Internet of Things (IoT) Professional Services Market by Service Type (Consulting, Infrastructure, System Designing & Integration, Support & Maintenance, and Education & Training), Applications, and Regions - Global Forecast to 2021

[147 Pages Report] The Internet of Things (IoT) professional services market is estimated to grow from USD 57.18 billion in 2016 to USD 158.28 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 22.6% during the period 2016–2021. IoT professional services is a portfolio of services and capabilities that help in the elimination of implementation of complex IoT business models. It defines an appropriate strategy for businesses for digital transformation and empowers them to bring together the right mix of IoT products and solutions. The complexity involved during the integration of IoT technology with the existing legacy systems and process is the major pain point of the organizations planning for a digital transformation. The base year considered for the study is 2015, and the forecast has been provided for the period between 2016 and 2021.

Market Dynamics

Drivers

• Increasing adoption of digital transportation services in organizations by opting for specialized IoT business and technology consulting services
• Demand for highly customized IoT services in the industrial and transportation sector
• Rising trend of adopting IoT professional services to reduce CAPEX and OPEX

Restraints

• Slow growth rate in the initial period of market forecast
• Limited availability of technically skilled personnel

Opportunities

• Lucerative market opportunities for CSPs and system integrators
• Building a recurring revenue stream

Challenges

• Low quality of service offered may challenge the market growth

Demand for highly customized IoT services in the industrial and transportation sector

The working in the industrial and the transport sectors has been enhanced with the implementation of the IoT technology solutions. The trend is more matured in the developed economies and offers potential business opportunities in the developing regions. However, the business models and the operational process of these two sectors are highly complex and cannot be addressed without specialized expertise. Hence, there is a growing demand across these sectors for specialized IoT services which would address their challenge of digital transformation without affecting the business model.

To know about the assumptions considered for the study, download the pdf brochure

Objectives of the study:

• To define, describe, and forecast the IoT professional services market on the basis of five regions, namely, North America, Europe, APAC, Middle East and Africa (MEA), and Latin America
• To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
• To strategically analyze each subsegment with respect to individual growth trends, future prospects, and contribution to the total market
• To analyze the opportunities in the market for stakeholders by identifying high-growth segments of the IoT professional services market
• To strategically profile key players of the market and comprehensively analyze their core competencies in the market
• To track and analyze competitive developments, such as new product launches, mergers & acquisitions, partnerships, agreements, and collaborations in the global IoT professional services market

The research methodology used to estimate and forecast the IoT professional services market begins with capturing data on key vendor revenues and the market size of the individual segments through secondary sources: industry associations such as  IoT M2M Council, IoT Alliance and Consortium, and Industrial Internet Consortium (IIC) and trade journals such as IEEE Internet of Things Journal, Journal of Internet Services and Applications, and International Journal of Internet of Things and Web Services. The vendor offerings are also taken into consideration to determine market segmentation. The bottom-up procedure was employed to arrive at the overall market size of the global IoT professional services market from the individual technology segment. After arriving at the overall market size, the total market was split into several segments and subsegments, which were then verified through primary research by conducting extensive interviews with key industry personnels, such as CEOs, VPs, directors, and executives. The data triangulation and market breakdown procedures were employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The breakdown of profiles of primary discussion participants is depicted in the below figure:

The IoT professional services ecosystem include technology vendors such as Accenture PLC (Dublin, Ireland), Atos SE (Besons, France), Capgemini S.A. (Paris, France), Cognizant Technology Solutions Corporation (New Jersey, U.S.), IBM Corporation (New York, U.S.), Infosys Limited (Karnataka, India), NTT DATA Corporation (Tokyo, Japan), Tata Consultancy Services Limited (Maharashtra, India), and Tech Mahindra Limited (Maharashtra, India),  Wipro Limited (Karnataka, India), which provide numerous IT and non-IT components required for IoT professional services.

Key Target Audience for Internet of Things Professional Services Market

• System design and development vendors
• System integrators/migration service providers
• Consultants/consultancies/advisory firms
• Support and maintenance service providers
• Network service providers
• IoT professional services provider companies
• Academic and research institutes
• Government associations

Scope of the Internet of Things Professional Services Market Research Report

The research report categorizes the IoT professional services market to forecast the revenues and analyze the trends in each of the following subsegments:

By Service Type 

• IoT Consulting Services
• Technology consulting services
• Business consulting services
• Operational consulting services
• IoT Infrastructure Services
• Network services
• Deployment services
• Cloud services
• System Designing and Integration Services
• Platform development and integration
• Mobile and web application development
• Support and Maintenance Services
• Education and Training Services

By Application

• Smart Buildings
• Smart Manufacturing
• Smart Transport and Logistics
• Smart Healthcare
• Smart Retail
• Smart Energy

By Region

• North America
• Europe
• Asia-Pacific (APAC)
• Middle East and Africa (MEA)
• Latin America

Critical questions which the report answers

• Where will all these developments take the industry in the mid to long term?
• What are the hot application areas for IoT professional services?

Available Customizations

Geographic Analysis

• Further country level breakdown of the North American IoT professional services market
• Further country level breakdown of the European IoT professional services market
• Further country level breakdown of the APAC IoT professional services market
• Further country level breakdown of the MEA IoT professional services market
• Further country level breakdown of the Latin American IoT professional services market

Company Information

• Detailed analysis and profiling of additional market players

Table of Contents

1 Introduction (Page No. - 14)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Key Data From Primary Sources
                    2.1.2.2 Key Industry Insights
                    2.1.2.3 Breakdown of Primaries
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
           2.2.2 Top-Down Approach
    2.3 Market Breakdown and Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 30)
    4.1 Attractive Market Opportunities in the IoT Professional Services Market
    4.2 Global IoT Professional Services Market, By Service Type, 2016–2021
    4.3 Market, By Application, 2016
    4.4 Market, By Region, 2016
    4.5 Lifecycle Analysis, By Region

5 Market Overview (Page No. - 35)
    5.1 Introduction
           5.1.1 By Service Type
           5.1.2 By Application
           5.1.3 By Region
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Increasing Adoption of Digital Transformation Services in Organizations By Opting for Specialized IoT Business and Technology Consulting Services
                    5.2.1.2 Demand for Highly Customized IoT Services in the Industrial and Transportation Sectors
                    5.2.1.3 Rising Trend of Adopting IoT Professional Services to Reduce CAPEX and OPEX
           5.2.2 Restraints
                    5.2.2.1 Slow Growth Rate in the Initial Period of Market Forecast
                    5.2.2.2 Limited Availability of Technically Skilled Personnel
           5.2.3 Opportunities
                    5.2.3.1 Lucrative Market Opportunities for CSPS and System Integrators
                    5.2.3.2 Building A Recurring Revenue Stream
           5.2.4 Challenges
                    5.2.4.1 Low Quality of Service Offered May Challenge the Market Growth

6 Industry Trends (Page No. - 41)
    6.1 Introduction
    6.2 Value Chain Analysis
    6.3 Strategic Benchmarking

7 IoT Professional Services Market Analysis, By Service Type (Page No. - 43)
    7.1 Introduction
    7.2 IoT Consulting Services
           7.2.1 Technology Consulting Services
           7.2.2 Business Consulting Services
           7.2.3 Operational Consulting Services
    7.3 IoT Infrastructure Services
           7.3.1 Network Services
           7.3.2 Deployment Services
           7.3.3 Cloud Services
    7.4 System Designing and Integration Services
           7.4.1 Platform Development and Integration
           7.4.2 Mobile and Web Application Development
    7.5 Support and Maintenance Services
    7.6 Education and Training Services

8 IoT Professional Services Market Analysis, By Application (Page No. - 57)
    8.1 Introduction
    8.2 Smart Buildings
    8.3 Smart Manufacturing
    8.4 Smart Transport and Logistics
    8.5 Smart Healthcare
    8.6 Smart Retail
    8.7 Smart Energy

9 IoT Professional Services Market Analysis, By Region (Page No. - 65)
    9.1 Introduction
    9.2 North America
    9.3 Europe
    9.4 Asia-Pacific
    9.5 Middle East and Africa
    9.6 Latin America

10 Competitive Landscape (Page No. - 87)
     10.1 Overview
     10.2 IoT Professional Services Market: Vendor Analysis
     10.3 Market: Key Growth Strategies, 2014–2017
     10.4 Competitive Situation and Trends
             10.4.1 Partnerships, Agreements, and Collaborations
             10.4.2 Mergers and Acquisitions
             10.4.3 New Service Launches
             10.4.4 Business Expansions

11 Company Profiles (Page No. - 96)
(Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, MnM View)*
     11.1 Introduction
     11.2 Accenture PLC
     11.3 ATOS SE
     11.4 Capgemini S.A.
     11.5 Cognizant Technology Solutions Corporation
     11.6 Happiest Minds Technologies
     11.7 IBM Corporation
     11.8 Infosys Limited
     11.9 NTT Data Corporation
     11.1 Tata Consultancy Services Limited
     11.11 Tech Mahindra Limited
     11.12 Wipro Limited
     11.13 Key Innovators
             11.13.1 Aricent Inc.
             11.13.2 Genpact Limited
                        11.13.2.1 Business Overview
             11.13.3 Luxoft Holding, Inc
                        11.13.3.1 Business Overview
             11.13.4 Prodapt Solutions Pvt. Ltd
                        11.13.4.1 Business Overview
             11.13.5 Unisys Corporation
                        11.13.5.1 Business Overview
             11.13.6 Virtusa Corporation
                        11.13.6.1 Business Overview

*Details on Business Overview, Products & Services, Key Insights, Recent Developments, SWOT Analysis, MnM View Might Not Be Captured in Case of Unlisted Companies.

12 Appendix (Page No. - 134)
     12.1 Key Industry Insights
     12.2 Other Developments
             12.2.1 Partnerships, Agreements, and Collaborations
             12.2.2 Mergers and Acquisitions
     12.3 Discussion Guide
     12.4 Knowledge Store: Marketsandmarkets’ Subscription Portal
     12.5 Introducing RT: Real-Time Market Intelligence
     12.6 Available Customizations
     12.7 Related Reports
     12.8 Author Details

List of Tables (64 Tables)

Table 1 Global IoT Professional Services Market and Growth Rate, 2016–2021 (USD Billion, Y-O-Y %)
Table 2 Market Size, By Service Type, 2016–2021 (USD Million)
Table 3 Market Size, By Region, 2016–2021 (USD Million)
Table 4 IoT Consulting Services: Market Size, By Type, 2016–2021 (USD Million)
Table 5 IoT Consulting Services: Market Size, By Region, 2016–2021 (USD Million)
Table 6 Technology Consulting Services: Market Size, By Region, 2016–2021 (USD Million)
Table 7 Business Consulting Services: Market Size, By Region, 2016–2021 (USD Million)
Table 8 Operational Consulting Services: Market Size, By Region, 2016–2021 (USD Million)
Table 9 IoT Infrastructure Services: Market Size, By Type, 2016–2021 (USD Million)
Table 10 IoT Infrastructure Services: Market Size, By Region, 2016–2021 (USD Million)
Table 11 Network Services: Market Size, By Region, 2016–2021 (USD Million)
Table 12 Deployment Services: Market Size, By Region, 2016–2021 (USD Million)
Table 13 Cloud Services: Market Size, By Region, 2016–2021 (USD Million)
Table 14 System Designing and Integration Services: Market Size, By Type, 2016–2021 (USD Million)
Table 15 System Designing and Integration Services: Market Size, By Region, 2016–2021 (USD Million)
Table 16 Platform Development and Integration: Market Size, By Region, 2016–2021 (USD Million)
Table 17 Mobile and Web Application Development: IoT Professional Services Market Size, By Region, 2016–2021 (USD Million)
Table 18 Support and Maintenance Services: Market Size, By Region, 2016–2021 (USD Million)
Table 19 Education and Training Services: Market Size, By Region, 2016–2021 (USD Million)
Table 20 IoT Professional Services Market Size, By Application, 2016–2021 (USD Million)
Table 21 Market Size, By Region, 2016–2021 (USD Million)
Table 22 Smart Buildings: Market Size, By Region, 2016–2021 (USD Million)
Table 23 Smart Manufacturing: Market Size, By Region, 2016–2021 (USD Million)
Table 24 Smart Transport and Logistics: Market Size, By Region, 2016–2021 (USD Million)
Table 25 Smart Healthcare: Market Size, By Region, 2016–2021 (USD Million)
Table 26 Smart Retail: Market Size, By Region, 2016–2021 (USD Million)
Table 27 Smart Energy: Market Size, By Region, 2016–2021 (USD Million)
Table 28 IoT Professional Services Market Size, By Region, 2016–2021 (USD Million)
Table 29 North America: Market Size, 2016–2021 (USD Million, Y-O-Y %)
Table 30 North America: Market Size, By Service Type, 2016–2021 (USD Million)
Table 31 North America: Market Size, By IoT Consulting Service, 2016–2021 (USD Million)
Table 32 North America: Market Size, By IoT Infrastructure Service, 2016–2021 (USD Million)
Table 33 North America: Market Size, By System Designing and Integration Service, 2016–2021 (USD Million)
Table 34 North America: Market Size, By Application, 2016–2021 (USD Million)
Table 35 Europe: IoT Professional Services Market Size, 2016–2021 (USD Million, Y-O-Y %)
Table 36 Europe: Market Size, By Service Type, 2016–2021 (USD Million)
Table 37 Europe: Market Size, By IoT Consulting Service, 2016–2021 (USD Million)
Table 38 Europe: Market Size, By IoT Infrastructure Service, 2016–2021 (USD Million)
Table 39 Europe: Market Size, By System Designing and Integration Service, 2016–2021 (USD Million)
Table 40 Europe: Market Size, By Application, 2016–2021 (USD Million)
Table 41 Asia-Pacific: IoT Professional Services Market Size, 2016–2021 (USD Million, Y-O-Y %)
Table 42 Asia-Pacific: Market Size, By Service Type, 2016–2021 (USD Million)
Table 43 Asia-Pacific: Market Size, By IoT Consulting Service, 2016–2021 (USD Million)
Table 44 Asia-Pacific: Market Size, By IoT Infrastructure Service, 2016–2021 (USD Million)
Table 45 Asia-Pacific: Market Size, By System Designing and Integration Service, 2016–2021 (USD Million)
Table 46 Asia-Pacific: Market Size, By Application, 2016–2021 (USD Million)
Table 47 Middle East and Africa: IoT Professional Services Market Size, 2016–2021 (USD Million, Y-O-Y %)
Table 48 Middle East and Africa: Market Size, By Service Type, 2016–2021 (USD Million)
Table 49 Middle East and Africa: Market Size, By IoT Consulting Service, 2016–2021 (USD Million)
Table 50 Middle East and Africa: Market Size, By IoT Infrastructure Service, 2016–2021 (USD Million)
Table 51 Middle East and Africa: Market Size, By System Designing and Integration Service, 2016–2021 (USD Million)
Table 52 Middle East and Africa: Market Size, By Application, 2016–2021 (USD Million)
Table 53 Latin America: Market Size, 2016–2021 (USD Million, Y-O-Y %)
Table 54 Latin America: Market Size, By Service Type, 2016–2021 (USD Million)
Table 55 Latin America: Market Size, By IoT Consulting Service, 2016–2021 (USD Million)
Table 56 Latin America: Market Size, By IoT Infrastructure Service, 2016–2021 (USD Million)
Table 57 Latin America: Market Size, By System Designing and Integration Service, 2016–2021 (USD Million)
Table 58 Latin America: Market Size, By Application, 2016–2021 (USD Million)
Table 59 Partnerships, Agreements, and Collaborations, 2016
Table 60 Mergers and Acquisitions, 2016–2017
Table 61 New Service Launches, 2015–2016
Table 62 Business Expansions, 2016
Table 63 Partnerships, Agreements, and Collaborations, 2014–2016
Table 64 Mergers and Acquisitions, 2014–2016

List of Figures (41 Figures)

Figure 1 IoT Professional Services Market: Research Design
Figure 2 Market Size Estimation Methodology: Bottom-Up Approach
Figure 3 Market Size Estimation Methodology: Top-Down Approach
Figure 4 Market Breakdown and Data Triangulation
Figure 5 Global IoT Professional Services Market and Growth Rate, 2016–2021 (USD Billion, Y-O-Y %)
Figure 6 North America is Expected to Hold the Largest Market Share in 2016
Figure 7 Market: Segments Growing at the Highest CAGR During the Forecast Period
Figure 8 Emergence of IoT Technology Offers Attractive Market Opportunities
Figure 9 IoT Consulting Services Segment is Expected to Hold the Largest Market Share Among Service Types in 2016
Figure 10 Smart Transport and Logistics Segment is Expected to Hold the Largest Share in 2016
Figure 11 North America is Expected to Hold the Largest Market Share in 2016
Figure 12 The IoT Professional Services Market has Immense Opportunities for Growth in Asia-Pacific
Figure 13 Market Segmentation: By Service Type
Figure 14 Market Segmentation: By Application
Figure 15 Market Segmentation: By Region
Figure 16 Market : Drivers, Restraints, Opportunities, and Challenges
Figure 17 Market : Value Chain
Figure 18 Market : Strategic Benchmarking
Figure 19 IoT Consulting Services Segment Holds the Major Market Share for the IoT Professional Services Market During the Forecast Period
Figure 20 Smart Transport and Logistics Segment Holds the Major Market Share for the IoT Professional Services Market During the Forecast Period
Figure 21 North America Would Be the Leading Region in Terms of Market Size During the Forecast Period
Figure 22 Asia-Pacific: Hot Spot for IoT Professional Services Market During the Forecast Period
Figure 23 North America Snapshot
Figure 24 Europe Snapshot
Figure 25 Asia-Pacific Snapshot
Figure 26 IoT Professional Services Market: Business Offerings Analysis
Figure 27 Market : Business Strategy Analysis
Figure 28 Companies Adopted Partnership, Collaboration, and Agreement as the Key Growth Strategy During the Period 2014–2017
Figure 29 Market Evaluation Framework
Figure 30 Battle for Market Share: Partnerships and Agreements is the Key Strategy
Figure 31 Geographic Revenue Mix of Top Market Players
Figure 32 Accenture PLC: Company Snapshot
Figure 33 ATOS SE: Company Snapshot
Figure 34 Capgemini: Company Snapshot
Figure 35 Cognizant Technology Solutions Corporation: Company Snapshot
Figure 36 IBM Corporation: Company Snapshot
Figure 37 Infosys Limited: Company Snapshot
Figure 38 NTT Data Corporations: Company Snapshot
Figure 39 Tata Consultancy Services Limited: Company Snapshot
Figure 40 Tech Mahindra Limited: Company Snapshot
Figure 41 Wipro Limited: Company Snapshot

The IoT professional services market size is expected to grow from USD 57.18 billion in 2016 to USD 158.28 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 22.6% during the period 2016–2021. The major drivers for upsurge in demand for IoT professional services market include rising trend of adopting IoT professional services to reduce Capital Expenditure (CAPEX) and Operational Expenditure (OPEX), demand for highly customized IoT services in the industrial and transportation sector, and increasing adoption of digital transformation services in organization by opting specialized IoT business and technology consulting services.

The scope of this report covers the IoT professional services market analysis by services, applications, and regions. The system designing and integration services is expected to grow at the highest CAGR during the forecast period. These services support the design and implementation of IoT solutions across enterprises. The service providers deploy the latest IoT technology to improve the operational performance and gain a smarter enterprise.

IoT consulting services is expected to have the highest market share in the IoT professional services market. The consulting services team ensure interoperability and develop & implement the right IoT applications and architecture for the business or clients. The key benefits of IoT technology consulting services include better align technology to the organization's needs, realize business benefits in a timely fashion, reduce costs of compliance & risk management, security concerns, sketch an infrastructure plan, and enhance the internal functionality. The growth of IoT consulting services is attributed to the increase in the adoption of the technology, connected devices, and automation.

Smart transportation and logistics is expected to have the largest market share and estimated to grow at the highest CAGR during the forecast period. Smart transportation and logistics is all about integrating advanced technologies with the existing transportation and logistics infrastructure, delivering real-time online information about the traffic flow, tracking of the assets, and passengers/commuters. IoT professional services help the transport and logistics vendors in order to achieve automation by deploying the IoT technological solutions. The increasing requirement for analytics, security, logistics management, inventory management, digitalization, high volume networking, and increase in the overall operations & responsiveness drives the smart transportation and logistics management

As per the geographic analysis, North America is expected to have the largest market share. It is likely to benefit from its technological advancements and followed by robust internet infrastructure, widespread adoption of new technology, and presence of a strong domestic solution providers have all contributed to the shifting towards smart infrastructure from conventional infrastructure. The need for better operational efficiency and business process at a low operating cost is expected to drive continuous growth in the IoT professional services market.

Increasing adoption of digital transformation services in organizations by opting for specialized IoT business and technology consulting services

Smart Transport and Logistics

The smart transport and logistics segment is all about integrating advanced technologies with the existing transportation and logistics infrastructure, delivering real-time online information about the traffic flow, tracking of the assets, and passengers/commuters. With regards to the consulting services, the companies offer business operation, technical management, change management, transformation, and people management.

Smart Manufacturing

The smart manufacturing segment includes network management, data management, security solutions, and remote monitoring. In the pre-deployment phase, the consulting services help the organization in creating a new IoT infrastructure to enhance its existing system and also to achieve strategic business goals. The service providers are also keen to sketch intelligent designs of machines and production to improve the manufacturing processes and applications to attain the higher economy of scale.

Smart Energy

The smart energy sector observes large complications during its production; the professional services ensure the right deployment of the technology to improve the working efficiency and effectiveness, and the service providers also design the entire IoT infrastructure to enhance productivity, business processes, security, and profitability. In compliance with the changing regulatory requirements and increasing environmental pressures, IoT professional services are used to transform the business operations.

Smart Healthcare

The connected devices enable the healthcare organizations to streamline the operations, business processes, and aid in real-time patient care, even from remote locations. IoT professional services provide in-depth knowledge about the benefits and features that the new service would offer their patients and caretakers. The healthcare industry involves sensitive information; the consulting services regarding security could hamper the growth of IoT in the healthcare industry.

Critical questions the report answers:

• Where will all these developments take the industry in the mid to long term?
• What are the hot application areas for IoT professional services?

A few of the restraining factors that affect the growth of the market include slow growth rate in the initial period of market forecast and limited availability of technically skilled personnel. The IoT professional services vendors profiled in the report include Accenture PLC (Dublin, Ireland), Atos SE (Besons, France), Capgemini S.A. (Paris, France), Cognizant Technology Solutions Corporation ( New Jersey, U.S.), IBM Corporation (New York, U.S.), Infosys Limited (Karnataka, India), NTT DATA Corporation (Tokyo, Japan), Tata Consultancy Services Limited (Maharashtra, India), Tech Mahindra Limited (Maharashtra, India),  and Wipro Limited (Karnataka, India).

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