IoT Solutions and Services Market

Global IoT Solutions and Services Market Size (2024 to 2029)

The global IoT solutions and services market is predicted to reach USD 207.67 billion in 2024 and USD 415.89 billion in 2029, growing at a CAGR of 14.90% during the forecast period.

The Internet of Things (IoT) allows end-user industries to transform their current business needs to the next level in terms of market differentiation by delivering novel solutions that vary from integrating the right sensors and acquiring information to selecting the most suitable platform. The IoT has changed the way businesses operate. Several industries are implementing these IoT solutions to enhance their traditional systems. For example, healthcare facilities use IoT devices to improve their medical outcomes. The manufacturing industry analyzes how its products are used and determines usage patterns. This industry is witnessing a strong adoption of IoT solutions to increase efficiency, facilitate daily operations, optimize production quality, and provide high-level security.

Global IoT Solutions and Services Market Drivers:

Wireless technology plays a crucial role in communications and emerging technologies, including robots, drones, autonomous vehicles, and new medical devices, which will increase the need for such technologies over the next two years. LPWA networks provide low-bandwidth connectivity for IoT applications in a power-efficient manner to support items that require long battery life. They usually cover large areas, such as cities or entire countries. Current LPWA technologies include Narrow Band IoT (NB-IoT), Long Term Evolution for Machines (LTE-M), LoRa, and Sigfox. The modules are relatively inexpensive so that IoT manufacturers can activate small, low-cost, battery-powered devices such as sensors and trackers. 5G cellular systems will begin to roll out in 2019 and 2020. They will be essential in integrating security into the core network architecture, complementing the global IoT solutions and services market.

The services segment comprises consulting, integration and implementation, support and maintenance, and managed services. The global managed IoT services market is driven by adopting IoT technologies across the industry, the increased availability of managed cloud services, and increased government investment in smart cities and other projects. Managed services are in strong demand from the manufacturing industry. The manufacturing industry faced challenges in selecting and implementing the correct set of IoT solutions that meet business goals, multi-vendor ecosystem, and interoperability, lack of skills requirements to configure, manage, implement and integrate IoT solutions, manage connectivity of thousands of devices, skeptical about RoI and the high initial cost of implementation, high initial cost and continuous investment in operating expenses (OPEX) for operational process and data management, applications and device security.

Global IoT Solutions and Services Market Restraints:

Several competing technologies and standards at the connectivity layer of the IoT stack cause interoperability issues that can result in vendor lockdowns and difficulty connecting non-interoperable IoT devices across various platforms and, ultimately, prevent the emergence of technology in general. The automation industry must operate in various industrial and manufacturing environments. The main problem is that several protocols, such as BLE, ZigBee, Z-Wave, and Thread, are used, and no standardization guarantees interoperability. Over 50% of organizations face challenges in adopting IoT due to uncertain standards.

Impact of COVID-19 on the global IoT solutions and services market:

The recent outbreak of COVID-19 has pushed healthcare solution providers to focus on innovative solutions to fight against the rising need for high-quality virus protection services. The rapid spread of coronavirus has taken over the total healthcare ecosystem, from pharmaceutical companies, drug manufacturers, and vaccine developers to healthcare insurers and hospitals. Applications such as telemedicine are expected to include remote patient monitoring, interactive medicine, and hospital monitoring during this time. As these are the main areas contributing to adopting IoT software solutions, the disruption due to the COVID-19 pandemic will significantly impact and significantly reduce the development of the software solutions market.

REPORT COVERAGE:

This research report on the global IoT solutions market has been segmented and sub-segmented based on the vertical, application, and region.

Global IoT Solutions and Services Market - By Vertical:

• Data Analytics and Machine Learning
• Complex Event Processing
• Cybersecurity
• Solution-Based Network Management

The IoT solutions and services market is segmented by vertical into data analytics and machine learning, complex event processing, cybersecurity, and solution-based network management. The data analytics and machine learning segment will record the most substantial market share over the outlook period because of the demand for performing analytics on massive data generated by devices co-connected in vertical sectors.

Global IoT Solutions and Services Market - By Application:

• Remote Asset Monitoring
• Workforce Monitoring
• Security And Emergency Management
• Identity Access Management
• Water Management
• Telemedicine
• Imaging And Diagnostics
• Patient Remote Monitoring
• Energy Transmission and Distribution
• Production Optimization
• Fleet And Warehouse Management

The IoT solutions and services market by application has been segmented into remote asset monitoring, workforce monitoring, security and emergency management, identity access management, water management, telemedicine, imaging and diagnostics, patient remote monitoring, energy transmission and distribution, production optimization, fleet and warehouse management, etc. Most manufacturing companies face significant challenges in implementing the right IoT-based solution targeting specific business outcomes. Therefore, to create an IoT-based solution using a combination of IoT components provided by different vendors, managed service providers provide the skills to assess, acquire, integrate, and implement IoT-based solutions.

Global IoT Solutions and Services Market – By Region:

• North America
  • The United States
  • Canada
  • Rest of North America
• Europe
  • The United Kingdom
  • Spain
  • Germany
  • Italy
  • France
  • Rest of Europe
• The Asia Pacific
  • India
  • Japan
  • China
  • Australia
  • Singapore
  • Malaysia
  • South Korea
  • New Zealand
  • Southeast Asia
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of LATAM
• The Middle East and Africa
  • Saudi Arabia
  • UAE
  • Lebanon
  • Jordan
  • Cyprus

North America, the United States, and Canada are the two major contributors to the overall growth of the IoT solutions and services market. The number of IoT connections in North America will reach 5.9 billion by 2025. The most significant demand for IoT in North America comes from the manufacturing, transportation, and healthcare industries. The main challenges in these industries include data analytics, IoT device security, and complex event processing. This has encouraged IoT companies to focus more on solving these challenges.

KEY MARKET PARTICIPANTS:

The major companies operating in the global IoT services and solutions market include Accenture (Ireland), Atos (France), IBM (United States), DXC Technology (United States), Deloitte (United Kingdom), Cisco (United States), Huawei (China), Sierra Wireless (Canada), ARUBA HPE (United States), Microsoft (United States), AWS (United States), PTC (United States) and Oracle (United States).

RECENT HAPPENINGS IN THE MARKET:

• In October 2019, Microsoft announced new capabilities to offer highly secure IoT solutions to improve security and solve social problems by predicting and preventing equipment failures and optimizing smart buildings for space and energy management.
• In February 2020, Cisco announced advancements to its IoT portfolio by introducing innovations to improve manageability and reduce deployment complexities. This includes ML to improve management, provide smart billing to optimize pricing plans and support global supply chains.
• In May 2019, Oracle Malaysia launched its cloud solutions center to support small and medium-sized enterprises (SMEs) for emerging technologies such as blockchain, IoT, ML, AI, data analytics. and independent databases to drive business growth and value.