The rise of new IoT-enabled business models

The Internet of Things (IoT) has emerged as a transformative force, reshaping industries and unlocking unprecedented opportunities for businesses worldwide. The Indian IoT market is poised for exponential growth, fuelled by favourable government initiatives, technological advancements, and increasing digitalisation across industries. 

According to a report by NASSCOM, the IoT market in India is expected to reach USD 15 billion by 2025, with significant contributions from sectors such as manufacturing, healthcare, agriculture, and smart cities. The proliferation of IoT devices and the exponential growth of data these industries generate have paved the way for innovative business models centred around IoT data monetisation. 

From Platform as a Service (PaaS) to decentralised IoT networks, businesses are exploring diverse avenues to capitalise on this data-driven revolution.

Platform-as-a-Service has become a cornerstone for IoT-enabled businesses, offering a comprehensive suite of tools and services for managing IoT applications.

In India, the Centre of Excellence for IoT (CoE-IoT) in Bangalore is a key part of the Digital India initiative, aiming to unite startups, enterprises, and the government to tackle real-world challenges using IoT and frontier technologies like AI, big data, and AR/VR. Supported by a co-working space and an innovation lab with advanced facilities, the initiative also benefits from government schemes like the Production Linked Incentive Scheme, now extended to smart meters. Additionally, the government has allocated Rs 1 lakh crore (USD 12 billion) to the Smart Cities Mission to further IoT deployments.

India's IoT ecosystem is encouraged by robust mobile Internet penetration (48%), driven by expanding 4G networks and affordable services. Mobile operators have invested in NB-IoT networks, with 95% population coverage, fostering IoT growth. The country hosts a thriving community of device manufacturers, integrators, and startups, with IoT solutions emerging across utilities.

PaaS: Empowering Businesses

Platform-as-a-service (PaaS) has become a cornerstone for IoT-enabled businesses in India. These platforms offer a comprehensive suite of tools and services for developing, deploying, and managing IoT applications. Companies like Bosch IoT Suite, Tata Communications' IoT Marketplace, and Wipro Holmes IoT Platform have gained traction in the Indian market, providing scalable solutions for IoT data management and analytics. 

SaaS has revolutionised how businesses leverage IoT insights to deliver predictive maintenance solutions and remote monitoring services.

The PaaS model enables businesses to streamline operations, enhance efficiency, and drive innovation by harnessing the power of IoT data. A fully integrated, self-care platform for IoT asset management further strengthens the data-driven revolution. It enhances business efficiency by connecting, controlling and managing customers’ IoT assets remotely through a single dashboard, future-proofs IoT deployments by offering fully integrated IoT connectivity and device management on a single platform, and flexible and easy-to-integrate APIs with third-party applications. This helps seamlessly manage IoT assets and in-life operations. 

SaaS: Leveraging IoT Insights

Software-as-a-service (SaaS) has revolutionised how businesses leverage IoT insights to deliver predictive maintenance solutions, remote monitoring services, and asset performance management tools to customers. 

Businesses can create new revenue streams by offering value-added services based on IoT insights. These could include premium analytics dashboards, consulting services based on data insights, or subscription packages that include IoT monitoring and support. For instance, startups like Altizon Systems and Flutura Decision Sciences have developed AI-driven SaaS platforms that empower industries such as manufacturing, healthcare, and agriculture to optimise processes and improve decision-making based on real-time IoT data. 

A leading logistic solution provider, Freight Tiger offers an IoT-enabled freight management platform that leverages freight data to provide insights and help optimise operations and distribution. This smart platform brings together location intelligence, visibility fulfilment, freight management, and payment transaction details in one place. It helps provide actionable recommendations based on the data to improve logistic efficiency and streamlined operations. 

Asset Sharing and Pay-Per-Use Models

Asset sharing and pay-per-use models are disrupting traditional business paradigms across various sectors in India. Companies are now sharing vehicles, optimising their usage and maximising ROI through IoT-enabled tracking and monitoring systems. In industries like logistics, transportation, supply chain and agriculture, companies are sharing their resources like vehicles, warehouses, and collaborative robots by leveraging IoT solutions. 

This helps monitor vehicle fleets, track inventory, reduce costs, and optimise resource allocation. Pay-per-use models, facilitated by IoT sensors and smart meters, are gaining momentum in utilities. In these models, consumers pay based on actual consumption, promoting sustainability and cost-effectiveness. 

Government bodies like the Ministry of Housing and Urban Affairs are also repowering smart transport initiatives, employing IoT for traffic management, vehicle detection, and electronic fare systems in cities like Navi Mumbai, Pimpri-Pune, and Raipur.

Companies are now sharing vehicles, optimising their usage and maximising ROI through IoT-enabled tracking and monitoring systems.

Drone applications are also gaining traction, supported by national drone regulations and aspirations to establish India as a global drone hub by 2030. Primarily used for healthcare, food, and last-mile services, drone deployments are currently in the trial and proof-of-concept phase, reflecting the rapid growth of the drone startup landscape.

Driving Innovation and Security with Decentralised IoT

Decentralised IoT networks are emerging as game-changers in the Indian landscape, offering enhanced security, scalability, and interoperability. Blockchain technology, coupled with IoT devices, enables secure data exchange and transactional integrity, eliminating single points of failure and reducing the risk of cyber threats. Globally, startups like IoTeX, IOTA, and Indian startups like Transo, O’RIGHT, and Datoms are pioneering decentralised IoT solutions, empowering businesses to build transparent ecosystems for data monetisation while ensuring data privacy and sovereignty.

The rise of new IoT-enabled business models is reshaping the Indian business landscape, unlocking unprecedented opportunities for innovation, efficiency, and growth. From PaaS and SaaS solutions to asset sharing, pay-per-use models, and decentralised IoT networks, businesses are harnessing the power of IoT data to drive value creation and competitive advantage. As the IoT ecosystem continues to evolve, businesses that embrace data-driven strategies and leverage IoT technologies will emerge as leaders in the digital economy, shaping the future of industries across India and beyond.

By Amit Satpathy

The author is EVP and Head of IoT Business at Vodafone Idea.