The Internet of things (IoT) is the network of devices, vehicles, and home appliances that are integrated with electronics, software, actuators, and connectivity, which allows them to connect, interact and exchange data. Further, managed services are the practices of outsourcing on a proactive basis of certain processes and functions intended to improve operations and further cut the expenses. It is an alternative to the break/fix or on-demand outsourcing model where the service provider performs on-demand services and bills the customer (entity) only for the work done.

Global IoT managed services market is anticipated to grow with 24.78% CAGR during the forecast period 2019-2027. The base year considered for the study is 2018 and the estimated period is between 2019 and 2027. The key factors that are responsible for the market advancement are:

• Growing number of machine-to-machine connections
• Requirement for cost-efficient managed services promoting market growth
• Expansion of next-generation processors for IoT devices

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However, the market is primarily driven by the growing number of machine-to-machine connections. The ongoing deployment of LTE and technological advancements in various fields have boosted the number of connected devices. Some of the commonly connected devices are sensors, smartphones, tablet computers, laptops, and desktop personal computers. The trend of a high attraction towards connectivity is observed worldwide. The emergence of new technologies like ZigBee, which works on inexpensive batteries, improves the ease of handling and comfort in the development of connected devices. The emergence of new applications and technological advancements in the field of wireless connectivity technologies such as general packet radio service (GPRS), Wi-Fi and worldwide interoperability for microwave access (WiMax) are increasing the number of connected devices as these services are helping these devices to integrate and resonate their functions in tandem. The connected devices provide seamless and rapid activation experience, monitoring and diagnostics which requires to be maintained properly.

In terms of services segment, device management segment leads the market in terms of revenue with around XX% market share in 2018. Device management is the process of managing the implementation, operation, and maintenance of a physical and/or virtual device. It is a broad term that includes various administrative tools and processes for the maintenance and upkeep of computing, network, mobile and/or virtual device. The device management service is an important aspect of the IoT ecosystem. Many IoT ecosystems consist of numerous devices deployed to a cloud platform. The device management service helps to gain better performance by increasing the efficiency and provide a better customer experience. The requirement of documented policies and procedures and need to develop strong service capability is satisfied by the device management service.

With the growing adoption of IoT managed services from numerous end user industries, global IoT managed services market is also facing some challenges. Increasing complexity in IoT becomes problematic for service providers to handle, lack of infrastructure support for IoT devices in emerging nations, data loss due to vulnerable security is a constant threat in IoT environment, low awareness of IoT amongst the customers & lack of industry standards for IoT services. In semi-open or closed loops, IoT will often be considered and studied as a complex system due to the huge number of different links, interactions between autonomous actors and its capacity to integrate new actors. At the overall stage, it will likely be seen as a chaotic environment. As a practical approach, not all elements in the Internet of things run in a global, public space. Subsystems are often implemented to mitigate the risks of privacy, control, and reliability.

The report on global IOT managed services includes segmentation on the basis of services, organization size and end users.

Services is sub-segmented into:

• Network management
• Security management
• Device management
• Infrastructure management
• Others

Organization Size is sub-segmented into:

• Large enterprise
• Small & Medium enterprise

End Users is sub-segmented into:

• Automotive & Transport
• IT & Telecom
• Healthcare
• BFSI
• Manufacturing
• Others

Geographically, the global IOT managed services market has been segmented on the basis of four major regions, which includes:

• North America Iot Managed Services Market : the United States & Canada
• Europe Iot Managed Services Market : United Kingdom, France, Italy, Russia, Spain, Germany & Rest of Europe
• Asia Pacific Iot Managed Services Market : China, India, Japan, Australia, South Korea & Rest of Asia Pacific
• Rest of World: Latin America, Middle East & Africa

The regional paradigm of global IOT managed services market is dominated by North America region by capturing the largest market share in terms of revenue of XX% in 2018. North America is the dominant market for IoT in transportation and has major players offering advanced solutions. Major players in the IoT transportation market in North America are investing heavily in the IoT technology solutions in the region. Vendors in this market are into R&D innovation and plan different IoT services and solutions to cater to the demands of the transportation industry. The factors that drive the North American market include growth in demand for effective deployment and faster delivery of the IoT based solution in the transportation industry. Further, the rise in the need for fuel efficiency and remote monitoring of vehicles fuel the market in North America.

On the flip side, the Asia Pacific region is expected to surge with the fastest growth rate during the forecast period. Growing government initiatives to encourage healthcare providers & other healthcare organizations to adopt EHR & EMR technology and aggressive investments from nonprofit entities and private sectors to achieve improved clinical outcomes, seamless information exchange & recognize cost savings are some of the factors that are expected to drive IoT in the healthcare industry. In terms of technology adoption in the region, Singapore, Japan, Australia and South Korea have been the belligerent adopters in the healthcare sector, whereas China, Thailand, India, and Malaysia are the emerging markets who are steadily adopting the services. Many multinational & domestic pharmaceutical and medical device companies are based in the region.

Global IOT managed services includes segmentation on the basis of services, organization size, and end users. Services is sub-segmented into network management, security management, device management, infrastructure management & others. Organization size is sub-segmented into large enterprise & small & medium enterprise. The end-users division is further sub-segmented into automotive & transport, IT & telecom, healthcare, BFSI, manufacturing & others.

The market has a number of players, and some of the key players involved in global IoT managed services market are:

• Accenture PLC
• Cisco Systems Inc.
• Honeywell International Inc.
• Huawei Technologies
• International Business Machines Corporation (IBM Corp.)
• Other companies

Market share analysis along with company profiles of the prominent market players are discussed in detail. Most of the companies are looking for strategies such as merger & acquisition, partnership, contracts, agreements, new product launch, to gain a competitive edge over other companies. In November 2018, IBM and VMware, Inc. announced new offerings to help accelerate enterprise hybrid cloud adoption. This includes a new IBM Services offering to help migrate and extend mission-critical VMware workloads to the IBM Cloud, and new integrations to help enterprises to modernize applications with Kubernetes and containers. Also, Microsoft released a blockchain development kit on its Azure cloud platform designed to enable seamless integration of blockchain with Microsoft’s and third-party SaaS offerings. This kit extends the capabilities of the company’s blockchain developer templates and Azure Blockchain Workbench, which incorporates Azure services for key management, off-chain identity and data, monitoring, and messaging APIs into a reference architecture that can be used to build blockchain-based applications rapidly.

Key findings of the global IoT managed services market:

• Growing demand for device management services boosting the market growth
• Increasing adoption of IoT solutions and services by the manufacturing industry
• North America anticipated holding dominant share in the market
• Asia Pacific region is expected to be the fastest growing amongst all other regions