IoT data management services to reach US$43bn
In a recent research report made by ABI Research, the company reported that IoT data management services will reach US$42.9bn by 2026.
“Currently, data integration, real-time stream processing, and analytics services are falling under the umbrella of data management services within the IoT value chain, where each component has also seen economic growth,” commented ABI Research, who predicts that the IoT data management services market - which is rapidly growing - will reach US$43.9bn by 2026.
“The emergence of stream processing and analytics solutions provided the impetus for data-enabled decision making and insights for enterprises. Ultimately, there are two supplier groups dominating the discussion of stream processing and analytics: cloud-first and edge-first,” commented ABI Research.
With leading organisations in the industry centering their data management services around the cloud, this approach complements existing products and capabilities within full-stack end-to-end IoT portfolios. While others are serving the real time streaming analytics market by adopting an edge approach and partnering with cloud vendors to provide industry specific data management applications.
"Edge vendors are expanding their Streaming as a Service (SaaS) offering toward hardware-agnostic systems. The embedded event streaming and ingestion capabilities packaged as purpose-built, off-the-shelf SaaS have a pre-built application logic and an industry-specific "way" to handle data," commented Kateryna Dubrova, Research Analyst at ABI Research. "Effectively, everyone is attempting to move from a service market to productized out-of-the-box SaaS in relation to streaming technologies."
In addition, data management and streaming services have been impacted by Apache Project open source technologies. “The adoption is largely driven by the cost incentive to reduce the capital investment for the end-users as well as appeal to enterprises with existing open-source legacy infrastructure. In contrast, companies like Striim, SWIM.ai Guavus are offering streaming analytics services only reliant on proprietary technology," Dubrova explains. By focusing on data management and streaming technologies cloud
Additionally, by focusing on data management and streaming technologies, ABI Research reports that “cloud vendors are ceding the advanced analytics market to other suppliers.” Dubrova believes that as a result, “the advanced analytics market is an excellent example of the "coopetition" in the IoT ecosystem, where cloud vendors are partnering with advanced analytics suppliers. This coopetition enables them to promote an end-to-end IoT technology stack."
At the same time, other vendors are driving intelligence and analytics closer to the devices to expand their edge portfolio.
"Essentially, the vendors are branching into industry-driven solutions, and holistic-horizontal platforms with vertical enabled applications, all and all, the competitive market landscape remains in a state of flux. Subsequently, it is vital to understand each vendor offering and placement in the IoT analytics value chain to gain insight into the competitive landscape for real-time streaming and analytics solutions," Dubrova concludes.