IoT Professional Services Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 128.71 Billion |
| Market Size (2029) | USD 180.61 Billion |
| CAGR (2024 - 2029) | 7.01 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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IoT Professional Services Market Analysis
The IoT Professional Services Market size is estimated at USD 128.71 billion in 2024, and is expected to reach USD 180.61 billion by 2029, growing at a CAGR of 7.01% during the forecast period (2024-2029).
Smart city initiatives are expected to spearhead IoT growth over the coming years. IoT devices and systems are expected to increase as part of transportation, utilities, and infrastructure. Government initiatives are expected to boost the adoption rates of IoT devices, leading to more organizations relying on professional services for deployment and further management.
- Emerging applications, business models, and falling device costs have been instrumental in driving IoT adoption, consequently increasing the number of connected devices and endpoints globally. The massive IoT technologies NB-IoT and Cat-M1 continue to be rolled out globally. The massive IoT technologies are anticipated to comprise 51% of all cellular IoT connections overtaking broadband IoT cellular connections.
- The IoT professional services involve several stages including customer needs analysis, creating a framework, designing at a high level, validating outcomes, preparing for transformation, developing a program plan, preparing for adaptation, carrying out deployment, reviewing business performance, and achieving value.
- Despite the increasing popularity of these services in developed nations, the inadequate network infrastructure in many developing countries is expected to impede the expansion of the worldwide IoT professional services market in the foreseeable future.
- Adding several devices, like IoT, increases the surface area of a network, thereby creating more potential attack vectors in the process. Even a single unsecured device connected to a network may serve as a point of entry for an active attack on the web. Data security concern has, thus, presented themselves as a significant challenge as players navigate to strengthen their security offering to gain customer confidence and prevent breaches.
IoT Professional Services Market Trends
The Proliferation of Connected Devices across the World to Drive the Market Growth
- The proliferation of connected devices generates massive amounts of data. IoT professional services providers help organizations manage data, including data collection, storage, processing, and analysis. They assist in developing data analytics strategies and implementing tools and technologies to derive actionable insights from IoT-generated data. Organizations can make informed decisions, optimize processes, and drive innovation by leveraging advanced analytics.
- The growing trend of adopting connected devices in the industrial sectors positively influences the market studied. According to Ericsson, the number of massive IoT connections is expected to have doubled, reaching nearly 200 million contacts. According to the same source, by the end of 2027, 40% of cellular IoT connections will be broadband IoT, with 4G connecting the majority. However, with the introduction of 5G New Radio (NR) in the old and new spectrum, this segment's throughput data rates are expected to increase substantially.
- The proliferation of connected devices is not limited to a specific industry but spans various sectors, including manufacturing, healthcare, transportation, energy, and agriculture. Each industry has unique requirements and uses cases for IoT. IoT professional services providers with industry-specific expertise can offer tailored solutions to address each sector's specific challenges and opportunities. They understand the intricacies of industry-specific IoT implementations and can provide specialized guidance and support.
- Moreover, in the industrial sector, the adoption has penetrated across industries. For instance, according to Aruba Networks, IoT devices have become increasingly pervasive, with 85% of businesses expected to have implemented the technology.
- Overall, the proliferation of connected devices fuels the demand for IoT professional services by introducing complexity, integration challenges, scalability needs, security concerns, and data management requirements. IoT professional services providers play a critical role in helping organizations navigate these complexities and maximize the value of their IoT investments.
North America is Expected to Hold the Largest Market Share
- The North America region is expected to hold significant market shares owing to the presence of prominent players in the telecom industry, such as AT&T, IBM, and General Electric, which continuously invest in building up and advancing their infrastructure to keep pace with technological advancements. This is expected to boost the adoption of IoT professional services over the forecast period.
- Fast and secure 5G connectivity is expected to accelerate the adoption of IoT devices, allowing agile operations and flexible production. This technology will facilitate automated assembly, warehouses, connected logistics, packing, product handling, and autonomous carts. Moreover, North America's awareness of IoT and digital solutions in industries is significantly higher. According to a recent study by Mendix, 78% of US manufacturing workers welcome digitalization. In addition, eight in 10 manufacturing workers are interested in learning new digital skills.
- Additionally, with smart grids planning to take over the entire energy industry in the country, IoT utilities are expected to gain traction over the forecast period. For instance, Landis+Gyr, which specializes in smart meter deployments, and Cisco's Catalyst routers for IoT are helping companies manage their grids and collect and make sense of large volumes of data. The latest 5G industrial routers will give utilities an offering to support the next 15-20 years of an endpoint's life.
- The popularity of IoT devices, combined with tax incentives and home insurance discounts, has encouraged consumers and utility companies to make their services intelligent and suitable for the new age of home builders and owners and remain competitive in such an evolving market. According to the Institute for Electric Efficiency, by the end of 2022, around 124 million smart meters were recorded to be installed in the United States, an increase of 117 million units compared to 2007. With the increasing installation of smart meters, the tendency for IoT services adoption might increase significantly during the forecast period.
- Nearly all (96%) Canadian organizations value IoT and new technologies, according to a CDW Canada survey, yet more than one-third (37%) are not implementing them. Artificial intelligence, the Internet of Things, and business process transformation tools like ServiceNow were the top three most heavily invested new technologies (60 percent, 59 percent, and 58 percent, respectively). With the growing digitalization and usage of connected devices in business and industry, IoT applications and sales are anticipated to increase in the region. As the company moves toward digitalization and IoT-based products, professional services such as deployment and consulting will increase.
IoT Professional Services Industry Overview
The competitive rivalry in the IoT professional services market remains high due to the presence of various global and local players. A few of the prominent players include IBM Corporation, General Electric Company, AT&T Inc., and GE. Through strategic partnerships, mergers, and acquisitions, the players in the market are actively gaining a more substantial footprint.
In April 2023, Ericsson, a Swedish telecom equipment manufacturer, finished transferring its IoT Accelerator (IoT-A) and Connected Vehicle Cloud (CVC) operations to Aeris, a prominent IoT solution provider. The firms believe that the combined capabilities allow for the global deployment and management of IoT programs at a new level of scale, reliability, and security.
In January 2023, Mobica, a provider of IoT software engineering services with its headquarters in Manchester, United Kingdom, agreed to be acquired by Cognizant, a prominent American IT services firm. Mobica's services include the whole software development life cycle, focusing on clients' strategic internal research and development initiatives and core expertise in embedded software development, implementation, testing, and deployment. This acquisition considerably broadens Cognizant's IoT-embedded software engineering capabilities and offers clients a broader range of end-to-end support to facilitate digital transformation.
IoT Professional Services Market Leaders
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IBM Corporation
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AT&T Inc.
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General Electric Company
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Atos SE
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Accenture PLC
*Disclaimer: Major Players sorted in no particular order
IoT Professional Services Market News
- March 2023: KORE Group Holdings, a global player in pure-play IoT solutions and connectivity-as-a-service ("IoT CaaS"), has agreed to purchase Twilio's IoT business division as part of a growth strategy to offer customers a unified, smooth approach to launching IoT solutions.
- November 2022: A Memorandum of Understanding was signed between Disrupt-X, an IoT platform provider based in the UAE, and LORIOT, a global IoT company based in Switzerland, to assist in deploying the next generation of IoT solutions leveraging the adequate LoRaWAN infrastructure. The alliance plans to market IoT products primarily in the European market.
- February 2022: Astrocast, a global nanosatellite IoT network, announced a partnership agreement with IoT service provider, UnaBiz, to develop an end-to-end IoT solution for asset tracking and monitoring. Through the partnership, Astrocast will provide its direct-to-satellite data service offering and consulting services to UnaBiz. Furthermore, UnaBiz is expected to facilitate the onboarding of Astrocast-enabled devices on UnaConnect, and an ISO27001-certified IoT device management data platform that manages close to a million IoT devices.
- February 2022: Boingo Wireless, a total connectivity provider of distributed antenna systems (DAS), Wi-Fi, and private network, announced its partnership with Qualcomm Technologies Inc. and the Qualcomm Smart Cities Accelerator Program ecosystem to streamline the deployment of IoT devices for venue and enterprise customers leveraging the Qualcomm IoT Services Suite.
IoT Professional Services Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Regulatory Landscape
- 4.4 IoT Ecosystem (Coverage on Pure, Dual, and Triple Play Vendor Landscape across Service Providers for IoT Development Services, IoT Edge Technologies, IoT Cloud Backend-as-a-service, and IoT Telco Stacks)
- 4.5 Assessment of Impact of COVID-19 on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Proliferation of Connected Devices Across the Globe
- 5.1.2 Increasing Demand for IoT-enabled Digital Transformation of Enterprises
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5.2 Market Restraints
- 5.2.1 Concerns Associated With Data Privacy And Security
- 5.2.2 Lack of Standardized Protocols and Frameworks for IoT Deployments
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5.3 IoT Professional Service Offerings (Qualitative Information Covering What Each Service Entails, Trends Across Industries, and Strategic Developments by Service Providers)
- 5.3.1 IoT Consulting
- 5.3.2 Deployment Services
- 5.3.3 Managed Services
- 5.4 Trend across Large Enterprise and SMEs vis-a-vis IoT Consulting and Implementation
6. MARKET SEGMENTATION
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6.1 By Service Type
- 6.1.1 IoT Consulting
- 6.1.2 IoT Infrastructure
- 6.1.3 System Designing and Integration
- 6.1.4 Support and Maintenance
- 6.1.5 Education and Training
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6.2 By Organization Size
- 6.2.1 Small and Medium Enterprises (SMEs)
- 6.2.2 Large Enterprises
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6.3 By Deployment Type
- 6.3.1 Cloud-based
- 6.3.2 On-premises
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6.4 By End-user Industry
- 6.4.1 Manufacturing
- 6.4.2 Retail
- 6.4.3 Healthcare
- 6.4.4 Energy and Utilities
- 6.4.5 Transportation and Logistics
- 6.4.6 Other End-user Industries
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6.5 By Geography***
- 6.5.1 North America
- 6.5.2 Europe
- 6.5.3 Asia
- 6.5.4 Australia and New Zealand
- 6.5.5 Latin America
- 6.5.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 IBM Corporation
- 7.1.2 General Electric Company
- 7.1.3 AT&T Inc.
- 7.1.4 Atos SE
- 7.1.5 Accenture PLC
- 7.1.6 Oracle Corporation
- 7.1.7 Cognizant Technology Solutions Corporation
- 7.1.8 Capgemini SE
- 7.1.9 DXC Technology Company
- 7.1.10 Tata Consultancy Services Limited
- 7.1.11 Virtusa Corporation
- 7.1.12 Wipro Technologies
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
IoT Professional Services Industry Segmentation
IoT professional services include a wide range of professional services and resources, such as customized development and implementation, consulting, training, and technical support to its users to deploy IoT solutions and maximize return on investment. The market for the study defines the revenue accrued from the sales of IoT professional services worldwide.
The IoT professional services market is segmented by service type (IoT consulting, IoT infrastructure, system designing and integration, support and maintenance, education and training), organization size (small and medium-sized enterprises (SMEs), large enterprises), end-user industry (manufacturing, retail, healthcare, energy and utilities, transportation and logistics), and geography (North America, Europe, Asia-Pacific, Latin America and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Service Type | IoT Consulting |
| IoT Infrastructure | |
| System Designing and Integration | |
| Support and Maintenance | |
| Education and Training | |
| By Organization Size | Small and Medium Enterprises (SMEs) |
| Large Enterprises | |
| By Deployment Type | Cloud-based |
| On-premises | |
| By End-user Industry | Manufacturing |
| Retail | |
| Healthcare | |
| Energy and Utilities | |
| Transportation and Logistics | |
| Other End-user Industries | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
IoT Professional Services Market Research FAQs
How big is the IoT Professional Services Market?
The IoT Professional Services Market size is expected to reach USD 128.71 billion in 2024 and grow at a CAGR of 7.01% to reach USD 180.61 billion by 2029.
What is the current IoT Professional Services Market size?
In 2024, the IoT Professional Services Market size is expected to reach USD 128.71 billion.
Who are the key players in IoT Professional Services Market?
IBM Corporation, AT&T Inc., General Electric Company, Atos SE and Accenture PLC are the major companies operating in the IoT Professional Services Market.
Which is the fastest growing region in IoT Professional Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in IoT Professional Services Market?
In 2024, the North America accounts for the largest market share in IoT Professional Services Market.
What years does this IoT Professional Services Market cover, and what was the market size in 2023?
In 2023, the IoT Professional Services Market size was estimated at USD 119.69 billion. The report covers the IoT Professional Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the IoT Professional Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
IoT Professional Services Industry Report
Statistics for the 2024 IoT Professional Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. IoT Professional Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
