“Internet of Things Technology Spend is USD 120 Billion Currently and is Expected to Grow at 16% to Reach USD 253 Billion by 2021, with North America contributing to ~40% of the Total Spend”
Bangalore, August 24, 2016: Zinnov, a leading Management consulting firm, today released the ratings for Zinnov Zones – Internet of Things Technology Services. This is a first-of-its-kind rating that will enable business leaders across industries to make informed decisions in partner selection across geographies for their Internet of Things (IoT) led product and service initiatives.
According to the study, the overall IoT Technology spend stands at USD 120 Billion in 2016 and is expected to grow at 16% to USD 253 Billion. A detailed analysis of the Top 2000 spenders revealed a consolidated structure with Top 100 companies contributing to 46% of the total spend. The study points out that Industrial, BFSI and Automotive verticals are the biggest spenders contributing to over 46% of the overall IoT Technology spend. A geography wise analysis in the report shows North America as the biggest spender followed by Asia, led by Japan and China, and Europe.
The report added that the current addressable IoT Technology market for Service Providers stands at USD 34 Billion and is expected to reach USD 69 Billion in 2021. Out of the USD 34 Billion addressable market, USD 2.8 Billion is currently addressed. An analysis of 200 Service Providers reveals a highly consolidated space with the Top 20 Service Providers addressing 82% of the market.
Talking about the study, Sidhant Rastogi, Partner & Practice Head, Zinnov, said, “North America leads the IoT Technology spend accounting for ~40% of the Global spend. Global Companies are seeking Product Development and Managed Services expertise from service providers for faster go-to-market. India is addressing to over 40% of total outsourced market. Additionally, Service Providers are building end-to-end solutions across the IoT value chain through internal investments, or through acquisitions and partnerships with niche companies and start-ups across the technology stack. We expect to see high intensity consolidation in the IoT space soon.”.
“The core of IoT Technology Services will soon move towards providing data monetization services through decision sciences. In order to win end to end IoT projects, Pureplay Engineering Service Providers would need to build or acquire strong managed services competencies.”, Sidhant added.
Highlighting some key trends, the Zinnov report mentioned that companies are exploring newer business models and additional revenue streams through IoT implementation. At the same time consumers are becoming more powerful with the access to real time usage data. There is a push for forming standards in IoT to enable interoperability of billions of connected devices. Companies and Service Providers are joining consortium and alliances across the technology stack and are collaborating even with their peers to promote standards. Service Providers are also exploring new IoT specific engagement models. Innovations across the technology stack to cater the potential IoT threats are expected to continue driving IoT investments and penetration.
About the Study:
The ‘Zinnov Zones 2016 – Internet of Things Technology Services’ analyzed the Global IoT market and trends from both the Spenders and Service Providers POV. Global Service Providers were then rated on their IoT Technology Services competency across Zinnov Zones. The ratings were done extensively across segments: Advisory & Consulting, Product Development Engineering, Managed Services and their respective sub segments to analyze the overall position of an SP. Detailed ratings and the study is available on http://zinnov.com/zones.
Founded in 2002, Zinnov is headquartered out of Bangalore with presence in Houston, Silicon Valley, and Gurgaon. In over a decade, Zinnov has built in-depth expertise in engineering and digital practice areas. We assist our clients in globalizing their operations and maximizing their footprint by:
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