The market for IoT connectivity management platforms (CMPs) is projected to reach US$1.0 billion in 2024, according to new findings from Berg Insight, a leading IoT market research firm. This segment is becoming increasingly vital for mobile operators and IoT mobile virtual network operators (MVNOs) as they navigate challenges related to declining average revenue per user (ARPU) in IoT connectivity services.
Historically, early CMPs emerged during a time of inflated expectations for the IoT sector, leading to a shake-up as some vendors exited the market. Current market players are now reassessing their products and pricing strategies, often adopting tiered offerings and incorporating value-added services to meet evolving customer needs. Investments are increasingly focused on areas such as remote SIM provisioning (RSP) integrations, eSIM orchestration, machine learning analytics, security enhancements, and programmable network capabilities empowered by 5G standalone (SA) technology.
Cisco currently holds the largest share of the global IoT CMP market, partnering with approximately 60 mobile operators and managing around 262 million SIMs through its IoT Control Centre. Following Cisco is Aeris, which ranks second with 28 mobile operator partnerships and 84 million connected devices. Aeris's recent acquisition of Ericsson’s IoT business has enabled it to modernise and streamline operations, integrating its legacy platform with the IoT Accelerator into a unified offering.
MAVOCO has also emerged as a significant competitor, boasting partnerships with over 10 mobile operators and offering a cloud- and core-agnostic CMP that allows operators to utilise existing infrastructure. Other notable players in the IoT CMP space include Comarch, Nokia, and Vodafone, alongside technology providers such as 1NCE, 1oT, emnify, Eseye, and floLIVE.
The fragmentation within the IoT CMP landscape has led to the rise of connectivity management orchestration (CMO) platforms. These platforms enhance IoT CMP capabilities through API integrations, with vendors like IoTM Solutions and Simetric pioneering this new category. AT&T has fully embraced the CMO approach, recently collaborating with Simetric to introduce the IoT Console Single Pane of Glass.
Berg Insight anticipates several trends that will positively impact the IoT CMP market in the coming years. The integration of value-added services into IoT CMPs is expected to help mobile operators generate additional revenue from their 5G infrastructures. Furthermore, as mobile operator groups consolidate their operations in key markets, this will create opportunities for independent mobile operators, thereby expanding the addressable market for third-party CMPs.
The introduction of the new eSIM IoT specification, SGP.32, is expected to empower smaller mobile operators to offer eSIM services, provided they complement their offerings with robust IoT CMPs. Annual IoT CMP revenues are projected to grow at a CAGR of 12% from US$1.0 billion in 2024, reaching an estimated US$1.8 billion by 2029.
