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IoT Connectivity Management Platforms - Don’t Get Left Behind

Updated: Jun 27

TecFutures is seeing more clients looking to leverage CMPs as a route to revenue growth, as well as an alternative strategy to add value, leverage new market channels, and differentiate their market position.


The IoT CMP Opportunity

IoT connectivity management platforms (CMPs) are essential systems that facilitate the seamless operation of IoT ecosystems by managing device connectivity, data exchange, and security.


Key advantages of these platforms include simplified device provisioning and configuration, efficient network and SIM management, robust security features like encryption and anomaly detection, and scalable architecture to support the growth from a few devices to millions.


They also offer comprehensive data management capabilities, including real-time processing and analytics, which help in gaining actionable insights. Integration capabilities through APIs and SDKs ensure these platforms can easily work with third-party applications and various IoT standards, enhancing their versatility and interoperability.


With the market valued at over US$ 5.4B in 2023, analysts expect CAGRs of 16% to 20% in the next five years fuelled by the continuing growth in the number of connected IoT devices. Moreover, technological advancements offer ongoing opportunities for suppliers to capitalize on the expanding demand for CMPs. However, a forecast does not always match the reality of dynamics and suppliers need to understand the nuances of markets demand in greater detail.


CMP Applications

These platforms find applications across a wide range of industries. In smart cities, they manage infrastructure elements such as streetlights and traffic signals. In industrial IoT, they monitor and optimize equipment and processes to improve efficiency and reduce downtime. In healthcare, these platforms enable real-time patient monitoring and care by connecting and managing medical devices. Additionally, in agriculture, they help in monitoring and controlling processes like irrigation and soil health treatment.


As CMPs become more widespread and capabilities increase, we will see their application in an ever wider set of industries.


Challenges

TecFutures is seeing several barriers to adoption that are impeding market growth and development.



IoT CMP providers may face challenges in achieving their market potential due to several factors:


  • Complexity and Maturity of IoT Solutions: The complexity of IoT solutions and the maturity of the market can pose barriers to adoption. Businesses may struggle to understand the value proposition and implementation process of IoT communications management platforms, leading to slower adoption rates.

  • Lack of Standardization and Interoperability: The lack of standardized protocols and interoperability among IoT devices and platforms can hinder adoption. Compatibility issues between different devices and systems may create integration challenges for businesses, leading to reluctance to invest in IoT solutions.

  • Security and Privacy Concerns: Security and privacy concerns remain significant barriers to IoT adoption. Businesses are cautious about potential vulnerabilities and risks associated with connecting their devices and data to IoT networks, leading to hesitancy in adopting IoT communications management platforms.

  • Cost and Return on Investment (ROI) Uncertainty: High upfront costs and uncertainty about the return on investment (ROI) of IoT solutions can deter businesses from investing in IoT communications management platforms. Without a clear understanding of the long-term benefits and cost savings, businesses may be hesitant to commit resources to IoT projects.

  • Skills Gap and Resource Constraints: The complexity of IoT technologies and the lack of skilled personnel can pose challenges for businesses looking to adopt IoT solutions. The need for specialized expertise in areas such as data analytics, cybersecurity, and network management may limit the ability of businesses to effectively deploy and manage IoT CMPs.


Overall, while IoT CMPs hold significant potential to transform industries and drive innovation, providers may struggle to achieve their market potential due to these challenges.


Growth Actions

Suppliers have essentially two markets to address – the CSPs and enterprises.



To grow their markets, IoT CMO providers can focus on the following strategies:


  1. Understand your Key Markets; Conduct robust research into why your target customers will or will not adopt an IoT CMP solution – look at their motivations, business drivers, barriers to adoption and what they value in a supplier relationship. Remember you need to understand both the CSP market and enterprise markets.

  2. Expand Industry Partnerships: Forge strategic partnerships with industry players, including device manufacturers, software developers, system integrators and IoT solution providers. Collaborating with ecosystem partners can broaden market reach, enable comprehensive offerings and facilitate seamless integration with existing systems.

  3. Invest in Research and Development: Allocate resources to continuous research and development efforts to innovate and enhance platform capabilities. By staying ahead of emerging technologies and market trends, providers can offer differentiated solutions that address evolving customer needs and industry challenges.

  4. Offer Flexible Pricing Models: Provide flexible pricing models tailored to the diverse needs and budgets of customers. This may include subscription-based plans, pay-as-you-go options, or tiered pricing structures that allow customers to scale their usage based on demand and budget constraints.

  5. Focus on Security and Compliance: Prioritize security and compliance features to address customer concerns and regulatory requirements. Implement robust security measures, such as end-to-end encryption, secure authentication, and regular security updates, to protect IoT networks and data from potential threats.

  6. Enhance Customer Education and Support: Invest in customer education initiatives to increase awareness and understanding of the value proposition and benefits of IoT communications management platforms. Additionally, provide comprehensive customer support services, including training programs, technical assistance and documentation, to help customers maximize the value of their investments and overcome implementation challenges.


By focusing on these strategies, CMP providers can effectively address the market opportunity for IoT CMPs for MNOs, MVNOs and enterprise customers in a market that is fast-evolving at scale and offers significant potential.


About TecFutures.

At TecFutures, we help create strategic roadmaps that help to answer the fundamental questions that suppliers need to address in developing new markets. Our Market Acceleration Framework enables our clients to build competitive advantage and drive revenue growth in the fast-evolving IoT landscape.   


We are committed to helping our clients in developing their marketing strategies and tactics for the next wave of technology adoption.


Contact Rysio Pakula at rysio@tecfutures.com to learn more about how we can support your journey towards ongoing success.


Visit www.TecFutures.com to see our advisory and go-to-market solutions, download free content, and to subscribe to our monthly newsletter.


Follow TecFutures on LinkedIn: www.linkedin.com/company/tecfutures 

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