Boston, Massachusetts: Developers of innovative sensors attracted USD 3.4 billion, or nearly 80% of the USD 4.3 billion funding for sensor modules over the past decade, underlining their importance in the fast-emerging Internet of Things (IoT), according to a report titled, Sensor Innovation: Analyzing Investment Trends Across the $4.3 Billion Spend, by Lux Research.

The report revealed that the overall investment in innovative sensors tripled between 2006 and 2015, reaching USD 486 million in 2015. Over the past decade, it added, sensor processing-related technologies received over USD 620 million in funding, while packaging solutions attracted just over USD 200 million and developers of energy harvesting got around USD 100 million.

The analysts of Lux Research Sensors Intelligence service evaluated the investment patterns in different types of sensor technologies from 2006 to Q1 2016, and reported the following findings:

North America dominates: Over 340 companies in the Americas attracted nearly 80%, or USD 3.4 billion, of the total investment in sensor technologies since 2006. Europe, Middle East and Africa (EMEA) accounted for over USD 950 million, while Asia got USD 200 million.

Innovative sensors top acquisition: In the period since 2006, 45 sensor developers got acquired for a total of USD 1.5 billion. An overwhelming majority of the companies acquired focus on innovative sensors, with less than a handful built around processing and packaging solutions.

Corporates have big plans: Corporate commitment to sensors is at an all-time high. Samsung is investing USD 13 billion, while Sony is raising USD four billion to ramp up sensor production. Panasonic has invested USD 780 million for image sensors while IBM is investing USD three billion in sensor data and Ford has opened an R&D center on sensors for transportation.

Pallavi Madakasira, Lux Research Analyst and lead author of the report, said, “Innovative sensor startups will continue to attract large amounts of venture investment as the Internet of Things emerges as the next major phase in computing, following on the heels of the PC and mobile eras.”