|
Forecast
Period
|
2026-2030
|
|
Market
Size (2024)
|
USD
82.81 Billion
|
|
Market
Size (2030)
|
USD
264.32 Billion
|
|
CAGR
(2025-2030)
|
21.34%
|
|
Fastest
Growing Segment
|
BFSI
|
|
Largest
Market
|
North
America
|
Market Overview
The Global IoT Managed Services Market was valued at USD 82.81 billion in 2024
and is expected to reach USD 264.32 billion by 2030 with a CAGR of 21.34% through
2030.
The IoT
Managed Services Market refers to a suite of outsourced services provided to
manage and support Internet of Things (IoT) environments, including connected
devices, communication networks, data platforms, and associated applications.
These services cover everything from remote
monitoring and maintenance to data analytics, cybersecurity, device lifecycle
management, and cloud infrastructure integration. As organizations deploy more
IoT solutions across industries such as manufacturing, transportation,
healthcare, agriculture, and smart cities, the operational complexity increases
significantly. IoT managed service providers help businesses ensure optimal
performance, minimize downtime, and maintain system security while reducing the
burden on internal IT teams.
This market is experiencing rapid growth due to
several key factors. One of the primary drivers is the exponential rise in the
number of IoT devices being deployed globally, which brings massive data
generation, real-time communication needs, and device management challenges. As
more enterprises shift to hybrid cloud and edge computing models, the need for
specialized support, data governance, and cybersecurity becomes essential.
Managed service providers offer scalable solutions that allow companies to quickly
adapt to changing infrastructure demands, comply with regulatory requirements,
and maintain high service levels without investing heavily in internal
resources. Additionally, small and medium enterprises are increasingly adopting
managed services to leverage expertise that would otherwise be cost-prohibitive
to develop in-house.
The IoT Managed Services Market is expected to grow
consistently as businesses continue to digitize operations and implement smart
technologies. Emerging economies in Asia Pacific, the Middle East, and Latin
America are investing in large-scale infrastructure upgrades, including 5G
networks, smart grids, and intelligent transportation systems—all of which rely
heavily on IoT infrastructure and require efficient managed services.
Furthermore, growing awareness of cybersecurity threats and regulatory compliance
will further fuel demand for managed services that offer continuous monitoring,
vulnerability management, and incident response. As technology advances and IoT
ecosystems evolve, the role of managed services will be critical in enabling
scalable, secure, and cost-efficient digital transformation across industries.
Key Market Drivers
Surge in Connected Device Deployments Driving
Managed Service Demand
The proliferation of connected devices across
industries—ranging from agriculture to smart manufacturing—has triggered
significant growth in data streams and operational complexity. With billions of
sensors and IoT endpoints now embedded in everyday operations, enterprises are
turning to IoT Managed Services to maintain uptime, manage software updates,
and optimize performance. These services eliminate the need for companies to
internally develop device-level expertise for large-scale IoT ecosystems.
The rise of hybrid and edge computing environments
has added layers of technical and logistical complexity. Organizations seek
managed partners who can streamline the entire IoT lifecycle, from deployment
and monitoring to firmware updates and decommissioning. This growing reliance
on third-party expertise ensures seamless integration, cost efficiency, and
operational continuity across global infrastructure. By late 2024,
enterprise networks are expected to operate over 15 billion connected IoT
devices, a 200% increase from 2018. This device explosion is making managed
services essential, as internal IT departments struggle to scale their
oversight and support across such massive, diverse deployments.
Growing Security Threats Fueling Demand for
Proactive Risk Management
Security remains one of the most critical concerns
in the IoT landscape, where even a single compromised device can jeopardize an
entire network. Unlike traditional IT systems, IoT environments involve
multiple devices operating across different platforms, often lacking standard
security protocols. IoT Managed Services play a vital role in mitigating these
threats through continuous monitoring, automated threat detection, and
firmware-level patching.
Enterprises must comply with global data protection
and industry-specific regulations such as GDPR, HIPAA, and ISO standards.
Managed service providers offer the tools and expertise to maintain audit
readiness, apply zero-trust security frameworks, and respond quickly to
breaches. As cyberattacks become more sophisticated and regulators impose
stricter compliance measures, organizations increasingly depend on IoT Managed
Services for long-term protection. In 2024, global enterprise environments
recorded over 2.7 million attempted intrusions per day across connected
systems, of which over 60% targeted unmanaged or poorly secured IoT
endpoints—underlining the growing need for managed security and compliance
services.
Rapid Expansion of Edge Computing and Real-Time
Data Processing Needs
With the rise of edge computing, enterprises are
now processing data closer to the source—at the device or gateway level—rather
than relying solely on centralized cloud systems. This shift demands faster,
localized processing, and more responsive support models. IoT Managed Services
are becoming indispensable in maintaining edge devices, ensuring uptime,
managing compute workloads, and implementing failover systems that allow
uninterrupted operations.
Edge deployments often span remote or challenging
environments such as offshore rigs, mining sites, and smart city
infrastructure. Managed service providers ensure 24/7 oversight, automated
updates, and real-time analytics that allow enterprises to harness the power of
edge intelligence without the burden of onsite IT maintenance. This trend is
expected to fuel a new era of IoT growth. By the close of 2024,
approximately 54% of enterprise-generated IoT data is expected to be processed
at the edge rather than in centralized cloud systems, reinforcing the growing
demand for location-aware managed services and decentralized infrastructure
support.
Shift Toward Outcome-Based Service Models and
Business Optimization
Organizations are increasingly shifting from
traditional product-based models to outcome-based service contracts, where the
focus is on performance, efficiency, and business results. In this model, IoT
Managed Services go beyond technical maintenance and actively support
operational outcomes—improving energy usage, reducing asset downtime, and
optimizing logistics, for example. These services enable enterprises to tie
service costs directly to value creation.
Managed services providers are incorporating
artificial intelligence and machine learning into their offerings, delivering
predictive insights and automating decision-making processes. This
performance-driven approach allows companies to scale efficiently while
continuously optimizing key metrics. As competition increases and margins
shrink across industries, outcome-based IoT Managed Services are gaining strategic
importance. In 2024, nearly 40% of global enterprises using managed IoT
services reported at least a 20% increase in operational efficiency within the
first year of adoption—driven by predictive maintenance, automated resource
allocation, and data-driven optimization strategies.
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Key Market Challenges
Interoperability and Integration Complexity Across
Diverse IoT Ecosystems
One of the most significant challenges for the
Global IoT Managed Services Market lies in managing the growing complexity of
diverse IoT ecosystems. Enterprises are increasingly deploying connected
devices that originate from multiple vendors, each with its own communication
protocols, firmware standards, and proprietary software. As a result, managed
service providers are often confronted with environments that lack uniformity,
which complicates integration, monitoring, and maintenance activities. The absence
of a common framework for interoperability between devices and platforms leads
to higher onboarding time, frequent compatibility issues, and increased
customization costs. This not only slows down deployment but also inflates the
total cost of ownership for clients seeking managed solutions.
In addition, the challenge of integration is not
confined to hardware alone. It extends to connectivity management, cloud
platforms, edge devices, and enterprise resource planning systems that must all
work together seamlessly. Each layer requires tailored configuration,
continuous performance tuning, and security updates. When these systems are
poorly integrated, data flow is disrupted, insights are delayed, and device
management becomes inefficient. Managed service providers must often invest
heavily in proprietary middleware, APIs, and integration frameworks to bridge
these gaps—efforts that are time-consuming, expensive, and not easily scalable.
Without clear industry standards and open architectures, this challenge will
continue to impede the efficiency and adoption rate of IoT Managed Services
across both emerging and developed markets.
Security Vulnerabilities and Regulatory Pressures
in IoT Environments
The widespread deployment of IoT devices has
created an expanded attack surface, making security one of the most pressing
challenges for the IoT Managed Services Market. Unlike traditional IT assets,
IoT devices often operate in unmonitored or physically exposed environments and
lack built-in security features. Many are resource-constrained and cannot
support advanced encryption or robust authentication protocols. Managed service
providers are tasked with protecting these devices and the networks they connect
to, all while navigating real-time data flows, decentralized infrastructures,
and evolving threat landscapes. The increasing sophistication of
cyberattacks—ranging from botnets and ransomware to data exfiltration and
firmware tampering—demands a level of security management that stretches the
capabilities of many providers.
Beyond the technical vulnerabilities, regulatory
scrutiny is intensifying. Governments and industry regulators are enacting
stringent compliance requirements such as the European Union’s General Data
Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), and
industry-specific mandates like HIPAA and ISO/IEC 27001. Managed service
providers must now ensure that their clients remain compliant with both local
and international standards—failure to do so can result in heavy fines and reputational
damage. Maintaining data sovereignty, ensuring encrypted data transmission, and
preparing auditable records are no longer optional—they are operational
imperatives. Yet, staying ahead of compliance changes across multiple
jurisdictions adds layers of complexity and cost. This dual burden of cyber
resilience and regulatory adherence significantly hampers the scalability and
agility of IoT Managed Services, especially for providers serving global
enterprise clients.
High Cost of Skilled Workforce and Technological
Adaptation
Another significant barrier facing the IoT Managed
Services Market is the rising cost and scarcity of skilled talent capable of
managing complex IoT environments. These systems require expertise in areas
such as embedded systems, network infrastructure, cybersecurity, cloud
platforms, and data analytics—all of which are specialized domains with steep
learning curves. Unfortunately, the global talent pool in these areas remains
limited, and competition for experienced professionals is fierce. For managed
service providers, hiring, training, and retaining such talent translates into
high operational expenses, which are often passed on to the client. This
ultimately makes IoT managed solutions less accessible to small and mid-sized
enterprises that might otherwise benefit from them.
The pace at which technology evolves in the IoT
landscape presents an additional challenge. New communication protocols,
AI-driven analytics platforms, and edge computing models continue to emerge
rapidly. Managed service providers are under constant pressure to upgrade their
systems, re-architect service models, and adopt new tools in order to stay
competitive. However, this technological adaptation is both capital-intensive
and time-consuming. Failure to evolve quickly not only risks obsolescence but also
compromises the quality of service delivered to clients. While the potential
benefits of IoT Managed Services are immense, this dual challenge of high
workforce costs and relentless technological change is slowing market
penetration and limiting profitability for service providers across regions.
Key Market Trends
Convergence of Artificial Intelligence with IoT
Managed Services
The integration of artificial intelligence into IoT
Managed Services is reshaping how enterprises manage and utilize their
connected ecosystems. Artificial intelligence algorithms are being applied to
real-time data collected from sensors and devices to enable predictive
maintenance, anomaly detection, and operational optimization. Managed service
providers are embedding machine learning models into their platforms, enabling
faster decision-making and reducing the need for manual intervention. This convergence
allows businesses to proactively resolve issues before they escalate, reducing
downtime and improving overall efficiency.
Artificial intelligence is enhancing the
intelligence layer within managed services by automating insights across
large-scale deployments. From supply chain optimization to smart facility
management, managed services now leverage artificial intelligence to provide
outcome-based reporting, context-aware analytics, and intelligent alerts. As
enterprises move toward autonomous operations, artificial intelligence will
serve as the core enabler within managed service frameworks. This trend is
expected to significantly boost service differentiation, client retention, and
cost-effectiveness in the Global IoT Managed Services Market.
Growing Demand for Vertical-Specific Managed
Services
A prominent trend in the Global IoT Managed
Services Market is the shift toward industry-specific managed services that
cater to the unique requirements of different sectors such as healthcare,
manufacturing, transportation, and energy. Enterprises are increasingly seeking
tailored solutions that align with their compliance obligations, operational
models, and business objectives. As a result, managed service providers are
moving beyond generic service offerings and developing sector-focused
capabilities that deliver measurable business value.
For instance, in healthcare, IoT managed services
now include secure patient monitoring, data encryption, and HIPAA-compliant
data workflows. In manufacturing, services are focused on predictive
maintenance, asset tracking, and production analytics. This vertical
specialization enhances customer satisfaction and builds long-term service
relationships. It also creates a competitive advantage for managed service
providers who can demonstrate deep domain expertise. The trend reflects a
maturing market, where differentiation is increasingly driven by relevance and
operational excellence rather than simply price or scale.
Expansion of Managed Security Services in Response
to IoT Threat Landscape
As cyber threats targeting connected devices
continue to escalate, managed security services have emerged as a central
pillar of IoT Managed Services. The traditional reactive approach to
cybersecurity is no longer sufficient to safeguard vast, distributed IoT
networks. Enterprises are now seeking proactive, continuous monitoring and
protection that includes threat detection, vulnerability assessments, firmware
integrity checks, and device authentication. Managed service providers are
responding by embedding cybersecurity at every level of the service stack.
The surge in global data privacy regulations has
elevated the importance of compliance-driven security frameworks. Organizations
require managed services that not only protect sensitive data but also generate
compliance reports and ensure alignment with industry mandates. The inclusion
of zero-trust architectures, blockchain-led device identity management, and
security automation are further enhancing the scope of managed security
offerings. This trend reflects the market’s pivot toward integrated, end-to-end
risk management solutions as a strategic imperative for sustainable growth.
Segmental Insights
Type Insights
In 2024, Infrastructure
Management Service emerged as the dominant segment in the Global IoT Managed
Services Market, largely due to the increasing complexity of large-scale IoT
deployments across industries. As organizations adopt thousands—or even
millions—of connected devices, the underlying infrastructure must be robust,
scalable, and secure. Infrastructure Management Services offer enterprises a
comprehensive approach to overseeing the entire IoT ecosystem, including server
operations, storage systems, application hosting, and cloud integration. This
segment has become crucial for ensuring the seamless functioning of
mission-critical IoT systems that rely on uninterrupted connectivity, data
flow, and processing capacity.
Another factor contributing
to the dominance of Infrastructure Management Services is the accelerated
digital transformation across sectors such as manufacturing, transportation,
and energy. These industries require managed solutions that offer continuous
infrastructure monitoring, rapid issue resolution, and real-time resource
optimization. Additionally, the rise of hybrid cloud and multi-cloud
environments has made it essential for enterprises to rely on third-party
service providers that can efficiently manage diverse infrastructure layers
across on-premises and cloud platforms. This demand has driven significant
investment in Infrastructure Management Services, making it the largest and
most mature offering in the IoT Managed Services Market.
The segment is expected to
maintain its leading position throughout the forecast period, driven by ongoing
advancements in edge computing, 5G connectivity, and software-defined
infrastructure. Enterprises are becoming increasingly reliant on data-intensive
IoT applications, which require highly reliable infrastructure environments for
optimal performance. Moreover, as business models shift toward outcomes-based
services and digital twin simulations, the need for robust infrastructure
management will only grow stronger. This sustained requirement ensures that
Infrastructure Management Services will continue to attract enterprise spending
and strategic focus, keeping it at the forefront of the Global IoT Managed
Services Market.
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Regional Insights
Largest Region
In 2024, North America emerged as the dominant
region in the Global IoT Managed Services Market, driven by the high
concentration of advanced technologies, early adoption of Internet of Things
solutions, and the presence of major service providers. The region’s mature
information technology infrastructure and well-established cloud ecosystems
have enabled enterprises to integrate and manage complex IoT networks more
effectively. Large-scale deployment across sectors such as smart manufacturing,
transportation, and energy management further fueled demand for robust managed
services.
The United States led the regional growth,
supported by significant investments in digital transformation and automation
by both private enterprises and government institutions. Additionally, the
region’s strong emphasis on cybersecurity, data compliance, and governance has
increased reliance on managed service providers for maintaining operational
resilience and regulatory adherence. Businesses in North America are
prioritizing outcome-based IoT solutions, resulting in a preference for
full-service managed offerings that include infrastructure, network, and
security management.
Emerging Region
In 2024, South America rapidly emerged as a
high-potential growth region in the Global IoT Managed Services Market, fueled
by increasing digital transformation initiatives across sectors such as
agriculture, energy, logistics, and smart cities. Governments and enterprises
in countries like Brazil, Chile, and Colombia are investing in IoT
infrastructure to improve efficiency and sustainability, leading to a rising
demand for managed services to support these complex deployments.
The region’s growing adoption of cloud-based
platforms, coupled with the expansion of 4G and 5G networks, has enabled faster
IoT implementation. South American enterprises are turning to managed service
providers to handle device integration, infrastructure management, and security
monitoring. With a favorable regulatory environment and untapped market
potential, South America is poised to become a significant contributor to the
global IoT Managed Services Market in the coming years.
Recent Developments
- In February 2025, Cisco announced an expanded
partnership with NVIDIA to deliver AI technology solutions tailored for
enterprise data centers. This collaboration focuses on high-performance,
low-latency, and energy-efficient connectivity for AI workloads. Leveraging
NVIDIA Spectrum-X and interoperable networking platforms, the alliance aims to
simplify AI deployment and infrastructure management, enabling organizations to
scale AI adoption efficiently using existing tools while addressing technical
complexity, performance demands, and security requirements.
- In May 2024, IBM announced its agreement to acquire
Japan-based SKYARCH NETWORKS, an AWS-focused cloud services provider. This
acquisition enhances IBM Consulting’s hybrid cloud capabilities and supports
clients' end-to-end cloud transformation. With SKYARCH’s AWS expertise and
platform engineering strengths, IBM aims to meet rising demand for generative
AI and cloud services in the rapidly growing Japanese market.
- In January 2024, Vodafone and Microsoft announced a
10-year strategic partnership to enhance digital platforms across Europe and
Africa. Vodafone will invest USD 1.5 billion in AI and cloud services, while
Microsoft supports its IoT connectivity platform, set to become a standalone
business. The alliance aims to deliver personalized services using generative
AI, with a strong focus on ethical data practices.
Key Market
Players
- Microsoft
Corporation
- Cisco
Systems, Inc.
- Accenture
plc
- Capgemini
SE
- IBM
Corporation
- AT&T
Inc.
- HCL Technologies
Limited
- Infosys Limited
|
By Type
|
By Industry Vertical
|
By Region
|
- Infrastructure Management Service
- Security Management Service
- Network Management Service
- Data Management Service
- Device Management Service
|
- Manufacturing
- Retail
- IT & Telecom
- Transportation
- Energy & Utilities
- Healthcare
- BFSI
- Others
|
- North America
- Europe
- Asia
Pacific
- South
America
- Middle East & Africa
|
Report Scope:
In this report, the Global IoT Managed Services
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- IoT Managed Services Market, By
Type:
o Infrastructure
Management Service
o Security Management
Service
o Network Management Service
o Data Management Service
o Device Management
Service
- IoT Managed Services Market, By
Industry Vertical:
o Manufacturing
o Retail
o IT & Telecom
o Transportation
o Energy & Utilities
o Healthcare
o BFSI
o Others
- IoT Managed Services Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ Germany
§ France
§ United Kingdom
§ Italy
§ Spain
o Asia Pacific
§ China
§ India
§ Japan
§ South Korea
§ Australia
o Middle East & Africa
§ Saudi Arabia
§ UAE
§ South Africa
o South America
§ Brazil
§ Colombia
§ Argentina
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global IoT
Managed Services Market.
Available Customizations:
Global IoT Managed Services Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Global IoT Managed Services Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]