IoT Managed Services Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, By Type (Infrastructure Management Service, Security Management Service, Network Management Service, Data Management Service, Device Management Service), By Industry Vertical (Manufacturing, Retail, IT & Telecom, Transportation, Energy & Utilities, Healthcare, BFSI, Others), By Region & Competition, 2021-2031F

Key Insights	Details
Forecast Period	2027-2031
Market Size (2025)	USD 85.98 Billion
CAGR (2026-2031)	22.52%
Fastest Growing Segment	BFSI
Largest Market	North America
Market Size (2031)	USD 290.83 Billion

Market Overview

The Global IoT Managed Services Market is projected to grow from USD 85.98 Billion in 2025 to USD 290.83 Billion by 2031 at a 22.52% CAGR. IoT Managed Services encompass the outsourcing of comprehensive management responsibilities for Internet of Things infrastructure, including device lifecycle, connectivity, data ingestion, and security, to specialized third-party providers. Main growth drivers for this market include the escalating operational complexity of burgeoning IoT ecosystems, the critical demand for specialized technical expertise that enterprises often lack internally, and the strategic imperative for organizations to focus on their core business activities while achieving cost optimization.

A significant challenge that could impede market expansion is the pervasive concern regarding data security and privacy across increasingly interconnected and diverse IoT environments. According to GSMA, by the end of 2025, the industry achieved 1 billion cellular low power wide area IoT connections, underscoring the immense scale and intricacy of deployed IoT networks which directly fuels the necessity for robust outsourced management solutions.

Key Market Drivers

Rising IoT Complexity and Device Management
Rising complexity of IoT ecosystems and device management significantly propels the demand for managed services. As organizations deploy a multitude of interconnected devices, the inherent challenges of monitoring, updating, and maintaining diverse hardware and software components across vast geographical areas become substantial. Managing the lifecycle of these devices, from provisioning to decommissioning, requires specialized tools and expertise that many enterprises struggle to sustain internally. The sheer scale exacerbates this complexity; according to GSMA, in February 2025, its forecast shows that by the end of 2025, the number of IoT devices worldwide will exceed 25 billion. This proliferation necessitates outsourcing to providers capable of delivering robust and scalable management solutions to ensure optimal performance and operational continuity.

Growing IoT Cybersecurity and Compliance Demands
A heightened focus on IoT cybersecurity and compliance also drives market expansion for managed services. With the increasing integration of IoT solutions into critical infrastructure and sensitive operations, the risk of cyber threats intensifies. Ensuring data integrity, device security, and adherence to evolving regulatory frameworks presents a complex challenge that specialized managed service providers are equipped to address. For instance, according to GAP, in July 2025, one in three global data breaches now involves an IoT device. This underscores the critical need for advanced security measures and continuous monitoring. The increasing reliance on these interconnected technologies contributes to the overall growth of the IoT market, which, according to The Network Installers, in January 2026, was valued at $714.48 billion in 2024. This expansive market size further emphasizes the foundational role of expert managed services in securing and streamlining IoT deployments.

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Key Market Challenges

The pervasive concern regarding data security and privacy across increasingly interconnected and diverse IoT environments represents a significant impediment to the growth of the Global IoT Managed Services Market. Enterprises are often hesitant to fully outsource the management of their IoT infrastructure due to the potential for breaches, unauthorized data access, and the severe financial and reputational damage that can ensue. This apprehension is heightened by the inherent vulnerabilities within many IoT devices and ecosystems. For instance, according to the IoT Security Foundation, in 2025, unpatched firmware was responsible for 60% of IoT security breaches.

Such vulnerabilities underscore the risks associated with inadequate security practices, leading organizations to exercise extreme caution before entrusting critical device lifecycle, connectivity, data ingestion, and security responsibilities to third-party providers. This reluctance directly stifles the adoption of managed services, as potential clients remain wary of expanding their attack surface, despite the operational efficiencies and expertise offered by these solutions. The fundamental challenge lies in building and maintaining unwavering trust in the security posture of outsourced IoT management, without which market expansion will continue to face considerable headwinds.

Key Market Trends

A significant trend in the global IoT Managed Services Market is the rising integration of edge computing. This shift involves processing data closer to the source rather than relying on centralized cloud infrastructure, reducing latency and optimizing bandwidth. For providers, this means developing offerings that include robust edge management, encompassing localized data processing, real-time analytics, and secure deployment of edge devices. This approach is vital for applications demanding immediate responses, such as industrial automation. Reflecting this strategic imperative, AI already accounts for 13% of networking budgets, and 83% of organizations plan to increase that investment, according to Cisco's "2026 State of Industrial AI Report", March 06 2026. This allocation underscores the need for localized processing within IoT ecosystems.

Another prominent trend reshaping the market is the increasing adoption of AI and machine learning for IoT automation. These technologies empower IoT systems to transition from data collection to autonomously analyzing information, predicting outcomes, and executing actions with minimal human intervention. Managed service providers leverage AI and ML to deliver predictive maintenance, optimize operational workflows, and enhance intelligent decision-making across diverse IoT deployments, including automating anomaly detection. The tangible benefits are driving rapid adoption, as evidenced by a substantial increase in perceived impact; according to Cisco's "2026 State of Industrial AI Report", March 06 2026, 25% of leaders now report AI is having a transformative effect on their companies, more than double the 12% reported a year ago. This demonstrates a clear move towards more intelligent IoT environments.

Segmental Insights

The BFSI segment is rapidly emerging as the fastest-growing industry vertical within the Global IoT Managed Services Market. This accelerated growth is primarily driven by the banking and financial sector's critical need for advanced digital infrastructure, robust data security, and real-time analytical capabilities. Financial institutions are increasingly adopting IoT technologies to streamline intricate operations, facilitate smart ATM functionalities, effectively monitor branch activities, and gain real-time insights into customer behavior. These systems generate substantial volumes of data that demand continuous management to ensure operational efficiency and stringent security, making managed services indispensable for fraud prevention and personalized customer experiences.

Regional Insights

North America stands as the leading region in the Global IoT Managed Services Market, primarily due to its advanced technological infrastructure and robust ecosystem of IoT solution and service providers. The region benefits from a high concentration of major technology companies and a history of early and widespread adoption of IoT across critical sectors such as manufacturing, healthcare, and smart cities. Significant enterprise digitalization initiatives, substantial IT investments, and the continuous demand for enhanced operational efficiency and stringent cybersecurity measures reinforce North America's dominant market position. This environment fosters a strong impetus for outsourcing complex IoT management requirements.

Recent Developments

• In May 2026, Verdane announced a partnership with Telenor to establish a joint ownership structure for Telenor Connexion. This collaboration is designed to enhance Telenor Connexion’s position in the global managed IoT services market. The partnership aims to provide access to long-term growth capital, building upon Telenor Connexion’s expertise in offering managed IoT connectivity solutions to international clients. Telenor Connexion, a significant global player outside China with 31 million IoT SIM cards in operation, delivers solutions across various sectors, including automotive and robotics, supporting ambitious expansion plans in the growing IoT managed services sector.
• In May 2026, Ericsson and Net Feasa announced a partnership focused on deploying 4G and 5G connectivity aboard container vessels. This collaboration integrates mobile network technology with an agentic Artificial Intelligence (AI) driven data layer to enhance cargo visibility. Utilizing Ericsson Radio System products and the Ericsson On-Demand 5G core network, alongside Net Feasa's Agentic Control Tower platform, the solution allows for real-time, end-to-end visibility of cargo. This partnership supports critical maritime use cases, including reefer monitoring and dangerous goods handling, across the global supply chain.
• In January 2026, Vodafone IoT and Skylo Technologies announced a strategic partnership to integrate satellite-based Non-Terrestrial Network (NTN) NB-IoT connectivity into Vodafone’s global IoT ecosystem. This collaboration intends to deliver "anywhere connectivity" by enabling IoT devices to switch seamlessly between terrestrial cellular networks and Skylo's satellite overlay using a single Vodafone SIM. The initiative addresses coverage gaps in remote areas, facilitating continuous monitoring for industries such as asset tracking, agriculture, and environmental monitoring, and unifying management through the existing Vodafone IoT Managed Connectivity Platform.
• In January 2026, AT&T introduced its IoT Network Intelligence service suite at CES. This new offering aims to provide enterprises with enhanced visibility into the performance of their connected ecosystems. The initial service, IoT Network Intelligence Standard, provides key performance indicators and insights for devices operating on the AT&T 4G and 5G networks. Through an intuitive visualization dashboard, customers can access detailed performance data to optimize operations and improve IoT device management, supporting sectors like healthcare, transportation, and industrial applications.

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:

• Infrastructure Management Service
• Security Management Service
• Network Management Service
• Data Management Service
• Device Management Service

• IoT Managed Services Market, By Industry Vertical:

• Manufacturing
• Retail
• IT & Telecom
• Transportation
• Energy & Utilities
• Healthcare
• BFSI
• Others

• IoT Managed Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE