IoT as a Service Market Size (2023-2030)

Elevate Your IoT Vision: Secure Your Edge with In-Depth Analysis of the IoT as a Service Market - Unlock Future Success!

The Global IoT as a Service Market was valued at USD 219.19 Billion and is projected to reach a market size of USD 188.05 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 16.56%.

IoT as a service or IoTaaS is a cloud-based platform that offers various IoT related services to businessess and individuals. With the help of IoTaas, businesses can manage digital infrastructure and data seamlessly. Further, it offers tools to manage and monitor devices integrated, helps in data collection and analysis related to a particular business, and offers greater scalability, as IoTaas platfroms can manage and monitor vast amount data across various devices. Furthermore, IoTaas helps businesses to improve efficiency and enhance the work flow. Moreover, some of the common uses of IoTaas includes monitoring and managing parking places, retail analytics, logistics and supply chian management, monitoring agricultural conditions and progress on the field, remotely monitoring patient’s health in hospitals and clinics, aviation management, and others. Furthermore, rapid technological advancements and increased demand for innovative business solutions have contributed to the growth of IoT as a service in the market.  

Global IoT as a Service Market Drivers:

Increase in demand for efficient and scalable business solutions has boosted the demand for IoT as a service in the market.

Businesses are the major consumers of innovative cloud solutions as they are engaged in complex tasks, which require scalable solutions for seamless work flow. IoTaaS offers scalable solutions to businesses that offers various data-driven features to them such as monitoring, analyzing, and predicting future data. Moreover, financial institutions use IoTaaS for risk management, fraud detection, and for managing consumer financial data. Additionally, IoTaaS is used by large brands for managing marketing campaigns and monitor consumer behaviour for increasing their market reach. Further, these platforms offer flexibility to businesses to tailor the software as per their needs such as choosing from various pricing plans with the features, they want such as extra storage capacity, integration tools, and others.

Technological advancements to boost the demand for IoT as a service in the market.

Technological advancements have enabled businesses to scale their businesses and increase productivity. Moreover, advanced features offered by IoTaaS such as connection to high-end connectivity technologies have provided faster connections to businesses to manage, monitor, and transmit real-time data. Further, such technology is used in public spots such as parking systems where cameras and sensors are integrated to IoT systems for efficient parking management. In addition, the advent of AI and machine learning technologies have offered more benefits to businesses by their integration with IoT devices. This trend is often referred to as AIoT, which is used for various purposes in different industries. For instance, financial institutions use AIoT for automating repetitive tasks such as form filling, customer data entry, financial analysis, and others. Further, they use AI-enabled IoT for creating predictive analytics model that can help them make decisions regarding where to invest their money and gain better returns. Apart from this, the emergence of cryptocurrency and blockchain technology has made it easier for large financial enterprises to encrypt and authenticate their financial transaction by integrating IoT devices to these advanced algorithms.

Global IoT as a Service Market Challenges:

Security and privacy concerns can decline the demand for IoT as a service in the market. IoT devices and software are mostly managed on online platforms by third-party providers, which offers less control to data to businesses. This can lead to privacy and data leak and can misuse consumer’s data in case of financial services.

Global IoT as a Service Market Opportunities:

The Global IoT as a Service Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, technological advancements and increased needs for remote monitoring and greater scalability by various industries is predicted to develop the market for the IoT as a Service and enhance its future growth opportunities.

COVID-19 Impact on the Global IoT as a Service Market:

The pandemic had a positive impact on the IoT as a service market. Despite closure of major industries, there was an increase in demand for IoTaaS in healthcare sector during the pandemic. These include use of IoTaaS for remote monitoring, teleconsultations, and patient health tracking. Further, IoT services were increasingly used by vaccine manufacturing companies to track delivery process, manage temperature of vaccines, gather insights regarding worst affected areas of various regions for providing timely delivery of vaccines to them.

Global IoT as a Service Market Recent Developments:

• In June 2023, Qualcomm launched two modem chipsets satellite IoT solutions for remoted monitoring and asset tracking. The product is suitable for transoceanic shipping container tracking, agricultural equipment, and livestock tracking.
• In May 2023, NTT and Cisco collaborated to launch IoT as a service for enterprise customers. The service will provide real-time data driven insights, enhanced security, improved decision making, and reduces operational costs via predictive maintenance, asset tracking, and supply chain management capabilities. Further, the service is aimed to transform utilities sector such as water quality management, consumption, distribution, and maintenance.
• In April 2021, Vodaphone and Idea jointly launched 5G IoT solutions for enterprises. The service offers connectivity, hardware, software, network, application, analytics, security support to enterprises. The service is a consulting-based model that help businesses to design and customize the model as per their needs.

IoT AS A SERVICE MARKET REPORT COVERAGE:

Global IoT as a Service Market Segmentation:

Global IoT as a Service Market Segmentation: By Type

• Professional Services
• Managed Services

In 2022, based on market segmentation by type, professional services occupies the highest share in the market. Professional IoT services are specialized services for businesses that offer them to customize, design, and execute IoT solutions as per their business needs. Moreover, these solutions often come with flexible pricing plans and customizable features that helps businesses increase their efficiency and productivity. Some of the services include data analytics and insights, security assessment for IT infrastructures, integration tools, IoT integrated consultation tools, and others.

The managed services segment is the fastest-growing segment during the forecast period. These are IoT solutions managed by third-party providers, allowing businesses to focus more on their core tasks. Moreover, these service providers charge a specific fee to manage the company’s activities and tasks. These include device and data management, improving scalability, app management by continuously updating the user interface, monitoring the performance of business activities such as marketing activities, security management such as analyzing unusual transactions on the customer’s account in financial institutions, and other management services.

Global IoT as a Service Market Segmentation: By Deployment

• Public Cloud
• Private Cloud
• Hybrid Cloud and Others

In 2022, based on market segmentation by deployment, public cloud occupies the highest share in the market. Public cloud IoT services are offered and managed by third-party service providers. These services offer various benefits to the users such as flexibility, easy access from any device, greater scalability, and regular maintenance to app or website. Further, services such as storage retrieval and backup are provided for free, as a subscription for advanced features, or on a per-user basis. For instance, Microsoft Azure, Google Cloud, AWS, and others.

Global IoT as a Service Market Segmentation: By Industry

• Healthcare
• Automotive & Transportation
• Finance
• Telecommunications
• Smart Cities & Buildings
• Agriculture
• Logistics
• Others

In 2022, based on market segmentation by industry, finance occupies the highest share in the market. IoTaaS has wide applications in the financial sector for fraud detection and risk management purposes. Apart from this, it is also used by asset managers for asset tracking and management that is used to manage and track location and performance of specific assets, for gathering customer insights such as customer behaviour that can help banks to send personalized financial offers and services to customers and enhance their business operations; for assessing payment process and safeguarding customers form data leaks and privacy issues.

The healthcare segment is the fastest-growing segment during the forecast period. IoTaaS has helped the healthcare sector to make health services accessible to all by innovations such as remote patient monitoring, telemedicine and telehealth, and others. Further, IoT wearable devices are increasingly demanded by caregivers and family members of the elderly for detecting fall. These devices send alerts or alarms to the family members of elderly patients and prevent potential injuries. Furthermore, doctors are increasingly using IoT devices and software to monitor patient’s health by tracking the health metrics, daily progress and response to medications, and others.

Global IoT as a Service Market Segmentation: By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

In 2022, based on market segmentation by region, North America occupies the highest share in the market. Prevalence of tech giants, advanced technologies, and increased emphasis on smart city solutions has contributed to the demand for IoT as a service in the region. New York, California, Colorado, Pennsylvania, Massachusetts, and other major cities of USA are using smart city IoT solutions. For instance, New York is using the service for traffic management that helps them to improve efficiency and reliability, and reduce congestion during busy hours on the streets. This is done by utilizing the cellar routers present in the city and integrate connected vehicle technology that can improve traffic flow and safety on streets.

Asia-Pacific is the fastest-growing region during the forecast period. Rapid technology adoption and innovations in agriculture and healthcare sector has contributed to the demand for IoT as service in the region. For instance, in March 2023, Krish-e, an Agtech business model of Mahindra, launched IoT based smart kit for farm management in India. It is a smart device that offers detailed insights on tractors and farm equipment to farmers via GPS tracking and remote monitoring.

Global IoT as a Service Market Key Players:

1. Cisco
2. NTT
3. Amazon
4. Qualcomm
5. Google
6. Cognizant
7. IBM
8. Oracle
9. Infosys
10. TCS
11. HP
12. Intel Group
13. Samsara