The Internet of Things (IoT) is transforming how we interact with technology and the world around us. This blog post explores the key players driving this transformation - companies building in the IoT space. We will examine the regional distribution of IoT professionals, analyse how organisations participate in the IoT supply chain, and conclude by focusing on Industrial IoT and the markets these companies are focusing on.
The data in this blog post comes from the 27th edition of SlashData’s global Developer Nation survey, fielded in Q3 2024. This survey gathered responses from over 7,500 technology professionals, including more than 900 individuals professionally involved in IoT projects - over 50% of whom are decision-makers - spanning both Industrial IoT and Consumer IoT. If you want to look at the general IoT developer population, you can have a look at our full report.
Where IoT professionals are located
Before exploring how organisations engage in the IoT supply chain, we’ll first look at the regional distribution of IoT professionals to provide a general context that can help understand IoT industry dynamics.
The professional IoT ecosystem is heavily concentrated in North America and Western Europe, which together account for 55% of the world’s IoT professionals. This concentration is likely due to the presence of mature ecosystems, advanced infrastructure, numerous market leaders, and strong business networks in these regions. North America leads the pack, hosting nearly one-third (30%) of the global IoT workforce.
North America and Western Europe together account for 55% of the world’s IoT professionals
When compared to the broader technology landscape, North America and Greater China stand out as hotspots for the IoT industry. The concentration of IoT professionals in these regions surpasses the concentration of all technology professionals by at least five percentage points, indicating a stronger interest and focus on IoT. In contrast, South Asia presents a different scenario. Despite being home to 17% of the world’s technology workforce, the region accounts for only 9% of IoT professionals. This disparity could be attributed to infrastructure limitations, skill gaps, or market dynamics that prioritise other technology sectors over IoT.
Deep dive into the dynamics of the IoT supply chain
The digital backbone
Supplying software solutions and operating IoT services are the most common ways organisations participate in the IoT supply chain, with 28% and 26% of professional IoT developers engaging in these activities, respectively. Both activities form the backbone of the digital side of the IoT ecosystem and are deeply interconnected. Software suppliers create the platforms and tools that enable IoT systems to function, while IoT service operators leverage these platforms to deliver solutions such as connectivity management and device monitoring directly to customers. Likely due to this close collaboration and interdependence, we observe that many organisations involved in these activities are leveraging their synergies to expand their value propositions. According to our data, approximately one-third of software suppliers are also operating IoT services and vice versa.
Completing the digital side of the IoT chain are network operators, engaging 19% of IoT professionals, who provide the connectivity infrastructure that enables IoT devices to communicate and exchange data, acting as bridges between physical devices and digital platforms. Similarly, we also observe that many network operators are diversifying their offerings within the digital IoT space, extending beyond infrastructure services. According to our data, at least one-third of IoT professionals working for network operators are also engaged in providing software solutions (40%) or operating IoT services (33%).
The device side
On the physical side of the IoT supply chain, Original Equipment Manufacturers (OEMs) lead the pack. 19% of professional IoT developers work for organisations that design, develop, and market products under their own brands. Other manufacturing-related activities –those performed by EMSs, CEMs, OCMs, and ODMs– each account for 15% or less of organisations in the IoT ecosystem. However, when accounting for overlaps, we find that about half (52%) of IoT professionals are engaged in manufacturing or design activities, closely mirroring the 54% involved in the digital side of the IoT chain. This near-parity highlights how hardware remains just as integral as software and services in shaping the IoT ecosystem.
19% of IoT professionals work for OEMs, which design, develop, and market products under their own brands.
Similar to the digital side, we find strong synergies between different manufacturing activities. Many companies engage in multiple activities to capitalise on operational efficiencies and expertise. For example, 31% of Original Design Manufacturers (ODMs) are leveraging their design capabilities to produce their own branded products, effectively becoming OEMs, while continuing to create custom designs for other customers. Similarly, 30% of Contract Electronics Manufacturers (CEMs) are combining their contract manufacturing capabilities with in-house product development.
Despite the overlaps and synergies observed across both the digital and physical sides of IoT, fully integrated organisations (those managing all aspects of design, manufacturing, software development, and service delivery) remain relatively rare, with only 11% of IoT professionals working for fully-integrated businesses. This suggests that most companies prefer to leverage synergies within closely related areas rather than taking on the complexity of full vertical integration. By focusing on adjacent activities, companies can diversify revenue streams and reduce reliance on a single business function while maintaining operational focus and avoiding the challenges associated with managing end-to-end operations.
The services side
Beyond the core building blocks of the IoT ecosystem (services and devices), technical consultancies (22%) hold a notable presence in the IoT supply chain. This likely reflects the complexity of IoT deployments, where organisations rely on external expertise for solution design, system integration, and implementation strategies. Lastly, at the bottom of the chart, we find value-added resellers and distributors, accounting for only 10% of IoT professionals. These entities play a crucial role in bridging gaps between hardware manufacturers, software providers, and end-users by customising solutions to meet specific needs.
Markets targeted by Industrial IoT professionals
Now that we understand how IoT professionals participate in the IoT supply chain, let’s examine the markets they are currently targeting. For the purpose of this blog post, the analysis focuses exclusively on Industrial IoT (ΙΙοΤ). If you want to explore more insights on consumer IoT, get in touch.
We observe a strong inclination towards industrial and infrastructure-related markets, likely driven by IoT’s ability to enhance operational efficiencies and reduce costs in these areas. Manufacturing is, by far, the most commonly targeted sector, with 35% of IIoT professionals focusing on it, likely driven by the shift towards smart factories under the Industry 4.0 movement. The second most targeted market is smart cities and infrastructure, attracting 24% of IIoT professionals. This highlights the growing role of IoT in urban development, supporting applications such as traffic management, waste management, and public safety systems.
Following closely behind is a diverse set of markets, each targeted by 16% to 20% of IIoT professionals, highlighting the versatility of these solutions. Environmental monitoring (20%) leads this group, likely driven by sustainability initiatives and increasing regulatory requirements. Lastly, the least targeted markets include hospitality and tourism (13%), retail (12%), and defence (7%). While these sectors leverage IIoT for specific applications such as customer experience enhancement or security, they remain less attractive to IoT professionals, likely due to lower overall demand or fewer opportunities to effectively leverage IoT in these markets compared to others.
Are you involved in IoT? Or simply curious about IoT market analytics? This blog post is just a glimpse into the demographic and firmographic insights of IoT professionals that we can offer. For a deeper dive into the world of IoT, we have a wealth of additional data and insights waiting to be explored. Get in touch, and we can talk about the details.
About the author
Álvaro Ruiz, Research Manager
Álvaro is a market research analyst with a background in strategy and operations consulting. He holds a Master’s in Business Management and believes in the power of data-driven decision-making. Álvaro is passionate about helping businesses tackle complex strategic business challenges and make strategic decisions that are backed by thorough research and analysis.