News & Analysis

To go deeper, read our H1 2022 Internet of Things Report. PitchBook clients can also explore the full market map with details on nearly 3,300 companies.

Spotlight: Industrial IoT

Industrial IoT companies fall into three subsegments:

• Agriculture: Agricultural planning by monitoring weather, field conditions and crops.
• Energy & Utilities: Measuring energy generation, usage and extraction.
• Manufacturing & Supply Chain: Tracking and maintaining equipment as it moves through the supply chain.

Increased economic uncertainty is negatively affecting the IoT market as deal value in Q2 2022 plunged to $2.8 billion, down from the $6.5 billion garnered in the previous quarter, according to PitchBook data. This is the lowest total quarterly deal value since Q4 2019. Q2 also saw fewer than 300 deals completed for the first time since 2016.

This sharp decline is likely due to IoT's reliance on international supply chains and industries like manufacturing, which depend on economic stability, according to PitchBook analyst Brendan Burke.

Half of the IoT subsegments PitchBook tracks are on pace for a decline in VC funding, Burke said.

Despite this grim prognosis, this year has seen some notable deals, including a $40 million Series B for connectivity-as-a-services platform developer OXIO and a $31 million Series A for solar cells developer Ambient Photonics.
Exits have also fallen victim to economic uncertainty, with only $119.2 million in disclosed exit value in Q2 2022, according to PitchBook data. In total, there were 50 exits completed in the first half of the year worth an aggregate $10.9 billion, well off pace to match last year's total of $58.4 billion from 142 exits.

Notable exits from Q2 2022 include an estimated $9.7 billion public listing of ASR Microelectronics and Life360 acquiring Tile for $205 million.

More market maps:

• AI and machine learning
• Fintech
• Climate tech
• Foodtech
• Mobility tech
• Blockchain

Featured image by Dmytro Vikarchuk/Shutterstock