IoT Services Market insights into competitive landscape, key players, and strategic developments by 2032

Global IoT Services Market Outlook (2025–2032)

The Global IoT Services Market is experiencing rapid expansion, driven by accelerated digital transformation and the integration of AI-powered IoT solutions across industries. Valued at USD 93.35 billion in 2024, the market is projected to grow at a CAGR of 12.46% from 2025 to 2032, reaching nearly USD 238.84 billion by 2032.

IoT services have emerged as the second-largest component of the IoT ecosystem, following hardware, and play a critical role in enabling connectivity, data processing, device management, and analytics. As internet connectivity becomes indispensable to daily life and business operations, IoT services are forming the backbone of smart, connected ecosystems worldwide.

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Market Overview

IoT services encompass a wide range of capabilities that support the functioning of IoT networks, including platform management, connectivity services, data analytics, security, and device lifecycle management. The explosive growth of smartphones, connected devices, and cloud infrastructure has dramatically increased touchpoints between brands and consumers, opening new opportunities for enhanced digital engagement.

Key factors shaping market growth include:

• Rising global internet penetration, with billions of users connected worldwide
• Growth in consumer electronics and smart devices, enabling continuous data exchange
• Advancements in automation, AI, and edge computing, enhancing IoT capabilities
• Increasing adoption of wearables, remote patient monitoring, and smart transportation systems

Together, these trends are accelerating the demand for scalable, secure, and intelligent IoT services.

Impact of COVID-19

The report evaluates both short-term and long-term impacts of the COVID-19 pandemic on the IoT Services Market. As lockdowns varied across regions, their effects differed by geography and industry vertical. While certain deployments slowed initially, the pandemic ultimately accelerated adoption of remote monitoring, digital operations, and cloud-based IoT services, enabling organizations to improve resilience and operational continuity.

Key Market Drivers

1. Digital Transformation Across Industries

Enterprises are increasingly leveraging IoT services to modernize operations, optimize assets, and enhance customer experiences.

1. Surge in Managed IoT Services

Managed services covering network management, cybersecurity, data handling, and device monitoring have become essential as IoT ecosystems grow more complex. With global cybersecurity spending exceeding USD 95 billion and cybercrime damages reaching trillions, demand for secure IoT services is at an all-time high.

1. Expansion of Smart Transportation & Logistics

Transportation and logistics are emerging as high-growth segments, driven by real-time tracking, fleet management, predictive maintenance, and connected infrastructure.

IoT Services Market Segment Analysis

By Offering

• Platform (Dominant Segment):
  IoT platforms provide core infrastructure for device connectivity, data management, security, and application development. Their scalability, recurring revenue model, and built-in AI and analytics capabilities make them the preferred choice for enterprises.
• Services:
  Includes consulting, integration, deployment, and managed services essential for customization and optimization.

By Connectivity

• Wi-Fi
• Bluetooth
• Cellular

By Deployment

• On-Premises
• Cloud

By Vertical

• Manufacturing (Leading Segment): Driven by Industry 4.0, smart factories, predictive maintenance, and asset monitoring
• Retail
• IT & Telecom
• Transportation & Logistics
• Utilities
• Healthcare
• Energy
• Others

Manufacturing leads due to its strong focus on automation, efficiency, and AI-driven decision-making, supported by government initiatives promoting smart manufacturing.

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Regional Insights

• North America: Leads the global market due to early technology adoption, strong cloud infrastructure, and high enterprise IoT investments
• Asia Pacific: Fastest-growing region, driven by rapid industrialization, smart city initiatives, and expanding digital ecosystems in China, India, Japan, and Southeast Asia
• Europe: Strong growth supported by Industry 4.0 initiatives and regulatory compliance
• Middle East & Africa and South America: Emerging opportunities fueled by infrastructure development and digital transformation programs

Competitive Landscape

The IoT Services Market is highly competitive, with global technology leaders and system integrators focusing on platform innovation, AI integration, strategic partnerships, and vertical-specific solutions.

Key Players Include:

AT&T, Ericsson, Cisco, Cognizant, Infosys, Harman International, Tieto Corporation, Virtusa, Tata Consultancy Services, Vodafone, Accenture, Atos, NTT Data, Tech Mahindra, EPAM Systems, Dell Technologies, Bosch, Deloitte, CGI, Wind River, Verizon Enterprise Solutions, and others.

These players are investing in cloud-native platforms, cybersecurity, edge computing, and AI-enabled IoT services to strengthen their market positions.

Future Outlook

The Global IoT Services Market is set for sustained growth as organizations increasingly prioritize connected intelligence, real-time analytics, and secure digital operations. The convergence of AI, cloud computing, 5G, and IoT platforms will continue to unlock new business models and revenue streams across industries.

Enterprises that invest early in scalable IoT services and managed solutions will be best positioned to capitalize on the next phase of digital transformation.

Global IoT Services Market Snapshot (2025–2032)