The key elements of an IoT ecosystem are sensors, network connectivity, and a data repository. The value for both users and providers of IoT sensors comes from data analysis that reveals consumer behaviours and preferences which can be used to inform product or service innovation and monetisation. The network basically exists by virtue of the internet. IoT devices allow seamless data capture. Control and analytics of the data layer is key to platform success.
This business model concept will apply for any brand, product or service. The key aspects are how to provide the data collection means (IoT device) as part of the product or service and ensure network connectivity to collect data. As of 2019, 57% of the global population are active internet users which has been driven by 8.2% y.o.y. growth. By contrast, 66% of the global population own a mobile device and 76.5% of these are unique mobile internet users. Mobile and 5G will create more opportunity for IoT platform moves.