IoT-managed services market to reach $166.71b by 2025
IoT-managed services providers are expected to leverage vertical expertise to expand globally, experiencing significant growth overall.
This is according to recent analysis by Frost & Sullivan, which finds the IoT-managed services market will experience ‘tremendous growth’ in the next five years.
In fact, the market is expected to reach $166.71 billion by 2025 from $53.56 billion in 2020.
Frost & Sullivan states, driven by increased IoT adoption, the managed services market will see an uptick as companies recognise the benefits of assistance across connectivity, cybersecurity, data management, device management, and infrastructure management.
According to the analysts, the lack of standardisation in the IoT industry has resulted in an extremely fragmented ecosystem. This has led to users struggling to find solutions and devices that are interoperable and compatible with their existing systems.
Addressing this challenge and focusing on the following strategic recommendations will offer tremendous growth prospects for IoT-managed services providers, Frost & Sullivan states.
Key recommendations include:
- Private mobile networks: Vendors that want to deploy private mobile networks should look for partners that can provide relevant connectivity solutions.
- eSIM and iSIM for global connectivity: As more digital first devices are launched into the market, IoT-managed service providers can leverage this growth opportunity with eSIMs and iSIMs.
- Vertical solutions: Companies must leverage the services and expertise of a managed services provider that can embark on a long term collaborative partnership to execute their IoT strategies and enable their vision.
- Intelligent edge: Managed services providers can deliver the benefits of intelligent edge, including reduced costs, latency, and security risks.
Frost & Sullivan senior industry analyst Deepali Sathe says, “While the recent pandemic adversely affected expansion across verticals, the impact is expected to be short to medium term, and businesses will recover.
"Technology adoption across verticals has been increasing as the benefits of IoT are quantified for companies to move from pilot and proof of concept stage to implementation.
"Almost all verticals, such as manufacturing, retail, healthcare, utilities, and energy, are expected to regain strong growth trajectories."
Touching on different trends by region, Sathe says, “In the IoT-managed services market, APAC is expected to be the fastest growing region, followed by North America.
"Regional disparities in terms of infrastructure development and regulations are a challenge for mobile network operators, an important segment within paid IoT connectivity.
"North America and Europe lead when it comes to 5G, LTE-M, and Narrowband-IoT (NB-IoT) deployment, but high costs of spectrum lead to higher cost of services, affecting providers.
"Latin America, Africa, and parts of Asia lag, with 2G and 3G still forming the bulk of connectivity infrastructure. In APAC, some countries are ahead as governments promote infrastructure development."
Leveraging Vertical and IoT Expertise Improves Outcomes for the Global IoT-Managed Services Market is part of Frost & Sullivans Global Information & Communication Technologies Growth Partnership Service program.
This research encompasses regional trends in North America, Latin America, Asia Pacific, Europe, and the Middle East and Africa across five managed services segments: connectivity, data, device, infrastructure, and security.