Unexpected Shifts in the IoT and Industry 4.0 Vendor Landscape

During the latest I4.0 / IoT vendor benchmark, two major market surprises emerged that challenge conventional expectations about the rapidly evolving Industrial Internet of Things.

1. The IoT platform vendor count has contracted, not exploded

Contrary to the 2015 forecast that predicted a sharp increase in vendors and a gradual consolidation around niche use‑cases, the 2016 study shows a slight decline in active IoT platform providers in Germany. The segment has experienced an accelerated shake‑out: many system integrators exited quickly, and several anticipated entrants failed to materialise. Instead of niche clusters, the market now features a handful of large vendors offering broad, turnkey solutions. These leaders are increasingly forming inter‑vendor collaborations, signalling the birth of IoT platform networks that could evolve into full‑blown ecosystems.

Predicted development (Q3/Q4 2015)

Source: Experton Group, 2016

Observed development (Q2/Q3 2016)

Source: Experton Group, 2016

2. Industry 4.0 platforms are launching behind IoT platforms

Manufacturing execution systems (MES) are expanding beyond real‑time process control to embrace cloud, analytics, big data and micro‑services. The Experton Group now defines this evolution as Industry 4.0 platforms. These platforms are distinct from IoT platforms, with only Bosch currently active in both segments. Industry 4.0 solutions are delivered via three models: fully cloud‑based, fully edge‑based, or hybrid—combining real‑time edge MES with cloud analytics.

Delivery models for Industry 4.0 platforms

Source: Experton Group, 2016

Explore the full I4.0 / IoT Vendor Benchmark 2017

Beyond the trends highlighted above, the benchmark delivers insights across ten market segments in Germany. An executive summary summarises the key findings—download it here for a concise market snapshot.