IoT Application Development in 2024: A Detailed Guide

By 2025, companies are expected to invest up to $15 trillion in the IoT technology.

21st century is appreciative that it brought the Internet of Things (IOT) to a new level. Automation is adored and enjoyed by people. Therefore, by 2026, the global Internet of Things (IoT) market is expected to be valued at approximately USD 650.5 billion. Not every company is aware of current IOT trends and how important it is to implement IoT application development services. Thus, you’ve come to the ideal spot if you’re new to the world of IoT mobile app development and want to create excellent IoT apps.

In this article, we are covering everything you need to know about IoT app development in 2024. The guide includes all the industry basics such what is IOT mobile app development, IOT market stats, how does it work, how to monetize the app, and the steps to build an IOT app. It also includes the process to choose IoT app development companies for your project and the cost to build an IOT app.

What is IoT Application Development?

The creation of software applications that use Internet of Things (IoT) technologies to improve the functionality and user experience of IoT devices is known as IoT application development. These applications can provide functions like remote monitoring, battery status updates, and even predictive maintenance warnings by establishing connections with devices via sensors and internet access. We can increase the sustainability, ease, and efficiency of gadget usage by creating IoT apps, which will ultimately help both consumers and manufacturers.

IoT Industry – Market Size & Stats

• According to a report, the global IOT market size valuation currently stands at $662 billion approximately
• The industry is anticipated to grow to about $3.3 trillion by 2030 at a CAGR of 26.1% YoY
• By 2030, there will be around 25+ billion IoT devices globally
• According to Forbes, over 80% companies have integrated Internet of Things (IoT) in some way to improve their operations
• By 2025, companies are expected to invest up to $15 trillion in the IoT technology

How Does IOT Apps Work?

IoT apps work using four unique components that are integrated into a complete Internet of things system: connectivity, sensors/devices, data processing, and a user interface. Below is a quick explanation of how IOT works –

1) Equipment or Gadget

Sensors and other equipments first gather data for the IOT app. This may be as basic as a temperature reading or as intricate as an entire video stream. For instance, your phone contains a camera, accelerometer, GPS, and other sensors. It collects data in different forms to send it to the IOT app.

2) Interconnectivity

Once the data is collected, it is sent to the cloud. There are several ways to link the sensors/devices to the cloud: cellular, satellite, WiFi, Bluetooth, low-power wide-area networks (LPWAN), or ethernet connection straight to the internet.

There are trade-offs between bandwidth, range, and battery consumption with each choice. The optimal connectivity method depends on the particular IoT application, but they all achieve the same goal of sending data to the cloud.

3) Data Processing

After the data reaches the cloud, software processes it in some way. Checking that the temperature reading is within an acceptable range is one really basic way to do this. Further, it could be as complicated as identifying objects on video with computer vision (like burglars in your home).

4) The User Interface

The information is then rendered in some way helpful to the final user. The user may be notified of this through an email, text, notification, etc. For instance, the company’s cold storage might send out a text alarm when the temperature gets too high.

Furthermore, a user may be able to proactively check in on the system through an interface. For instance, a user may wish to utilize a web browser or a phone app to check the video feeds in their home.

How to Monetize an IoT App? – Popular IOT Monetization Strategies

Perpetual Model

The plan calls for selling a product in the conventional sense, receiving payment once, and not utilizing any other sources of income. If there is constant demand and no competition for the product, the simplest approach to create consistent money is through an IoT monetization plan that lasts forever. Since the prices are fixed, it is simple to determine future earnings using this approach. Businesses that sell hardware, gateways, and IoT software—such as linked exercise equipment or smart home appliances—are better suited for the perpetual model.

There’s a catch, though. Unless you have a steady stream of new clients to offset the rising cost of infrastructure, cloud computing services will eventually take up the majority of your revenue if your devices are always online.

Subscription Model

Offering a paid subscription to your good or service guarantees a steady stream of income and improves customer retention because you establish and maintain a relationship with your customers for the duration of the subscription. Notably, beyond the subscription fees, you can include advanced features like device/software upgrades or a premium account model, which opens up other avenues for IoT monetization. Platforms for predictive maintenance or monitoring systems are only two examples of the IoT goods and services that will profit from the paradigm, which also benefits hardware.

Outcome-Based Models

An outcome-based monetization strategy enables you to charge clients according to the value they receive from using your product or service, which is ideal if you want to monetize Internet of Things items that offer quantifiable value to the user. By creating fewer items, this strategy lowers manufacturing costs while generating ongoing income from its profitable operation. In addition, because the cost structure is based on the quantity of work completed for the benefit of the client, it guarantees transparent cost formulation. Although many consumers cannot afford the pricey equipment, this IoT monetization method is ideal for it because customers are willing to pay for its services. This group includes heavy-duty, expensive industrial equipment such as cement mixers and smart water pumps.

Razor-Blade Models

The approach is predicated on the added value that the IoT solution adds to the primary product by determining when a client needs to replace its disposable parts, rather than the IoT solution itself. IoT is the “handle” in this system that doesn’t change, while the “razor” is the component that makes money. Due to the fact that consumable parts are not allowed to be left unutilized, this technique reduces customer turnover. Additionally, because your solution is more sophisticated and practical, it encourages consumers to choose it. Any physical item with regularly changing components, such as ink for networked printers or cartridges for Internet of Things-enabled dishwashers, is compatible with this model.

Pay-per-Usage Model

The concept lets clients pay for the time or quantity of usage rather than the product itself, much like the outcome-based method. Based on information obtained from Internet of Things sensors, the model provides adaptable choices for pricing goods and services. A flexible offer will appeal to a larger range of customers than one that is inflexible. It can be used for pricey goods and services that allow you to figure out how often and how long you use them, like vehicle or scooter sharing.

Essential Service Model

Through the integration of this revenue model, you may leverage IoT to encourage customers to purchase your service. To use your offering, prospective consumers can access the data you gather and provide. Any organization that concentrates on providing services will benefit from the strategy, which also enables it to obtain additional value from further data licensing and sales. Any kind of service, including predictive maintenance for cars, factories, and smart homes, would work well with this approach.

Hybrid Monetization Model

Selecting a single model and following it through to the finish is not the only way to choose an IoT monetization approach. Because technology is so agile, choices about revenue sources must be made using the same methodology. Therefore, if your product can profit from two or three strategies at once, don’t limit yourself to just one. To maximize the value to your business, combine them, pay attention to what your customers require, evaluate data, and modify your monetization alternatives.

If your Internet of Things firm, for example, produces smart air conditioners, you may mix and match models by offering the equipment, replacing its parts as needed, and doing routine upkeep. Such an approach would yield enough revenue to pay for years to come for infrastructure and IOT app development costs.

How to build an IoT Application? – Step by Step Guide

Step 1 – Define Your Objective

You must first define your purpose as simply as possible, stating the problem your app will attempt to tackle. Next, a feasibility study should be conducted to compare your proposed solution to currently available items in the market. At this point, it’s also important to prioritize meeting legal, regulatory and security criteria in order to develop a thorough project specification.

Step 2 – Hardware & Software Selection

The hardware type is determined by the specifications of your project. A variety of devices, including sensors, GPS tags, active and passive RFID tags, RFID readers, and more, may be used. After making your decision, you must thoroughly examine the entire hardware architecture to determine whether data processing requires microprocessors or microcontrollers.

Your firmware’s technology stack differs depending on the hardware platform. Your mobile app development company must first ascertain the architecture and structure of the firmware and gather requirements.

Step 3 – UI/UX Development

Just like any other software, an IoT app needs to have a design that is both visually appealing and easy to use in order to stand out in the larger IoT market. Product designers with experience can guarantee proper setup of the user interface.

You should be aware of the significance of a strong UI/UX design before beginning the IoT mobile app development, since this is what sets successful apps apart from those that are swiftly eliminated. For instance, dissatisfied users may post negative reviews on Google Play or the App Store, which may negatively impact the quantity of downloads.

Verify that the user flow of any internet-of-things program is logical and free of mistakes, such as buttons that lead nowhere.

Step 4: App Development

User experience is greatly impacted by design, and a poorly thought out or underdeveloped design can spell disaster for your application. As a result, be sure to participate fully in this stage and pay close attention. Your IoT application development team will map out the user’s journey, define the flow, and generate multiple interface design possibilities at this stage. Designers will create a UI kit including UI elements, fonts, colors, and styles for the platform after you select the screens that you want.

Step 5: Create an MVP

The minimal viable product, or MVP, assists entrepreneurs in testing their ideas with actual clients. MVP stands for maximum value prototype, not mock-up. It is a finished, functional solution. In essence, it’s your initial mobile application, stripped down all but the essential elements required for the platform to function as intended.

Step 6: Evaluate performance and security

A variety of tests are included in IOT app development services to verify how well an IoT system manages varying loads and data volumes. We want to ensure that you introduce a seamless, ready-to-use product to the market at this point.

Step 7: Testing & Updates

Once your MVP is out there, you’ll need to get feedback from users to refine or change the solution. The most common method for completing this stage is an in-app survey, which makes sense since asking questions is the easiest way to find the answers.

Step 8: Maintenance & Support

It’s time for the big reveal of the IoT product after you gather user input, examine the data, and refine it. However, the mobile app development company’s job isn’t done yet. They support app updates, post-release assistance, and scaling up.

How Much Does It Cost to Build an IoT App?

The cost of developing an Internet of Things application will vary depending on its complexity, which is determined by how many features are incorporated to the IoT app solutions. On average, IOT application development costs between $30,000 and $40,000.

However, a complex app will have additional features that IoT app development company will add, such as geolocation, payments, device synchronization, data encryption, third-party API integration, new technologies auto-learning feed, content management system, data ingestion sources, reporting granularity requirements, and reinforced security standards. These features, in addition to a few other high-end ones, will cost between $50,000 and $80,000+.

How to Choose an IOT Application Development Company?

You need to consider several factors before selecting an IOT application development company, which includes –

IoT Expertise:

Pick a business with a great background in developing software for the Internet of Things. Seek out businesses that have a track record of creating effective Internet of Things apps and solutions. Check out the case studies and blog posts of the companies you are researching. These records can give a good picture of the company’s areas of specialization.

Business Experience:

Take into account the company’s prior experience in the business. A business with experience in your particular sector will be better able to comprehend your particular needs and problems, which will result in more useful solutions. For instance, check for businesses that have case studies for comparable products if you need an app for your health and fitness equipment.

Technological Proficiency:

Assess the company’s technological proficiency. Seek out businesses that employ a talented group of developers with knowledge of pertinent platforms, technologies, and programming languages.

Past Portfolio:

Examine the company’s prior accomplishments and customer endorsements. This can help you gauge the company’s potential, output standards, and level of client contentment. Speak with a company’s former customers to find out more about its operations. Find information about their past experiences.

Pricing Structures and Support Services:

Evaluate the degree of support each company offers and contrast the pricing structures that they provide. Take into account elements like affordability, adaptability, and the accessibility of post-development assistance. When contemplating offshore mobile app development companies, make cautious to weigh the benefits and drawbacks of partnering with these “affordable” organizations. As with any service, the cheapest is not always the best.

Communication:

For your project to be successful, you must ensure that the firm and you work together effectively. Seek out businesses that value regular, transparent communication and have set up procedures for receiving feedback. It has been observed that the development teams and clients engage in frequent communication to produce the majority of successful software solutions.

Last Thought

So, this was all about IoT application development industry happening in 2024. We have covered the basics such as what is IoT application development, how does it work, examples of IOT apps, and market stats. Further, we have also covered a step by step guide to develop an IOT app, how to monetize it, cost to build an IOT app, and the step to choose top mobile app development company for your IoT project. Just to help you, here is a well researched list of top IoT app development companies globally. The list is prepared after thorough consideration and thus, lists the best in the industry.

Top FAQs

How do IoT applications work?

IoT apps allow smooth communication across different devices by leveraging internet. The apps uses cloud based servers and allows the devices to connect with each other and share data. It builds a network of interconnected devices and enables data monitoring, collection, and control of several sensors & devices.

What programming languages are used to develop IoT apps?

Several languages & frameworks are used to develop an IoT app but the most common ones are Python, JavaScript, C, C++, and Java.

How long does it take to develop an iot app?

The time required for IoT application development varies and can range from several weeks to several months. The app development time depends highly on the complexity, hardware requirements, team composition, design, the app development company hired, and many more.

How much does it cost to develop an IoT application?

The app development cost for most IoT applications range between $15,000 and $30,000, depending on the complexity, functionality, and more. However, the exact price can vary and will depend upon the project requirements, mobile app Development Company, and many other factors.

What are the top examples of IoT applications?

Some of the top examples of IoT apps in the market are –

• Smart Watches Apps
• DoorBell Camera Apps
• Amazon Echo Apps
• Fitness Bands Apps
• Self Driving Cars Apps
• Tracking Apps