IoT Managed Services Market Analysis | 2023-2029

“The IoT Managed Services Market was estimated at US$ 34.36 billion in 2022 and is expected to grow at an impressive CAGR of 12.7% during 2023-2029 to reach US$ 79.58 billion by 2029.”

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Market Dynamics

Introduction

IoT Managed Services is a set of solutions, that includes supervision, servicing, and technical assistance of Internet of Things (IoT) devices, networks, and systems provided to organizations by a third party. IoT managed services are intended as a means by whereby organizations can gain the optimum return on their investments in IoT.

These services entail several tasks such as handling devices and networks connected to the IoT, analysis of data that these devices and networks generate, security of these devices and networks, and advances in technical support, among others. As for IoT managed services, the objective is to offer organizations the tools and proper know-how with which to operate these environments while achieving the best efficiency and security levels possible.

IoT managed services is a broad term for any form of support services that are associated with IoT solutions or applications. The services that these platforms can offer can consist of any or all the following tasks: device management, data management, security features, connectivity, etc. IoT managed services allow the business to overcome issues related to the implementation of IoT and get the most from the possibilities of IoT.

IoT managed services want to make IoT service flexible, scalable, and secure and want to enable the specific customer needs based on IoT service. This can enable small businesses to extremely benefit from the benefits of IoT, like increasing efficiency, revenues, and decreasing expenditures without attempting to build a sheaf IoT solution on their own.

Market Drivers

The growing momentum of managed cloud services is expected to boost the global IoT managed services market.

The shift from traditional hosting to cloud hosting in the IT industry has led to an increase in demand for managed cloud services. Many companies are still not fully familiar with cloud technology and choose to work with a third-party managed cloud service provider. This has fueled the growth of managed cloud services, which are a popular trend in the outsourcing services market.

Managed XaaS (Anything as a Service) is a primary focus for managed service providers as they offer their services over the cloud. Cloud and IoT are closely connected as IoT components do not have their storage capability and require cloud storage for the data they generate. As a result, IoT-managed services are increasingly using cloud platforms to offer managed IoT services to organizations.

Segments Analysis

By Service Type

“The network management services dominate the market during the forecast period.”

These services manage an organization's entire network, aiming to optimize its use and ensure efficient data transfer to prevent network crashes. By working with a managed service provider that offers network management services in the IoT realm, organizations can benefit from reduced downtime, improved network connectivity, enhanced security, automatic device detection, scalability, and streamlined business operations.

By Application Type

“The smart transportation sector experiences the most rapid growth during the forecast period.”

Smart transportation involves the integration of advanced technologies with existing transportation infrastructure to provide real-time online information on traffic flow, asset tracking, and passengers/commuters. IoT-managed services enable transportation providers to manage and monitor the complex IoT environment. The growing demand for managing analytics, security, devices, sensors, data, and high-volume networking, combined with the improvement in overall operations and responsiveness, drives the growth of the smart transportation sector in the market.

The IoT Managed Services Market provides various services for the management and monitoring of smart building operations. These services include HVAC, lighting, shading, elevators, IP access control, smart security surveillance, intelligent infrastructure management, hybrid Wi-Fi, smartphone and VoIP access, network services, managed security services, device management services, data center management services, energy management services. The advantages of using IoT-managed services include improved building efficiency, decreased energy consumption, and reduced operating expenses.

IoT-managed services allow manufacturers to concentrate on their primary operations and processes. These services provide the technical expertise required to manage and enhance an organization's IoT ecosystem. The range of services offered by IoT Managed Services includes network management, infrastructure management, and more. Service providers offer monitoring and support, as well as remote management of the manufacturing industry's infrastructure, security, and data.

Regional Analysis

“North American region is projected to be the largest market during the forecast period.”

The widespread digitization across different industries and the increasing use of smart devices. The region is characterized by a strong network infrastructure and the presence of leading managed services providers that offer specialized services. The growing demand for improved operational efficiency and cost-effective business processes is expected to drive further growth in the market.

The Asia-Pacific region is expected to experience the highest growth in the IoT managed services market due to the increasing adoption of IoT technology and the rising demand for better operational efficiency in businesses. The region's developing economies, such as India and China, are major contributors to the market growth in the Asia Pacific region.

Additionally, the growing awareness of IoT technology and the presence of large enterprises that are investing in IoT-based solutions also drive market growth in the region. The increasing trend of digitalization and the growing demand for better operational efficiency and business processes are some of the factors that are expected to fuel the growth of the IoT-managed services market in the Asia Pacific region.

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Key Players

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc.  

The following are the key players in the global IoT managed services market (arranged alphabetically).

• Cisco Systems, Inc.
• Cognizant Technology Solutions Corporation
• Happiest Minds Technologies
• Harman International Industries, Inc.
• HCL Technologies Limited
• Infosys Limited
• Tata Consultancy Services
• Tech Mahindra Limited
• Tieto Corporation
• Virtusa Corporation
• Wipro Limited

Note: The above list does not necessarily include all the top players in the market.

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This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. 

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. 

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

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