Market Trends of Global Managed Mobility Services Industry
IT and Telecom End-user Industry Segment Holds Significant Market Share
- The IT and telecom sector is a significant market for managed services. Due to the high rate of various technological adoptions, the enterprise mobility trend has emerged over the years. Today, companies primarily focus on business strategies and core competencies, fueling the utilization and adoption of bring-your-own-device (BYOD). This increases the requirement for streamlined mobility services, likely to boost the demand for managing these mobile devices.
- Furthermore, the growing mobile subscriber base in emerging countries, such as China, India, and Brazil, has been propelling the adoption of BYOD policies, enhancing work efficiency and flexibility in operations. According to a Cisco report, enterprises with a BYOD policy save, on average, USD 350 per year per employee. Moreover, reactive programs can boost these savings to USD 1,300 per year per employee.
- The demand for managed cloud services has increased across the globe due to government regulations and lockdown measures due to the COVID-19 pandemic, further boosting the managed mobility services and forcing businesses to move towards remote working modes, which has led companies to adopt cloud-based solutions to expand their requirements.
- Cybersecurity compliance requirements mandated by the state and local governments and regulatory bodies also drive the need for managed mobility application services to be security-focused. Additionally, as dedicated, on-premise hardware for computing purposes will decrease, and most of the functionality will become cloud-based, privacy and security issues will become more intense.
- Adopting IoT solutions in managed mobility services, which connect hardware devices, embedded software, and communication services, offers smart communication environments, smart transportation, smart homes, and smart healthcare and is expected to drive the market during the forecast period.
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North America to Hold Major Share over the Forecast Period
- According to the annual internet report by Cisco, the average number of devices and connections per capita worldwide is anticipated to increase to 3.6 by the end of the year 2023. Among the countries with the highest average per capita devices and connections by 2023, the United States is expected to remain at the top with an average of 13.6 devices and connections per capita, followed by South Korea and Japan.
- Moreover, the 5G penetration in the country also encourages the demand for IoT devices in the future. The focus on deploying 5G by national mobile operators, like AT&T, Sprint, T mobile, and Verizon, has led to significant developments over the years. According to the GSMA, 5G will reach 100 million mobile connections in early 2023 and become the country's leading mobile network technology by 2025, with more than 190 million 5G connections.
- Cloud and digital transformation have increased the total cost of a data breach. The use of mobile platforms, extensive cloud migration, and IoT devices are the drivers increasing the cost. According to the Ponemon Institute's "Cost of Data Breach Study," the global average for a data breach was USD 3.83 million. However, the average data breach cost in the United States was significantly high at USD 8.64 million. The high potential of data breaches is expected to drive the managed mobile services market as enterprises focus more on IT security.
- The Canadian managed mobility services market is witnessing increased investments further driven by the COVID-19 pandemic-induced work culture. For instance, in September 2021, MSP Corp Investments Inc. raised USD 35 million in growth capital to acquire and invest in managed IT services providers (MSPs) across Canada. Major financial backers include CIBC and BDC Capital's Growth Equity Partners - Fund II. The company partners and acquires high-performing MSPs in the country to deliver technology, resources, and business support to empower MSP teams. Key areas of focus of the company include managed network services, mobility management, cybersecurity, and cloud hosting.
- The digital trends brought globally by the Industry 4.0 initiatives also drive the need for industrial IoT. For instance, in May 2021, Toronto-based BehrTech, a startup, was awarded for its wireless connectivity products for the IoT that the company developed in 2020, and the company also received a USD 3 million grant from a joint funding program between the federal government and a non-profit organization to build an Industry 4.0 lab.
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