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Internet of Things market to reach $3B by 2021, report says

August 12, 2016

The global Internet of Things platform market is expected to expand at a compound annual growth rate of 30.8 percent and reach more than $3.3 billion by 2021, according to a new report from analyst firm Berg Insight.

The IoT platform market reached more than $681 million in 2015, up 36 percent from last year. IoT primarily focuses on integrating "sensors, devices and information systems," among various organizations and verticals, according to the report.

"IoT furthermore aims to facilitate a better understanding of complex systems through analytics based on data from diverse sources to assist decision-making, improve products and enable entirely new services," André Malm, senior analyst at Berg Insight, said in a press release.

The report defines most IoT platforms as falling into three categories: connectivity management platform; device management platform; and an application enablement platform. Currently AEPs cover areas such as analytics and data management.

Several companies — including Amazon and Microsoft — have joined the AEP market and have begun purchasing and acquiring solutions.

"The AEP segment is seeing considerable activity in terms of acquisitions and new market entrants," Malm said. "As a group, AEP vendors primarily face competition from system integrators and companies that develop similar functionality in-house."

The report summary and purchase information are available at http://www.berginsight.com/ReportPDF/ProductSheet/bi-platforms2-ps.pdf