- Based on organisation size, the SMEs segment is expected to grow at a higher CAGR during the forecast period
- Based on deployment type, the on-premises segment is expected to lead the market during the forecast period
The IoT professional services market is projected to reach $149.9 billion by 2026 from $98.8 billion in 2020 , at a Compound Annual Growth Rate (CAGR) of 7.2 per cent during the forecast period as per a report by MarketsandMarkets. The major factors driving the growth of the IoT Professional Services Market include rapidly growing number of IoT connections leading to increased data traffic, increasing internet ubiquity and development of wireless technologies.
It is also due to rising need to increase operational efficiency in various industries, and government initiatives in R&D activities related to IoT. Based on service type, the system designing and integration service segment to grow at a higher CAGR during the forecast period.
Reduce business complexities and enhance the profitability of organisations
The report added, “System designing and integration services offer a wide range of designs for IoT ecosystems and enable the integration of IoT solutions with organisations to support their operational systems and business activities. Providers of system design services sketch complete IoT systems to reduce business complexities and enhance the profitability of organisations. These service providers also offer customised services based on the requirements and budgets of clients to manage their workflows easily. These services also offer IoT solutions and connectivity designing, wireless network designing, and IoT infrastructure designing. Integration services include the installation of IoT software and solutions in IoT ecosystems of organisations.”
Based on IoT consulting service, the business consulting service segment is expected to lead the market during the forecast period. Business consulting services cover the fundamental aspects of business strategies and the planning associated with the implementation of IoT technology in organizations. Types of business consulting services include business analytics and development, technology and operations, and advisory services.
IoT, cloud, analytics, and several other disruptive technologies
Based on organisation size, the SMEs segment is expected to grow at a higher CAGR during the forecast period. SMEs have realised that immediate response, quick business decisions, and customer satisfaction are the most important features needed to expand business, generate more revenue, and ensure the desired outcome. The report said that they are more flexible in using and adopting emerging technologies, such as IoT, cloud, analytics, and several other disruptive technologies, as their existing IT investments are not huge. Hence, they can adopt any technology at a faster pace.
Based on deployment type, the on-premises segment is expected to lead the market during the forecast period. The on-premises IoT professional services are installed and hosted in an organization’s IT infrastructure and are managed by its internal IT staff.
The report added, ” Organisations deal with sensitive and confidential data and information related to their products. An organisation using on-premises IoT professional services can have total control over the security of information related to their products. Several enterprises that have traditional legacy tools are better suited to traditional on-premises-based services. Several enterprises that give importance to latency prefer to keep their data local resulting in real-time decision-making at a local level.”
Based on application, the smart transport and logistics segment is expected to grow at a higher CAGR during the forecast period. North America to hold the highest market size during the forecast period
North America comprises the US and Canada and is expected to hold the largest share of the global IoT Professional Services Market. They have sustainable and well-established economies, which empower them to strongly invest in R&D activities, thereby contributing to the development of new technologies.
Due to the early adoption of trending technologies, such as IoT, cloud, AI, big data, and mobility, North American organisations are keen to integrate IoT technologies into their processes. The advent of SMEs and the adoption of digitalization in manufacturing sectors among large enterprises are expected to fuel the growth of the market in North America.