In the early 1980s, a graduate student at Carnegie Mellon University’s computer science department found himself in a bit of a predicament. David Nichols was craving a can of soda from the campus’ Coke machine, but was reluctant to take the time to walk from his office across the campus, only to find an empty machine or, even worse, a machine that had been recently restocked with warm Coke cans.
This incident prompted David to enlist a few friends to help him invent a system that could track the contents of the machine remotely. They installed a board connected to the ARPANET (the forerunner of the internet) that could report the status of the machine’s empty column indicator lights, thus keeping any Coke-drinkers well-informed.
Launched in 1982, the program was a hit with university students (and eventually rolled out to a neighboring M&M’s machine) and is widely assumed to be the world’s very first Internet of Things (IoT) device.
Fast-forward 38 years and there are now 26 billion IoT devices with 127 new devices connected every second.
These encompass every kind of smart-household item you can imagine from trash cans to AI-powered toothbrushes and dirty diaper sensors. But it is in industrial businesses where IoT is making a huge impact.
It’s predicted that the IoT device market will reach $1.1 trillion by 2026, aided by the evolution of enabling tech like 5G. Its applications for businesses are many and varied, which explains the 1,018 start-ups developing IoT products or services today and the $3.6 billion in funding that was awarded in 2019 alone.
More than 80% of industrial manufacturing companies are either using or intending to use IoT devices. Here are seven of the top IoT start-ups that look set to transform businesses in 2020.
7 IoT Startups You Should Keep an Eye On This Year
1. Bright Machines
Bright Machines promises to transform manufacturing efficiency through its development of the first-ever customizable, software-defined Microfactories, which use machine learning, robotic cells, and computer vision to improve product assembly and inspection processes through automation. Recent case studies have shown a 60% increase in productivity.
Founded in May 2018, the start-up launched its Microfactories in June 2019, has already received $200 million in funding and is currently valued at $679 million.
2. Dragos
Founded in 2016, Dragos developed a cybersecurity platform that caters specifically to manufacturers, providing asset identification, threat detection, and response capabilities. Its mission is to safeguard civilization via the cyber-protection of industrial organizations that provide vital services including running water and safe industrial working environments.
In the past two years, Dragos’ headcount has grown by over 300% and recently acquired NexDefense, a provider of industrial controls system (ICS) visibility technology.
Given that manufacturing was recently ranked as the most at-risk industry with the highest percentage of exposed sensitive files, this is definitely a start-up a lot of businesses will get behind in 2020.
3. READY Robotics
Originating from John Hopkins University’s robotics research, READY Robotics developed Forge, an industrial robotic software. Boasting smartphone-like simplicity, Forge’s OS aims to level the automation playing field for all manufacturers (great and small), eliminating brand dependency, reducing skills gaps, and enabling easy robotic motion control. The company has grown by over 150% in just two years.
4. FogHorn
FogHorn recently collaborated with ADVICS and Macnica Networksto launch its ground-breaking FogHorn Lightning edge computing software platform. The platform is equipped with AI capabilities, embedding edge intelligence as close to the source of sensor data as possible and enabling unprecedented low latency for onsite data processing.
The start-up has received $47.5 million of investments from companies including GE, Dell, Bosch, Saudi Aramco, Honeywell, Intel, and Yokogawa.
5. Element Analytics
Element Analytics’ Platform assists manufacturers with the rapid use of industrial time-series data to improve production efficiency, product quality, and safety. The platform creates “digital twins,” or digital replicas of physical equipment and assets which enable easy and accurate data analysis. The technology provides insights including potential equipment failures and how to optimize operations.
Element’s investors include Honeywell, GE Ventures, KPCB, and Schneider Electric.
6. GEM
GEM provides machine learning platforms and solutions that help manufacturers gain real-time insights into the effectiveness of their equipment with a focus on predictive maintenance and Overall Equipment Effectiveness (OEE). Its smart manufacturing platform creates digital twins of manufacturing equipment, adding connectivity and big data analytics that impact corporate bottom lines.
GEM’s partners include SAP, Intel, Aegis Software, and Informatica.
7. Sight Machine
Sight Machine has partnered with some big players including Google, BCG, Microsoft, and Cisco to deliver its digital manufacturing solutions. Self-proclaimed as the SAP of industrial data, the company has received approximately $85 million worth of funding and aims to help discrete and process manufacturers with the problem of data variety. The smart manufacturing platform provides manufacturers with real-time visibility, providing actionable insights for managing day-to-day production and optimizing operations.
