Major players in the internet of things (IoT) services market are Cisco Systems, Cognizant, Google, Infosys, Tieto Corporation, Virtusa Corporation, Accenture PLC, IBM, Tech Mahindra, and Harman International Industries.
The global IoT services market is expected grow from $139.24 billion in 2020 to $162.39 billion in 2021 at a compound annual growth rate (CAGR) of 16.6%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $381.16 billion in 2025 at a CAGR of 24%.
The internet of things (IoT) services market consists of the sales of IoT as services and their related products.Business entities act as a support to the end-user companies by providing professional and managed services such as network management, data management platforms, infrastructure, and deployment of the IoT technology for making them automated and smarter.
Internet of things (IoT) services are delivered by the IoT service providers who provide consulting, security, and analytics services as per the requirement of the business.
The IoT services market covered in this report is segmented by type into professional services, managed services and by vertical into manufacturing, retail, IT & telecom, transportation & logistics, utilities, healthcare, energy, others.
The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
Edge or cloud computing is enhancing the deployment of workload on IoT devices.Edge or cloud computing is a solution that facilitates data processing and data storage in the cloud.
For instance, Microsoft recently released its Azure IoT Edge, a managed service built on Azure IoT Hub that deploys the workloads like artificial intelligence, third party services, or own business logic on cloud and runs the workload on IoT edge device.Edge devices spend less time communicating with the cloud and react quickly to changes and operate reliably.
Amazon provides two IoT software FreeRTOS and AWS IoT Greengrass, AWS IoT Greengrass extends AWS to the edge devices and they can act locally by generating the data and FreeRTOS is open source and operating system used for microcontrollers that makes low power edge devices easy to secure, deploy and manage.
In June 2019, Accenture, an Ireland-based leading global professional service provider that provides strategy, digital, and technology services, had acquired Deja vu Security for an undisclosed amount. The acquisition is expected to help Accenture in enhancing the security of connected IoT devices and also for combating a threat of $5.2 trillion to enterprises worldwide. Deja vu Security is a leading security provider that specializes in designing security and testing of enterprise software platforms and IoT Technologies.
Low enterprise adoption is expected to hinder the IoT services market.Even though IoT has found it useful in many vertical industries, the enterprise adoption is low due to many factors such as little or no awareness, the involvement of more humans in the operating system gives a less or no room for automation and most importantly due to security concerns regarding the data.
According to the Omida data survey, only 29% of enterprises have adopted IoT solutions into their business or enterprises in 2019. Low enterprise adoption thereby restrains the IoT services market.
The countries covered in the market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.