IoT Managed Services Market

IoT Managed Services Market Outlook (2024 to 2034)

Expanding at a CAGR of 7.7%, the global IoT managed services market is projected to increase from a valuation of US$ 92.26 billion in 2024 to US$ 193.2 billion by 2034-end.

The Internet of Things (IoT) is a network of real-world items and gadgets equipped with sensors, software, and connections to enable internet-based communication between them and other systems. These gadgets range from wearables and smart thermostats to industrial machinery and self-driving cars.

Increased productivity, cost savings, and efficiency result from analyzing the data gathered from these devices to learn more about how they are utilized and how to enhance them.

The Internet of Things has a wide range of possible uses, from healthcare and precision agriculture to smart cities and residences. IoT is frequently cited as a major facilitator of Industry 4.0, also known as the Fourth Industrial Revolution, which seeks to transform supply chain management and manufacturing via cutting-edge digital technology.

Several home systems and equipment, including lighting, heating, air conditioning, security, and entertainment systems, are controlled and automated with the use of Internet of Things technology.

MSPs' ability to provide high-performance work systems and operational efficiency in companies, as well as the acceleration of managed cloud services, are key drivers anticipated to propel the growth of the Internet of Things (IoT) managed services market during the projected period. In addition, a decline in service revenue earnings shifted attention to MSPs. Furthermore, the growing preference for cost-effective managed services restrains the expansion of the market.

Fact.MR in its newly published IoT managed services industry analysis states that the market is expected to expand more slowly due to MSPs' incapacity to handle IoT challenges and their lack of flexibility and scalability in their service offerings.

Report Attribute	Detail
IoT Managed Services Market Size (2024E)	US$ 92.26 Billion
Forecasted Market Value (2034F)	US$ 193.2 Billion
Global Market Growth Rate (2024 to 2034)	7.7% CAGR
East Asia Market Value (2034F)	US$ 70.9 Billion
North America Market Share (2034F)	23.4%
Network Management Services Segment Value (2034F)	US$ 22.22 Billion
United States Market Value (2034F)	US$ 36.12 Billion
Key Companies Profiled	IBM; Cisco Systems; Microsoft; Accenture; Hewlett Packard Enterprise; AT&T; Amazon Web Services; GE Digital; Oracle; SAP; Dell Technologies

Which Major Factors are Promoting the Rise of IoT Managed Services?

“People Using Several Cloud Platforms Fueling the Market Growth”

The global market is fueled by several reasons, such as the growing demand for cloud-based services, the need for improved security, the rising preference for cost-effective solutions, and the increasing emphasis on data analytics, as opined in the IoT managed services industry outlook.

• Qualcomm introduced a new platform in February 2023 in response to market demand for cross-industry cooperation on the deployment of embedded chips and the Internet of Things (IoT) ecosystem.
• In February 2023, HPE plans to integrate the private cellular provider's cutting-edge technology into its operational CSP and Aruba networking corporate portfolios to address the growing need for private networking and enterprise 5G.

“IoT Managed Services Helping in Tracking Devices Accelerating Their Demand”

To guarantee that the devices are appropriately set, tracked, and maintained, managed services are becoming necessary as IoT devices are adopted in several industries, including manufacturing, retail, healthcare, and transportation.

With more devices, protocols, and data sources, IoT networks are becoming complicated. Several companies lack the specific knowledge and resources needed to manage these networks. They are thus looking to managed service providers to assist them in overseeing their IoT infrastructure.

The growing focus on data security and privacy in IoT networks is another factor creating remunerative opportunities for market players going forward, according to the IoT managed services industry outlook.

Several businesses are increasingly looking for specialized services to protect their networks from cyber-attacks and guarantee regulatory compliance because of the vast volume of sensitive data generated by IoT devices. The need for IoT managed services is also rising because of the move toward digital transformation and the expansion of smart cities and industries.

According to Maryville University, more than 180 trillion gigabytes of data will be generated annually around the world by 2025. The majority of this share is coming from the IIoT-enabled industries. 85% of businesses have at least one IIoT use case project, according to a survey conducted by Microsoft, a major player in the Industrial IoT (IIoT) space.

Given that 94% of respondents stated they put IoT initiatives into practice by 2021, this number rose. IoT adoption rates are driven by the advantages it offers to the manufacturing sector. Increased equipment utilization, predictive maintenance and production, data analytics, automation, monitoring, and cost savings are some of the advantages, which is contributing to the overall expansion of the IoT managed services market growth.

What is Hindering the Market Growth for IoT Managed Services?

“Data Breach and Scalability Becoming Big Issues”

Growing security concerns are impeding market growth, as mentioned in the IoT managed services industry analysis. The market expansion for IoT solutions and services is hampered by security concerns. Concerns over data privacy and system vulnerabilities are heightened by the possibility of cyberattacks, data breaches, and unauthorized access as the number of connected devices rises.

Because of potential security risks, several sectors are hesitant to fully utilize IoT technologies, which impedes adoption. Overcoming these obstacles and maintaining the expansion of the IoT sector need the implementation of robust cybersecurity measures.

Issues with scalability and affordability are adversely affecting demand for IoT solutions and services. Sensors, connectivity, and data management platforms are among the major infrastructure investments needed to deploy IoT systems at scale.

The high initial price and ongoing maintenance and update costs of IoT systems are too much for small and medium-sized enterprises. Adoption in some sectors is at a slow pace as IoT solutions need to be customized for several locations or industries. This adds complexity and expense, which are further adversely affecting the IoT managed services market size.

Country-wise Insights

The market is growing around the world as more people are closely connected with the digital world and consuming and creating more data daily. This is creating prospects for market players in countries, including the United States, China, Canada, and South Korea. Among these, the United States is approximated to capture a noteworthy IoT managed services market share in North America.

Why is the United States Becoming a New Profit Hub for Key Players?

“Specialized Skills and Growing Cloud Computing Escalating Growth”

Attribute	United States
Market Value (2024E)	US$ 16.64 Billion
Growth Rate (2024 to 2034)	8.1% CAGR
Projected Value (2034F)	US$ 36.12 Billion

The requirement for specialist knowledge and abilities, cost reduction, and security concerns are propelling the market in the country. According to a Microsoft poll, 94% of United States companies said they already invested in IoT technology. With several devices, protocols, and data sources, IoT networks are becoming complicated.

Several companies lack the specific knowledge and resources needed to manage these networks. They are thus looking to managed service providers to assist them in overseeing their Internet of Things infrastructure.

Why Manufacturers are Growing Their Business in China?

“Rise in Manufacturing of Electronic Chips Promoting IoT Managed Services Demand”

Attribute	China
Market Value (2024E)	US$ 17.62 Billion
Growth Rate (2024 to 2034)	8.2% CAGR
Projected Value (2034F)	US$ 38.64 Billion

Manufacturers are increasingly growing their business in China due to several strategic advantages. One key factor is the rise in the manufacturing of electronic chips, which is vital for the Internet of Things (IoT). With the surging global demand for IoT devices, manufacturers are capitalizing on China's robust production capabilities and advanced technologies.

China's well-established supply chain, skilled workforce, and government incentives create a conducive environment for electronic manufacturing. This growth in chip production supports the development of IoT managed services, as companies look to leverage these technologies for enhanced connectivity and smart solutions.

Category-wise Analysis

After extensive research and development, several manufacturers in the market introduced diverse services to satisfy as many customers as possible. Some of the major services include security management services, network management services, and device management services.

Which Services is Frequently Used by Customers in IoT Devices?

“Security Management Services Making More Profits Compared to Data and Network Management Services”

Attribute	Security Management Services
Segment Value (2024E)	US$ 30.35 Billion
Growth Rate (2024 to 2034)	8.2% CAGR
Projected Value (2034F)	US$ 66.65 Billion

Security management services are increasingly becoming popular among customers utilizing IoT devices due to the growing concerns about data breaches and cyber threats. As IoT ecosystems expand, ensuring the security of connected devices is critical. These services provide comprehensive solutions, including threat detection, vulnerability assessments, and incident response, which ultimately enhance overall security posture.

Companies are more willing to invest in security management as regulatory compliance becomes stricter and the consequences of security breaches grow severe. While data and network management services also play vital roles in maintaining IoT infrastructure, they often take a backseat to security when it comes to customer attention and investment.

For Which Application IoT Managed Services Demanded More?

“Widespread Use of IoT Managed Services in Manufacturing Electronic Devices”

Attribute	Manufacturing
Segment Value (2024E)	US$ 28.78 Billion
Growth Rate (2024 to 2034)	8% CAGR
Projected Value (2034F)	US$ 62.32 Billion

The manufacturing sector significantly leverages IoT managed services, continuously adopting these solutions to enhance operational efficiency and productivity. IoT devices in manufacturing include sensors and automated machinery that generate vast amounts of data, providing insights into production processes.

Managed services for IoT in this sector enable real-time monitoring, predictive maintenance, and streamlined supply chain management. With an increasing focus on Industry 4.0, manufacturers are integrating IoT technologies to optimize asset utilization and reduce downtime.

Market Condition

Key players in the IoT managed services market are focusing briefly on changing their way of business according to the evolving IoT managed services market trend.

• As IT and operational technology (OT) become more linked, Cisco Systems said in February 2023 that it launched new devices and a straightforward, cloud-based approach to IoT administration.
• A new eSIM/eUICC solution was introduced in the United States in February 2023 by Sierra Wireless, a Canadian cellular IoT expert that is owned by LoRaWAN company Semtech, from the United States.

Fact.MR provides detailed information about the price points of key providers of IoT managed services positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of IoT Managed Services Market Research

• By Service :

  • Security Management Services
  • Network Management Services
  • Infrastructure Management Services
  • Device Management Services
  • Data Management Services

• By Application :

  • Manufacturing
  • Automotive
  • Healthcare
  • Retail
  • IT & Telecom
  • Others

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa