Internet of Things (IoT) is a vision of integrated networks covering physical devices that can collect and exchange data. It enables unconnected applications and objects to become connected through communication technology such as radio frequency identification tags (RFID). This paper presents a conceptual study of a business model based on IoT technology using agent-based simulations (ABS) to determine IoT adoption and life cycle. Business model canvas is used to propose a predictive maintenance software business model; the physical objects of the system are integrated and connected to RFID tags and sensors to collect and exchange data stored in cloud-based system.  Subsequently, this will improve predictive analytics and hence attain better decision making. The behavior of the customer market in the USA is simulated using ABS to examine the potential of a proposed business model.