Global Internet of Things (IoT) Managed Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Global Internet of Things (IoT) Managed Market Segmentation, By Service Type (Business Consulting Services, Device and Application Management Services, Installation and Integration Services, IoT Billing and Subscription Management, M2M Billing Management), Connectivity (Cellular Technologies, LPWAN, NB-IoT, Radio Frequency-Based), Application (Smart Building and Home Automation, Industrial Manufacturing and Automation, Smart Healthcare, Energy and Utilities, Smart Retail, Others), End User (Manufacturing, Healthcare, Transportation and Logistics, Retail, IT and Telecom, Others), Platform (Device Management, Application Management, Network Management) - Industry Trends and Forecast to 2032

 

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Internet of Things (IoT) Managed Market Size

• The global Internet of Things (IoT) Managed market size was valued at USD 88.62 billion in 2024 and is expected to reach USD 298.95 billion by 2032, at a CAGR of 16.5%  during the forecast period
• This growth is driven by factors such as the increasing adoption of IoT devices, advancements in 5G connectivity, and the rising demand for managed services to optimize IoT deployments.

Internet of Things (IoT) Managed Market Analysis

• IoT Managed Services encompass outsourced solutions for managing IoT ecosystems, including device provisioning, network management, data analytics, and security services. These services enable organizations to deploy and scale IoT solutions efficiently across industries like manufacturing, healthcare, and smart cities.
• The demand for IoT Managed Services is significantly driven by the proliferation of connected devices, expected to exceed 30 billion by 2025, and the need for real-time data analytics and automation.
• North America is expected to dominate the IoT Managed Services market due to advanced digital infrastructure and high IoT adoption in industries like manufacturing and healthcare.
• Asia-Pacific is expected to be the fastest-growing region during the forecast period due to government initiatives like China’s “Made in China 2025” and India’s smart city projects.
• The Device Management segment is expected to dominate the market with a market share of 42.5% in 2025 due to its critical role in provisioning, monitoring, and securing IoT devices across diverse applications.

Report Scope and Internet of Things (IoT) Managed Market Segmentation         

Internet of Things (IoT) Managed Market Trends

“Advancements in 5G Connectivity and Edge Computing for IoT Deployments”

• One prominent trend in the IoT Managed Services market is the increasing adoption of 5G networks and edge computing to enhance IoT performance.
• These innovations enable faster data transfer, lower latency, and real-time analytics, critical for applications like autonomous vehicles and smart factories.

• For instance, 5G networks are expected to support over 1 billion IoT devices by 2025, improving connectivity for remote monitoring and automation. beneficial for vitreoretinal surgeries and minimally invasive glaucoma procedures.

• These advancements are transforming IoT deployments, enabling scalable, secure, and efficient managed services that drive market growth.

Internet of Things (IoT) Managed Market Dynamics

Driver

“Rising Adoption of IoT Devices Across Industries”

• The increasing deployment of IoT devices, projected to exceed 30 billion by 2025, is significantly contributing to the demand for managed services.
• Industries like manufacturing, healthcare, and smart cities leverage IoT for automation, predictive maintenance, and real-time monitoring, requiring robust managed services to ensure scalability and security.
• As organizations seek to optimize IoT ecosystems, the demand for managed services rises, ensuring seamless integration and operational efficiency.

For instance,

• in 2023, 91% of cars sold in the U.S. were IoT-connected, driving demand for managed services in automotive applications.

• As a result of the rising Rising Adoption of IoT Devices Across Industries grow to the market

Opportunity

“AI-Powered IoT Managed Services for Enhanced Analytics”

• The integration of AI in IoT Managed Services enhances data analytics, automates device management, and improves predictive capabilities.
• AI algorithms can analyze real-time IoT data to detect anomalies, optimize operations, and predict equipment failures, reducing downtime by 30–50% in manufacturing.
• Additionally, AI-powered microscopes can also assist in image analysis, enabling surgeons to review and compare images, track patient progress, and make more accurate diagnoses

For instance,

• in January 2025, IBM expanded its 5G Industry 4.0 testbed to test AI-driven IoT use cases, improving operational efficiency in manufacturing.

• AI-powered managed services lead to improved decision-making, reduced costs, and enhanced scalability, driving market growth.

Restraint/Challenge

“Security and Privacy Concerns in IoT Ecosystems”

• The high volume of data generated by IoT devices poses significant security and privacy challenges, hindering market penetration.
• Cybersecurity risks, such as data breaches and unauthorized access, deter organizations from adopting IoT solutions, particularly in healthcare and smart cities.

For instance,

• in November 2024, a report by IoT Analytics highlighted that 60% of enterprises cited security concerns as a barrier to IoT adoption, impacting managed services demand.

• These challenges can limit market growth, particularly in regions with stringent data protection regulations like the EU’s GDPR.

Internet of Things (IoT) Managed Market Scope

The market is segmented on the basis service type, connectivity, application, end user, and platform..

In 2025, the Device Management platform is projected to dominate the market with the largest share in the platform segment.

The Device Management segment is expected to dominate the IoT Managed Services market with the largest share of 42.5% in 2025 due to its critical role in provisioning, monitoring, and securing IoT devices. The increasing number of connected devices and the need for scalable management solutions drive segment growth.

Internet of Things (IoT) Managed Market Regional Analysis

“North America Holds the Largest Share in the IoT Managed Services Market”

• North America dominates the IoT Managed Services market, driven by advanced digital infrastructure, high IoT adoption, and the presence of key market players like Cisco and IBM.
• The U.S. holds a significant share due to increased investments in smart cities, industrial IoT, and healthcare applications, supported by robust 5G infrastructure.
• The availability of well-established cloud platforms and growing investments in AI-driven IoT solutions further strengthen the market.
• In addition, the high rate of adoption of automation and predictive maintenance in manufacturing fuels market expansion across the region

“Asia-Pacific is Projected to Register the Highest CAGR in the IoT Managed Services Market”

• The Asia-Pacific region is expected to witness the highest growth rate, driven by rapid digital transformation, increasing IoT penetration, and government initiatives like China’s “Made in China 2025.”
• Countries such as China, India, and Japan are emerging as key markets due to the growing adoption of smart city projects and industrial IoT solutions.
• Japan, with its advanced 5G infrastructure and focus on Industry 4.0, remains a crucial market for IoT Managed Services.
• China and India, with their large populations and rising IoT deployments, are witnessing increased investments in cloud platforms and edge computing, further contributing to market growth.

Internet of Things (IoT) Managed Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

The Major Market Leaders Operating in the Market Are:

• Cisco Systems, Inc. (U.S.)
• IBM Corporation (U.S.)
• Accenture PLC (Ireland)
• Microsoft Corporation (U.S.)
• Huawei Technologies Co., Ltd. (China)
• Amazon Web Services, Inc. (U.S.)
• Oracle Corporation (U.S.)
• Google LLC (U.S.)
• Hewlett Packard Enterprise (U.S.)
• Intel Corporation (U.S.)

Latest Developments in Global Internet of Things (IoT) Managed Market

• January 2025: IBM expanded its 5G Industry 4.0 testbed in Coppell, Texas, in collaboration with Verizon, to test AI-driven IoT managed services for manufacturing, enhancing predictive maintenance and operational efficiency.
• March 2025: Cisco launched an enhanced IoT Managed Services platform with integrated AI analytics, improving real-time monitoring and security for industrial IoT deployments.
• September 2024: Trasna Holdings acquired Workz, a Dubai-based eSIM management company, to strengthen its IoT Managed Services portfolio, particularly in cellular connectivity solutions. 

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