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IoT Services

Market Analysis

by Dominique Raviart

published on Jul 09, 2018

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Report Overview:

NelsonHall's market analysis of the IoT services consists of 58 pages. It provides an in-depth understanding of the dynamics at play in the IoT services market. 

Who is this Report for:

NelsonHall’s “IoT Services: Continued Focus on Use Cases” report is a comprehensive market assessment report designed for:

  • Sourcing managers investigating sourcing developments within IoT services
  • Vendor marketing, sales and business managers developing strategies to target IoT service opportunities
  • Financial analysts and investors specializing in the IT services and engineering and R&D services sector.

Scope of this Report:

The report analyzes the worldwide services market for IoT services. It addresses the following questions:

  • What is the current and future market for IoT services?
  • What are the client segments for IoT services, and their characteristics? What are the drivers, benefits, and inhibitors for each segment?
  • What is the size and growth of the IoT services markets by client segment, geography, service line, activity and sector?
  • How did spending grow in 2017 and how will it increase in 2018 and onwards, until 2022?
  • How is the market organized? Who are the main vendors? How can they be assessed and compared? What are vendors’ challenges and critical success factors by market segment?
  • What are the offerings in the market?
  • How are IoT services shaping?

 

Key Findings & Highlights:

The IoT services market is an emerging market and dynamic market. Current spending is limited, to ~$2.6bn. But growth potential is very high (2017-2022 CAGR of 23%).

The IoT services market is not a single market, but a series of several major markets, centered around major vertical use cases. Each vertical use case is made of a series of technologies including sensors/devices, messaging gateways, IoT platforms, and analytics algorithms, as well as M2M communication services. IoT’s underlying technology is therefore heterogenous and therefore drives a wide ecosystem of technology partners for IT service vendors.

Spending growth will be relatively homogeneous across geographies. Looking into detail,

  • North America will remain the largest market over the next five years, thanks to its appetite for digital projects and its positioning on the three use cases (connected car, industry 4.0, and smart city/building management) with the most traction
  • Spending in Europe will accelerate and match the growth of North America, thanks to better economic conditions and adoption of industry 4.0
  • The majority of IoT-related projects, in APAC, are conducted in China, India, and Japan.

Adoption of IoT services often results from consulting engagements, with clients aiming to identify IoT business cases. These consulting engagements result into small to mid-sized systems integration projects.

Looking ahead, IoT service projects will be increasing in number and size. Over time, they will turn to run mode, fueling demand for application management and IT infrastructure services.

The largest IoT service vendors are Accenture, IBM Global Services, Atos, TCS, and Harman Connected Services. 

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IoT Services

published 2018-08-22 | Project by Dominique Raviart

This NelsonHall Vendor Evaluation & Assessment Tool (NEAT) analyzes the performance of vendors offering Internet of Things (IoT) Services as part of their IT services portfolio. The NEAT tool allows strategic sourcing managers to assess the capability of vendors across a range of criteria and business situations and identify the best performing vendors overall, and with a specific focus on efficiency improvement, offerings enhancement, CX, and enabling new business models. Vendors evaluated are: Accenture, Altran, Atos, Capgemini, EPAM Systems, Genpact, Harman Connected Services, Hexaware Technologies, IBM, Infosys, L&T Technology Services, LTI, NTT Data, Sopra Steria, TCS, Tech Mahindra, Tieto, T-Systems, Virtusa, and Wipro. To find out more, contact Guy Saunders at [email protected].
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