The Internet of Things market is booming these days. IoT devices are everywhere – smart houses, security and alarm systems, city lighting, etc. The development of connected devices by companies of different scale – from Internet of Things startups to industry giants, – is increasing every year, and it requires complex management software.

Today, thanks to the development of the Internet, computer, and wireless technologies, we are only a step away from the emergence of truly intelligent houses; we are moving forward rapidly, nearing the future once only dreamed by science fiction writers.

So how does the future of the very same technology look from today’s perspective? Will the Internet of Things remain the next years’ main trend? Would it be profitable for startups and large enterprises to dive into the IoT development, home automation and applied industries?

Internet of Things (IoT)

Beyond doubt. Numerous success stories, contests and conferences attract plenty of attention from business angels and venture capitalists. The success prospects of the IoT market can be showcased by startups like Dropcam, Petcube and Nest, who turned into multi million (or even billion) companies in just a few years.

McKinsey&Company predicts that the potential economic impact of the IoT market would exceed USD 4 billion by 2025 with expected CAGR of around 30%. And that’s by the most pessimistic calculations. Meanwhile, IHS forecasts that global quantity of the installed IoT devices will rise from 15 billions devices in 2015 up to 30 billions by 2020.

This is why the IoT market is a real tidbit for startups. Especially one of its core domains – Smart Home.

Smart Home (Home Automation)

Smart Home domain gives plenty of opportunities to entrepreneurs and developers, as it is applicable to many areas. Imagine the most obvious subjects of the smart house tech:

  • safety and security
  • smart climate control
  • automatic lighting
  • automatic powering down of home appliances
  • smart fridge that can order food, etc.

The increasing popularity of the Smart Home theme can be evidenced by search analytics and the amount of thematic articles in authoritative media and IT-communities.

Transparency Market Research forecasts that by 2020 smart home market volume will reach USD 20 billion, while Markets And Markets predicts that by 2022 this number may rise up to USD 120 billion.

Software Developers

Being an IoT startup you should keep in mind both the development of hardware (devices) and software (an application, or set of apps to manage devices and data of your Iot system).

Obviously, not every IoT startup can afford to hire a whole software development team in-house. A much wiser decision is to partner with a software development company that has a good expertise in the IoT development, Big Data and security. By outsourcing app development to external IT company you can focus on your core business processes and get lot’s of other rewards.

You can commission to your software partner the following things:

  • development of all kind of applications
  • designing and development of your website
  • building and setting up your server, back end
  • embedded programming
  • designing and development of interfaces for your smart device
  • many and many more.

Summary

Bill Gates in recent years became a smart home technology evangelist. Moreover, his own home, ‘Pacific Lodge’, located on the shores of Lake Washington, is among the first fully automated houses in the world. The fact that the earth’s main IT visionary is confident about the technology is sufficient evidence of its prospects, isn’t it?

But today Internet of Things is far beyond smart houses, in various areas. A more to come. The success of individual entrepreneurs and entire IoT companies depends on how quickly they will notice the changes, new opportunities and begin to adjust themselves.

Progress cannot be stopped, and how successful Internet of Things companies will become depends on how flexible they are. Automated homes and the IoT today is the direct path to a lucrative future.