IoT App Development Cost And Particularities To Create Your IoT Software  

8 min to read

Written By

Picture of Dyachenko Anastasia
Dyachenko Anastasia
CEO at Cadabra Studio. UX expert and business consultant

This network is called the Internet of Things, or IoT. The global spending on IoT reached $726 billion in 2019, and it is expected to grow up to $1 trillion by 2022, as Statista notes. The development of IoT software is gaining momentum, and many entrepreneurs strive to explore this niche and multiply revenue.  

The Internet of Things is the future that already surrounds us. So our task is to clarify each nuance concerning IoT app development for mobile and web, including its cost and steps. The process is complicated and time-consuming, so you should know everything about it.  

What is the IoT Development?

For a start, you need to know more about what IoT is and how it works. IoT connects a few devices in one network that makes it possible to collect, analyze, process, and transmit data to other objects via software. 

People can interact with devices, while devices communicate with each other, respond to any changes, and make decisions without human intervention. IoT devices can function independently, although people may adjust them and provide data access. 

IoT systems work in real-time mode and consist of smart devices and cloud platform, they are connected to the platform via Bluetooth or Wi-Fi. For example, a smart thermometer monitors the surrounding temperature in the dwelling. If it is too low, the device sends a signal to a smart heater using relevant software, and the heater is activated. It is just one example. In fact, IoT turns your house into a smart home. 

What Is Special About IoT App Development?

Custom IoT app development is entirely different from the development of any other type of application. The Internet Of Things represents a complex system that has three levels as follows:

  • Infrastructure. Software on a cloud server that analyzes and processes data received from connected devices. 

  • Smart gadgets. Devices that interact with other equipment and networks. They can transmit various data to each other in an automated way while cloud software analyzes the received data. 

  • Applications. And, finally, mobile, web, or hybrid apps installed on a user’s device allow them to control connected devices with a smartphone, tablet, or PC. 

As you can see, app development is not the only thing you need for building IoT software. But we will pay more attention to it a bit later. 

Challenges Of IoT

Before we speak about the development process, we think it is necessary to talk about pitfalls and challenges IoT app development bears.  

  • IoT app development security. As IoT is a network of devices, it is crucial to ensure security and privacy. However, it is easy to say and hard to accomplish. Data security can be easily breached if one of the network links is broken. It is not always possible for developers to guarantee that the whole IoT system will function properly.

  • Connectivity. The next challenge is potential poor connectivity. The data is transmitted from one device to another, and if there is a poor connection or some failures, the IoT system won’t provide users with a satisfactory result. Thus, connectivity challenges are to be considered. 

  • Compatibility. Multiple devices and sensors may be involved in the process, but they may have different standards, and not all of them will be compatible. Lack of a unified standard is a significant problem that cannot be fixed at the moment. IoT app development company must test the system to make sure that everything goes like clockwork. 

This article may be interesting for you: IoT Business Opportunities

Steps On How To Develop IoT Applications

What makes a successful app development result? A wise approach to the development process, of course. That is why we cannot ignore the step-by-step guide you will find below. 

Choose IoT Development Platform 

The platform for IoT software development is necessary since it will help connect devices to cloud solutions. There are many IoT application development platforms in the market. However, Azure IoT Suite, IBM Watson, Oracle IoT, Kaa, HomeKit are top of them. Developers will use one of the selected platforms to build a network of devices that function seamlessly. 

When you are selecting a platform for IoT app development, you need to check their pricing and conditions, so that you will find the appropriate one for your project. 

This article may be interesting for you: What is a Development Platform

Choose A Hardware

Everything depends on the niche you plan to create IoT software for. For example, you may need an IoT system for home or build a system for a specific industry like healthcare, logistics, manufacturing, etc. So you need to determine what devices will become a network for your system. 

Use A Reliable Data Storage 

Cloud storage is necessary for the analysis and processing of transmitted data. Microsoft Azure, AWS, Google Cloud Platform — these three top cloud service providers form the basis for reliable data storage. Of course, you can choose other providers, but it is highly recommended to cooperate with proven companies. 

Hire IoT App Development Company

The company must be dependable and have an experience of IoT software development. However, that’s not the only factor to consider when you choose software developers. Make sure that you feel comfortable when you are communicating with specialists. As for Cadabra Studio, one of our primary rules is to listen to our clients and take their demands into account. 

If we know that there are some development issues and they are not acceptable, we explain to clients why it cannot be implemented according to their requirements, and how it can be fixed. That is why you can choose the Cadabra Studio team — we always respect the expectations of our clients. 

Elaborate On User Experience

Clear and intuitive user experience is crucial for any type of app. Still, IoT mobile app development (as well as a web app) is the process where good UX means high user’s comfort and absence of dissatisfaction. If you want to make an app competitive and eye-catching, you need to entrust the project to professionals who will create fascinating UX.  

As for user experience design, entrust this process to a software development company. 

Safety Comes First 

Although this is the last step, it must be the first step when web or mobile app development for IoT is initiated. As we already mentioned, you should choose reliable IoT platform vendors, dependable cloud service providers, and use protected networks. Developers will apply encryption methods for secure data transmission and storage.

Besides, it is essential to comply with local government regulations. For example, if you create a healthcare-related IoT app in the United States, you need to make sure that it is HIPAA-compliant. Also, software that is created for residents of California must comply with CCPA regulations. If you want to build an app for the EU-based citizens, it should comply with the GDPR. 

How Is The Cost Of IoT Implementation Formed?

To estimate IoT software pricing, it is necessary to understand how the cost is formed. IoT app development cost includes not only software creation, and there are additional expenses to learn about. 

Hardware. That is what everything starts with. You need to choose devices that will be used as an IoT network. However, there is a problem that ready-made devices already have relevant software, and there is no need to build your own app. 

Therefore, one of the possible solutions is to build a smart device for your specific purposes. Manufacturing of smart devices includes planning, concept development, technical specification creation, modeling, engineering, and commissioning stage. It may cost thousands of dollars, depending on the complexity of the device. 

Infrastructure. You should provide an Internet connection and network infrastructure for the proper functionality of the IoT system. Then, if you still want to connect ready-made devices, it is necessary to create software that will connect these devices (i.e., serve as a middleware). Finally, cloud infrastructure like AWS or Microsoft will cost you additional funds. 

Application. Application development cost depends on the number of features, the complexity of UI/UX design, the integration of additional technologies like AI, etc. We will draw the line under this issue at the end of the article. 

Tech Stack And Team Required For IoT App Development

Technology stack for the development of IoT apps may include dozens of tools and programming languages. However, we would like to list what tools can be used potentially, according to the experience of our developers. 

Back-end Development 

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Concept Design by Cadabra Studio

IoT app development may require the following back-end tools and skills:

  • Programming languages like Node.js, Python, Ruby

  • Database: MongoDB, MySQL

  • DevOps tools: Gradle, Jenkins, Docker

  • Cloud platforms: Microsoft Azure, Google Cloud Platform, AWS

Front-end Development

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Concept Design by Cadabra Studio

If you need IoT web application, then front-end of a web app may include some of the following tools:

  • HTML, CSS, JavaScript

  • Frameworks: React, Bootstrap, Vue.js

Mobile App Development

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Concept Design by Cadabra Studio

IoT mobile app development may be created using some of these technologies:

  • Programming languages: Java/Kotlin for Android, Swift for iOS

  • Cross-platform tools: Cordova, React Native, Flutter

    To know more about technologies we use for IoT app development you can read the following article with Flutter vs React Native Comparison.

Data Scientists

As the Internet of Things implies a process and in-depth analysis of the data, your project may require skills of data scientists who work with AI and related technologies.

  • AI and machine learning

  • Programming languages: Python, Lisp, C++

  • Tools: TensorFlow, PyTorch, Scikit Learn, Auto ML

What About The Team?

The team at Cadabra Studio for IoT project will include a project manager, 2-4 developers (depending on the number of platforms), 2-3 UI/UX designers, two QA engineers, one data scientist, one requirement analyst. 

Three Successful Examples Of IoT Apps 

The majority of IoT projects are built for factories and hospitals since there is a higher demand for them. But there are some well-known projects that are probably used by you daily.

Check them out:

Amazon Echo. We know that you heard about the Amazon Echo device. You can control it by voice, and it responds to your voice command. AI algorithms power Amazon Echo, and it can connect with other smart devices around your home. Weather report, music playing, activation of air conditioning — everything can be fulfilled if you give an order. 

Fitbit Charge 4. An activity tracker that calculates the number of burnt calories, steps taken, monitors sleep models. It syncs with smartphones and computers, where it creates charts with detailed and precise statistics. 

AT&T Connected Cars. AT&T telecom company has created its Wi-Fi smart connection system that makes it possible for drivers and passengers to connect up to 10 devices and use them efficiently. Or a driver can connect a few smart devices in their car and make the IoT network. 

This article may be interesting for you: How to Build a SaaS Product

How Much Does It Cost To Create an IoT App? 

You know how the cost of your IoT app is formed, so the final estimation may be very high. But let’s take an app as the primary point for cost estimation. The cost depends on the hourly development rate. But rates vary in different world regions. Your main task is to find an affordable price and high-quality services. 

North America is considered to be the most expensive software development region, where the rate starts from $150 and higher. That is why you need to think about offshore app development and hire developers somewhere abroad. For example, in Europe. 

You can also read our article about offshore development services.

European-based software development companies provide top-notch quality along with acceptable hourly rates. Cadabra Studio is located in Ukraine, and our average rate ranges between $25-50 per hour depending on the complexity of the project. On the whole, Ukrainian companies deliver excellent solutions that meet international standards.

Thus, simple IoT app development will cost you about $40-50k. A complex application may cost you $100k and higher. It is impossible to provide you with a detailed estimate until you send us all your requirements and needs. So use this form to hire us, and we will give you our best estimate for your IoT software.

Frequently Asked Questions

The cost of medical app development depends on several factors like your needs, set of features, technology stack, and so on. Though our business analytics make sure to not spend an unnecessary penny.

To make a mobile app screen, you need to create a user flow diagram for each screen, draw wireframes, select design templates, and colors, create layouts, and create an animated prototype.

We usually take our clients through the following steps:

  1. Planning and Research; 
  2. Prototyping;
  3. Design;
  4. Development;
  5. Testing;
  6. Release;
  7. Maintenance.

You will participate in every stage of the development process and get regular updates.

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