H2 2022
Internet of Things Report
February 28, 2023
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IoT startups limp on as VC investors look elsewhere
Venture capital investment in internet of things (IoT) startups dropped sharply in the second half of 2022, and the outlook for 2023 shows a continuation of the downward trajectory. Despite some areas of resilience, the struggle for growth shows that this is a sector more sensitive to macroeconomic risk. Our latest Emerging Tech Research lays out IoT trends and opportunities in H2 2022.
Key takeaways include:
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VC investors pulled back support most dramatically from retail and healthcare IoT startups.
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In the most resilient sectors, use cases including commercial drones, connected buses, and manufacturing monitoring devices maintained revenue growth of more than 30% in 2022.
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Investors made big bets on smart home technology last year, but revenue growth for the sector fell short of expectations, leaving uncertainty around startups’ abilities to reach growth milestones.
Table of contents
| Vertical overview | 3 |
| H2 2022 timeline | 4 |
| IoT VC ecosystem market map | 5 |
| IoT landscape | 7 |
| VC activity | 8 |
| Emerging opportunities | 15 |
| Digital twins | 16 |
| Video surveillance | 19 |
| Select company highlights | 22 |
| Ambiq | 23 |
| Uptake | 25 |