IoT Professional Services Market Size

IoT Professional Services Market Analysis

The IoT Professional Services Market size is estimated at USD 128.71 billion in 2024, and is expected to reach USD 180.61 billion by 2029, growing at a CAGR of 7.01% during the forecast period (2024-2029).

• Smart city initiatives are expected to spearhead IoT growth over the coming years. IoT devices and systems are expected to increase as part of transportation, utilities, and infrastructure. Government initiatives are expected to boost the adoption rates of IoT devices, leading to more organizations relying on professional services for deployment and further management.
• For instance, the European Union's directive required all EU member states to roll out smart electricity meters to 80% of consumers by 2020. Due to such developments, countries are increasingly adopting smart metering solutions. For instance, according to the Department for Business, Energy & Industrial Strategy, at the end of Q3 2021, 26.4 million smart and advanced meters were operating in homes and small businesses across Great Britain, with 21.6 million of all meters operating in smart mode. This factor indicates the increasing dependency on deployment services for IoT devices.
• Global connectivity initiatives by various governments are pushing the adoption rates of IoT. For instance, Horizon 2020, one of the most significant EU research and innovation programs, with EUR 80 billion in funding between 2014 and 2020, significantly impacted technological developments in Europe. As part of the project launch of e-sim, developing interoperability with technologies such as Sigfox, LoRa, NB-IoT, and LTE-M was undertaken. Government initiatives positively influence the IoT market, creating an ancillary demand for professional services.
• With the advent of 5G, the global number of IoT in consumer and industrial space is expected to increase significantly, creating new avenues of growth for IoT professional services. According to Ericsson, in 2020, the 5G device volumes are expected to reach 160 million. By 2025, the 5G subscription base will reach 2.6 billion and cover up to 65% of the population, generating 45% of global mobile data traffic.
• Adding several devices, like IoT, increases the surface area of a network, thereby creating more potential attack vectors in the process. Even a single unsecured device connected to a network may serve as a point of entry for an active attack on the web. Data security concern has, thus, presented themselves as a significant challenge as players navigate to strengthen their security offering to gain customer confidence and prevent breaches.
• During the COVID-19 outbreak, the global supply chain and demand for electronics were disrupted. Thus, the IoT market's hardware adoption was severely influenced by 2020, directly impacting the demand for deployment services connected to the installation of IoT devices. Due to the production shutdown in countries like China, the electronics industry observed a shortage of electronics supply during February and March of 2020.