Global Internet of Things (IoT)-managed services market will experience tremendous growth in the next five years, according to the recent analysis by Frost & Sullivan, which predicted that the market will grow from US$53.36 billion in 2020 to US$166.71 billion by 2025.
Frost & Sullivan said the managed services market will see an uptick as companies recognise the benefits of assistance across connectivity, cybersecurity, data management, device management, and infrastructure management.
The company’s latest research 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.
"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."
The research cited that the lack of standardisation in the IoT industry has resulted in an extremely fragmented ecosystem; and, users struggle to find solutions and devices that are interoperable and compatible with their existing systems.
Frost and Sullivan pointed out addressing this challenge and focusing on the following strategic recommendations will offer tremendous growth prospects for IoT-managed services providers:
- Private mobile networks: Vendors that want to deploy private mobile networks should look for partners that can provide relevant connectivity solutions.
- eSIM and iSIM for global connectivity: As more digital-first devices are launched into the market, IoT-managed service providers can leverage this growth opportunity with eSIMs and iSIMs.
- Vertical solutions: Companies must leverage the services and expertise of a managed services provider that can embark on a long-term collaborative partnership to execute their IoT strategies and enable their vision.
- Intelligent edge: Managed services providers can deliver the benefits of intelligent edge, including reduced costs, latency, and security risks.