For the stakes related to machinery cost, enhanced productivity and performance, the importance of analytics in IoT is steadily appropriated within many industries, such as within the industrial, manufacturing, field, oil, and gas sectors.
Companies like Cisco, Dell, GE, IBM, Microsoft, PTC, and SAP,
as well as emerging startup vendors like Blue Yonder, mnubo, Mtell, Predixion,
and Seeq underscores the momentum and importance of analytics in IoT.
From lack of skills and awareness on how to manage, track, and analyze all data, to the need to harmonize IoT ecosystem
components without creating or simply shifting the bottlenecks, the IoT market
challenges are real.
However, overall, the dynamics are positive. ABI
Research forecasts global revenues from the integration, storage, analysis, and
presentation of IoT data to triple over the forecast period and top US$30
billion in 2021, with a 29.4% CAGR.
“Descriptive analytics
currently generate more than 75% of IoT analytics revenue,” says Ryan Martin, Senior Analyst at ABI
Research. “But over the next five years, rapid uptake of advanced analytics
will overtake descriptive analytics’ share of revenue to the extent that
predictive and prescriptive analytics will account for more than 60% of IoT
analytics revenue by 2021.”
ABI Research reveals that, the general shift from batch to event-based
processing signals a growing interest in real-time/streaming analytics as a
lever for IoT value creation. Data analysis from this firm suggests that early
adoption of predictive and prescriptive analytics is occurring in more
developed, mature M2M/IoT verticals.
“The need to harmonize IoT
ecosystem components without creating or simply shifting the bottlenecks that
come with the management of high-velocity variable data puts pressure on
connectivity providers, edge analytics platform players, and system integrators
to stand up new and distributed frameworks.” “The purpose of these frameworks
is to not only support and add value to data, but to also be able to do so at
any level,” says Ryan Martin, Senior
Analyst at ABI Research.