Market Trends of IoT Professional Services Industry
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.
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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.
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