IoT and IIoT Startups – The Internet of Things as the Future of Industry
Today’s article in our Startup Industries series is about IoT and IIoT startups – young companies that develop technologies related to the Internet of Things. But what is the Internet of Things? What is the difference between IoT and IIoT? We would like to answer these questions in our article. We also report on trends and technologies, give an overview of the development of the IoT industry in recent years and present a few exciting case studies of successful IoT startups.
| 1. What are IoT startups?
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6.IoT startup case study: 3D Signals
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| 2. What is the difference between IoT and IIoT?
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7.IoT startup case study: Plus10 GmbH
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| 3. The development of the IoT industry
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8.IoT Startup Cooperation Example: Konux and Deutsche Bahn
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| 4. Trends and technologies
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9. Interesting IoT-Startups
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| 5. IoT startup case study: Cybus GmbH | 10. The future if the IoT industry
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What are IoT startups?
IoT – This abbreviation stands for “Internet of Things”. The most important keyword in this context is connectivity. Because that’s what the Internet of Things is ultimately all about, connecting things to each other. It enables wireless communication between objects. This is mostly software-based and can be incorporated in almost any area where hardware is used and can be equipped with sensors. Some examples of this can be the smart home sector, health sector, agriculture, the construction sector or even the manufacturing industry.
What is the difference between IoT and IIoT?
The manufacturing industry also brings us to the answer to the next question – what is the difference between the IoT and the IIoT? While the IoT, as already explained with the Internet of Things, refers to a very broad field, the term IIoT is much more concrete. The IIoT is the Industrial Internet of Things, i.e. linked objects in the industrial sector. Here, the application areas of the technologies can range from smart manufacturing and logistics to predictive maintenance. The IIoT is a decisive factor for the fourth industrial revolution, or Industry 4.0.
More exciting information and case studies about the Industrial IoT can be found in the podcast by Madeleine Mickeleit on Iotusecase.com.
The development of the IoT industry
In recent years in particular, the Internet of Things and also the IIoT have experienced a strong upswing. The smart manufacturing sector in particular has been able to grow. For example, investments in this sector increased 14-fold between 2013 and 2018. Young companies active in this field and developing innovations are also benefiting from this. In 2018, for example, IIoT startups received over €5.9 billion in venture capital. There are already more than seven billion connected IoT devices worldwide – a number that is growing steadily. Currently, about 127 new devices are connected to the internet every second. The most relevant IoT innovations and solutions include predictive maintenance, monitoring in various everyday areas, and smart manufacturing. We would like to discuss these in more detail below (source: GP Bullhound manufacturing report 2019).
Trends and technologies
Predictive maintenane and smart manufacturing
The most relevant technologies enabled by the IoT, or in this case the Industrial IoT, include smart manufacturing and predictive maintenance. In German, this is referred to as intelligent manufacturing. This method of working is based on the smart networking of people and machines, and forms one of the cornerstones of Industry 4.0. In this form of automation and digitization of manufacturing processes, work steps are monitored with the help of machines, and their data is collected and evaluated. This allows resources to be used optimally, errors to be anticipated and rejects to be avoided. This makes the entire production process more cost-effective, efficient and sustainable.
Smart Cities through IoT
Another topic for which IoT is exciting is the smart city sector. Here, there are a number of use cases in which connectivity plays a significant role. For example, networked solutions can help in the search for parking spaces, but can also be exciting in terms of car sharing or e-mobility. Monitoring and evaluating IoT data in urban spaces can create benefits for many areas. For example, road traffic can be controlled by using sensors to measure the speed of traffic through road surfaces, which can then be optimized by means of intelligent traffic light control. Other case studies include waste management, the coordination of public transportation, or even the safety aspect in public spaces.
Narrowband-IoT
While large amounts of data are processed in the Industrial Internet of Things using Big Data, the trend of Narrowband IoT is more aimed at processing smaller amounts of data. Narrowband is therefore rarely used for smart manufacturing or in the IIoT, but rather for more everyday IoT applications, such as monitoring in the smart home or healthcare industry. Narrowband IoT is a standardized cellular technology. This can significantly reduce energy consumption, and is therefore more cost-effective. As a result, IoT can now be used in many areas where it was previously too expensive and complex. So, in a way, narrowband is making the Internet of Things suitable for everyday use.
IoT startup case study: Cybus GmbH
Hamburg-based startup Cybus Connectware aims to solve one of the fundamental problems of the Internet of Things. This is because many IoT services cannot be connected to each other in a uniform manner, and thus there are sometimes problems with the different interfaces. This is where Cybus wants to come in. With its solution, the young company offers a uniform platform, standardized processes and modular services. In this way, they can offer customers access to all collected data. The startup’s customer groups primarily include service providers and smart factories.
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IoT Startup Case Study: 3D Signals
The startup 3D Signals is also tackling the interface problem. The startup’s solution can be plugged and played into smart factories. 3D Signals needs just one hour per machine to digitize it. In addition, the information gained from the data-based analysis is uploaded to a cloud to ensure optimal overview.
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IoT startup case study: Plus10 Gmbh
The startup Plus10 is a spin-off of the Fraunhofer Institute for Automated Manufacturing Optimization. Their self-learning solution for machines works with the help of artificial intelligence, and lets production become more efficient. High-frequency data from inside the machines is collected, processed with AI technology and transferred to the smart phone in real time. This can increase the output of the production line by 10%. Moreover, the solution is very general and applicable in all industries.
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Here we would like to provide an overview of other exciting IoT and IIoT startups. On our blog you will also find a clear summary of the Young Enterprise Startup Pitches, which took place during the Hannover Messe and in which young companies from the IoT industry present their innovative ideas. Here you can access the first and second part of the Startup Pitches.
| Interesting IoT- und IIoT Startups |
| Smart Manufacturing Startups |
| Beobachtenswerte Industrial IoT-Startups 2021 |
| IoT-Startup Landscape 2021 |
| Industrial IoT-Startups 2020 |
| Forbes top 20 IIoT-Startups 2020 |
Are you looking for IoT or IIoT startups for a specific need? Feel free to contact us, we are happy to support you here as part of our startup scouting.
IoT Startup Cooperation Example: Konux and Deutsche Bahn
The young company Konux was founded in 2014 by Dennis Humhal, Andreas Kunde, Max Hasler and Vlad Latain Munich. The founders have set themselves the goal of digitizing the rail network. With its industrial IoT solution, the startup wants to help make plants more efficient and keep them running optimally. Within this framework, it combines sensors, real-time data fusion and cutting-edge analytics. With its predictive maintenance solution, Konux enables its customers to permanently monitor their infrastructure. Damage can thus be predicted in good time and prevented at an early stage.
With this innovative solution, the young company has already been able to enter into several successful collaborations and win partners. One of Konux’s customers is Deutsche Bahn. The startup helps Deutsche Bahn to monitor its international rail and switch system using predictive maintenance. This enables maintenance costs to be reduced and maintenance measures to be initiated early enough. This in turn reduces downtime and makes train operations more reliable.
The future of the IoT industry
The demand for IoT solutions connectivity and future-oriented technology is increasing. Young companies active in this sector already have a lot of added value to offer through their innovative solutions. Some large companies have already recognized this and are working successfully with startups. It is to be expected that both the innovative power of the technologies and the demand for IoT solutions will continue to increase in the coming years. This offers optimal conditions for successful growth and paves the way for young startups into the future of Industry 4.0. The last challenge still to be mastered in the Iot sector is the introduction of uniform standards and interfaces. Then nothing should stand in the way of the further growth of the Internet of Things and thus also of Industry 4.0.
In addition to our startup scouting, we also offer startup monitoring to help you find the right IoT startup as a collaboration partner.
About Ambivation
Ambivation connects innovative companies and startups for cooperation and innovation partnerships. As an innovation consultancy and matchmaker, Ambivation promotes cooperation between established companies and startups within the framework of concrete customer, supplier and research partnerships. We support companies in the identification of needs, startup identification, startup evaluation and cooperation initiation with startups. Formats such as research on relevant startups, startup monitoring, strategic cooperation consulting or event formats such as startup tours serve this purpose. Our monthly newsletter also provides information on current examples of cooperation and events.
