How to use Custom IoT App Development for a Startup?
In our previous article, you could find some food delivery trends. Despite the overloading of the food delivery, we are sure there is always a place to fit into if to use neighboring niches. Today, we would like to pop into the Custom IoT App Development world. From the fitness tracker on your wrist to the smart speaker in your office, you would probably agree that the world is now driven by the internet of things!
If you’re looking for a startup idea, this particular niche is now a very lucrative one to get into. However, it also has its pitfalls.
In this article, we’ll look at what the internet of things startup is, why it is so popular with investors, and how you can build a business in this particular sector.
Table of contents
- What is the internet of things?
- Which industries use the custom internet of things app development?
- Why is the internet of things startups so popular?
- Our top tips for launching a custom internet of things-related startup apps
- In conclusion
- Frequently Asked Questions (FAQ)
- Want to get your custom IoT startup app up and running? You are launched can help
What is the internet of things?
The internet of things (or IoT for short) is the network of connected devices that work together to exchange data with other devices and systems.
Custom IoT startup devices are pieces of equipment that have internet connections in them, either through the internet or through BLE and phone. And for this purpose, we would need to have a custom app developed. For example, although your smartphone wouldn’t be seen as a custom IoT device, your fitness tracker or smartwatch would be!
Here are some examples of custom IoT devices you may already have around the home include:
- Smart lightbulbs
- Fitness trackers and smartwatches
- Smart speakers and digital personal assistants (for example, Amazon Echo and Google Nest)
- Internal and external security cameras and motion sensors
- Tracking sensors
- Smart thermostats
Odds are, if your device has ‘smart’ in the name and is controlled by an app on your phone, it’s a custom IoT-connected device!
The custom IoT is powered by what is known as the edge cloud. This is a subset of cloud technology, which manages data as close to connected devices as possible. The edge cloud allows devices to work quickly and efficiently. For example, with self-driving cars, data must be processed as soon as possible, to ensure quick decision-making and reduce the risk of accidents.
More information about edge cloud technology.
Which industries use the custom internet of things app development?
Alongside the connected devices in your home, the custom IoT app development is used across a range of industries to automate simple tasks as well as make data collection and transfer easier.
Here are some of the industries making critical advances in the internet of things.
- Healthcare. Custom IoT devices are being used in the medical industry to help save lives. As well as the fitness devices that were mentioned earlier in this article, automated insulin pumps, and ingestible sensors are making it easier for people to manage chronic conditions. Smart devices like security cameras and thermostats are also allowing older people to live independently in their homes for longer
- Utilities. Smart meters can be frequently found in homes and offices around the world. These sensors mean that companies don’t have to pay people to read meters, and customers can take steps to reduce their carbon footprint
- Retail. From supermarkets to clothing outlets, custom IoT sensors can help boost profits. Stock rooms have sensors so that businesses can see when they are running out of certain items. Sensors can be used to see how customers shop in stores, meaning that companies can use psychology to make sure people spend as much money as possible
Even more:
- Agriculture. Smart sensor technology can be used to help farms and food providers create maximum output with minimal waste. Sensors in greenhouses can automate temperature and humidity, with drones used to carry out basic tasks like spraying and planting crops
- Manufacturing. The manufacturing industry was one of the first to utilize Custom IoT technology. Sensors on equipment can be used to monitor output, allow processes to be controlled remotely, and identify when equipment needs to be repaired
- Town planning. Smart cities are the cities of the future, with sensors in lifts, escalators, traffic lights, and security cameras being used to build a picture of how people and vehicles move around. For example, IoT technology can be used to monitor pedestrian movements and see if people are adhering to social distancing guidelines
Why is the internet of things startups so popular?
The internet of things startup has been talked about since the 1980s and 1990s, but it’s only in the last decade that the use of connected devices has skyrocketed.
Why has this been the case? Technology has become more advanced and more affordable.
- Custom IoT devices are cheaper to design, manufacture, and ship
- The rollout of 5G technology means that it is easier for IoT devices to stay connected. It’s estimated that by 2025, 5G will cover a third of the world’s population.
- Wi-Fi is seen as more of an essential need, with more households and public places having access to broadband and cable. It’s estimated that nearly 9 out of 10 homes in the US now have some kind of internet subscription, compared to 4 out of 10 homes in the year 2000
- There is more access to data available, making it easier for IoT devices to make decisions quicker and more effectively
- Artificial intelligence (AI) has significantly advanced in the last few years. AI makes voice technology more viable and allows IoT devices to converse with people
The generations coming of age have grown up in a world of technology and connected devices. Millennials are more likely to use technology than their Gen X and Baby Boomer counterparts, with 93% of Millennials owning smartphones compared to 68% of Baby Boomers.
Our top tips for launching a custom internet of things-related startup apps
Three out of four IoT startup companies fail. This makes it a challenging niche to get into. Get it right though, and it is a worthwhile investment. Google bought Fitbit in 2019 for an incredible $2.1 billion!
If you’re considering building your startup company around the internet of things, there are a few things you need to take into consideration.
1. Find your unique selling point
As the IoT startup market grows, so does the competition. For example, Apple, Fitbit, Huawei, Samsung, BoAt, and Xiaomi are all big players in the wearables market!
This means that you have to make sure that your product stands out in a crowded market. Do your research, see what your competitors are doing, and put together a thorough business plan.
Does your product solve a problem that your target audience has?
Remember that your IoT startup does not necessarily have to design and manufacture a connected device. For example, it could be a SaaS that helps businesses optimize their websites for voice search or a startup company that securely connects equipment to the edge cloud.
After all, all IoT startup devices need a thorough infrastructure in place to help support them.
2. Avoid novelty products
You may think that your idea is funny and will raise a few smiles, but will it have longevity in the market?
Many IoT devices fall into the trap of offering a solution to a problem that nobody has.
For an example of an IoT device that dramatically failed, take Juicero. This Wi-Fi-enabled juicing machine cost $400, with critics commenting that you could do a quicker and cheaper job just squeezing fruit with your hands. Even though the device raised $120m in investment, it closed down 16 months after launch.
Another example of an IoT device that did not do as well as expected was the Quirky Egg Minder. This was a smart egg tray that told you when eggs were going bad. In reality, there are a lot of ways you can tell that eggs have gone off… including checking the expiry date stamped on them! Although the product is still around today, the company had to slash the price from $100 to $9 to get people to buy it!
Customer research is critical. Will your target audience be interested in your idea, or do you need to go back to the drawing board?
3. Make sure your custom idea is yours and yours alone
IP issues can pose a significant problem for startups. Not only can they waste time and resources, but they can make it harder for businesses to get investments in the future.
As the market for custom IoT devices is so broad, it can be easy to accidentally use other companies’ ideas. Take the time to research potential IP clashes. Working with a lawyer who specializes in intellectual property law can save time and money in the long term.
Btw, you would need to build a prototype, check here how to do that.
4. Get the right people on board
Only 20% of professionals working in IoT-relevant fields say they believe they have the right skill set for implementing IoT.
This means that it is crucial to get the right people on board from the very beginning.
If technology isn’t your strong point as a founder, it’s critical to hire the right people with the relevant skills, either as permanent staff or on a consultancy basis. Getting the architecture of your device right is essential.
So, if you’re looking for angel investment or venture capital funding, working with someone who has prior experience in the industry could prove to be a significant advantage.
Many founders with experience with failed custom IoT startups cite a phenomenon called the Dunning-Kruger effect. This is when people think they are more skilled in a particular area of expertise than they actually are.
What does this mean for your startup? It means that you may think you know all there is to know about the internet of things, but this isn’t the case.
You would need to know how to split shares, so here is a guide for this.
5. Pivot where you have to
It’s especially important to be flexible in this particular market. If it looks like your IoT device or support service is not working for you, can you be flexible and move to an alternative plan?
Take, for example, Amazon Dash buttons. These were physical buttons that customers could keep at home. By pressing them when they were low on a specific item, Amazon would automatically place an order.
In 2019, Amazon announced that it was no longer selling the buttons. People were using their Amazon apps and digital personal assistant devices to order products instead, reducing demand for physical buttons.
p.s. you can try to dig into Computer Intelligence, but this is quite a hard way.
6. Think about device security
As the popularity of IoT startup systems has grown, so has the risk of security breaches. More entry points make it easier for cybercriminals to hijack a device and control a network. Plus, as a lot of data collected by IoT devices is of a sensitive nature, this can trade hands for a lot of money on the black market.
Attacks on IoT devices tripled in 2019, and this figure is likely to increase in the future as the market grows.
In case, you are considering launching an IoT device to market, you will need to consider how you will protect it from being compromised. Just put some key questions to yourself:
– How will people log into these devices,?
– How will you ensure privacy at certain times?
– And how will you make sure devices are regularly patched to remove new vulnerabilities?
In conclusion
It’s an exciting time to work in the internet of things startup industry. The number of devices available on the market is growing all of the time, giving the general public many different options.
However, the growth of the market means that you have to make sure your product stands out from the crowd. What is your unique selling point, and why is it that customers should buy from you?
It’s essential to do your research to make sure your device will stand the test of time.
So, if you are planning to make your way into the world of the internet of things, we wish you the best of luck!
Frequently Asked Questions (FAQ)
Custom IoT App Development refers to the creation of applications tailored for devices connected through the Internet of Things (IoT). These applications enable devices to exchange data and perform tasks efficiently.
The IoT App Development market is gaining popularity due to the growing demand for connected devices and advancements in technology. With an estimated trillion-dollar spending by 2023, startups see lucrative opportunities in creating custom IoT solutions.
Custom IoT App Development is utilized across various industries, including healthcare, utilities, retail, agriculture, manufacturing, and town planning. It automates tasks, improves data collection, and enhances efficiency in diverse sectors.
Custom IoT Devices include smart lightbulbs, fitness trackers, smartwatches, smart speakers, security cameras, motion sensors, tracking sensors, and smart thermostats. If a device is ‘smart’ and connected to the internet or through BLE and phone, it falls into the category of custom IoT-connected devices.
The popularity of IoT startups has surged due to advancements in technology, increased affordability of IoT devices, the rollout of 5G technology, widespread Wi-Fi access, and the availability of more data. Additionally, advancements in artificial intelligence have made IoT devices more effective and appealing.
– Find your unique selling point: Differentiate your product in the competitive IoT market.
– Avoid novelty products: Ensure your idea solves a real problem and has longevity.
– Protect your intellectual property: Research potential IP clashes and secure your idea.
– Build the right team: Hire professionals with relevant skills and industry experience.
– Be flexible and pivot when necessary: Adapt your plan based on market feedback and trends.
– Prioritize device security: Address security concerns by considering login processes, privacy, and regular updates.
Three out of four IoT startups fail due to challenges in standing out in a competitive market. It emphasizes the need for startups to find a unique selling point, avoid novelty products, protect intellectual property, build the right team, be flexible in their approach, and prioritize device security.
Launching an IoT device to the market requires careful consideration of factors such as unique selling points, longevity, protection of intellectual property, building the right team, flexibility in adapting to market trends, and prioritizing device security to prevent cyber threats.
Ensuring device security involves addressing key questions such as how people log into devices, ensuring privacy, and regularly patching devices to remove vulnerabilities. Governments worldwide are also working on laws to enforce strict guidelines for manufacturing IoT devices.
Industries such as healthcare, utilities, retail, agriculture, manufacturing, and town planning are making critical advances in IoT by leveraging connected devices to automate tasks, improve efficiency, and enhance data collection and analysis.
Want to get your custom IoT startup app up and running? You are launched can help
You are launched has been working with lean startups, accelerators, and venture capital companies since 2014. We already worked with Smart Suitcases, Micro-navigation with the help of iBeacons, BacTracker Breathalyser integration, FitBit FitnessTrackers, UV-waves tracker, sure smartwatches, and NFCs. So, you can be sure of our tech background. But, this is not enough for us, and we are looking for new opportunities.
But sure, you. can check our tips on how to hire a team here
We would be pleased to work with you to build on your IoT startup idea, guiding you through building a solid business plan and helping you get the investment you need after
So, contact us today and see how we can help your startup find success