Zinnov recently released a comprehensive study on the IoT startup ecosystem in India. The study reveals that over 120 IoT startups were set up in India in the last decade with more than 80 percent of them being established after 2010.
The study titled, “IoT Startups in India 2017”, reads that cumulatively these startups have received more than USD 169 million in funding since 2006. A location analysis of the same also reveals that Bangalore accounts for 52 percent of the IoT startups in India. A wide availability of talent, thriving ecosystem of investors, access to industry experts and the presence of startup accelerators are contributing to Bangalore’s dominance.
Giving specific details about the landscape, the study read that a 67 percent of the IoT startups in India are in the infrastructure layer, which includes hardware components such as infrastructure sensors, embedded chips, Micro Electro Mechanical Systems, actuators, modules, SIM cards, system design, drivers, etc. The applications layer accounts for 52 percent of the IoT startups in India.
The IoT landscape in India is segmented across 3 categories based on use cases – Industrial IoT, Enterprise IoT, and Consumer IoT. 47 percent of the IoT startups in India fall under Consumer IoT with popular use cases being wearables, connected vehicles and connected appliances. Enterprise IoT is a close second place, with 40 percent share of them. In terms of funding, medical technology, security & surveillance and retail sensing have the highest share in the Enterprise IoT segment. Industrial IoT accounts for approximately 27 percent of the IoT start-ups and has received close to USD 65 million in funding from investors like Tiger Global Management, Blume Ventures, Qualcomm Ventures etc, it reads.
“While the initial wave of growth for IoT start-ups in India was focused on consumer applications, the next wave will be geared towards Industrial IoT. Use cases such as remote monitoring, predictive maintenance, and warehouse automation will become mainstream. In addition, we will also witness a host of partnerships being crafted between GICs in India and the IoT start-ups in the near term,” said Anand Subramaniam, engagement manager and delivery head (G.A.P), Zinnov.
The released Zinnov study clearly said that an increasing number of connected devices are expected to propel India’s IoT market. It also added that the funding activity across use cases for IoT start-ups in India indicate a huge growth potential for them in the country.