Article contributed by Callum Turcan, Corum Group
In 2023, the global IoT market was worth $596 billion and is expected to grow at a 24.3% CAGR through 2032 to reach over $4.06 trillion. The number of households using smart speakers is forecasted to reach 335.3 million by 2027, up from 131.4 million in 2022, while the number of households using smart appliances is projected to rise to 177.6 million by 2027, up from 73.1 million in 2022.
Demand for companies providing IoT solutions is strong from strategic and financial acquirers. Growth in the number of connected devices is driving up interest in offerings that enable IoT operations. There are six trends driving M&A activity in the IoT sector in 2024 including security, smart cities, AI, healthcare applications, edge computing and 5G.
Starting with our first trend, security. Enterprises need modern solutions to protect sensitive information being collected and transmitted by connected devices. Highlighting this trend, aDolus Technology, a supply chain risk visibility platform, was acquired by Exiger in July 2024 to extend its Ion Channel platform to cover software bill of materials analysis to binaries with no SBOMs.
Pivoting to our second trend, smart cities. Organizations are turning to technology to improve road safety and reduce the chance of accidents. Showcasing this trend, Trimble's global transportation telematics business units were sold to Platform Science in September 2024 to advance fleet mobility and provide its customers with a broader portfolio of solutions.
Moving on to our third trend, AI. This technology generates actionable insights and automates routine and complex tasks. Illustrating this trend, Xirgo Technologies, a developer of AI-powered telematics systems and data analytics software that covers IoT sensing services, was bought by Balmoral Funds in September 2024 to support product development and market expansion activities.
Shifting to our fourth trend, healthcare applications. Connected devices are monitoring patients to improve outcomes and reduce costs. Highlighting this trend, Vizzia Technologies, a provider of hardware-agnostic, full-service real-time location systems platforms for the healthcare industry, was acquired by HID Global in July 2024 to expand its footprint in the RTLS healthcare space.
Our fifth trend is edge computing. Companies can realize substantial operational improvements by processing data closer to where it’s generated. Showcasing this trend, Coredge, a provider of sovereign AI, cloud and edge computing solutions, was sold to Sirius Digitech in September 2024 to enhance its market position and better address global demand for its offerings.
Lastly, our sixth trend is 5G. This technology is enabling the potential of connected devices by improving their ability to transmit data. Illustrating this trend, Capestone, a developer of 4G and 5G IoT solutions covering machine-to-machine and IoT connectivity systems, was scooped up by OptConnect in October 2024 to increase its global coverage and the number of markets it can support.
Buyers are eager to acquire IoT companies that map to any of these 6 trends. The sector is racing to implement AI technologies into their operations to improve their competitive position and bolster their solutions that enable companies to make the most of AI.
