雅虎香港財經 Top 15 IoT Companies in the World
In this piece, we will take a look at the top 15 IoT companies in the world. For more companies, take a look at Top 5 IoT Companies in the World.
Advances in semiconductor and industrial engineering have enabled firms to squeeze vast amounts of computing power into a small form factor. Initially, it was the smartphone that was heralded to compress the 'world' in a user's pocket, but as time has passed, more gadgets have enabled greater computing performance in a small form factor for a variety of purposes.
Officially dubbed as the Internet of Things (IoT), these gadgets have a wide variety of uses, that range from retailers being able to manage their inventory to the everyday user being able to track their fitness through smartwatches.
The proliferation of these devices has been aided by the growth in the Internet as well since all the gadgets require connectivity to function. Taking a look at the market size, Fortune Business Insights estimates that the industry will be worth $479 billion by the end of this year, and from then to 2029, it will grow at an astounding compounded annual growth rate (CAGR) of 26.4% and be worth a whopping $2.5 trillion by the end of the forecast period. This growth will be driven by the healthcare sector turning to advanced devices such as linked thermometers to monitor patients and the growth of smart cities that provide smart metering and smart sensing.
Since the IoT market will be powered by IoT devices, it is relevant to also take a look at these on their own. Fortunately, Facts & Factors has a research report that covers precisely this, and the research firm believes that this segment will grow at a 10.10% CAGR between 2022 and 2028, for an estimated value of $2.7 billion by the end of the forecast period. The segment was worth $1.5 billion in 2021.
Wireless networking, which allows devices to communicate with each other and the Internet will be behind this growth, especially as fifth generation (5G) cellular networks become commonplace. Additionally, low capital expenditure requirements for delivering significant competitive advantages through data gathering, analytics, and machine learning will attract business users to the IoT sector. The enterprise IoT market itself is estimated to grow by 22% between 2021 and 2027, as firms end up spending $525 billion in 2027.
Today's piece will focus on a variety of different firms that operate at different levels in the IoT industry, from providing silicon to software and the gadgets themselves. Out of these, the top players are Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Advanced Micro Devices, Inc. (NASDAQ:AMD).
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Our Methodology
We studied the IoT market as a whole to pick out what technologies and products are driving growth, after which the firms behind these products were identified. They were analyzed through their product strength, value relative to competitors, and financial performance, following which the companies were ranked through Insider Monkey's Q2 2022 survey of 895 hedge funds.
Top 15 IoT Companies in the World
15. ABB Ltd (NYSE:ABB)
Number of Hedge Fund Holders: 17
ABB Ltd (NYSE:ABB) is a Swiss company that sells automation and electrification products. The firm is based in Zurich.
ABB Ltd (NYSE:ABB)'s business is divided into four segments — electrification, process automation, motion, and robotics. In nearly all of these, the firm is outpacing its closest rivals when it comes to sales growth. ABB Ltd (NYSE:ABB)'s latest growth figures for the four segments stand at 22%, 6%, 23%, and 13%. For comparison, the average peer group growth is 20%,10%, 5%, and 13%, respectively. ABB Ltd (NYSE:ABB) also has a strong order backlog, which has grown by 35% in its latest quarter, showing that its future revenues will be stable.
ABB Ltd (NYSE:ABB)'s largest investor is Ken Fisher's Fisher Asset Management. It owns 20 million shares that are worth $534 million.
Along with Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Advanced Micro Devices, Inc. (NASDAQ:AMD), ABB Ltd (NYSE:ABB) is one of the largest IoT companies in the world.
14. STMicroelectronics N.V. (NYSE:STM)
Number of Hedge Fund Holders: 18
STMicroelectronics N.V. (NYSE:STM) is another Swiss company that sells semiconductors for products such as automotive, industrial and consumer appliances, and sensors.
STMicroelectronics N.V. (NYSE:STM)'s the industrial segment, which provides products for devices such as smart meters and motor drivers reported a strong order flow this year, as its STM32 and STM32 H7 chips scored wins in the healthcare and appliance industries. The firm is aiming to grow its revenue by 24% annually as 2022 ends, and it is also building a new chip fabrication plant in Italy.
Out of the 895 hedge funds polled by Insider Monkey during this year's second quarter, Michael Rockefeller and Karl Kroeker's Woodline Partners is STMicroelectronics N.V. (NYSE:STM)'s largest shareholder through a $99 million stake.
13. Sensata Technologies Holding plc (NYSE:ST)
Number of Hedge Fund Holders: 25
Sensata Technologies Holding plc (NYSE:ST) is an American company that sells sensors and controllers for devices such as position and thermal management sensors.
Sensata Technologies Holding plc (NYSE:ST) is a leading player in the heavy vehicle tire pressure sensing sensor market, and it expects to rake in $100 million in revenue from the segment by 2027 through a strong CAGR of 40%. Additionally, the firm's high voltage junction boxes have won $250 million in business over the course of this year. Sensata Technologies Holding plc (NYSE:ST) also aims to grow its revenue by 30% over the course of the next several years.
Robert Joseph Caruso's Select Equity Group is Sensata Technologies Holding plc (NYSE:ST)'s largest investor. It owns 9.9 million shares that are worth $409 million.
12. Garmin Ltd. (NYSE:GRMN)
Number of Hedge Fund Holders: 30
Garmin Ltd. (NYSE:GRMN) is a wireless device manufacturer and seller of products such as smart watches, fitness bands, and activity tracking equipment.
Garmin Ltd. (NYSE:GRMN) held a 5% market share of the global smartwatch market by the end of this year's second quarter. Additionally, its fitness product portfolio accounted for 12% of overall global sales as of October 2022. The company's latest Venu Sq2 smartwatch has a battery life of 11 days - making it one of the top devices in the segment. Its MARQ watches have an even longer battery life of 16 days, and they are designed for athletes.
Garmin Ltd. (NYSE:GRMN)'s largest investor is Ken Griffin's Citadel Investment Group which owns 556,499 shares that are worth $54 million.
11. Johnson Controls International plc (NYSE:JCI)
Number of Hedge Fund Holders: 33
Johnson Controls International plc (NYSE:JCI) manufactures and sells smart home products such as heating controls, building management, fire detection, and other systems.
Out of the five players in the power solutions market, which uses smart technologies for regulating electricity, Johnson Controls International plc (NYSE:JCI) held 20% of the market. Additionally, the firm also holds a 3% market share in the building control market, which is a highly diversified sector with close to 50 different companies competing for customers. Johnson Controls International plc (NYSE:JCI) is also facing strong demand for its products, as its backlog grew by 11% annually to sit at $11 billion by Q3 2022 end.
D.E. Shaw's D E Shaw is Johnson Controls International plc (NYSE:JCI)'s largest shareholder through a $140 million stake.
10. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 40
International Business Machines Corporation (NYSE:IBM) operates on the software side of the IoT market. Its cloud computing platform lets customers connect through a variety of protocols, access live data, and generate analytics.
Given its scope, International Business Machines Corporation (NYSE:IBM) is one of the largest software solutions providers in the world. The global technology services market, which also incorporates IoT, is made up of more than 20 different companies, and out of these, International Business Machines Corporation (NYSE:IBM) holds a whopping 33% of the market. International Business Machines Corporation (NYSE:IBM) also dominates the business services market with an 88% market share.
International Business Machines Corporation (NYSE:IBM)'s largest investor is Peter Rathjens, Bruce Clarke, and John Campbell's Arrowstreet Capital which owns 2.6 million shares that are worth $372 million.
9. NXP Semiconductors N.V. (NASDAQ:NXPI)
Number of Hedge Fund Holders: 55
NXP Semiconductors N.V. (NASDAQ:NXPI) designs products such as the EdgeLock SE050 that are used in different IoT gadgets such as wireless chargers, robotics, and home appliances to secure the data that is being transferred over the Internet.
NXP Semiconductors N.V. (NASDAQ:NXPI) has the highest market share among its peers that provide microcontrollers and application processors. As of November 2022, the firm held 19% of the total market consisting of roughly 30 firms. The company is also facing strong demand for semiconductors manufactured with older processes, as the lead time is now over a year for delivery.
Israel Englander's Millennium Management is NXP Semiconductors N.V. (NASDAQ:NXPI)'s largest shareholder. It owns 2.4 million shares that are worth $368 million.
8. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 55
Texas Instruments Incorporated (NASDAQ:TXN) is an American firm that has one of the most diverse silicon portfolios when it comes to IoT gadgets. The firm provides microcontrollers, processors, sensors, and power management chips for gadgets such as bulbs, wireless routers, pumps, and refrigerators.
The depth and breadth of its portfolio have enabled Texas Instruments Incorporated (NASDAQ:TXN) to hold a strong market position. In the analog devices market, the firm commands 72% of the market share in an industry with three major firms in total. Additionally, it also holds a 12% share in the market for other products such as power management chips and microcontrollers, allowing Texas Instruments Incorporated (NASDAQ:TXN) to be one of the largest players in an industry populated by more than 30 firms.
Texas Instruments Incorporated (NASDAQ:TXN)'s largest shareholder is Jean-Marie Eveillard's First Eagle Investment Management which owns 3.5 million shares that are worth $542 million.
7. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 63
Cisco Systems, Inc. (NASDAQ:CSCO) is a communications equipment provider that enables firms to scale up their IoT deployment for remote monitoring, asset tracking, fleet management, and worker safety.
Cisco Systems, Inc. (NASDAQ:CSCO) has a forward price to earnings ratio of 11.7x which is significantly lower than the firm's historical average of 14.4x, which has also seen the ratio go as high as 18x. Additionally, the firm's shares are estimated to return 73% over the next five years, as its intrinsic value remains higher than the share price. Cisco Systems, Inc. (NASDAQ:CSCO) is also the second largest communications and advanced technologies firm after Broadcom.
Cisco Systems, Inc. (NASDAQ:CSCO)'s largest investor in Insider Monkey's 895 hedge fund database is John Overdeck and David Siegel's Two Sigma Advisors which owns 7.7 million shares that are worth $329 million.
6. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 65
Intel Corporation (NASDAQ:INTC) is one of the largest chip manufacturers in the world, and the firm sells semiconductors for IoT devices that are used in cars, healthcare, retail, and energy.
Intel Corporation (NASDAQ:INTC) edge computing and Mobileye revenue accounted for close to 30% of its revenue for this year's third quarter and 16% for the nine months ending in September 2022. The company also holds an 18% market share in the automotive market and a 73% share in digital enterprise products.
David Blood and Al Gore's Generation Investment Management is Intel Corporation (NASDAQ:INTC)'s largest investor. It holds a $552 million stake in the company.
Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Advanced Micro Devices, Inc. (NASDAQ:AMD) are met by Intel Corporation (NASDAQ:INTC) in our list of the world's leading IoT companies.
Click to continue reading and see Top 5 IoT Companies in the World.
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Disclosure: None. Top 15 IoT Companies in the World is originally published on Insider Monkey.
