Internet of Things (IOT) Managed Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The internet of things (IoT) managed services market is expected to grow at a CAGR of 27.82% during the forecast period. The rise in the multi-cloud application, automation, and increased demand for IoT in industrial space is augmenting the demand for IoT-managed services across the globe.

Key Highlights

• The expansion is anticipated to be fueled by technological developments and the rising affordability of sensors and processors that can deliver real-time information access. The need to increase operational proficiency and excellent cooperation among the key market players is also anticipated to fuel expansion. The methods developed to build a combined digital-human workforce would offer significant growth opportunities. ​
• The scalability, cost advantages, and data analytics benefits made possible by IoT technologies in the industrial domain are impacting the adoption as Industry 4.0 comes to fruition. For instance, Tech Pro says over 80% of industrial manufacturing organizations either use or plan to deploy IoT devices. ​
• Enterprises looking to opt for IoT are increasing, and global IoT MSPs are further targeting such enterprises. According to the CompTIA survey on MSPs, MSPs see emerging technology as a significant business opportunity source, and over 50% of respondents offer IoT-managed services. ​
• Developing connected devices is anticipated to create new opportunities for businesses with expertise in cutting-edge Artificial Intelligence (AI) algorithms to create ground-breaking solutions that may address the issues with the technology. IoT-managed services are becoming more popular in application areas like remote monitoring, asset management, predictive maintenance, remote servicing, and operational information. ​
• Due to the COVID-19 spread, manufacturing facilities are expected to increase the automation level in the future, wherever possible, due to social distancing norms. It would further push the number of industrial IoT-connected objects to multiply, fuelling the demand for IoT-managed services.

IoT Managed Services Market Trends

Manufacturing Sector to Hold a Significant Market Share

• Industry 4.0 is transforming industries, from legacy systems to smart components and machines, to facilitate digital factories and develop an ecosystem of connected plants and enterprises. Industry 4.0 persuaded OEMs to adopt IoT across their operations.
• Maryville University estimates that by 2025 over 180 trillion GB of data will be created worldwide every year. IIoT-enabled industries will generate a large portion of this. A survey by Industrial IoT (IIoT) giant Microsoft found that 85% of companies have at least one IIoT use case project. This number increased, as 94% of respondents said they would implement IoT strategies by 2021.​
• The benefits offered by IoT in the manufacturing industry are driving the adoption rates. The benefits include increased machine utilization, predictive maintenance and production, data analytics, monitoring, automation, and cost benefits. ​
• According to the Information Technology and Innovation Foundation (ITIF), IoT applications for monitoring machine utilization can increase manufacturing productivity by 10% to 25%. %. BC Machining LLC, a metal parts manufacturer, onboarded a machine utilization monitoring solution that helps it improve productivity and optimize computer numerical control (CNC) machines. IIoT solutions capture real-time data from equipment sensors to provide reports on the machines' cycle times, downtime, and other parameters. ​

Asia-Pacific is Expected to Witness the Highest Growth Rate

• As the Asia-Pacific region is developing, it holds significant expansion potential owing to booming commercial sectors like healthcare, safety and security, manufacturing, energy, and agriculture. It is enabling the IoT market to grow at a faster rate.
• Due to the integration of blockchain and cryptographic processes across IoT security services, IoT offers a centralized network and associated data management, reducing business vulnerabilities and security concerns and fueling the IoT in the engineering services market in this region.
• The countries such as India, Japan, China, Australia, and South Korea, are significant contributors to the Asia-Pacific market, and the growing smart city implementation in this region presents the market with varied potential growth opportunities.
• Moreover, growing government initiatives to encourage healthcare providers and other healthcare organizations to adopt EHR and EMR technologies and aggressive investments from nonprofit entities and private sectors in different applications are expected to drive IoT managed services market in the Asia-Pacific region.

IoT Managed Services Market Competitor Analysis

The IoT-managed services market is highly fragmented, owing to many players. Most vendors are participating in various marketing strategies to expand their market share. The vendors available in the market are competing on price, quality, brand, and product differentiation. The acquisition of small players ensures an optimum position in IoT-managed services globally. Various key players are IBM Corporation, Accenture PLC, Tech Mahindra Limited, etc. Key current advancements are -

• November 2022 - Argentine Chamber of IoT and Telit, a global Internet of Things (IoT) business, have formed a strategic alliance (CAIoT). CAIoT is a member organization that works to promote the IoT market. It addresses legal and regulatory issues, facilitates communication between suppliers and buyers of IoT solutions, improves knowledge of all industry verticals, and promotes IoT as a new growth engine for the Internet in Argentina. ​
• August 2022 - Through a recent agreement with Integron, a managed services supplier for the Internet of Things (IoT) market, Stefanini is now offering eHealth outsourcing solutions to the healthcare and pharmaceutical industries. The agreement combines Stefanini's expertise in IT outsourcing, application development, solution deployment, and systems integration with Integron's tried-and-true managed IoT services, which include connection, security, and device monitoring. ​

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