Why invest in IoT stocks?

Al Sisto

Blog by: Al Sisto - 1 / Jun / 2022

Crypto may be the tech buzzword of the decade, but IoT is silently eating up market share in investors’ pockets. Internet of things (IoT) devices are working their way into every home, warehouse and storeroom at an alarming rate. Help Net Security says, “Investment in IoT is set to overtake cloud computing, [next-generation] security, big data analytics and other digital transformation technologies in the near future, according to Inmarsat.” So, if you’re wondering why you’d invest in IoT stocks, read on.

What is IoT?

Internet of Things or IoT devices are connected monitors, sensors and input devices that work together to provide for real-time reporting, AI, tracking, machine learning, automation and other useful functions. There is a wide range of companies working in this space, both as hardware and software suppliers. And in North America and the EU, budgets are largely expected to increase as companies work with expert IoT deployment partners  to find creative ways to use IoT in their operations.

What are IoT stocks?

IoT stocks are the public listings of device manufacturers and SaaS companies related to IoT technology. And they’re becoming a popular investment. According to Tech Informed, “IoT takes, on average, 7% of a [business’s] IT budget between 2017 and 2020, and it is set to rise to 10% over the coming years. Organisations across all industry sectors are planning to spend an average of $2.8 million on their IoT investments through to 2024. Intended investments into IoT are higher than other industry 4.0 technologies such as cloud computing (9%), next-generation security (7.5%), big data analytics (7.3%), robotics (5.3%), machine learning (4.8%) and virtual reality (4.3%).”

Popular IoT companies include:

  • Qualcomm - A popular name in WiFi and connectivity, Qualcomm is obsessed with creating smart cities. And with the global focus on sustainability; including COP26, this makes them one to watch.
  • Fastly - Fastly is a major cloud computing player from the Bay area. According to The Stock Dork, “... Fastly could see steady growth over the next few years as major companies require edge cloud services.”
  • Dexcom - Dexcom is a pioneering Meditech company. They’re committed to helping sufferers of diabetes manage their diagnosis and live healthier lives.
  • Amazon - While primarily an online retailer, its cloud computing unit boasts consistent gains. And their in-home and mobile voice assistant - Amazon Alexa - is nearly ubiquitous in western homes.

Why should you invest in IoT stocks?

IoT has been labelled as the power behind the fourth Industrial revolution, driving increases in productivity, transforming business models and redefining the way that organisations interact with their customers , stakeholders and suppliers. As such, it is a revolution that is set to be bigger and more pervasive than those that have gone before. Therefore it is of  little surprise that the world’s biggest and most trusted analysts including Gartner, McKinsey and PWC are all forecasting that the sector will return $Trillions of revenues per year by 2025.  And it’s this uplift that makes IoT an increasingly popular investment choice for millions of people.

 

 

Topics: IoT, IIoT, IoT investment

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