Security and protection services provider Tyco International Ltd. (TYC) recently offered a glimpse into its future plans of augmenting the Internet of Things (IoT) capabilities to better serve its customers with new intelligent services. This would primarily include combining proven technology and innovations with its existing product portfolio.
Tyco has a long-serving IoT business that focuses on the retail market and delivers visibility and predictive capabilities for key insights into inventories, store traffic, and customer behavior. These enable retailers to undertake justifiable steps to maximize revenue by optimizing inventory and delivering a memorable shopping experience.
The company aims to replicate this success with similar applications in other verticals as well. Tyco's IoT platform collates data from traditional facilities-oriented systems and transfers them into valuable business intelligence system to perform advanced analytics and gain critical insight. Tyco is presently extending this IoT platform to incorporate more sensors, devices and applications to capitalize on the huge market potential of the IoT market.
According to data by research agency International Data Corporation, the global IoT market is likely to expand manifold to $7.1 trillion by 2020, as more and more people develop an affinity for full-time connectivity. The worldwide IoT installed base is expected to have a compound annual growth rate of 17.5% from 2013 to 2020 with a wide proliferation across the full breadth of the IoT ecosystem, including intelligent and embedded systems shipments, connectivity services, infrastructure, purpose-built IoT platforms, applications, security, analytics, and professional services.
Consequently, we remain bullish on Tyco’s fortunes as it sets the bar high for its IoT solutions. The company’s solid balance sheet and healthy liquidity position are also potential catalysts to continuously fund organic and inorganic growth initiatives and maximize return for its shareholders.
Tyco provides latest fire protection and security products and services to more than three million customers across the globe. The company has more than 57,000 employees in over 1,000 locations across 50 countries, serving various end markets, including commercial, institutional, governmental, retail, industrial and energy, residential and small businesses.
Tyco currently has a Zacks Rank #3 (Hold). Other stocks in the industry that are worth considering include Federal Signal Corp. (FSS), ITT Corporation (ITT) and Carlisle Companies Incorporated (CSL), each carrying a Zacks Rank #2 (Buy).
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