Frost & Sullivan’s recent analysis finds that the global Internet of Things (IoT)-managed services market will experience tremendous growth in the next five years. This latest analysis from the research company, 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.
Driven by increased IoT adoption, the managed services market will see an uptick as companies recognise the benefits of assistance across connectivity, cyber security, data management, device management, and infrastructure management. The market is likely to witness significant growth, reaching $166.71 billion by 2025 from $53.56 billion in 2020.
“While the recent pandemic adversely affected expansion across verticals, the impact is expected to be short to medium term, and businesses will recover,” said Deepali Sathe, Senior Industry Analyst, Frost & Sullivan.“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.”
Sathe added: “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.”
According to the analysts, the lack of standardisation in the IoT industry has resulted in an extremely fragmented ecosystem. Users struggle to find solutions and devices that are interoperable and compatible with their existing systems. Frost & Sullivan suggests that focusing on specific strategies that address this challenge will offer tremendous growth prospects for IoT-managed services providers.
