The rapidly growing number of IoT connections leading to increased data traffic

The IoT Professional Services market size is projected to grow from USD 98.8 billion in 2020 to USD 149.9 billion in 2026, at a Compound Annual Growth Rate (CAGR) of 7.2% during the forecast period. 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, rising need to increase operational efficiency in various industries, and government initiatives in R&D activities related to IoT.

Based on service type, the IoT consulting service segment is expected to lead the IoT professional services market during the forecast period

The IoT consulting services help in refining business processes of organizations and are used for formulating different strategies, developing use cases, planning roadmaps, assessing technologies, and framing IoT architectures. Providers of IoT consulting services ensure the development and implementation of the appropriate IoT applications and architecture in organizations. They guide companies to create new IoT infrastructures to enhance their existing systems. Providers of IoT consulting services also help non-IT companies with minimal expertise to understand IoT technology.

Based on IoT infrastructure services, cloud services segment is expected to grow at a higher CAGR during the forecast period

Cloud services include network, infrastructure, or business application services offered through the cloud. These services integrate devices and solutions with the cloud to streamline various business processes of organizations. Cloud services ensure increased data security, enable easy data management, and are highly customer-centric. These services offer connectivity features, management features, security features, and engagement features. Providers of cloud services understand the entire IoT ecosystem of organizations and then offer the right cloud services to them based on their requirements, thereby transforming organizations into connected businesses. IoT cloud services are capable of integrating multiple cloud service providers and are used to store files, carry out device management, configure utilities, and monitor services for centralized operations.

Based on organization size, large enterprises segment is expected to lead the IoT professional services market during the forecast period

The large enterprises segment uses the IoT professional services platform to ensure efficient deployment, integration, and management of IoT devices for business processes. Large enterprises are early adopters of IoT professional services. The adoption of IoT professional services in large enterprises is said to be higher as compared to SMEs. Large enterprises have the necessary resources but face issues when it comes to deployment types due to the availability of a variety of solutions and applications. This complexity and sophistication of the IT infrastructure may lead to the requirement of a dedicated department for IT infrastructure management. These organizations have larger budgets due to the number of users and the importance of data; however, the size of the budget may vary for industries.

Based on deployment type, the cloud segment is expected to grow at a higher CAGR during the forecast period

Several organizations prefer cloud-deployed IoT professional services, as it offers scalability and agility in organizations and provides more functions than on-premises IoT professional services at an affordable cost. With rapid advancements in cloud technology, organizations are inclined toward implementing cost-effective cloud-based solutions. The implementation of the cloud-based IoT professional services facilitates SMEs and large enterprises to focus on their core competencies rather than IT processes. With the help of cloud-based IoT professional services, organizations can avoid costs related to software, storage, and technical staff.

Based on application, the smart transport and logistics segment is expected to lead the IoT Professional Services market during the forecast period

Smart transport and logistics involve the integration of advanced technologies with the existing transportation and logistics infrastructure to deliver real-time online information related to traffic flow, asset tracking, and passengers/commuters. It is also used for traffic management, supply chain and logistics management, inventory management, passenger information system management, fleet management, freight management, cargo and container tracking, ticketing management, and parking management. IoT professional services help companies operating in the transportation and logistics sectors to achieve automation by deploying IoT technological solutions.

APAC is expected to grow at a higher CAGR during the forecast period

APAC is the fastest-growing region in the IoT professional services market; this growth can be attributed to the significant adoption of advanced technologies, the proliferation of IoT-enabled devices, continuously enhancing network connectivity, and government initiatives for IoT. The region is taking aggressive initiatives to leverage the IT infrastructure, enabling commercial users to adopt the cutting-edge technology. According to the GSM Association, APAC represents the single largest market for IoT services with an expected seven billion connections by 2021. The presence of IoT professional service vendors, such as TCS, NTT DATA, Wipro, and Infosys, is one of the factors driving the growth of the IoT professional services in APAC. The size of the revenue potential in APAC is attracting international IoT vendors to offer their IoT professional services in the region.

• By Company Type: Tier 1 – 62%, Tier 2 – 23%, and Tier 3 – 15%
• By Designation: C-level – 38%, Directors – 30%, and Others – 32%
• By Region: North America – 40%, Europe – 15%, APAC – 35%, MEA – 5%, Latin America– 5%.

Some prominent players profiled in the study include Accenture plc (Accenture), Atos SE (Atos), IBM Corporation (IBM), Cognizant (Cognizant), DXC Technology (DXC Technology), Deloitte (Deloitte), Capgemini (Capgemini), Tata Consultancy Services (TCS), NTT DATA Corporation (NTT DATA), Infosys (Infosys), AT&T Inc. (AT&T), Wipro Limited (Wipro), Happiest Minds (Happiest Minds), Mindtree (Mindtree), General Electric (GE), Honeywell International Inc. (Honeywell), Oracle Corporation (Oracle), HCL Technologies (HCL), Virtusa Corporation (Virtusa), Vodafone Group plc (Vodafone), Tech Mahindra (Tech Mahindra), Ernst & Young Global Limited (EY), Prodapt Solutions Private Limited (Prodapt), Unisys Corporation (Unisys), Siemens Advanta Consulting (Siemens Advanta Consulting), and ORBCOMM (ORBCOMM).

Research coverage

The market study covers IoT Professional Services market across different segments. It aims at estimating the market size and the growth potential of this market across different segments, such as service type (IoT consulting service, IoT infrastructure service, system designing and integration service, support and maintenance  service, and education and training service), organization size (SMEs and large enterprises), deployment type (cloud and on-premises), application (smart buildings, smart manufacturing, smart transport and logistics, smart healthcare, smart retail, and smart energy), and regions. The IoT consulting service segment is further segmented into technology consulting service, business consulting service, and operational consulting service. The IoT infrastructure service segment is further segmented into network service, deployment services, and cloud service. The system designing and integration service segment is further segmented into platform development and integration and mobile and web application development. The regional analysis of the IoT professional services market covers North America, Europe, APAC, MEA, and Latin America. The study also includes an in-depth competitive analysis of the key market players, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.

Key benefits of buying the report 

The report is expected to help the market leaders/new entrants in this market by providing them information on the closest approximations of the revenue numbers for the overall IoT professional services market and its segments. This report is also expected to help stakeholders understand the competitive landscape and gain insights to improve the position of their businesses and plan suitable go-to-market strategies. The report also aims at helping stakeholders understand the pulse of the market and provide them with information on key market drivers, restraints, challenges, and opportunities.