Professional services are driving Internet of Things (IoT) revenues today but will be displaced by IoT software platforms and analytics revenues starting in 2019, according to ABI Research.

New data from ABI’s IoT Market Tracker shows that professional services, such as mobile, Web and server-side application development, systems integration and consulting. are driving more than 40% of global IoT revenues today. By 2019, software platforms and analytics services will each drive more revenues globally than professional services in IoT markets.

“There are many companies today [that] believe they can build their own IoT solution with the help of system integrators and VARs,” Day Shey, vice president and IoT practice director at ABI Research, said in statement. “Some companies require a customized solution due to their own requirements and very complex systems. However, not all of these efforts yield the results hoped for, and they miss out on the efficiencies provided by a vast supplier base offering IoT software platforms.”

IoT software platform suppliers provide tools and services to greatly simplify extracting data from machines and things, managing them and building IoT applications, the firm says.

This group consists of a well-established set of suppliers that have focused their platforms on vertical markets led by vendors serving the OEM and fleet telematics segments. But it also consists of platform vendors offering everything from specialized services to a whole software stack including applications development.

ABI Research thinks “verticalized” platforms will continue to hold the largest share of the IoT software platform market with new growth provided by the smart home and healthcare segments.

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