Market Analysis
published on May 03, 2017
Report Overview:
NelsonHall's market analysis of the IoT services market consists of 59 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 report is a comprehensive market assessment report designed for:
- Sourcing managers investigating sourcing developments within digital and, in particular, 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 sector.
Scope of this Report:
The report analyzes the worldwide 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 2016 and how will it increase in 2017 and onwards?
- How is the market organized? Who are the main vendors? How can they be assessed and compared? What are vendor challenges and critical success factors by market segment?
- What are the offerings in the market?
- How are IoT services shaping?
- What are the delivery capabilities of vendors providing IoT services?
Key Findings & Highlights:
The IoT services market is an emerging and dynamic market. Current spending is limited, at ~$2.1bn, but growth potential is very high (2016-2021 CAGR of 26%).
The IoT services market is not a single market, but a series of nine major markets, centered around major vertical use cases. The vertical use cases are based on different IoT technologies, IoT platforms, middleware, and applications, as well as communication services. IoT’s underlying technology is therefore heterogenous and drives a wide ecosystem of technology partners for IT service vendors. This heterogeneity of the technology landscape will increase as the number of vertical use cases increases.
Spending growth will be relatively homogeneous across geographies. Looking in detail, North America is fast adopting connected car, smart manufacturing, and smart energy, while B2C IoT adoption is slowing down. In APAC, as in North America, B2B connected car, smart manufacturing, and smart energy account for ~65% of the market spending, and in addition, this region is adopting smart city/building and e-healthcare. The majority of IoT-related projects in APAC are conducted in China, India, and Japan.
In Europe, EU and country-led directives and initiatives have furthered the use of IoT in the manufacturing and energy industries.
Adoption of IoT services often results from consulting engagements, with clients aiming to identify IoT business cases. IoT consulting, from workshops to PoCs, will continue to remain important, while several major IoT systems integration programs will be launched in the next five years. Spending on enhancements and on monitoring services will remain limited.