Insight

Internet of Things (IoT) M&A Newsletter

2020 Year in Review

Joseph Radecki

Joseph Radecki

Managing Director and Co-head, TMT Investment Banking, KPMG Corporate Finance LLC

+1 312-665-4401

2020 was a year like none before it. Among the remarkable aspects of 2020, the importance of IoT technologies came firmly into view, especially those that deliver deep insights and, most importantly, enable action to be taken. Robust IoT solutions have empowered us to navigate the ongoing COVID-19-related challenges, including altering the way goods are manufactured, transported, and delivered to customers; healthcare is provided; workforces are managed; and students are educated. Having witnessed the benefit of robust IoT solutions, presently and well beyond the current pandemic, both strategic and financial investors are investing increasing amounts of capital into the IoT space.

In this Year in Review newsletter, we look back over a tumultuous year to examine strategic and financial investor activity around IoT, and put a spotlight on the application of IoT technologies in Agriculture.

IoT M&A Snapshot

Despite a slowdown in Q2 2020, IoT M&A activity as measured by deal value was the strongest since 2016. IoT proved to be an invaluable solution during the pandemic, resulting in significant investment in IoT companies.

IoT M&A Activity

Total global IoT deal volume in 2020

122


 

$35.3bn

Aggregate deal value in 2020


 

Strategic vs. Financial Investors 
(based on deal volume)

Investor Geography
(based on deal volume)

Target Geography
(based on deal volume)


 

IoT M&A Activity and Prevailing Themes by Sector

Healthcare-focused IoT witnessed strong M&A activity from a sector standpoint as we dealt with the challenges of COVID-19.

 
 


29




 

Healthcare

  • Rapidly deploying telehealth and enhancing elderly monitoring, treatment adherence, equipment monitoring, and hospital hygiene
  • Monitoring temperature and humidity of COVID-19 vaccines
 

 

20



 

Transportation

  • Improving road safety by focusing on driver behavior and vehicle maintenance 
  • Enhancing fleet optimization and theft prevention, and lowering insurance premiums

 


17




 

Industrial

  • Data and insights are only the beginning → action is the objective
  • Intelligence at the edge is driving computer power and analytics closer to the source
  • AI is transforming analytics and decision making 

 


16




 

Smart building

  • Improving energy and operational savings
  • Optimizing space and occupant communication
  • Increasing occupant health and well-being monitoring (compliance with CDC guidelines)
 

 

9

 
 

Energy

  • Insights into usage drive smarter energy consumption by consumers
  • Smart grid applications improving grid performance and security
 
 


8




 

Smart Ag

  • Creating valuable insights into land use, soil quality, and livestock, and reduction in the use of harmful chemical fertilizers and pesticides
  • Increasing sustainable farming in the face of climate change, diminishing arable land, and growing global food demands



23

 

Sector Agnostic


In this edition, we look back at the nearly 200 IoT related M&A transactions that closed in 2020 in order to draw a few interesting insights from the data. We also shine our spotlight on the expanding presence of IoT technologies in across the Agriculture space with the increasing adoption of SmartAg and Precision Ag solutions. We hope you find this information valuable.


We continue our regular dialog with strategic decision makers at leading IoT and industrial IoT solutions providers and would be happy to discuss the insights we have gathered as one of the most prolific M&A advisors in IoT.


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