IoT apps are mobile, desktop, or web-based applications that are used to access or control your Internet-enabled devices right from a computer or smartphone.
Better known as the Internet of Things (IoT) devices, these may range from smart home appliances to sensor-based objects to smart digital wearables such as smartwatches or fitness trackers.
As such, there are plenty of IoT apps in the digital space, including health care, smart home management, automation, and so on.
Each has its own features and functionalities, depending on the nature of the IoT device and the complexity of the app.
The more features, the more complex the app, and the higher the cost of development as well.
There are many other factors, apart from the features, that can affect the overall cost of building an IoT app.
Factors that influence the cost of IoT app development
1. Nature of the IoT device
Since an IoT app is device-oriented as it is meant to work with a specific device, the design and functionality of the device can largely impact the total cost of IoT app development.
The more complex the design, the higher the software or app development cost.
2. IoT infrastructure
Next up, we have the scope of the IoT ecosystem, whether it is a personal, residential, or enterprise solution.
A commercial or industrial IoT infrastructure would naturally have more devices and data that need to be processed and controlled by their centralized IoT hub.
At the same time, they may need enhanced security features on their IoT apps to protect their workers from any mishaps and their customers from identity theft.
The type of server, whether it is a local network or a cloud-based platform, can also vary in its usage cost.
The point is that advanced features such as these can significantly influence the cost of IoT app development.
3. Type of App
The type of the app is perhaps the most important factor when it comes to figuring out the estimated cost of developing an IoT app.
In it, a basic app aka a Minimum Viable Product (MVP) with only the most basic features will cost you the least amount of money compared to other complex or advanced versions of the app.
To give you an estimate, the cost of building an average IoT app is somewhere between $10,000 and $50,000, or $37,500 to be more precise.
According to studies, building smart IoT apps for home automation, sports, automobiles, and virtual healthcare is the costliest. Whereas, IoT apps meant for media and monitoring systems are known to be the cheapest.
Therefore, while the latter may cost you just a few thousand dollars to $10,000; the former, as in industrial-grade and autonomous apps can go upwards of $50,000 if you’re lucky enough.
Moving on, the number of platforms (Android, iOS, desktop, and web-based) for which you want to build the app in the first place can also affect the overall cost of app development.
Similarly, the size, location, and scope of your app development team will also come into the picture when establishing a rough estimate of the cost.
The more experienced a team, the more expensive their services.
4. Cost of IoT app development
The average cost of an IoT app's development greatly varies from region to region.
Despite being the IT capital of the world, developing an IoT app in America is rather expensive compared to the rest of the world.
For instance, in Southeast Asia, the price of IoT app development ranges from a mere $20 to $40 per hour.
In India, which is also considered a global IT hub, the rate of developing an IoT app are between $20 to $50 per hour.
If you move to Europe, or East Europe to be specific, the hourly rates of an IoT app development range from $30 to $50 per hour.
5. Experience and expertise of the app development team
The reputation and skills of the app development team play a crucial role in projecting the amount of money you need for your IoT app development.
The bigger the brand or app development firm, the shorter it will take to create and deliver the product; albeit, at a higher price.
On the other hand, a smaller firm with relatively less experience is bound to give you the best quality assurance at the minimum price as they would be more than eager to establish their name in the market when starting.
Tip: Hiring a local app development team is way better than consulting with a distant-located company for your IoT app development.
However, if the type of your IoT device or ecosystem is complex and extensive, then it’s recommended to go with a company that has dealt with bigger projects in the past.
To make sure to get your hands on the best available app development team, check their client's testimonials and online reviews.
6. Tools and Technology used
The tech stack of a particular company that is employed to build an IoT app can also increase or lower the amount of funds required.
Things such as third-party integration, complex functionality, real-time synchronization, and an extensive database can certainly require more intricate tools and technologies to be embedded into your IoT app.
As such, the development process may need more investment as well as time to complete.
7. Time required to build an IoT app
While some developers work on an hourly basis; others may charge you one time for the whole project.
In the latter's case, the cost will be all-inclusive for all the stages or phases of an entire app development. In general, it takes about 500 to 1000 hours for all the different stages of app development. And another 100 hours for testing, deployment, and post-development.
For building a smaller project or MVP with minimum functionality, the time of development may range from 400 to 600 hours.
For a slightly advanced IoT app, it may take between 700-800 hours of development time.
As far as the design stage of the process is concerned, a simple IoT app takes about 80 and 300 hours on any given day.
As you can see, the stipulated timeline of an IoT app development can range between 1000 to 1100 hours.
8. Ongoing maintenance and updates
Since advancements in technology never cease, the need to build a scalable IoT app is all the more necessary.
Besides, to ensure the seamless performance of your IoT app and devices, it needs to be regularly monitored, updated, and maintained by the development team.
If you want to add new features or upgrade the design, it will also take help from your app development team.
The point is- you would need their assistance from time to time for various reasons and for which you would have to pay some or other amount initially or later.
In general, though, the cost of maintaining an IoT app for a year is about 50% of the total cost of developing it.
Conclusion
As more and more IoT devices come into play, the scope of building user-friendly interfaces or IoT apps is also booming.
There is literally an app for every IoT device be it a smart light, an HVAC system, a health gadget, or a security device such as an automated alarm.
So if you are in the business of making IoT products, building an app for them is of utmost importance.
And not just for name sake, but to ensure convenience and ease of use to every user when it comes to accessing or remotely controlling their IoT device.
As such, the cost of building an IoT app for a respective IoT device or ecosystem depends on a lot of factors.
For instance, the type or the nature of the IoT device, the type or features of the application from basic to advanced, and the number of platforms you want your app to be compatible with.
That said, the cost of developing an IoT app may range from $10,000 to $50,000 depending on the complexity of the app.