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IoT Services Market Value Analysis: What Growth Is Expected Over The Forecast Period?
The iot services market size has seen rapid expansion in recent years. It is anticipated to increase from $289.53 billion in 2025 to $339.95 billion in 2026, achieving a compound annual growth rate (CAGR) of 17.4%. Historically, this growth can be ascribed to factors such as the rise in connected devices, a shortage of in-house iot expertise, the growing complexity of iot deployments, the demand for secure infrastructure, and the need for operational scalability.
The iot services market is expected to expand rapidly in the upcoming years. It is projected to reach $651.61 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 17.7%. This expansion during the forecast period is primarily fueled by factors such as the increasing number of smart city projects, the growing adoption of managed services, the need for real-time data insights, the rise in industrial iot deployments, and a stronger focus on cybersecurity for iot. Significant trends anticipated for this period include comprehensive end-to-end iot service models, managed iot platform services, the implementation of secure iot infrastructure, iot services driven by data analytics, and solutions for remote device and network management.
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IoT Services Market Development Factors: Which Trends Are Supporting Demand?
The projected expansion of the IoT services market is significantly influenced by the increasing number of smart homes. These are residential properties equipped with various devices and systems capable of remote monitoring, control, and automation. The smart home market plays a crucial role in driving the growth of the IoT services market, as the rising integration of IoT solutions within smart residences creates new opportunities for businesses to offer innovative and advanced IoT services. For instance, in August 2023, data from RubyHome, a US-based real estate company, revealed that 63.43 million homes in the US utilize smart home devices, and approximately 7 in 10 homebuyers are inclined to purchase a smart home. Therefore, the growing presence of smart homes is a key driver for the IoT services market’s development.
IoT Services Market Segment Landscape: Which Areas Lead Market Development?
The iot services market covered in this report is segmented –
1) By Type: Professional Services, Managed Services
2) By Application: Smart Buildings, Smart Manufacturing, Smart Transport and Logistics, Smart Healthcare, Smart Retail, Smart Energy
3) By Vertical: Manufacturing, Retail, IT And Telecom, Transportation And Logistics, Utilities, Healthcare, Energy, Other Verticals
Subsegments:
1) By Professional Services: Consulting Services, Deployment And Integration Services, Support And Maintenance Services
2) By Managed Services: Device Management, Network Management, Application Management, Data Management
IoT Services Market Innovation Trends: Which Developments Are Transforming The Industry?
Leading enterprises within the IoT services market are actively innovating enterprise-grade Edge and IoT technologies to sustain their competitive standing and strengthen their market leadership. These enterprise-grade Edge and IoT technologies represent advanced, scalable, and secure solutions designed to allow businesses to leverage the capabilities of edge computing and IoT in their daily operations. For instance, in May 2023, Nippon Telegraph and Telephone, a Tokyo-based telecommunications company, and Cisco, a US-based technology company, jointly introduced an IoT as-a-Service for their enterprise customers. This particular IoT as-a-Service offering aims to assist businesses in swiftly recognizing the advantages of IoT, including better decision-making, decreased operational expenditures, and improved customer interactions. The partnership’s specific focus on enterprise-grade Edge and IoT technologies ensures the robustness, expandability, and security of the solutions provided.
IoT Services Market Industry Leaders And Market Competition
Major companies operating in the iot services market are Cisco Systems Inc., Cognizant Technology Solutions Corporation, Google LLC, Infosys Limited, Tieto Corporation, Virtusa Corporation, Accenture plc, International Business Machines Corporation (IBM), Tech Mahindra Limited, Harman International Industries Incorporated, Microsoft Corporation, Wipro Limited, HCL Technologies Limited, Tata Consultancy Services Limited, AT&T Inc., Honeywell International Inc., Intel Security Group, Qualcomm Incorporated, Vates Inc., Oxagile LLC, Verizon Communications Inc., HQSoftware LLC, General Electric Digital LLC, Bosch IoT Sensor Company GmbH, Arm Limited, Sierra Wireless Inc., PTC Inc., Telit Communications PLC, SoluLab Inc., Amazon Web Services Inc., Oracle Corporation, Qualcomm Technologies Inc., Telefonaktiebolaget LM Ericsson, Marvell Technology Group Ltd., Nlyte Software Inc., Broadcom Inc., NVIDIA Corporation, OVHcloud Co., Tencent Holdings Limited, Alibaba Group Holding Limited, Equinix Inc., Digital Realty Trust Inc., CyrusOne Inc.
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IoT Services Market Leading Geography: Which Region Generates The Most Revenue?
Asia-Pacific was the largest region in the internet of things (IoT) services market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the iot services market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.