The global IoT professional services market size was valued at USD 113.82 billion in 2021. It is expected to reach USD 480 billion by 2030, growing at a CAGR of 19.71% during the forecast period (2022–2030). Internet of Things is automatically connecting and sharing data with systems and objects. With the aid of IoT professional services, organizations may create new strategies, gain access to technologies, frame IoT architecture, design road maps, develop use cases, and improve business processes. For some businesses targeted at big-scale digital transformation for business functioning, IoT professional service is required. With the aid of IoT professional service, managing the internet, assuring unbroken communications, managing device vulnerability, managing data security threats, etc., are possible. IoT professional services allow cost savings, productivity and efficiency, mobility and agility, business opportunities, and cutting-edge customer care. Professional IoT services can aid customer behavior analysis and expand income and career options.
IoT professional service is a suite that enables businesses to launch commercial IoT solutions. It can be divided into three categories: innovation counseling, business counseling, and operational counseling. Increased connections of IoT, like IoT devices and medical devices, are responsible for the forecasted rise of the worldwide IoT professional service market throughout the forecast period. Throughout the forecast period, the market is expected to be driven by rising demand for IoT professional services in the transportation and industrial sectors. Over the next few years, IoT development is anticipated to be caused by smart city initiatives. There is expected to be a rise in IoT systems and devices used in infrastructure, utilities, and transportation. Government initiatives are anticipated to increase the use of IoT devices, increasing businesses' reliance on professional services for deployment and ongoing administration.
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Prevalence of Connected Devices Globally
The increasing prevalence of connected devices in industrial sectors positively influences the IoT professional services market. According to Ericsson, the number of significant IoT connections is anticipated to have nearly doubled to 200 million connections. By the end of 2027, 40% of cellular IoT connections, with the majority being connected via 4G, will be broadband IoT, according to Ericsson's forecast. Falling device costs, new business models and applications, and IoT adoption have increased connected devices and endpoints globally. The global rollout of NB-IoT and Cat-M1 massive IoT technologies are still ongoing. Massive IoT technologies are expected to account for 51% of all cellular IoT connections compared to broadband IoT cellular connections. The use has spread to various industries in the industrial sector.
For instance, 85% of organizations are anticipated to have adopted IoT devices, according to Aruba Networks, which claims that the technology is becoming more widespread. Additionally, the advantages of IoT in cost reduction, predictive maintenance, and data analytics are increasing adoption rates in the industrial sector. Nearly 94% of the executives polled in a recent Forbes report stated that IoT has benefited or will assist increase their annual profitability by at least 5% to 15%. According to the report, 63% of businesses are already providing new or updated services through IoT, 36% of companies are investigating potential new business paths, and 60% are expanding their businesses using IoT. Due to the increased acceptance rate of linked devices across sectors, the need for IoT solutions is anticipated to rise even higher throughout the projected period.
Interoperability and Inadequate Common Standards
Businesses presently use unique Application Programming Interface (API) solutions for each IoT project. For IoT-enabled devices to share data or create an intelligent network, they must communicate via a common protocol and communication standard. This will promote IoT technology standardization and simplify for any service provider to supply most solutions in a single package. The ease of information flow and interoperability amongst linked devices are crucial. But in terms of offering a prospective architectural service or a global standard to address the interoperability problems across various connected devices, the current technical and market realities relevant to IoT professional services fall short.
Increased Demand for IoT-based Digital Transformation by Organizations
Businesses can improve their operational efficiency through IoT, a crucial technology for digital transformation. The desire for digital business transformation is being fueled by a few technologies, including edge computing, cloud computing, and big data analytics. The growing acceptance of new technologies encourages enterprises to choose IoT-based digital transformation. Business verticals undergoing digital transformation include retail, agriculture, manufacturing, transportation, and healthcare. These verticals' core applications—smart manufacturing, linked health, and connected retail—are pressuring companies to choose IoT-based digital transformation.
The global IoT professional services market is segregated based on end-user, service type, organization size, deployment, and region.
By end-user, the global IoT professional services market includes Manufacturing, Retail, Healthcare, Energy & Utilities, Transportation & Logistics, and Others.
The Manufacturing section is projected to advance at a CAGR of 18.92% and hold the largest market share over the forecast period. IoT technologies have been used more frequently during the past ten years to improve the surroundings and products used in discrete manufacturing. Process and discrete manufacturers (in the automotive and industrial machinery industries) are in fierce competition. To enhance their capacity for innovation and increase return on their assets, companies are investing more and more in new technologies that use IoT, cloud, and Big Data analytics capabilities.
The Transportation & Logistics section will hold the second-largest market share. Safety is frequently a key topic of debate regarding how the IoT may affect transportation. The safety of passengers and pedestrians is improved by self-driving cars' ability to interact in real-time while using data from many sources. Smart sensor-equipped vehicles can broadcast impending collisions or traffic delays on existing routes. If a driver experiences a medical emergency or becomes immobilized, they can also help.
By service type, the global IoT professional services market includes IoT Consulting Service, IoT Infrastructure Service, System Designing & Integration Service, Support & Maintenance Service, and Education & Training Service.
The IoT Consulting Service section is projected to advance significantly and hold the largest market share over the forecast period. The IoT consulting services are utilized to devise various strategies, develop use cases, plan roadmaps, appraise technologies, and define IoT architectures. They also aid in streamlining business operations for enterprises. IoT consulting service providers ensure that suitable IoT applications and architecture are developed and implemented in businesses. They assist companies in building new IoT infrastructures to improve their current systems. IoT consulting service providers help non-IT companies with limited IT skills understand IoT technologies.
By organization size, the global IoT professional services market includes SMEs and Large Enterprises.
The Large Enterprises section is projected to advance significantly and hold the largest market share over the forecast period. The large enterprise sector uses the IoT professional services system to enable effective IoT device deployment, integration, and administration for business processes. Major corporations are some of the first to adopt expert IoT services. Large enterprises are said to have a higher uptake of IoT professional services than SMEs. Large enterprises have the necessary resources but have trouble choosing which deployment type to use because many different solutions and apps are available. The need for a distinct department for IT infrastructure management may result from the complexity and sophistication of the IT infrastructure.
By deployment, the global IoT professional services market includes Cloud and On-premises.
The Cloud section is projected to advance significantly and hold the largest market share over the forecast period. Many businesses like cloud-deployed IoT professional services because they are more flexible and scalable for companies, offer more features, and are more cost-effective than on-premises IoT professional services. Business use of cost-effective cloud-based solutions is increasing due to the rapid advancements in cloud technology. IoT professional services delivered via the cloud enable SMEs and large enterprises to concentrate on their core capabilities rather than IT operations. Organizations can save money using cloud-based IoT professional services to handle their software, storage, and technical personnel needs.
Dominance of North America Over Others
The region-wise segmentation of the global IoT professional services market includes North America, Europe, Asia-Pacific, and the Rest of the World.
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North America will command the market, expanding at a CAGR of 17.63% over the forecast period. The North American economies are stable and well-established, enabling them to make significant investments in research & development operations and consequently support the creation of new technology. Several government initiatives, such as innovation, smart cities, and Industrial IoT, have been accepted in this technologically advanced region. North American firms are eager to incorporate IoT technology into their processes because of their early embrace of cutting-edge technologies like IoT, cloud, AI, big data, and mobility. The expansion of the market in North America is anticipated to be fueled by the emergence of SMEs and the adoption of digitalization by significant businesses in the manufacturing sectors. Some of the top providers of IoT professional services in North America include IBM, Cognizant, DXC Technology, and AT&T.
Europe will likely grow at a CAGR of 18.45%, accounting for USD 147 billion by 2030. Since the financial crisis, most of the world's leading economies have faced problems with productivity, but the situation in several European nations has been particularly dire. According to Cisco, each worker in the UK generates about a third less per hour on average than their counterparts in France, Germany, and the United States. The alleged productivity challenges derive from a delayed adoption of information technology, business process changes, enterprise digitization, and robots compared to European competitors such as Germany, Finland, and France. For instance, the European Commission reports that Finland had the highest score among European nations in the human capital component of the Digital Economy and Society Index in 2020 due to its residents' excellent digital abilities. Policymakers are now concerned about the digital divide among the regional nations, notably in the manufacturing industry. Hence, there is an increased demand for such countries to employ professional IoT services.