IoT Managed Services Market Size

ID: MRFR/ICT/1717-CR

85 Pages

Ankit Gupta

July 2019

IoT Managed Services Market Research Report: By Service Type (Network Management, Device Management, Data Analytics, Security Management), By Deployment Model (On-Premises, Cloud-Based, Hybrid), By Industry Vertical (Manufacturing, Healthcare, Transportation, Retail, Energy), By Service Provider Type (Telecommunication Service Providers, Managed Service Providers, Cloud Service Providers) and ...

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Iot Managed Services Size

IoT Managed Services Market Growth Projections and Opportunities

The IoT (Internet of Things) Managed Services market is experiencing rapid growth, driven by the increasing adoption of IoT solutions across industries. In this dynamic landscape, market share positioning strategies are instrumental in determining the success of companies offering IoT managed services. A key strategy involves specialization, where companies focus on specific industry verticals or niche IoT applications. By tailoring their services to the unique needs of a particular sector, such as healthcare, manufacturing, or smart cities, companies can establish themselves as experts in that domain and attract a targeted customer base.

Pricing strategy plays a crucial role in market share positioning within the IoT Managed Services market. Companies need to strike a balance between affordability and the value delivered through their services. Some may adopt a competitive pricing approach to capture a larger market share, while others may position themselves as premium service providers by emphasizing advanced features, security, and reliability. The pricing strategy chosen should align with the perceived value of the managed services and cater to the budget constraints of diverse clients.

Effective marketing and brand building are integral components of market share positioning in the IoT Managed Services sector. Given the complex nature of IoT solutions, companies must communicate their expertise, reliability, and ability to manage the intricacies of interconnected devices and systems. Marketing efforts may involve showcasing successful case studies, highlighting security measures, and emphasizing the scalability of their managed services. Establishing a strong brand presence contributes to customer trust and recognition, influencing purchasing decisions in a competitive market.

Strategic partnerships and collaborations are significant contributors to market share positioning in the IoT Managed Services market. Forming alliances with IoT hardware manufacturers, software developers, or industry-specific solution providers can expand the range of services offered and create comprehensive IoT ecosystems. Additionally, partnerships with telecommunications companies to leverage connectivity solutions and cloud service providers for scalable infrastructure enhance the overall value proposition.

Innovation remains a cornerstone of market share positioning in the IoT Managed Services market. With the IoT landscape evolving rapidly, companies must stay ahead of technological advancements to provide cutting-edge solutions. This could involve incorporating artificial intelligence, machine learning, or advanced analytics to enhance the capabilities of managed services. Continuous research and development efforts are crucial to addressing emerging challenges and staying competitive in the ever-evolving IoT landscape.

Customer support and service reliability are paramount in the IoT Managed Services market. As businesses increasingly rely on IoT solutions for critical operations, ensuring uninterrupted service and prompt issue resolution is essential. Robust customer support, proactive monitoring, and regular updates contribute to overall customer satisfaction and retention. Positive customer experiences lead to long-term relationships, positive reviews, and referrals, all of which impact market share positioning.

Market Highlights

Author

Ankit Gupta

Senior Research Analyst

Ankit Gupta is an analyst in market research industry in ICT and SEMI industry. With post-graduation in "Telecom and Marketing Management" and graduation in "Electronics and Telecommunication" vertical he is well versed with recent development in ICT industry as a whole. Having worked on more than 150+ reports including consultation for fortune 500 companies such as Microsoft and Rio Tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.

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FAQs

What is the expected market size of the Global IoT Managed Services Market in 2032?

The Global IoT Managed Services Market is expected to be valued at 75.0 USD Billion in 2032.

What is the Compound Annual Growth Rate (CAGR) for the Global IoT Managed Services Market from 2024 to 2032?

The expected CAGR for the Global IoT Managed Services Market from 2024 to 2032 is 9.16%.

Which region dominates the Global IoT Managed Services Market in 2023?

North America is the largest region in the Global IoT Managed Services Market, valued at 14.0 USD Billion in 2023.

How much is the Device Management segment valued in 2032?

The Device Management segment of the Global IoT Managed Services Market is expected to be valued at 16.0 USD Billion in 2032.

What is the projected value of the Security Management segment in 2032?

The Security Management segment of the Global IoT Managed Services Market is projected to be valued at 19.5 USD Billion in 2032.

Who are some of the key players in the Global IoT Managed Services Market?

Key players in the Global IoT Managed Services Market include Bosch, Siemens, AT and T, Verizon, and IBM.

What is the expected market size for Data Analytics in 2023?

The Data Analytics segment is expected to be valued at 9.97 USD Billion in the Global IoT Managed Services Market in 2023.

How much is the South America region valued in the Global IoT Managed Services Market for 2023?

The South America region is valued at 2.0 USD Billion in the Global IoT Managed Services Market in 2023.

What are significant growth drivers for the Global IoT Managed Services Market?

Significant growth drivers for the Global IoT Managed Services Market include increased demand for network management, device management, and data analytics services.

What is the expected market growth for North America between 2023 and 2032?

The North America region is expected to grow from 14.0 USD Billion in 2023 to 32.0 USD Billion in 2032.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

The Global IoT Managed Services Market is projected to grow from 35.8 USD Billion in 2024 to 97.6 USD Billion by 2035.

Key Market Trends & Highlights

IoT Managed Services Key Trends and Highlights

The market is expected to experience a compound annual growth rate (CAGR) of 9.56 percent from 2025 to 2035.
By 2035, the market valuation is anticipated to reach 97.6 USD Billion, reflecting robust growth.
In 2024, the market is valued at 35.8 USD Billion, indicating a strong foundation for future expansion.
Growing adoption of IoT technologies due to increasing demand for automation is a major market driver.

IoT Managed Services Market

CAGR

9.56%

Market Size & Forecast

2024 Market Size	35.8 (USD Billion)
2035 Market Size	97.6 (USD Billion)
CAGR (2025-2035)	9.56%
Largest Regional Market Share in 2024	latin_america)

Major Players

Bosch, Siemens, AT&T, Verizon, Tata Consultancy Services, IBM, Oracle, Wipro, Amazon Web Services, Cisco, Microsoft, Infosys, Capgemini, Hewlett Packard Enterprise, Accenture

Market Trends

The Global IoT Managed Services Market is experiencing significant growth driven by several key market drivers. Increased connectivity through advanced technologies, such as 5G, is facilitating seamless data exchanges between devices, enhancing operational efficiency across various sectors. Furthermore, organizations are increasingly recognizing the importance of data analytics. The ability to derive actionable insights from massive streams of data improves decision-making processes and overall performance. As industries digitize and become more reliant on connected devices, the demand for managed services that ensure device management, security, and support is growing immensely.This evolving market space considers various possibilities for IOT Managed services.

IoT Transformations are also crucial for small and medium-sized businesses as staying competitive in the market increasingly requires these businesses to go digital. Furthermore, venturing into developing countries where IoT is still a new concept is a good opportunity for business expansion and growth. Recent technological advancements in artificial intelligence and machine learning also improve managed services as they provide automation which reduces the cost of operations and the cost of service delivery.

One other recent trend worth noticing regards the move towards edge computing, where information is processed closer to the source of procurement, leading to decreased latency and bandwidth costs.

This trend is being embraced as more businesses require real-time analytics and immediate responses. Sustainability is another notable trend, as companies seek to implement IoT solutions that not only improve efficiency but also reduce environmental impact. Security remains a crucial consideration as the number of connected devices increases, prompting a demand for robust managed security services. Overall, the landscape for IoT managed services is continuously evolving, reflecting a dynamic interplay of technology, opportunity, and market demand.

The increasing integration of IoT technologies across various sectors is likely to drive demand for managed services, as organizations seek to enhance operational efficiency and data security.

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IoT Managed Services Market Market Drivers

Market Growth Projections

The Global IoT Managed Services Market Industry is poised for substantial growth, with projections indicating a market size of 35.8 USD Billion in 2024 and an anticipated increase to 97.6 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 9.56% from 2025 to 2035, reflecting the increasing reliance on IoT technologies across various sectors. As organizations continue to adopt IoT solutions for enhanced operational efficiency, the demand for managed services that support these technologies is likely to rise. This upward trend underscores the critical role of managed services in the evolving landscape of IoT.

Emergence of Edge Computing

The emergence of edge computing is reshaping the Global IoT Managed Services Market Industry by enabling real-time data processing closer to the source of data generation. This shift reduces latency and enhances the performance of IoT applications, making managed services that support edge computing increasingly vital. Industries such as manufacturing and healthcare are leveraging edge computing to improve operational efficiency and decision-making. As organizations seek to harness the benefits of edge computing, the demand for specialized managed services that facilitate this transition is likely to grow. This trend indicates a significant evolution in how IoT solutions are deployed and managed.

Growing Demand for Connectivity

The Global IoT Managed Services Market Industry experiences a surge in demand for connectivity solutions as businesses increasingly rely on interconnected devices. This trend is driven by the need for real-time data access and improved operational efficiency. In 2024, the market is projected to reach 35.8 USD Billion, reflecting the growing reliance on IoT technologies across various sectors. Industries such as manufacturing, healthcare, and transportation are adopting IoT solutions to enhance productivity and streamline processes. As organizations seek to leverage data-driven insights, the demand for managed services that facilitate seamless connectivity is likely to rise, further propelling market growth.

Increased Focus on Data Security

Data security remains a paramount concern for organizations utilizing IoT technologies, thus driving the Global IoT Managed Services Market Industry. With the proliferation of connected devices, the risk of cyber threats escalates, prompting businesses to seek managed services that offer robust security measures. The market is expected to grow significantly as companies prioritize safeguarding sensitive information. Managed service providers are increasingly implementing advanced security protocols and compliance measures to protect IoT ecosystems. This focus on data security not only mitigates risks but also fosters trust among consumers, which is essential for the continued adoption of IoT solutions.

Rising Adoption of Cloud Computing

The adoption of cloud computing is significantly influencing the Global IoT Managed Services Market Industry. As organizations migrate to cloud-based platforms, the need for managed services that facilitate the integration of IoT devices with cloud infrastructure becomes increasingly apparent. Cloud computing offers scalability, flexibility, and cost-effectiveness, making it an attractive option for businesses. Managed service providers are capitalizing on this trend by offering tailored solutions that optimize IoT deployments in the cloud. The anticipated compound annual growth rate of 9.56% from 2025 to 2035 suggests that the convergence of IoT and cloud technologies will continue to drive market expansion.

Expansion of Smart Cities Initiatives

The Global IoT Managed Services Market Industry is witnessing substantial growth due to the expansion of smart cities initiatives worldwide. Governments are investing in IoT technologies to enhance urban infrastructure, improve public services, and promote sustainability. These initiatives often require comprehensive managed services to ensure the effective deployment and management of IoT solutions. As cities integrate smart technologies for traffic management, waste management, and energy efficiency, the demand for specialized managed services is likely to increase. By 2035, the market could reach 97.6 USD Billion, driven by the ongoing development of smart city projects globally.

Market Segment Insights

IoT Managed Services Market Service Type Insights

The Global IoT Managed Services Market is witnessing significant growth, particularly within the Service Type segment, which includes Network Management, Device Management, Data Analytics, and Security Management. As of 2023, the overall market generates revenue of 34.08 USD Billion, with each service type contributing uniquely to this expansion. Network Management holds a majority share, valued at 8.52 USD Billion in 2023, and is expected to grow to 17.5 USD Billion by 2032.

This dominance stems from the increasing need to manage complex networks effectively due to the rising number of connected devices and the demand for seamless connectivity.Device Management follows closely with a valuation of 7.67 USD Billion in 2023, set to reach 16.0 USD Billion in 2032. This service is essential for overseeing and maintaining various IoT devices, ensuring they function properly, are secure, and are updated regularly.

Data Analytics plays a significant role with a value of 9.97 USD Billion in 2023, projected to grow to 22.0 USD Billion in 2032, driven by the need to extract valuable insights from the vast amounts of data generated by IoT devices. This capability allows organizations to make data-driven decisions, optimize operations, and enhance customer experiences.Lastly, Security Management, valued at 7.92 USD Billion in 2023 and expected to reach 19.5 USD Billion by 2032, underscores the imperative of protecting IoT networks and devices against cyber threats.

As organizations increasingly adopt IoT, the demand for robust security solutions grows, making this service vital in safeguarding sensitive information. The Global IoT Managed Services Market segmentation highlights the critical nature of these service types, with each contributing to the market’s overall growth and reflecting the evolving landscape of IoT technologies.

IoT Managed Services Market Deployment Model Insights

The Global IoT Managed Services Market is showing robust growth within the Deployment Model segment, valued at 34.08 USD Billion in 2023 and projected to reach 75.0 USD Billion by 2032. This segment is characterized by three key types of deployment: On-Premises, Cloud-Based, and Hybrid, each playing a vital role in the IoT ecosystem. The Cloud-Based model is experiencing significant traction due to its scalability and flexibility, allowing businesses to manage large datasets efficiently while minimizing infrastructure costs.

Meanwhile, the On-Premises model remains essential for organizations with stringent data security requirements, providing greater control over sensitive information.The Hybrid model merges the advantages of both On-Premises and Cloud-Based deployments, offering versatility for enterprises seeking a balanced approach. Additionally, the increasing demand for real-time data analytics and enhanced connectivity solutions is driving the market forward, presenting notable opportunities for growth. The Global IoT Managed Services Market industry is witnessing a trend towards greater integration of AI and machine learning, further enhancing service efficiencies.

However, challenges such as data privacy concerns and integration complexities continue to impact market dynamics.The Global IoT Managed Services Market data and statistics reflect an evolving landscape where businesses increasingly adapt to technological advancements.

IoT Managed Services Market Industry Vertical Insights

The Global IoT Managed Services Market revenue is gaining momentum, expected to reach 34.08 billion USD by 2023 and 75.0 billion USD by 2032, showcasing the market's potential growth trajectory. The segmentation within this market reflects diverse industry verticals, including Manufacturing, Healthcare, Transportation, Retail, and Energy. The Manufacturing sector is significant due to its need for automation and efficiency, leveraging IoT to optimize operations and reduce downtime.

The Healthcare industry also plays a critical role, as IoT managed services enhance patient care through real-time monitoring and data analysis.Transportation uses IoT for logistics and fleet management, ensuring optimal routes and operational efficiency. Retail benefits from these services by utilizing data analytics for inventory management and improving customer experiences. Lastly, the Energy sector is experiencing increased adoption of IoT solutions for smart grids and resource management, emphasizing sustainability and operational efficiency.

The Global IoT Managed Services Market data reveals that these verticals are not just growing but are pivotal in driving market trends, with innovations and increasing investment opportunities presenting notable growth drivers.However, challenges such as data security concerns and integration complexities remain prevalent and can impact market growth.

IoT Managed Services Market Service Provider Type Insights

The Global IoT Managed Services Market is expected to be valued at 34.08 USD Billion in 2023, reflecting substantial growth potential within its various segments, particularly the Service Provider Type. This segment comprises various players, including Telecommunication Service Providers, Managed Service Providers, and Cloud Service Providers. Telecommunication Service Providers are crucial as they offer robust networks essential for efficient IoT deployments, impacting connectivity solutions significantly.

Managed Service Providers focus on delivering comprehensive management of IoT services, addressing operational complexities faced by businesses, thus enhancing productivity.Meanwhile, Cloud Service Providers play a vital role by delivering scalable infrastructure and data management solutions that support IoT applications. Overall, the evolving demands for connectivity, management efficiency, and cloud integration highlight the importance of these service categories in shaping the future landscape of the Global IoT Managed Services Market.

With an expected market growth fueled by these dynamics, the segmentation illustrates not just where the revenue lies but also points to the trends and opportunities present in the industry, driving continued investments and innovation.

Get more detailed insights about IoT Managed Services Market Research Report - Global Forecast till 2032

Regional Insights

The Global IoT Managed Services Market, valued at 34.08 USD Billion in 2023, shows significant regional distinctions, with North America leading the market. North America dominates with a valuation of 14.0 USD Billion in 2023, projected to rise to 32.0 USD Billion by 2032, primarily due to its advanced technological infrastructure and high adoption rate of IoT solutions.

Europe follows, holding a value of 9.0 USD Billion in 2023 and expected to reach 20.0 USD Billion by 2032, reflecting its emphasis on smart manufacturing and energy management solutions.The APAC region, valued at 7.0 USD Billion in 2023, is expected to see growth to 16.0 USD Billion by 2032. This growth is driven by an increasing number of IoT applications in industries like retail and transportation.

South America and MEA are the smaller markets, valued at 2.0 and 2.08 USD Billion in 2023, respectively, with 2032 projections of 4.0 and 3.0 USD Billion, suggesting a gradual adoption of IoT technologies as economic conditions improve. Overall, the Global IoT Managed Services Market segmentation reflects varying levels of market growth influenced by regional demands and technological advancements.

Key Players and Competitive Insights

The competitive insights of the Global IoT Managed Services Market reveal a dynamic and rapidly evolving landscape characterized by the involvement of numerous service providers who are striving to establish their presence through innovative solutions and advanced technology offerings. This market is increasingly driven by the rising adoption of IoT devices and applications as businesses seek to enhance operational efficiency, gain actionable insights, and improve customer experiences. In this environment, service providers are keenly focusing on developing strategic partnerships, investing in research and development, and expanding their service portfolios to cater to diverse industry needs.

A competitive analysis shows that companies are emphasizing customer-centric solutions, flexibility, and scalability in their service offerings, thereby creating a highly competitive sphere of innovation and investment opportunities across various regions.Bosch stands out in the Global IoT Managed Services Market due to its extensive experience and robust technological capabilities, which enable it to deliver reliable and scalable managed services. The company has established a formidable market presence through its commitment to research and development, leveraging its expertise in sensor technology, connectivity, and data analytics.

Bosch's strengths lie in its ability to integrate IoT solutions seamlessly into existing environments, thereby providing businesses with enhanced operational efficiency and improved decision-making capabilities. The company’s investment in developing innovative IoT platforms and ecosystem partnerships has positioned it favorably within the market, allowing it to respond efficiently to evolving customer demands and industry trends.

Furthermore, Bosch's strong brand reputation and commitment to sustainability resonate well with clients who seek not just technological solutions but also alignment with broader environmental and social goals.Siemens is recognized as a key player in the Global IoT Managed Services Market, noted for its comprehensive portfolio that includes advanced automation, digitalization, and data analytics capabilities. The company has built a solid market presence through its ability to deliver integrated solutions that enhance productivity and drive digital transformation across various sectors, including manufacturing, healthcare, and smart infrastructure.

Siemens' strengths stem from its strong emphasis on innovation, leveraging Industry 4.0 principles to provide cutting-edge solutions that optimize operations and reduce costs for clients. With a diverse range of IoT services underpinned by a commitment to connectivity and interoperability, Siemens fosters a collaborative approach that enables organizations to not only embrace digital transformation but also derive meaningful insights from their IoT investments. The company's strategic focus on developing partnerships and leveraging its global reach further enhances its competitive positioning in the evolving IoT managed services landscape.

Key Companies in the IoT Managed Services Market market include

Industry Developments

Recent developments in the Global IoT Managed Services Market have showcased significant activities among key players such as Bosch, Siemens, AT&T, Verizon, and IBM. Companies are increasingly focusing on enhancing connectivity solutions and AI-driven applications to optimize operations. The growing demand for IoT solutions in various sectors, including manufacturing and smart cities, is driving the expansion of managed services. Recently, Verizon announced advancements in its IoT platform, aiming to deliver improved security and reliability for its offerings.

Meanwhile, Tata Consultancy Services has been enhancing its IoT capabilities to cater to the evolving needs of industrial clients.In the realm of mergers and acquisitions, notable interests have been sparked, particularly with Siemens reportedly exploring strategic partnerships to fortify its IoT services portfolio. Further, Wipro has been actively acquiring smaller tech firms to bolster its IoT capabilities, aligning with market growth trends. The increasing investments from organizations such as Microsoft and Amazon Web Services into IoT solutions are reshaping the competitive landscape, ultimately propelling overall market valuation and fostering innovative service delivery mechanisms.

This dynamic environment indicates a robust trajectory for the Global IoT Managed Services Market, reflecting the urgency for integrated, effective IoT strategies among companies.

Future Outlook

IoT Managed Services Market Future Outlook

The IoT Managed Services Market is poised for growth at 9.56% CAGR from 2024 to 2035, driven by advancements in connectivity, data analytics, and increased demand for automation.

New opportunities lie in:

Develop tailored IoT solutions for specific industries like healthcare and manufacturing.
Invest in AI-driven analytics to enhance data processing and decision-making capabilities.
Expand service offerings to include cybersecurity solutions for IoT devices.

By 2035, the IoT Managed Services Market is expected to achieve substantial growth, reflecting evolving technological landscapes.

Market Segmentation

IoT Managed Services Market Regional Outlook

North America
Europe
South America
Asia Pacific
Middle East and Africa

IoT Managed Services Market Service Type Outlook

Network Management
Device Management
Data Analytics
Security Management

IoT Managed Services Market Deployment Model Outlook

On-Premises
Cloud-Based
Hybrid

IoT Managed Services Market Industry Vertical Outlook

Manufacturing
Healthcare
Transportation
Retail
Energy

IoT Managed Services Market Service Provider Type Outlook

Telecommunication Service Providers
Managed Service Providers
Cloud Service Providers

Report Scope

Attribute/Metric	Details
Market Size 2022	31.22 (USD Billion)
Market Size 2023	34.08 (USD Billion)
Market Size 2032	75.0 (USD Billion)
Compound Annual Growth Rate (CAGR)	9.16% (2024 - 2032)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2023
Market Forecast Period	2024 - 2032
Historical Data	2019 - 2023
Market Forecast Units	USD Billion
Key Companies Profiled	Bosch, Siemens, AT and T, Verizon, Tata Consultancy Services, IBM, Oracle, Wipro, Amazon Web Services, Cisco, Microsoft, Infosys, Capgemini, Hewlett Packard Enterprise, Accenture
Segments Covered	Service Type, Deployment Model, Industry Vertical, Service Provider Type, Regional
Key Market Opportunities	Increased demand for smart cities, IoT security service enhancements, Growth in connected devices, Expansion of edge computing solutions, Integration with AI technologies
Key Market Dynamics	Rising IoT adoption, Increasing cybersecurity concerns, Demand for data analytics, Cost optimization needs, Enhanced scalability solutions
Countries Covered	North America, Europe, APAC, South America, MEA

Market Highlights

Author

Ankit Gupta

Senior Research Analyst

She holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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