IoT Managed Services Global Market Report 2024

IoT managed services refer to services that assist in the management of IoT environments, defining appropriate business strategies for digital transformation. They enable organizations to assemble the right mix of IoT products and solutions, providing systematic solutions to business problems, enhancing operational efficiency, and opening up new markets.

The main types of IoT managed services include infrastructure management services, security management services, network management services, data management services, and device management services. Security management services are particularly crucial as they form the foundation of an organization's cybersecurity strategy, locating and safeguarding its resources and procedures. These services are utilized by end-users in various sectors such as automotive and transport, IT and telecom, healthcare, BFSI, manufacturing, and others. Organizations of different sizes, including SMEs and large enterprises, benefit from these IoT managed services.

The IoT managed services market research report is one of a series of new reports that provides IoT managed services market statistics, including IoT managed services industry global market size, regional shares, competitors with an IoT managed services market share, detailed IoT managed services market segments, market trends and opportunities, and any further data you may need to thrive in the IoT managed services industry. This IoT managed services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The iot managed services market size has grown exponentially in recent years. It will grow from $72.94 billion in 2023 to $90.17 billion in 2024 at a compound annual growth rate (CAGR) of 23.6%. The expansion observed in the historical period can be attributed to the increased complexity of IoT ecosystems, the proliferation of IoT devices, the need for scalable and secure connectivity, the rising demand for data analytics in IoT, and a limited in-house expertise for IoT management.

The iot managed services market size is expected to see exponential growth in the next few years. It will grow to $209.57 billion in 2028 at a compound annual growth rate (CAGR) of 23.5%. The anticipated growth in the forecast period can be attributed to the expansion of 5G networks, the growth in edge computing for IoT, a heightened emphasis on IoT security and privacy, the rise of industry-specific IoT applications, and the growing demand for multi-cloud applications. Major trends expected during this forecast period include the integration of artificial intelligence in IoT management, the adoption of managed IoT Platform-as-a-Service (PaaS), the implementation of predictive maintenance and remote monitoring, the promotion of sustainable and green IoT practices, and the adoption of blockchain for IoT security.

The growth of the IoT managed services market will be driven by the increasing adoption of IoT managed service solutions in sectors such as automotive, electronic goods, and information and telecommunications. Key factors contributing to this growth include the ongoing deployment of long-term evolution (LTE) and technological advancements in various domains. The automotive, consumer electronics, and telecom industries are prominent users of IoT-managed services. In the United States, for example, 91% of cars sold in 2020 were IoT-connected, amounting to 13 million vehicles, and this number is expected to reach 115 million by 2025. IoT in cars facilitates predictive maintenance by collecting sensor data, analyzing potential issues, communicating through the cloud, and notifying the driver. The predictive analysis of car maintenance enhances the utilization of IoT in the automotive sector, emphasizing the increasing role of IoT managed services solutions in these industries.

The anticipated adoption of 5G connectivity is poised to be a driving force behind the growth of the IoT managed service market. 5G connectivity, the fifth generation of wireless technology, offers faster data speeds, reduced latency, and increased capacity for mobile and internet-connected devices. IoT managed services leveraging 5G connectivity enable the efficient management and monitoring of extensive networks of IoT devices, enhancing their functionality and security. As of April 2023, global 5G wireless connections increased by 76% from the end of 2021 to the end of 2022, reaching 1.05 billion, and are projected to reach 5.9 billion by the end of 2027. The widespread adoption of 5G connectivity plays a crucial role in propelling the IoT managed service market forward.

The IoT managed services market is witnessing a significant trend driven by technological advancements, especially in cloud-based solutions. Modern cloud-based technologies ensure that data is securely backed up and protected in a reliable location. Cloud-based services cater to the connection, monitoring, and management of IoT devices, offering comprehensive solutions that include device-to-cloud connectivity, data processing from devices, and interaction with connected devices through applications. For instance, NXP Semiconductors N. V introduced the EdgeLock 2GO IoT cloud service platform, focusing on secure deployment and management of IoT devices and services. This platform offers an end-to-end security solution, emphasizing the role of technological advancements in shaping the landscape of IoT managed services.

Major players in the IoT-managed services market are responding to the growing demand for streamlined and efficient IoT asset management by developing innovative advanced software platforms like MODGo. MODGo is designed to simplify IoT asset management, providing organizations with a unified solution for efficient management, ordering, and deployment of IoT devices. KORE, a US-based IoT service provider, launched MODGo in February 2023, aiming to address IoT deployment challenges comprehensively. This innovative software platform collaborates with IMS, a connected insurance solution provider, to enhance operations and customer experience, aligning with consumer expectations for logistics and ensuring top-quality supply chain services.

In July 2021, Taoglas, a US-based digital transformation provider using IoT, acquired Smartsensor Technologies, an Australia-based company specializing in IoT-managed services. This strategic acquisition positions Taoglas to expand its offerings in industrial and enterprise-level IoT services, demonstrating the industry's commitment to growth and innovation in connected smart services.

Major companies operating in the in the iot managed services market report are Cisco Systems Inc., International Business Machines Corporation, HCL Technologies Limited, HARMAN International Industries Incorporated, Cognizant Technology Solutions Corporation, AT&T Inc., Verizon Communications Inc., Vodafone Group Plc, T-Mobile US Inc., Sprint Corporation, Ericsson AB, Orange Business Services, Deutsche Telekom AG, Sierra Wireless Inc., Telit Communications PLC, Aeris Communications Inc., KORE Wireless Group, Arm Ltd., PTC Inc., Microsoft Corporation, Amazon Web Services Inc., Siemens Aktiengesellschaft, Robert Bosch GmbH, Dell Technologies Inc., Hewlett Packard Enterprise Company, Oracle Corporation, Telstra Corporation Limited, Software Aktiengesellschaft, Wipro Limited, Accenture plc, Fujitsu Limited, NTT Data Corporation

North America was the largest region in the IoT managed services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the iot managed services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the iot managed services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The IoT managed services market consists of revenues earned by entities by providing IoT connectivity management and IoT hardware solutions. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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