There has been a global rise in the rate of adoption of smart technologies in different industries leading to the demand for IoT technologies. Most businesses are adopting smart technologies in order to reduce operational costs, improve customer satisfaction and increase the return on investment.
Billions of devices are, therefore, expected to connect to the internet from different industries in the next few years. The Internet of Things comprises devices, applications, security and connectivity which all need a well-managed service. A well-managed service in every layer of the IoT ecosystem is required to run its technologies successfully. In the end, there will be an increased demand for managed services.
The Expected Growth of IoT Managed Services
The increasing adoption of digital technology and IT spending on the security services, the changing business models and government initiatives, the growing mobile subscriber base as well as the growing adoption of the connected devices in the business landscape and consumers are all expected to push the growth of IoT managed services market in about 6 to 8 years to come.
The market was expected to expand at a CAGR rate of 15.3% during the 2016-2022 forecast period but is currently estimated to be at 20.3% in terms of revenue in the 2018-2026 forecast period. By 2026, the total revenue is estimated to reach US$ 94,388.0 Mn, up from US$ 21,483.5 Mn in 2018. Results of these reports track the IoT managed services market in terms of value, which is then calibrated to derive the estimates of the market revenue.
The Managed Services Market Analysis
In order to understand and analyse the demand and opportunities available in this market, the market report is split into three main sections: industry type, services type, and region. The network managed services part is expected to preside over the market through the entire forecast period and get a kick out of a 27.1% market share in 2018 and 29.5% in 2026.
Considering the industry type, the IoT market is divided into:
- IT and telecom
The manufacturing part of this market is expected to control the market for a prolonged period in the forecast period due to the higher CAGR it is associated with. The manufacturing part is expected to expand from US$958.6 Mn in 2018 to US$22,996.5 in 2026.
The section of IoT market analysis by region involves an in-depth country-level assessment of all the global regions namely Latin America, Europe, North America, SEA and Others in Japan, China, Asia Pacific and MEA, by industry type, by services type, and by country. The assessment will provide market data for 2018-2026 in terms of value.
The general factors that drive the global managed services market of the Internet of Things include the adoption of IoT technologies throughout the industry, increased availability of the managed cloud services, increased government investments in projects like smart cities and many others.
However, the high cost of infrastructure and services, interoperability of the connected devices and data security and privacy are some of the main challenges that may hinder the growth of this market.
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