IoT Year in Review 2022

Read more about M&A trends and activity in this sector

Joseph Radecki

Joseph Radecki

Managing Director and Group Head, TMT Investment Banking, KPMG Corporate Finance LLC

+1 312-665-4401

A 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.


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%).

Figure 1: Healthcare organizations progress against tech agenda vs. broader organizations




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.




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.

Where we are

Retail technologies working in silos with significant dependence on store staff to complete primary functions

Lack of availability of real-time customer preference data restraining store manager decision making

Inventory data gathered by staff with barcode scanners walking the aisles

Omnichannel structure that allows consumers to browse both the online and physical store channels

Where we are going

Integrated IoT, AI, and ML technologies to automate retail operations efficiently 

AI-enabled IoT solutions generate real-time insights around customer buying preferences

Robots and image recognition monitor inventory levels, predict demand, and insure adherence to planograms

The metaverse blurs the boundaries between the online and in-store shopping experiences


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KPMG Corporate Finance LLC’s investment bankers have extensive Technology transaction and industry experience, which enables them to understand the industry-specific issues and challenges facing our clients.