So far in 2023, the IoT market has faced headwinds, however; IT Service Providers continue to play a critical role in successful deployments, as highlighted in GlobalData’s recent market update.
While connections grew for industrial use cases and revenues grew moderately, many operators and vendors saw only moderate growth. At the same time, several key IoT platform providers sold off or discontinued their offerings.
Regardless of the difficulties in monetising some segments of IoT, vendors, operators, and IT Service Providers continue launching new services, striking new alliances, and making significant acquisitions to improve their capabilities.
The following announcements were made in 2023 by leading IT Service Providers that are active in the IoT market.
Service Providers’ Organisational and M&A News
- Cognizant announced its purchase of Mobica, a UK-based IoT software engineering services company, for $335 million. Mobica has been a strategic partner for connected software engineering services across the technology stack to technology-driven market leaders. For Cognizant, this also boosts nearshoring capabilities in Eastern Europe.
- Atos’ establishment of its Eviden brand focused on strategic Digital Transformation services, coupled with its plans to sell its Tech Foundations IT infrastructure unit means IoT will now likely fall under Eviden.
- Accenture announced it is acquiring Flutura, an IoT and data science services firm. This will boost the industrial AI services that Accenture sells under the umbrella of its Applied Intelligence unit.
Awards and Customer Deals
- Capgemini was selected to coordinate IoT-NGIN, the Next Generation IoT project, part of the European Commission’s Next Generation Internet initiative to reinvent the Internet for the third millennium. IoT has been identified by the European Commission as a technology at the forefront of digital transformation for the economy.
- The ioXt Alliance, the global standard for IoT security, announced the addition of Capgemini to the ioXt Authorized Labs certification program. Authorized labs are the exclusive third-party test providers for the ioXt Alliance, performing testing required for IoT devices to be certified by ioXt.
- Tech Mahindra wins bid for Smart City deployment in Tagawa City Japan, with use cases including digital transformation of the tourism industry using AR and IoT, building smart recreational parks, and providing labor assistance using IoT sensors and AI cameras, for body temperature and physical condition management of cows.
Service Provider Launches
- Infosysrolled out Private 5G-as-a-Service to accelerate business value for its enterprise clients. It includes Mobile Edge Computing (MEC) to provide reliable network operation for high-bandwidth enterprise use cases including a variety of IoT/industrial IoT applications.
- Infosys is to set up a first Makers Lab at Dr APJ Abdul Kalam University in Indore, Madhya Pradesh, India. The lab will have capabilities ranging across AI, IoT, robotics, and 3D printers.
- Wipro partnered with Cisco for a Managed Private 5G Solution built on Cisco’s mobile core technology and IoT portfolio, spanning IoT sensors and gateways, device management software, monitoring tools and dashboards. The solution is built, run, and managed by Wipro for customers and Wipro has created a dedicated private 5G lab to build, test, and demonstrate industry use-cases.
IoT Trends and Forecasts
According to GlobalData forecasts (see GlobalData Market Opportunity Forecasts: Internet of Things)
the Global IoT market reached approximately $675bn in 2023 and will grow to $1.3trn by 2027, with an CAGR of 15% from 2022 to 2027. The forecast includes hardware, software, and services, the latter of which includes connectivity as well as professional and consulting services.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The largest verticals by revenue in 2027 will include government/public sector, manufacturing, energy, and transportation and logistics. By 2027, cellular connectivity will account for 45% of connectivity revenues.
IoT Market Drivers
While 5G is still an emerging technology, the potential to jumpstart new IoT solutions with ultra-low latency, very high speeds, and ‘massive’ capacity may provide the IoT market with a new lease on life. It is already clear that one of the most lucrative opportunities for IoT providers is to offer it within the context of a private network; these are increasingly in demand by industrial companies looking for next-gen connectivity along with security and control.
The Covid pandemic may have put a damper on some new IoT deals, but from 2020-2022, IoT gained favour for facilitating use cases such as remote machine monitoring (for worker safety), patient monitoring, building occupancy management, utility management, supply chain management, and sustainability initiatives; the post-pandemic world is still benefiting from these solutions. While IoT is just one of a number of enabling technologies used in digital transformation (including big data analytics, AI/ML, AR/VR, robotics, and customer experience/bots), it is one of the most mature and most prevalent.
Service Providers Need To Be On The Ball
However; IoT is rarely used alone; service providers need to make sure they are updating platforms, services, and vertical solutions for IoT just as they continue to invest in their overall digital transformation portfolios. While some ITSPs keep rolling out their own IoT service enhancements, many are spending on acquisitions that strengthen their overall digital transformation portfolios with added analytics, cloud, edge, security, AI, and IoT capabilities and/or specialisation in key verticals.
IoT is increasingly positioned as a driver of sustainability, facilitating in-building energy management, agricultural solutions to help with climate change, and helping utilities to locate and manage sources of renewable energy. The synergistic nature of IoT and environmental protection will be key for the advancement of IoT over the next several years.