The global IoT market is projected to grow at a CAGR of 21.3% between 2020 and 2026, according to a June 2021 report from Research and Markets. The report credits this growth in part to the increasing development of wireless networking technologies such as 5G, rise in cloud platform adoption, and the emergence of advanced data analytics. As these technology innovations make business solutions smarter, they also make already complex IoT solutions even more difficult to successfully deploy, manage, and scale.
IoT managed services providers help companies simplify the complexities of IoT through a comprehensive suite of services that include hardware sourcing and procurement, connectivity management, configuration and kitting, forward and reverse logistics, sustainment, and end-of-life device management. By handling all of the small but critical details of launching a new IoT solution, IoT managed services providers help companies improve efficiency and ROI.
According to a 2019 report, GSMA Intelligence estimates that the number of IoT connections will grow from 7.6 billion in 2017 to 25 billion by 2025, with the highest growth occurring in connections from industrial IoT. With a compound annual growth rate (CAGR) of 21%, it is almost double that of consumer IoT at 12%.
The IoT market is predicted to generate $900 billion in revenue by 2025, which is nearly triple the industry’s 2019 revenue according to the GSMA Intelligence report, “IoT revenue: state of the market 2020.” GSMA Intelligence also reports that 13% of U.S. enterprises preferred to fully outsource to a managed services provider for sourcing an IoT solution, which was up from only 8% in 2019.
A widely-circulated Cisco survey found that nearly 75% IoT projects fail, 60% of IoT initiatives stall at the Proof of Concept (PoC) stage, and only 26% of companies have had an IoT initiative that they considered a complete success. One-third of all completed projects were not considered a success.
There are a number of reasons why so many companies struggle to successfully launch new IoT initiatives. In the report “Why IoT Projects Fail,” Beecham Research cites a 2019 Microsoft survey that identified complexity and technical challenges as the most common IoT development challenge according to respondents. Other challenges cited include lack of budget/staff resources, lack of knowledge, haven’t found the right IoT solutions, and security.
KORE helps companies simplify the complexity of IoT with complete, global IoT managed services. As a trusted advisor, KORE brings together all of the key considerations and components needed for a successful IoT deployment and is FDA registered and ISO 13485/9001 certified for a regulatory compliant managed services solution.
Download the eBook, “Internet of Things (IoT) Managed Services,” to learn more about the benefits of IoT managed services and how to select a provider.
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