Resiliency Of The Connected Worker Solutions Market Is Tested Amongst Tumult In Tech Markets

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Resiliency Of The Connected Worker Solutions Market Is Tested Amongst Tumult In Tech Markets

The tech world in 2023 has thus far been characterized by turbulence. Widespread layoffs have been led by giants such as Meta, Microsoft, and Salesforce, with TechCrunch calculating that approximately 175,000 tech employees have lost their jobs since January 1. The collapse of Silicon Valley Bank, which invested in numerous tech firms, cost the US government an estimated $20 billion in deposit insurance.

At the same time, the Nasdaq Composite, which is made up primarily of tech firms, has risen by 17% since January 1, reaching 12,131 as of May 3. The same index fell by 20% between August and December 2022. Despite significant tumult, there are signs of life in the tech world as we near mid-2023.

The connected worker solutions market has not been shielded from challenges, given the trend in the wider tech market. Adoption of solutions has risen considerably, but inflationary pressures have constricted spend on new technologies, including connected worker products, at industrial organizations. Funding from investors has, however, remained consistent since 2018. Verdantix analysis finds that a sample of 30 key connected worker solution providers received an average of $4.8 million in funding a year from 2018 to 2022. Although funding fell by 18% between 2020 and 2021, it rallied by 84% between 2021 and 2022.

Apprentice.io made up a significant portion of funding in both 2022 and 2023, receiving $100 million and $65 million, respectively. The latter funding round involved Insight Partners, which led a 2020 $36 million Series B for UpKeep, a mobile-first maintenance management solution provider. Apprentice.io targets maintenance and work execution digitization tools for operations personnel in the pharmaceuticals manufacturing space. The new investment will be used primarily for product development.

Augmentir is another connected worker provider receiving attention from investors despite challenging market conditions. The firm received $7.5 million in Series A funding in 2021 and announced new investment in April 2023, led by Gardner Lewis Asset Management. The new investment will be used to expand Augmentir’s global presence, as well as to develop its capabilities, such as the incorporation of generative AI in the Augmentir platform announced in February 2023.

With tech markets recovering from supply chain issues and banking failures, the connected worker solutions market will have to continue to build resilience, harnessing its unique position to resolve the persistent challenges of a retiring workforce and a skilled labour shortage. As things stand, it looks to have weathered the storm.

For more information on connected worker solutions, read the following Verdantix reports: Augmentir Differentiates Through Digital Work Instructions Tailored To Worker Competencies and 10 High-Value Use Cases Of Connected Worker Solutions.

Hugo Fuller

Industry Analyst

Hugo is an industry analyst in the Verdantix Operational Excellence practice. His research agenda explores the technologies within the extended reality and connected worker market, alongside enterprise asset management software. In advisory, his work includes go-to-market, growth strategy and long-term research partnerships.