IoT telecom services Market, by Component (Connectivity Technology, Network Management Solution, Services), by Connectivity Technology (Cellular Technologies, LPWAN, NB-IoT, Radio Frequency-Based), by Network management Solutions (Network Performance Monitoring and Network Optimization, Network Traffic Management), by Service Type (Business Consulting Services, Device and Application Management Services), by Application (Smart Buildings, Capillary Network Management) — Global Forecast till 20230

Market Overview 

The global IoT Telecom services market is going uphill at a CAGR of 38.80% for the forecast period of 2022 to 2030. Rapid urbanization and industrialization in several countries and innovation of existing technology in developed countries are creating new avenues for IoT at present. The growth statistics in the current times suggest a significant rise in the market for the telecommunication industry with the help of IoT. Widespread usage in healthcare, defense, transportation, etc industries are increasing the market for IoT applications. Hence, IoT telecom services are gaining new highs now and then.  

The internet of things (IoT) is a sophisticated solution that enables electronic and digital devices to use the internet network and automation function from remote instructions. Several digital devices like smartphones, tablets, laptops, etc, are the prime users of IoT telecom services. These devices widely use mobile connection and network services, and they are compatible with IoT technology. These devices create the prime application for the global IoT Telecom services industry. Innovations in the fields of technology will create new opportunities for the market in the coming future.    

COVID-19 Analysis

The emergence of COVID-19 disease has been rough on the global citizens unanimously. There is hardly any major industrial country left that had not faced the wrath of the infectious disease. The pandemic in almost all major countries has affected the business scenario greatly. Followed by the pandemic, came lockdowns in several countries for months. To practice social distancing measure and curb the spread of the disease, it was a necessary step. Owing to that, the IoT Telecom market has faced the impacts too. It is not very simple to access the effect of the pandemic on the said market. On the one hand, due to devastating economies, there is a scarcity of investments in technological fields. The consumption of technological products has reduced a lot in small and medium enterprises (SMEs). 

On the other hand, due to remote operations of the official and business endeavors, it is expected to increase the market demand for IoT services in telecom industries. The current market trends suggest that there will be a steady incline in the IoT Telecom services market sales in the coming future. Trendy application in the fields is expected to grow the demand in new and developing industries as well.      

Market Dynamics 

Drivers 

The global market is growing on the reliance on increasing mobile networks and smart devices in the market. Several corporations in the world are formulating the systems of smart buildings. To increase efficiency, convenience, and security, connecting the building system via IoT technology is a growing trend. Connecting smart devices that involve security, temperature conditioning, printing, computer server networking, etc. The IoT Telecom services market depends on the demand of several end-user markets as well. Wide application in the IT, healthcare, aerospace, defense, banking sector, Government administration, network monitoring, etc industries are pushing the market. 

The advancement in wireless technology has been a steady push for the market as well. Network solutions like Wi-Fi, Bluetooth, Near Field Communication (NFC), Wide Area Network (WAN), etc are increasing the usage of IoT telecom services as well. The IoT telecom services market is expanding on the reliance on Government regulations. There has been an encouraging role from the Government and authorities to increase the use of automation, and smart technologies in the workplace. This is one of the major driving forces behind the growth of IoT services in the market.           

• Opportunities 

The global market is going to see tremendous growth in the coming future with the emergence of 5G network development in multiple countries. The high-speed internet penetration will invite a homely atmosphere for the IoT telecom devices. Better connectivity between device-to-device (D2D), machine-to-machine (M2M), or device-to-user will increase the utilization of the technology more in the future. IoT telecom services market trends show that the coming years will observe the rapid expansion of the market owing to the demand for smart buildings (that includes smart doors, security, elevator, air-conditioning system, toilet, etc) in different countries. 

5G network will eventually promote the use of IoT devices more and more. The telecommunication industry that is largely dependent on the internet and mobile network connections, is going to experience a major boom in the next coming years. The latest IoT telecom services market research report suggests that every 1 second, 127 new IoT devices are getting connected to the network. This trend poses a golden opportunity for the IoT telecom market as well. Adoption of AI-driven automation technologies, vehicle-to-vehicle (V2V) communication, time savings on repetitive mundane work, etc facilities are pro-growth of the IoT telecom industry.       

• Restraints

At present, one of the major issues that restrict the growth of the global market is the lack of a qualified and trained human workforce in the industry. The IoT technology is new and demands a lot of expertise in high-level computer development, coding, and engineering. The present IoT telecom market is facing the lack of a workforce that can efficiently manage the installation, management, and maintenance faculties associated with the industry. The cost of the infrastructure is relatively high in the market, which makes it harder to grow in the SME end-user market. 

Another obstacle in the field is the lack of a standardized business model and regulation for IoT telecom products and services. There is a remarkable drawback in the market to promote the products with a transparent global model. That is a major obstacle that restricts investors to adopt the new IoT technologies. The global IoT telecom services business faces the effects of this drawback as well.   

• Challenges 

The major challenge before the developers of the technology and promoters of the IoT telecom services is ensuring the security of the devices. The IoT technology uses the internet to connect a wide range of devices via telecom networks. This feature exposes a lot of private or personal devices to hackers in internet media. If a cybercriminal manages to hack the system of smart/ IoT devices, the consequences can be dangerous.

The IoT telecom services market profit is challenged by the unavailability and expensive supporting technologies. Since IoT devices will generate huge amounts of data regularly, there will be an explicit need for big data technology. Without solid tech solutions to access, manage, and store the giant amount of data, the IoT telecom industry is prone to several challenges.   

• Cumulative Growth Analysis 

In 2017, the global market for IoT telecom services had reached a net valuation of USD 3.45 billion. Since then, the market is witnessing a dramatic spike in the global demand for IoT services. According to the current IoT telecom services market analysis, the IoT telecom industry is growing at a CAGR of 36.96% for the forecast period of 2018 to 2023. It is also anticipated that the market will reach a net valuation of USD 22.57 billion by the end of 2023.   

• Value Chain Analysis

The IoT telecom services are bound to the requirements of the end-user industries. Several end-user companies tend to collaborate with IoT developing or telecom manufacturing companies for the latest solutions. The IoT telegram services market players heavily rely on the newer applications and segments of the market. That distribution takes place via mergers, contractual partnerships, etc with the developing companies.   

Segment Overview 

There are several IoT telecom services market segments based on components, technology, network management, service types, application, etc. 

By components

• Network management services 


• Connectivity technology solutions 

By the technology of connectivity

• 
  Low-power Wide Area Network (LPWAN)


• Cellular Network


• Narrowband-IoT (NB-IoT)


• Radio Frequency technologies (RF-technology)


• Others

By management of networks

• Network performance monitoring and network optimization


• Network traffic management 


• Security management 


• Others 

By Service type

• Device and application management 


• Business consulting services 


• IoT billing and subscription 


• Installation and integration services 


• M2M billing services 


• Others  

By Application

• Smart buildings 


• Automation 


• Capillary network management 


• Vehicle telematics 


• Energy and utilities 


• Smart healthcare 


• Others 

By Region 

• North America 


• Europe 


• Asia Pacific 


• Rest of the world 

Regional Analysis 

The global market for IoT telecom services is spread in the regions of North America, Europe, and the Asia Pacific dominantly. North America having the global epitome of technology like the US, Canada, etc is the biggest market for IoT-driven telecom services. European countries like Germany, France, UK, Italy, etc have made a significant presence in the market as well.  

Competitive Landscape 

The top IoT telecom services market players are – 

• AT&T (US)


• 
  Ericsson (Sweden) 


• 
  Huawei Technologies (China)


• Deutsche Telekom (Germany) 


• 
  Vodafone (UK)


• T-Mobile (US)


• Aeris (France) 

Recent Developments

The M2M billing services is the largest application market for the forecast period for wide applications in managing and tracking NaaS subscription ratings and billings.   

Report Overview

The IoT telecom services market research report discusses the market growth, trends, forecasts, challenges, drivers, etc for formulating solid strategies for the industry. 

Report period: 

• Historic: 2017


• Base: 2021


• Forecast Period: 2023