IoT deal value and volume1
Overall IoT transaction activity has continued its strong trend through Q3 of 2019. M&A volume is up 31% over the same period in 2018 as large strategic players eagerly acquire IoT technology to address customer demand for dynamic data acquisition and analytical IoT solutions. We continue to believe that we are in the early stages of IoT and expect continued strength in deal volumes.
Total global deal volume in Q3’19: 44
The IoT sector saw 44 deal announcements in Q3’19, significantly higher than 27 deals announced in Q3’18
$3.4bn Aggregate deal value in Q3’19
The aggregate deal value in Q3’19 was $3.4bn, largely comprising of small-size deals with undisclosed values
Track the location and arrival of raw materials via telematics
Sensors along the assembly line track performance and transmit data real-time
Collect & Analyze Data
Data is analyzed for process improvements & predictive maintenance
AI-enabled analytics evaluate process data to indicate quality issues
Product automatically packaged and added to inventory systems via data transmission, ready to deliver
In this edition of our IoT Newsletter, we take a deep dive into Industry 4.0.
Industry 4.0, or the fourth industrial revolution, represents the end-to-end digitization of all physical assets and processes, integrated into digital ecosystems. Industrial IoT is a critical, enabling component of Industry 4.0. All manufacturing equipment, systems and processes are embedded with sensors, allowing real-time generation, analysis, and communication of data between physical and digital worlds to enable greater process efficiency, quality management, and operations planning.
The market for Industry 4.0 is forecasted to grow rapidly from $47bn in 2017 to over $310bn by 2023, growing at a CAGR of 37% during the period.
Industry 4.0: Addressable Market
Industry 4.0 represents an enormous market opportunity, with leaders in every industrial segment investing in new technologies and applications to digitize essential operational processes.
Contributing factors include the increasing adoption of IoT in digital transformation of manufacturing and related industries, the rise of industrial robotics, and the proportionally higher spend in Industrial Internet of Things.
The Digital Twin: Powerful use cases for Industry 4.0
Of particular interest in Industry 4.0 applications is the concept of a Digital Twin – a near real-time digital representation of a physical asset or process that can be used to optimize performance and drive process efficiencies.
Digital Twins have multiple applications, from real time health monitoring of a single deployed asset, such as a jet engine, to evaluating wear and tear of industrial machinery, to allowing forensic analysis of manufacturing line performance in order to improve process outcomes.
By 2021, 50% of large industrial companies will use Digital Twins, resulting in those organizations gaining a 10% improvement in effectiveness
Digital Twins drive business impact of I-IoT by offering a powerful way to monitor and control assets/processes
For more information on IoT industry trends, recent transactions, and subsector M&A activity download the newsletter.