IoT Year in Review 2022
Read more about M&A trends and activity in this sector
Internet of Things (IOT) M&A Newsletter
Download PDFA year of two halves
2022 can be viewed as a year of two halves in IoT M&A. The year began riding the momentum of 2021, with Q1 seeing higher deal flow than any quarter of the previous year. As inflation worries and rate hikes began to set into the economy, deal flow quickly slowed from its red hot pace in Q2. As rates continued to rise and economic outlook dimmed, deal flow continued to slow, returning to a cadence more normal from a historical perspective in the second half of the year. Despite these headwinds, the IoT M&A market continues to grow and is still above where it was prior to the COVID-19 pandemic.
In this 2022 edition of our Year in Review newsletter, we look back over a tumultuous year to examine strategic and financial investor activity around IoT, put a spotlight on IoT in the healthcare space and sit down for an interview with Steve Brummer, a Partner at BH IoT Group, one of the foremost experts in the IoT space.
Spotlight on Healthcare IoT
The COVID-19 pandemic demonstrated the need for health care providers to have eyes across their entire system. From knowing the location of ventilators to remote patient monitoring, the data captured from integrated tools proved invaluable during the heights of the pandemic. Healthcare providers are looking ahead to how IoT and AI can improve the way they treat patients and utilize the assets in their systems.
43.4%
Expected AI in healthcare CAGR this decade
While not traditionally big spenders in technology, healthcare companies are beginning to understand the need for connected devices and catch up on their digital transformation. “As recently as five years ago, healthcare organizations were lagging most other industries in digital transformation,” notes Vince Vickers, national Healthcare consulting leader for KPMG in the U.S. “They are still not where they want or need to be, but they are making good progress.” Healthcare organizations are ahead of other industries in their migration to the cloud (62% vs 48%) and their implementation of AI & autonomation (54% vs 40%).
60%
Additionally, 60% healthcare organizations will make AI/machine learning a key area of investment over the next 12 months, compared to 48% of all organizations.
80%
of IoT projects expected to utilize AI by end of 2022
The marrying of AI and IoT cannot be ignored in the healthcare space. While in 2019 Gartner found that only 10% of IoT projects were utilizing AI, that number is predicted to be over 80% by the end of 2022. The massive increase of assets that can not only provide real time communication to decision makers but track and predict outcomes is already having a massive impact on the healthcare industry. According to Mordor reports, AI in healthcare market size is expected to reach $201.4B by the end of this decade, a 43.4% CAGR.
We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below.
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