By 2026, IoT data management services will reach $42.9 billion

Currently, data integration, real-time stream processing, and analysis services belong to the category of data management services in the IoT value chain, and each link in the IoT value chain has also achieved rapid growth. According to estimates by ABI Research, IoT data management services will grow rapidly in the next five years, and the market size is expected to grow from USD 10.1 billion in 2020 to USD 42.9 billion in 2026.

The emergence of stream processing and analytics solutions provides the impetus for data-based decision-making and enterprise insights. Currently, stream processing and analysis are divided into two major vendor groups and genres: cloud-first and edge-first.

Azure, AWS, IBM Microsoft, Cloudera, Informatica, Software AG Apama, and TIBCO have focused their data management services on a cloud-centric approach, which is an improvement to the existing products and functions in the full-stack end-to-end IoT portfolio supplement.

“Edge vendors are expanding their Streaming as a Service (SaaS) offering toward hardware-agnostic systems. The embedded event streaming and ingestion capabilities packaged as purpose-built, off-the-shelf SaaS has a pre-built application logic and an industry-specific “way” to handle data,” says Kateryna Dubrova, Research Analyst at ABI Research. “Effectively, everyone is attempting to move from a service market to productized out-of-the-box SaaS in relation to streaming technologies.”

Interestingly, data management and streaming services have been deeply influenced by Apache Project open source technologies such as Spark and Flink. IBM, Confluent, Azure, and AWS have adopted open source technologies in their IoT product portfolios. “The adoption is largely driven by the cost incentive to reduce the capital investment for the end-users as well as appeal to enterprises with existing open-source legacy infrastructure. In contrast, companies like Striim, SWIM.ai Guavus are offering streaming analytics services only reliant on proprietary technology.”