Bengaluru prime destination for IoT startups in India, study

Bengaluru has emerged as the  prime destination for IoT (Internet of Things) startups to set  up base, as it accounts for 52 per cent of the total IoT  start-ups in India, a study by Management Consulting firm  Zinnov said.

Bengaluru is followed by Delhi NCR with 12 per cent,  Mumbai 11 per cent, Hyderabad 4 per cent, Chenai 2 per cent,  and others together accounting for 19 per cnet.

"A wide availability of talent, thriving ecosystem of  investors, access to industry experts and the presence of  start-up accelerators are contributing to Bangalore's  dominance," Zinnov said in a release quoting from the study.

The study on the IoT start-up ecosystem in India  also reveals that over 120 IoT start-ups were set up in India  in the last decade with more than 80 per cent of them being  established after 2010. Cumulatively, these start-ups have received more than  USD 169 million in funding since 2006, it said.

While indicating that an increasing number of connected devices is expected to propel India's IoT market, the study titled, "IoT Start-ups in India 2017" also states that the funding activity across use cases for such start-ups in India indicate a huge growth potential for them in the country.  

"While the initial wave of growth for IoT start-ups in  India was focused on Consumer applications, the next wave will  be geared towards Industrial IoT," Zinnov Engagement Manager & Delivery Head (G.A.P) Anand Subramaniam said.

He said "in addition, we will also witness a host of  partnerships being crafted between GICs in India and the IoT  start-ups in the near term."

"In addition, we will also witness a host of  partnerships being crafted between GICs in India and the IoT  start-ups in the near term," he added.

Giving specific details about the landscape, the study  said that a 67 per cent of the IoT Startups in India are in  the Infrastructure layer, which includes hardware components  such as infrastructure sensors, embedded chips, MEMS,  actuators, modules, SIM card and system design.

The Applications layer accounts for 52 per cent of the  IoT Start ups in India, it said.

Stating that the IoT Landscape in India is segmented  across three categories based on use cases - Industrial IoT,  Enterprise IoT, and Consumer IoT, Zinnov's study said 47 per  cent of the IoT Startups in India fall under Consumer IoT with popular use cases being wearables, connected vehicles and connected appliances.

Enterprise IoT is a close second place, with 40 per cent share of them, it said, adding that, in terms of funding, MedTech, security & surveillance and retail sensing have the  highest share in the Enterprise IoT segment.

Industrial IoT accounts for approximately 27 per cent  of the IoT start-ups and has received close to USD 65 million  in funding from investors like Tiger Global Management, Blume  Ventures and Qualcomm Ventures.