Show Me The Money—Who Really Makes Money in Internet of Things?

Published: 20 May 2016

A highly fragmented ecosystem of hardware vendors, software developers, and service providers are spending billions of dollars on marketing, but who really makes money selling Internet of Things (IoT)?

A couple of days ago, a senior executive at a large telco asked me this question, “Who really makes money with IoT?” Sounds simple enough. I work with a large team of experts that cover every level of the IoT ecosystem. I should be able to answer this question easily. However, the question, though it sounds simple, has a very complicated answer. The simple answer: everyone makes money but not everyone profits.
To explain this response, I decided that it would make sense to look at the IoT ecosystem and figure out how to elaborate and tackle this complicated subject.
Frost & Sullivan has a global team of around 300 analysts and consultants who track IoT applications, vertical markets, and enabling technologies. This coverage ranges across the spectrum of consumer technologies, business solutions, and smart governance. Our IoT coverage is illustrated below:

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