Quarterly insights: Internet of Things
Shift to condition monitoring to finally drive connected pallet adoption
The first generation of IoT solutions for wirelessly connecting pallets focused mainly on the value of the pallets themselves, only tracking location. This approach failed to gain traction because it offered insufficient return on investment, addressed too small a portion of the market, and suffered from high up-front costs and ongoing technology maintenance costs. A second generation of IoT pallet technology is emerging that overcomes these shortcomings. These solutions monitor the conditions pallets - and more importantly, their cargoes - experience on their journeys through supply chains. By monitoring conditions, such as temperature, vibration, shock and humidity, these solutions provide information that helps manufacturers, distributors, and shippers preserve the products pallets carry, which are typically much more valuable than the pallets themselves. We expect these solutions' broad and substantial appeal to help drive strong growth for companies providing second-generation pallet IoT solutions, and we profile several such companies. We include an overview of IoT publicly traded stock performance and valuation, sector M&A activity, and private placements during the past two quarters.