The report suggested that out of top 20 of 200 service providers are addressing 82% of the market
Overall Internet of Things (IoT) technology spending is expected to grow at 16% and reach USD 253 Billion by 2021 from USD 120 billion in 2016, as per the research by Zinnov, a leading management consulting firm.
The industrial, BFSI and automotive verticals are the biggest spenders contributing to over 46% of the overall IoT Technology spend. IoT Technology market for service providers is expected to reach USD 69 billion in 2021 from USD 34 billion at present, as per the research.
A geography wise analysis in the report shows North America as the biggest spender followed by Asia, led by Japan and China. North America leads the IoT Technology spend, as it accounts for approximately 40% of the global spend, as per the report.
India has become an outsourcing hub as the report suggests that India is addressing to over 40% of total outsourced market globally. Out of the USD 34 billion addressable market, USD 2.8 billion is currently addressed. The report suggested that out of top 20 of 200 service providers are addressing 82% of the market, as per the report.
“The core of IoT Technology Services will soon move towards providing data monetization services through decision sciences. In order to win end-to-end IoT projects, Pureplay Engineering Service Providers would need to build or acquire strong managed services competencies” quotes the report.
Highlighting some key trends, the Zinnov report mentioned that –
- Companies are exploring newer business models and additional revenue streams through IoT implementation.
- Consumers are becoming more powerful with the access to real time usage data.
- There is a push for forming standards in IoT to enable interoperability of billions of connected devices.
- Companies and service providers are joining consortium and alliances across the technology stack and are collaborating even with their peers to promote standards.
- Service providers are also exploring new IoT specific engagement models.
- Innovations across the technology stack to cater the potential IoT threats are expected to continue driving IoT investments and penetration.