The Internet of Things (IoT) is expected to be worth trillions of dollars by 2020, and companies will certainly reap the benefits of that explosion. But investors can do the same if they know which IoT stocks to watch.
Each of the companies below rates as one of our IoT companies to watch, as each one is doing something innovative and important in the IoT space. These range from IoT startups to more established IoT companies to invest in.
Honeywell's primary focus is in the Industrial Internet of Things (IIoT), the integration of digital technologies into manufacturing. This puts the emphasis on information rather than physical machinery, even for areas that traditionally require physical labor.
Investors would be wise to consider Honeywell because of its considerable size and resources. Accenture conducted a worldwide survey of more than 1,400 business decision makers and found that 84% think their organization would potentially benefit from IIoT in multiple ways. But a mere 7% said they have actually created a comprehensive IIoT strategy and invested appropriate funds to support that strategy.
This creates a tremendous opportunity for Honeywell, which can step in and increase that 7% figure considerably.
The Japanese conglomerate is leveraging the IoT by becoming a consultant to help clients become what it calls "Enterprises of Things." Hitachi Consulting helps other companies apply IoT solutions to maximize their business value and lets them become innovators in the IoT space all on their own. The company also runs an IoT and Innovation workshop.
As the Internet of Things grows, more companies will need to rely on experts to squeeze the juice out of it, and Hitachi is perhaps best positioned to guide other organizations into the future of the IoT.
Like many of its peers, Comcast has been contending with fleeing cable subscribers thanks to Netflix, Hulu, and other streaming media companies that are threatening traditional pay-TV. To offset this somewhat, Comcast has decided to forge ahead into the IoT.
Last month, the mass media company acquired Austin-based IControl Networks, which develops technology and platforms for connected home security devices. Comcast is focusing on Icontrol’s "Converge" software platform, which is the muscle behind Comcast's Xfinity Home touch-screen panel and back-end servers, that lets the devices communicate with and manage security sensors in the home, along with providing support for home automation devices such as cameras and thermostats.
The cable company also hired former HP executive Sridhar Solur as Senior Vice President of Xfinity Home and IoT products. Solur received credit at HP for debuting the company's IoT and wearables businesses.
If Comcast can keep making strategic acquisitions, then investors should be able to ride the stock higher as a result.
T-Mobile has been the poster child for unorthodox but successful methods in the wireless carrier wars, and it's also been extending its arms into the Internet of Things.
The carrier partnered with Twilio to create Twilio Programmable Wireless, a cellular communications platform that could change how IoT developers work.
Moreover, T-Mobile was ahead of the curve, as it debuted its IoT program through its Value Added Reseller channel n 2005 and created a full, dedicated IoT team in 2008. Today, the company offers a full hub that serves as a one-stop shop for IoT customers.
Other Companies to Invest in Include...
|GE (GE)||AT&T (T)||Cisco (CSCO)||IBM (IBM)|
|Amazon (AMZN)||Skyworks (SWKS)||Apple (AAPL)||Sierra Wireless (SWIR)|
|Google (GOOGL)||Iridium Communications (IRDM)||Ambarella (AMBA)||ARM Holdings (ARMH)|
|Texas Instruments (TXN)||PTC (PTC)|| |
|Garmin (GRMN)||Blackrock (BLK)||InvenSense (INVN)||Microsoft (MSFT)|
|Control4 (CTRL)||Silicon Laboratories (SLAB)||CalAmp (CAMP)||LogMeIn (LOGM)|
|InterDigital (IDCC)||Ruckus Wireless (RKUS)||Linear Technology (LLTC)||Red Hat (RHT)|
|Nimble Storage (NMBL)||Silver Spring Networks (SSNI)||Zebra Technologies (ZBRA)||Arrow Electronics (ARW)|
These companies are all positioned to thrive in the Internet of Things, but there is much more to learn about the IoT. For example:
- In total, BI Intelligence, Business Insider's premium research service, expects there will be 34 billion devices connected to the internet by 2020, up from 10 billion in 2015. IoT devices will account for 24 billion, while traditional computing devices (e.g. smartphones, tablets, smartwatches, etc.) will comprise 10 billion.
- Nearly $6 trillion will be spent on IoT solutions over the next five years.
- Businesses will be the top adopter of IoT solutions. They see three ways the IoT can improve their bottom line by 1) lowering operating costs; 2) increasing productivity; and 3) expanding to new markets or developing new product offerings.
- Governments are focused on increasing productivity, decreasing costs, and improving their citizens’ quality of life. We forecast they will be the second-largest adopters of IoT ecosystems.
- Consumers will lag behind businesses and governments in IoT adoption. Still, they will purchase a massive number of devices and invest a significant amount of money in IoT ecosystems.
BI Intelligence, Business Insider's premium research service, has compiled a detailed report on IoT companies and stocks that distills the technological complexities of the Internet of Things into a single ecosystem.
In full, this report:
- Explains the benefits and shortcomings of many networks, including mesh (e.g. ZigBee, Z-Wave, etc.), cellular (e.g. 3G/4G, Sigfox, etc.), and internet networks (e.g. Wi-Fi, Ethernet, etc.)
- Discusses analytics systems, including edge analytics, cloud analytics, and more
- Examines IoT security best practices
- Details the four IoT market drivers and four IoT market barriers
- Forecasts IoT investment by six layers: connectivity, security, data storage, system integration, device hardware, and application development
- Analyzes how the IoT ecosystem is being using in a number of industries
- Defines Internet of Things terminology within a glossary
Interested in getting the full report? Here are two ways to access it:
- Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now
- Purchase & download the full report from our research store. >> Purchase & Download Now
The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fast-moving world of the IoT.
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