BLE, ZigBee, Z-Wave), microcontroller ICs, mechanical parts, firmware, and housings. Using a more generous estimate, the hardware sells for about 10% or so, or $30 out of $300.
There's a lot to be said for hardware, but because IoT IoT will mostly have to follow international standards to ensure that the hardware is interoperable with each other, it will sooner or later become a red ocean market unless it has a brand advantage. How to continuously add value will be the biggest challenge for practitioners.
2. System Composition, Setup and Maintenance. In addition to the consumer's personal use of the Internet of Things IoT devices, most of the need for system integration companies to come up with solutions, such as clunk-cloud MES system, and then responsible for the erection, and then provide future maintenance work. In the U.S. generally this type of cost is comparable to hardware, so it's about 10% of the market as well, which is a sizable market.
3. Assorted software from the device side, through the middle, to back-end management. Every IoT device (especially wearables) needs an application, and many devices need middleware to communicate and exchange data. An enterprise managing a huge IoT network naturally needs a new generation of enterprise software, linked to existing ERP software, to assist in business operations and decision-making. This is a very high value-added industry, and a rough estimate should account for about 30% of the IoT IoT value chain.
4. Data analysis, management and monitoring. In order for IoT to become a trend, users must really get the benefits, which not only increase efficiency, but more importantly, can turn over the business operations and disrupt the business model. In order to achieve the future of information equals to resources, sales and factory zero drop, we must utilize big data, machine learning, artificial intelligence and other technologies, anytime and anywhere in the massive amount of data can be extracted from the useful information, real-time processing. This area has the highest added value and is the most important growth driver of the Internet of Things IoT, which will account for at least 50% of the weight.