Developing IoT devices: what you should think about to launch a successful business According to a report by MarketsandMarkets, the European IoT market is expected to grow to $200 billion by 2025, at a CAGR of 15.0%. We look forward to new IoT applications, especially in the healthcare and energy sectors, as well as in smart cities and transportation.
There has been a significant increase in the production of IoT devices for end-users, with more companies entering the market and established players expanding their product lines. Manufacturers are increasingly focusing on delivering a better user experience by designing more intuitive and user-friendly interfaces and improving the reliability of their devices.
Another trend providers are offering is remote management services, enabling them to monitor and control IoT devices from a central location. This can include updating firmware, configuring, diagnosing, and fixing issues remotely. In this case, the role of software solutions such as IoT device management platforms is significantly increasing.
If you are planning to enter the smart device market and make a rational assessment of the required resources, this article will be useful for you.
Examples of promising smart devices for consumer and corporate manufacturing
These are some examples of devices with increasing demand that offer users greater control and convenience in their daily lives, as well as access to a wide range of services and features. However, the IoT market is rapidly evolving, and new hardware types are likely to emerge in the future as technology continues to advance.
- Smart thermostats – to control temperature and save energy remotely.
- Smart lighting – can be customized to create different moods and atmospheres.
- Air quality monitoring systems – measure various pollutants such as particulate matter, ozone, and nitrogen dioxide, and can be used in both indoor and outdoor environments.
- Smart HVAC systems – optimize heating, conditioning, ventilation, and air.
- Wearable health monitoring devices – monitor various health metrics like heart rate, blood pressure, and sleep patterns, help patients manage chronic conditions, and provide doctors with valuable insights into patient health.
- Smart parking systems – monitor parking spots and provide information on available spaces to drivers.
- IoT-enabled EV charging stations – allow users to remotely track the charging of their electric vehicles. Smart water management systems – control and reduce water usage, and improve sustainability.
- Asset tracking systems for equipment, vehicles, and inventory monitoring – help to reduce the risk of theft.
Things to think about before starting a business in the IoT sector
Many entrepreneurs are looking to capitalize on the IoT trend by starting their businesses. However, there are some factors to consider before jumping into this fast-paced market.
Understanding the market, and business challenges, creating a monetization model
It’s essential to have a deep understanding of the IoT market and the specific niche you plan to target. It’s necessary to stay up-to-date with the latest releases and be prepared to pivot your business strategy as needed. This area is highly competitive, so businesses need to have a clear understanding of their value and how they can differentiate from competitors. For example, IoT devices generate massive amounts of data, which can provide valuable insights into customer behavior, market trends, and product performance. Leveraging this data can give your business a competitive advantage and help you make informed decisions about product development and marketing strategies.
One of the biggest challenges in the IoT industry is ensuring security and protecting user data. With an increasing number of devices being connected to the internet, the potential for cybersecurity threats has also increased. Another challenge is interoperability. With so many different IoT devices and platforms available, it can be difficult to ensure that they can all communicate with each other. Businesses should ensure that their devices can integrate with other IoT platforms to provide a seamless user experience.
When it comes to monetization models, you can use an option that works better for you. One common model is to sell the IoT devices themselves, either directly to consumers or through partnerships with retailers. Another option is to offer a subscription-based service, where users pay a regular fee for access to the device and its features. One more model is about providing value-added services, such as data analytics or remote device management, for an additional fee. Some businesses also generate revenue through collaborations with other companies.
One of the most common mistakes businesses make in the IoT sector is not considering the whole product lifecycle. It is important to oversee factors such as device maintenance, upgrades, and end-of-life disposal when building an IoT device. Businesses should also consider the cost of ongoing maintenance and upgrades and factor this into their pricing strategy.
Establishment of hardware and embedded software production
After your business model is ready it’s time to think about production establishment and ensuring continuous product updating and support. Before launching a production line create a hardware prototype and connect it to the internet.
Cloud-based software platforms play a critical role in IoT development and deployment. These platforms provide a central hub for prototyping, connecting, managing, and analyzing data, as well as enabling communication between devices and the cloud.
To launch mass production after prototype pivoting you will also need
- Manufacturing facilities: specialized equipment and tools to produce the hardware and embedded software.
- Team of skilled engineers, technicians, and operators to design, develop, and manufacture the product. You can also ask for custom IoT product development from outsourcing experts, which usually provide their services under software platform brands.
- Materials and сomponents including microcontrollers as ESP32.
- Testing and QA process to ensure the product functions as intended and meets customer requirements.
- Research and Development activity to continuously improve your product and stay ahead of competitors.
- Patents or trademarks to ensure intellectual property protection.
One of the key benefits of using an IoT software platform is that it simplifies the process of developing and deploying IoT applications. Developers can use pre-built software modules and APIs to quickly build and test their applications, reducing the time and cost involved in development. The right IoT software platform can help businesses streamline their IoT development and deployment processes, improve data management and analysis, and enhance the security and reliability of their IoT solutions.