IoT Managed Services Market Report 2025

This IoT Managed Services market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The IoT managed services market size has grown exponentially in recent years. It will grow from $88.38 billion in 2024 to $108.22 billion in 2025 at a compound annual growth rate (CAGR) of 22.4%. The growth in the historic period can be attributed to increased complexity of IoT ecosystems, proliferation of IoT devices, need for scalable and secure connectivity, rising demand for data analytics in IoT, 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 $263.01 billion in 2029 at a compound annual growth rate (CAGR) of 24.9%. The growth in the forecast period can be attributed to expansion of 5g networks, growth in edge computing for IoT, emphasis on IoT security and privacy, rise of industry-specific IoT applications, growing demand for multi-cloud applications. Major trends in the forecast period include integration of artificial intelligence in IoT management, managed IoT platform-as-a-service (PaaS), predictive maintenance and remote monitoring, sustainable and green IoT practices, adoption of blockchain for IoT security.

The rising adoption of IoT managed services solutions in the automotive, electronics, and information and telecommunications sectors is expected to drive the growth of the IoT managed services market. Key factors contributing to this growth include the ongoing deployment of long-term evolution (LTE) technology and advancements in various fields. IoT managed services are extensively utilized across the automotive, consumer electronics, and telecom industries. For example, a report published in August 2022 by the Health Sector Cybersecurity Coordination Center (HC3), a US-based agency under the Department of Health and Human Services' (HHS) Cybersecurity Program, indicated that around 7 billion devices were connected through the Internet of Things (IoT) in 2022. Projections suggest significant growth, with an estimated 20 billion additional devices anticipated to adopt this technology by 2025. Consequently, the increasing use of IoT managed services solutions in these industries is poised to propel the growth of the IoT managed services market.

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.

Leading companies in the abrasives market are increasingly pursuing strategic partnerships to enhance their presence in the industry. Strategic partnerships involve companies utilizing each other's strengths and resources to achieve shared benefits and success. For example, in May 2023, NTT Ltd., a US-based IT infrastructure and services provider, and Cisco Systems Inc., a US-based technology firm, announced a collaboration aimed at developing and implementing integrated solutions that help organizations improve operational efficiencies and advance sustainability objectives. The solutions created by both companies will utilize NTT's Edge as a Service portfolio and Cisco's IoT capabilities, incorporating features such as predictive maintenance, asset tracking, and supply chain management to deliver real-time data insights, enhanced security, improved decision-making, and reduced operational costs.

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 January 2022, DigiCert, Inc., a US-based provider of network software solutions, acquired Mocana for an undisclosed sum. This acquisition aims to strengthen DigiCert's IoT security capabilities by incorporating Mocana’s technology, which will facilitate the delivery of a comprehensive, end-to-end security platform for IoT device manufacturers and operators while accelerating the time-to-market for IoT solutions. Mocana specializes in cyber protection for IoT, operational technology (OT), and critical infrastructure and is also based in the US.

Major companies operating in the IoT managed services market include 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., 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 2024. 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.

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 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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