and telematics devices on fleet vehicles to provide tracking services, routing optimization, and information regarding driver performance or extended idling.

The acquisition will give Verizon's telematics business unit a stronger foothold in the transportation and logistics industries. Earlier this summer, Verizon announced its plans to acquire Telogis, a cloud-based mobile enterprise management software company that also serves the logistics industry. That deal, the details of which were not disclosed, closed on July 29.

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