2019 UK Internet of ThingsStart-Up RadarMarket Analysis and Main Takeaways

November 2019

© WAVESTONE 2Restricted distribution

Tier 1 clients,leaders in their industry

3,000 professionalsacross 8 countries

Among the leading independentconsultancies in Europe,

n°1 in France

In a world where permanent evolution is the key to success, Wavestone's mission is to enlighten and partner with business leaders

in their most critical decisions.

Paris | London | New York | Hong Kong | Singapore* | Dubai* | São Paulo*Luxembourg | Madrid* | Milano* | Brussels | Geneva | Casablanca | Istanbul* | Edinburgh

Lyon | Marseille | Nantes

* Partners

© WAVESTONE 3Restricted distribution

: Wavestone’s Start-up Accelerator

Develop start-ups by helping

them increase their commercial growth.

IndustryStart-Ups

Conduct market analysisin order to create our view of the start-

up ecosystem.

Wavestone

How did we build the 2019 UK IoT Start-Up Radar?

© WAVESTONE 5Restricted distribution

2019 UK IoT Start-Up Radar: Methodology & Criteria

Online research to

gather start-up info

Market watch on

IoT start-ups

Email contact with start-ups to verify info

Our Criteria

Less than or equal to35 employees

Founded in the last8 years

Headquartered in the UK

The 2019 UK IoT Start-Up Radar

© WAVESTONE 7Restricted distribution

The 2019 UK INTERNET OF THINGSSTART-UP Radar

by

2019 Wavestone. The IoT Start-up Radar (layout) is a property of Wavestone. Individual start-up logos are property of their respective owners.

23 billion

connected devices in 2018

Increasing IoT relevance

The increasing importance of IoT canbe directly seen in the growing

government interest in this area

75billion

connected devices expected by 2025

© WAVESTONE 9Restricted distribution Disclaimer: Wavestone does not own any of these logos.

Industrial Strategy Challenge FundIn anticipation of the disruptive impact of IoT on UK service providers, the government has dedicated £70 million in investment to encourage ‘Security by Design’ for all IoT devices used by businesses and individuals

IoTUK

A programme of activities to coordinate innovators, businesses

and public bodies established by two of the government levers for

innovation funding.

Venture Capital FundingSeveral start-ups in the UK have

received substantial VC funding highlighting the significant

investment appetite for IoT.

5G LaunchesThe commercial launch and widespread rollout of 5G across the UK lays the connectivity foundation required for the exponential growth of connected devices.

$33m raised

$312m raised

Growing Support for UK Start-Ups

© WAVESTONE 10Restricted distribution

Analytics

Smart Building

Smart City

Horizontal Platform

Industry 4.0

Security

Connectivity

Smart Workplace

Agriculture

Healthcare

Retail

Logistics

Smart Grid

Automotive Design

17%

14%

12%

11%9%

8%

8%

6%

6%

6%

6%

5%5%

2%

Areas of Specialisation

3 Most -Represented Areas

3 Least-Represented Areas

1

23

Analytics

Smart Building

Smart City

© WAVESTONE 11Restricted distribution

Analytics

The most popular category was unsurprisingly ‘Analytics’,

given the relationship between AI and IoT.

For example, Pointr uses an advanced indoor positioning technology to provide Indoor

Analytics. This technology has many use cases from

security to retail.

Smart City

The mass deployment of sensor technology enables many services to make our cities smarter. In the UK, we

identified 7 start-ups that focus on improving

transportation.

Vivacity Labs links intelligent cameras with

analytical tools to provide traffic insights.

Key Areas to Watch

Vertical or Horizontal?

Vertical providers are developing an end-to-end IoT service, from sensor

hardware through to management and data

analysis.

Alternatively, several start-ups have developed

frameworks to horizontally integrate IoT devices from

various providers.

Security

With mass deployment of smart devices comes mass

security vulnerabilities. Start-ups are leveraging this

opportunity offering both cyber and physical security

services and solutions.

Crypta Labs has developed ‘Quantum Chips’ which aim to secure the industrial IoT.

© WAVESTONE 12Restricted distribution

MarseilleNiceCambridge

London

Manchester

Bristol

A highly concentrated

ecosystem with London

hosting 85% of start-upsChesterfield

Chelmsford

Cardiff

EnderbyCoventry

Newcastle

© WAVESTONE 13Restricted distribution

Extra Small(<10 employees)

Small(11-20 employees)

Medium(>21 employees)

70%

20%

10%

46 start-ups

13 start-ups

7 start-ups

IoT technologies

continue to be leveraged

by companies across the UK

in new and exciting ways

499 direct jobs

PARIS

LONDON

NEW YORK

HONG KONG

SINGAPORE *

DUBAI *

SAO PAULO *

LUXEMBOURG

MADRID *

MILANO *

BRUSSELS

GENEVA

CASABLANCA

ISTANBUL *

LYON

MARSEILLE

NANTES

* Partnerships