IoT Services Global Market Report 2024

The iot services market size has grown rapidly in recent years. It will grow from $214.47 billion in 2023 to $249.12 billion in 2024 at a compound annual growth rate (CAGR) of 16.2%. The growth experienced during the historical period can be attributed to several key factors, including the widespread proliferation of IoT devices, advancements in connectivity technologies, the utilization of data analytics, and the development of industry-specific applications. These factors collectively contributed to the growth observed in that period.

The iot services market size is expected to see rapid growth in the next few years. It will grow to $470.42 billion in 2028 at a compound annual growth rate (CAGR) of 17.2%. The projected growth in the forecast period can be attributed to several significant factors, including the widespread adoption of 5G connectivity, the integration of edge computing, the development of smart cities and infrastructure, and the expansion of Industrial Internet of Things (IIoT) initiatives. Notable trends expected to shape this period include the continued emphasis on edge computing, increased integration of Artificial Intelligence (AI) and machine learning technologies, the growth of smart cities, and the further development of Industrial IoT (IIoT) applications. These trends and innovations are anticipated to drive the growth of IoT services in the forecast period.

The growth in the number of use cases for the Internet of Things (IoT) is anticipated to be a driving force behind the IoT service market. IoT use cases represent the various scenarios where IoT technology can be applied to automate processes and enhance productivity. Over time, IoT has found applications across numerous sectors, including manufacturing, agriculture, wearables, smart cities, transportation, and more. This extensive adoption of IoT has created a demand for IoT services, which offer support through services like consulting, data management, network management, security solutions, and others. For example, Telit, a prominent IoT enabler, offers an IoT security system that allows users to monitor and control surveillance while collecting and analyzing data to enhance building security, transforming them into smart buildings. As IoT use cases continue to expand, the need for IoT services is expected to drive market growth.

The primary types of IoT services include professional services and managed services. Professional services are intangible products offered by contractors or product vendors to assist customers in managing specific aspects of their business. These IoT services are applied across various industry verticals, including manufacturing, retail, IT & telecom, transportation & logistics, utilities, healthcare, energy, and others. They find application in smart buildings, smart manufacturing, smart transport and logistics, smart healthcare, smart retail, and smart energy sectors, contributing to the enhancement of various aspects of business operations and infrastructure.

The internet of things (IoT) services market research report is one of a series of new reports that provides internet of things (IoT) services market statistics, including internet of things (IoT) services industry global market size, regional shares, competitors with an internet of things (IoT) services market share, detailed internet of things (IoT) services market segments, market trends and opportunities, and any further data you may need to thrive in the internet of things (IoT) services industry. This internet of things (IoT) services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The increasing number of smart homes is projected to be a catalyst for the growth of the IoT services market in the foreseeable future. Smart homes are residential properties equipped with various devices and systems that can be remotely monitored, managed, and automated. The smart home market is a key driver of the IoT services sector, as the growing adoption of IoT solutions in smart homes is creating fresh opportunities for companies to provide innovative and advanced IoT services. As of August 2023, data from RubyHome, a US-based real estate company, indicates that 63.43 million homes in the US use smart home devices, with approximately 7 in 10 homebuyers expressing their willingness to invest in smart homes. Consequently, the proliferation of smart homes is propelling the expansion of the IoT services market.

The low adoption rate by enterprises is anticipated to act as a hindrance to the IoT services market. Despite IoT's proven utility in various industry verticals, its adoption by enterprises remains limited, owing to factors such as inadequate awareness, a human-centric operating environment with limited scope for automation, and significant data security concerns. For instance, a study conducted by Impact, a US-based managed service company, in December 2022 revealed that 29% of companies considered the risks associated with IoT adoption outweighed the benefits. The comparatively low adoption by enterprises thus poses a constraint on the IoT services market.

The implementation of workload deployment on IoT devices is increasingly benefitting from edge or cloud computing. Edge or cloud computing involves data processing and storage in the cloud. Microsoft recently introduced its Azure IoT Edge, a managed service leveraging Azure IoT Hub to deploy workloads, including artificial intelligence, third-party services, or proprietary business logic on cloud and run them on IoT edge devices. Edge devices spend less time communicating with the cloud, allowing for quicker reactions to changes and reliable operations. Amazon offers two IoT software solutions such as FreeRTOS and AWS IoT Greengrass. AWS IoT Greengrass extends AWS capabilities to edge devices, enabling local data generation, while FreeRTOS, an open-source operating system for microcontrollers, streamlines the security, deployment, and management of low-power edge devices.

Major companies in the IoT services market are innovating enterprise-grade Edge and IoT technologies to maintain their market standing and bolster their dominance. These enterprise-grade technologies are advanced, secure, and scalable solutions that enable businesses to leverage the capabilities of edge computing and IoT. For instance, in May 2023, Nippon Telegraph and Telephone, a Tokyo-based telecommunications company, along with Cisco, a US-based technology company, launched IoT as-a-Service specifically for enterprise customers. This offering is designed to swiftly deliver the benefits of IoT to businesses, including improved decision-making, reduced operational costs, and enriched customer experiences. The strategic focus on enterprise-grade Edge and IoT technologies ensures reliability, scalability, and security in the provided solutions.

In December 2022, Aeris, a US-based IoT network and platform provider, acquired the IoT business from Ericsson for an undisclosed sum. This transaction will establish Aeris as a prominent player in the IoT sector, capitalizing on synergies to provide enterprises an unparalleled IoT solution, and creating fresh revenue prospects for communication service providers. Ericsson, a Sweden-based telecommunications company, has a substantial market presence in the IoT sector.

Major companies operating in the iot services market include Cisco Systems Inc., Cognizant Technology Solutions Corporation, Google LLC, Infosys Limited, Tieto Corporation, Virtusa Corporation, Accenture PLC, International Business Machines Corporation (IBM), Tech Mahindra Limited, Harman International Industries Incorporated, Microsoft Corporation, Wipro Limited, HCL Technologies Limited, Tata Consultancy Services Limited, AT&T Inc., Honeywell International Inc., Amazon.com Inc., HP Inc., Intel Security Group, Apple Inc., Qualcomm Incorporated, Vates Inc., Oxagile LLC, Verizon Communications Inc., HQSoftware LLC, General Electric Digital LLC, Bosch IoT Sensor Company GmbH, Arm Limited, Sierra Wireless Inc., PTC Inc., Telit Communications PLC, SoluLab Inc., Amazon Web Services Inc., Oracle Corporation, Qualcomm Technologies Inc., Telefonaktiebolaget LM Ericsson, Hewlett-Packard Company Inc., Marvell Technology Group Ltd., Nlyte Software Inc., Western Digital Corporation, Broadcom Inc., NVIDIA Corporation, OVHcloud Co., Tencent Holdings Limited, Alibaba Group Holding Limited, Meta Platforms Inc., Equinix Inc., Digital Realty Trust Inc., CyrusOne Inc.

Asia-Pacific was the largest region in the internet of things (IoT) services market in 2023. North America was the second largest region in the internet of things (IoT) services market. The regions covered in the iot services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the iot services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The Internet of Things (IoT) services market includes revenues earned by entities by providing IoT services that are used in building and home automation, smart energy and utilities, connected logistics, smart retail, smart mobility, and transportation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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