Growth Continues For IoT Market, Creating New Openings For Startups
The demand for IoT technology is expected to grow again after the pandemic caused many organizations to slow down initiatives, underlining the continued opportunities faced by startups that are looking to bring new solutions to the market.
A few months into the pandemic last year, research firm IDC said worldwide IoT spending was expected to slow to 8.2 percent in 2020 and then speed up and reach a compound annual growth rate of 11.3 percent for the next four years. One major IoT silicon provider, Intel, proved these dynamics are now playing out, having reported a return to growth in the first quarter for its IoT business unit after experiencing a revenue decline in the previous quarters.
[Related: The 10 Hottest AI Startups Of 2021 (So Far) ]
“The bottom line is, [operational technology] transformation or IoT projects slowed in 2020 amidst the pandemic and the uncertainty of it,” Intel IoT sales executive Brad Haczynski told CRN in an interview earlier this year. “But what didn’t slow down is what everyone’s talking about now, which is the underlying pace of innovation that really accelerated, and we’re already seeing this massive demand increase for edge technology.”
What follows are the 10 hottest IoT startups of 2021 so far that are meeting the new and evolving needs of digital transformation projects with new IoT analytics solutions, IoT platforms and other kinds of technologies that will fuel continued growth in the IoT market.
For more of the biggest startups, products and news stories of 2021 so far, click here.
Top Executive: Yevgeny Dibrov, CEO
Armis is building out its team to expand vertical coverage and securing new deal opportunities across the world for its agentless device security platform. The Palo Alto, Calif.-based startup in February announced that it had raised $125 million from investors, including newcomer Brookfield Technology Partners, the investment arm of Brookfield Asset Management, which will give the startup access to more than 100 Brookfield-owned businesses across the world. With a $2 billion valuation now, the startup plans to eventually go public. To further expand its business, the company has made key hires to grow its expertise in health care, operational technology and industrial control systems, and it has added Crowdstrike President Michael Carpenter to its board.
Top Executive: John Markus Lervik, CEO
Cognite wants to redefine modern industrial data management with a platform that can contextualize the data of underlying IT and operational technology sources for better operational decision-making. The Austin, Texas-based startup in May announced that it had raised a $150 million funding round led by growth equity firm TCV that brought its valuation to $1.6 billion. With customers in asset-intensive industries like BP, Saudi Aramco and Mitsubishi, the startup is enabling applications for predictive maintenance and product optimization, among others.
Top Executive: Tushar Chhabra, CEO
Cron AI is giving machines the ability to sense and perceive its surroundings with its 3D data perception platform. The Bangalore, India-based startup in May announced that it had raised a $4 million funding round for a global expansion that will begin with Europe and eventually include North America. The startup’s software and hardware platform can perform deep learning inference at the edge to enable a variety of applications, ranging from autonomous vehicles and robotics to intelligent transport infrastructure and security. The startup recently announced that it will use Innoviz Technologies’ solid-state LiDAR technology to enable improved object detection and tracking.
Top Executive: Yaniv Vardi, CEO
Claroty has big ambitions of becoming a publicly traded cybersecurity software provider for industrial IoT and operational technology environments. The New York-based startup announced in June a Series D funding round to expand “significantly” into new verticals and geographies, and it said the round will likely be its last before it files for an initial public offering. The round comes after the startup has made expansions into new verticals like transportation and food and beverage and introduced a new Secure Remote Access offering, which can shut down attacks that happen through remote sessions.
Top Executive: John Joseph, CEO
Datanomix is helping manufacturers modernize their factories with what it calls the “industry’s first hands-free, plug-and-play production and operations monitoring solution.” The Nashua, N.H.-based startup announced in May that it has raised $6 million in Series A funding from investors to expand sales, marketing, customer success and engineering. The startup’s Datanomix Fusion solution ingests data from manufacturing equipment and provides factory and job performance insights in simple terms. Among the startup’s customers are Mitsubishi Electric, MT Connect, Fanuc and DMG Mori.
Top Executive: Christian Struve, CEO
Fracttal wants to make it easy to optimize maintenance operations from the palm of your hand with its cloud-based, mobile-first asset management solution. The Santiago, Chile-based startup announced in June that it has raised a $5.3 million funding round to grow its operations in Spain and Latin America as well as expand to Europe and the United States. With a roster of customers that include Unilever and FedEx, the startup’s Fracttal One solution can manage the maintenance operations of any type of asset, including vehicles, machinery and equipment. The startup also has an AI-enabled predictive maintenance tool called Predictto that can anticipate equipment failures.
Top Executive: Bill Bither, CEO
MachineMetrics is building the foundation for the factory of the future with its data collection and analytics solutions for manufacturing operations. The Northampton, Mass.-based startup announced in June that it had raised a $20 million Series B funding round led by Teradyne, a major provider of industrial automation and robotics solutions. The startup says its Industrial Data Platform is used by hundreds of customers, who range from small contract manufacturers to large OEMs, to get remote visibility for predictive maintenance, machine monitoring and process optimization.
Top Executive: Stefan Kalmund, CEO
Nexxiot is bringing IoT to rail freight transport with a hardware and software solution that digitizes non-powered cargo transport assets, giving them increased efficiency and reducing waste that is caused by empty runs and inefficient routes. The Zurich, Switzerland-based startup announced in June that it had raised a $25 million funding round from investors to expand its presence in North America and invest in research and development. The startup says it’s now one of the “largest rail freight and tank container IoT providers” with customers in more than 160 countries.
Top Executive: Sanjay Sharma, CEO
RoamBee is helping companies automate their supply chain and logistics operations with its on-demand goods and asset monitoring solutions. The Santa Clara, Calif.-based startup announced in March that it had raised more than $18 million in a Series B1 funding round that will be used to invest in technology, services and go-to-market ahead of a Series C round that is planned for the second quarter. With its goal to provide better supply chain visibility at scale, the startup made two acquisitions in the last two months: Arnekt, a cloud analytics services firm, and Modum, a cold chain monitoring provider that focused on last-mile delivery for the pharmaceutical industry.
Top Executive: Steve Sliwa, CEO
Seeq is helping engineers and data scientists at process manufacturers uncover new insights with an advanced analytics platform. The Seattle, Wash.-based startup announced in April that it had raised a $50 million Series C round led by private equity firm Insight Partners, with participation from Cisco Investments and major investors in the oil and gas space, including Chevron Technology Ventures and Saudi Aramco Energy Ventures. The startup says it has customers in oil and gas, pharmaceutical, chemical, energy, mining and good and beverage, and it relies on a global network of system integrators to drive sales in more than 25 countries.