2. Continued Increase In IoT M&A Activity

In 2016, vendors like Intel, Cisco and Microsoft made blockbuster acquisitions to build out their Internet of Things businesses – and that trend will continue in the coming year.

There were nearly two dozen major IoT-related mergers and acquisitions in the first four months of 2016 alone, according to research firm Strategy Analytics. According to the report, the most desirable acquisition targets are companies whose core competencies revolve around analytics, security, connectivity platform capabilities and services.

In 2017, more vendors and channel partners will target acquisitions that will help them get a leg up with app development, operational technology expertise and industrial capabilities.