IoT Managed Services Market Research, 2033
The global iot managed services market was valued at $132.1 billion in 2023, and is projected to reach $1313.2 billion by 2033, growing at a CAGR of 25.6% from 2024 to 2033. The IoT managed services industry is being propelled by the rising demand for cloud-based solutions, the increasing acceptance of smart cities, and the growing need for seamless device connectivity.
Market Introduction and Definition
The technology services sector dedicated to the management, oversight, and upkeep of IoT ecosystems for enterprises and organizations is known as the IoT managed services market. Device administration, data analytics, network management, security monitoring, and application integration are just a few of the many responsibilities that fall under the umbrella of IoT managed services. These services make sure that the intricate network of linked sensors, devices, and systems functions effectively, safely, and dependably, allowing businesses to get valuable insights and returns on their IoT investments.
The IoT managed services market serves numerous industries, including healthcare, manufacturing, transportation, retail, and smart cities. The need for these services is expanding because of the rise in connected devices and the complexity of IoT networks. Organizations can stay competitive in an increasingly connected world by lowering operational costs, improving security, and ensuring scalability using IoT managed services.
Key Takeaways
The IoT managed services market forecast study covers 20 countries. The research includes a segment analysis of each country in terms of value for the projected period.
Several product literatures, industry releases, annual reports, and other such documents of major IoT managed services industry participants along with authentic industry journals, associations' releases, and government websites have been reviewed for generating high-value industry insights.
The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global IoT managed services market size and to assist stakeholders in making educated decisions to achieve their most ambitious growth objectives.
Key Market Dynamics
The IoT managed services market is expanding due to the growing use of IoT in a variety of sectors, including manufacturing, healthcare, retail, and transportation. IoT is being used by businesses to improve operational efficiency, simplify procedures, and obtain insightful data. IoT managed services are becoming more and more necessary as the number of connected devices increases and the requirement for managing and maintaining these intricate networks rises. The market is also being driven by the emergence of cutting-edge technologies like edge computing, 5G, and artificial intelligence. In addition to improving decision-making, real-time analytics, and speedier data transfer, these technologies make IoT systems more complicated, necessitating managed services to keep them operating smoothly.
Another factor driving the IoT managed services market growth is the increased attention being paid to data security and privacy in IoT networks. With the large amount of sensitive data being created by IoT devices, enterprises are increasingly searching for specialist services to defend their networks from cyber threats and ensure regulatory compliance. Moreover, the shift towards digital transformation and the growth of smart cities and sectors further are driving up demand for IoT managed services.
Regulatory Guideline Analysis
Industry-specific standards, cybersecurity, and data privacy all influence the regulatory framework for the IoT managed services market. Governments and regulatory agencies have put in place frameworks to protect customer data, guarantee device security, and preserve the integrity of vital infrastructure as IoT devices spread throughout industries including healthcare, manufacturing, and transportation. One of the most important laws is the General Data Protection Regulation (GDPR) in Europe, which places stringent limitations on the gathering, storing, and processing of personal data produced by Internet of Things devices. Similarly, in the United States, data security and privacy are governed by legislation like the California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA) in industries like healthcare where IoT is widely utilized.
Additionally, guidelines for cybersecurity are also essential. A framework for protecting IoT devices has been created by the National Institute of Standards and Technology (NIST) in the United States, with an emphasis on data encryption, network security, and identity management. Furthermore, certification programs are required under the EU Cybersecurity Act to guarantee the security of IoT devices. Technical guidelines for IoT systems and their management are also provided by industry-specific standards such as ISO/IEC 30141 (IoT Reference Architecture) . Respecting these rules is essential to avoiding fines and maintaining customer confidence in IoT services.
Market Segmentation
The IoT managed services market size is segmented into type, industry vertical, and region. By type, the market is classified into infrastructure management service, security management service, network management service, data management service, and device management service. By industry vertical, the market is segmented into manufacturing, retail, IT & telecommunications, transportation, energy & utilities, healthcare, BFSI, and others. Region-wise, the market is categorized into North America, Europe, Asia-Pacific, and LAMEA.
Regional/Country Market Outlook
The Asia-Pacific region is anticipated to grow with the highest CAGR over the forecast period in the IoT managed services market owing to the rise in adoption of IoT technologies widely in industries including manufacturing, transportation, healthcare, and retail as a result of the rapid industrialization and digitization occurring in nations like China, India, Japan, and South Korea. Demand for managed services is being fueled by the region's robust manufacturing sector, particularly in nations like China, which is embracing IoT to boost automation, streamline supply chains, and increase operational efficiency.
IoT adoption is also being accelerated by government programs that support the development of digital infrastructure and smart cities. A growing need for managed services to manage these intricate networks is being caused, for example, by China's ambitions for smart industrial parks and urban infrastructure and India's Smart Cities Mission, which are both generating substantial prospects for IoT implementation. These factors are thereby contributing to the fast growing IoT managed services market share in the Asia-Pacific region.
Industry Trends:
IoT managed services are progressively integrating edge analytics and real-time data processing to lower latency and boost operational efficiency because of the growth of edge computing, particularly in sectors like manufacturing, logistics, and healthcare.
5G Adoption for IoT Connectivity: Massive IoT ecosystems are being supported and quicker data transfer is made possible by the rollout of 5G networks. The goal of managed services is to improve the scalability and performance of 5G-enabled IoT networks.
Put Security and Privacy First: As IoT devices become more common, cybersecurity issues have increased, which has led to a need for managed services that provide improved security protocols, device monitoring, threat detection, and data encryption to protect IoT environments.
Competitive Landscape
The major players operating in the IoT managed services market analysis include HCL Technologies Limited, Cisco Systems, Inc., Tech Mahindra Limited, Virtusa Corporation, Happiest Minds Technologies, and Infosys Limited. Other players in the IoT managed services market include Tata Consultancy Services Limited, Wipro Limited, Cognizant Technology Solutions Corporation, Harman International Industries, Inc, and Tieto Corporation.
Recent Key Strategies and Developments
In January 2024, Vodafone and Microsoft Corporation entered into a strategic partnership for 10 years to bring generative AI and digital cloud services reachable to businesses. This partnership is targeted at scaling its IoT offerings to businesses in collaboration with Microsoft.
In April 2024, Vodafone and LTIMindtree entered into partnership to deliver connected solutions for catalyzing digital transformation. This partnership is expected to increase the real-time delivery of IoT managed services for increasing cost efficiency and productivity across businesses.
Key Sources Referred
GSMA
United Nations Conference on Trade and Development (UNCTAD)
International Chamber of Commerce (ICC)
Federal Communications Commission (FCC)
Telecommunications Regulatory Authority (TRA)
Asia-Pacific Economic Cooperation (APEC) Privacy Framework
Key Benefits For Stakeholders
This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the iot managed services market analysis from 2024 to 2033 to identify the prevailing iot managed services market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the iot managed services market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global iot managed services market trends, key players, market segments, application areas, and market growth strategies.
IoT Managed Services Market Report Highlights
| Aspects | Details |
 Market Size By 2033 | USD 1313.2 Billion |
 Growth Rate | CAGR of 25.6% |
 Forecast period | 2024 - 2033 |
 Report Pages | 200 |
 By Type |
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 By Industry Vertical |
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 By Region |
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 Key Market Players | Wipro Limited, Cognizant Technology Solutions Corporation, Virtusa Corporation, Harman International Industries, Inc, Infosys Limited, Tech Mahindra Limited, Tieto Corporation, Cisco Systems, Inc., Happiest Minds Technologies, Tata Consultancy Services Limited, HCL Technologies Limited |
The global IoT managed services market was valued was $132.1 billion in 2023
By type, the data management service segment held the largest market share in 2023.
By region, North America held the largest share in the global IoT managed services market in 2023.
The global IoT managed services market is expected to reach US$ 1,313.2 billion by 2033.
The major players operating in the IoT managed services market analysis include HCL Technologies Limited, Cisco Systems, Inc., Tech Mahindra Limited, Virtusa Corporation, Happiest Minds Technologies, and Infosys Limited, Tata Consultancy Services Limited, Wipro Limited, Cognizant Technology Solutions Corporation, Harman International Industries, Inc, and Tieto Corporation.
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