The world has become heavily reliant on connectivity as access to the internet is needed for human social and economic growth. Forcing everything, everywhere to become connected. As of today, half of the world’s population is connected to the internet, and this is only set to grow.
With the promise to connect everything, everywhere, 5G and the future 6G are driving the huge potential for the Internet of Things (IoT). There are 29 billion connected devices as of 2022 and it is predicted that there will be 64 billion IoT devices worldwide by 2025. This means that there is the opportunity to generate around $4,000 to $11,000 billion in economic value by 2025.
Kontron Group continues to make the shift towards the IoT market, specifically the Industrial IoT (IIoT) business.
Our change in direction towards IoT
The rename from S&T Group to Kontron Group earlier this year symbolizes our shift towards IoT. Kontron was our globally establish brand which related to the IoT side of the business and since it’s our focus, it made clear sense to name the whole company Kontron. The new company structure with eight divisions will be split across three segments with a portfolio that focuses on the broad market of IoT.
Kontron’s most recent Capital Market Update predicted that the company’s gross margin will increase from 36% to more than 40% after this change in focus. We are keen to make our customers and investors more aware of Kontron Group as the company embarks on its seamless transition to a leading IoT player.
The Industrial Internet of Things
It is not just the devices in the home that are demanding to be connected. Applications such as manufacturing, energy management, healthcare, infotainment, rail operations and other critical infrastructure are reaping the benefits of IoT devices for increased productivity, higher security and a better life.
We see the growth of the Industrial Internet of Things (IIoT) as the greatest opportunity for our own progression. Adopting a suitable IIoT solution can pave the way for innovation in line with a more sustainable, profitable and efficient future. We have the vision to drive digitalization and transform our customers´ businesses for years to come. The worldwide IIoT connected devices market will grow to $3 billion in 2030.
As a leading multinational supplier, Kontron provides individual solutions through a combined portfolio of hardware, software and services. With its standard and customized products such as modules, boards, systems and software based on highly reliable state-of-the-art technologies, Kontron provides secure and innovative applications for a wide variety of industries. As a result, customers benefit from accelerated time-to-market (TTM), lower total-cost-of-ownership (TCO), extended product lifecycles and the best fully integrated applications.
The perfect time to transition
For machines to be connected in real-time, a fast and secure real-time network is vital. Only 2% of the potential machines are connected now, meaning there is huge growth forecasted for us to take advantage of. And this growth is being driven by the advent of 5G and the future 6G. What is exciting about these next-generation technologies is what they can deliver for various industries.
5G will transform industrial operations and connect equipment, people, devices and machines in real-time securely. Businesses urgently require flexible manufacturing, enhanced control and automation, and reliable communications. Fifth-generation technology will deliver all of this.
Kontron specializes in providing the innovative solutions needed to cater to these modern demands. We are committed to delivering deployable hardware and software solutions which set the foundations for improving 4G and deploying 5G. With our help, customers can deploy, innovate and manage new services faster and more efficiently from the Core out to the Edge.
Communication service providers and enterprise clients around the globe collaborate with us to transform their networks using smart, high-density servers with extended product lifecycles, that are built to last.
The vision for the future
Kontron is targeting a net profit margin of 6% by 2025 and this can be achieved by focusing on IIoT. We see a better future focusing on IIoT, rather than IT services.
Harnessing IIoT is not just about how to connect more devices and sensors and store as much data as possible. But it is about utilizing smart applications such as, artificial intelligence (AI), that use the data to improve overall processes, efficiency, reduce environmental resources and costs. IIoT is here to stay, and Kontron Group can help unlock the full potential.