IoT Technology & Services Spend by Enterprises is Pegged at USD 177 Billion in 2019; Will Grow at a CAGR of 21% to Reach a Massive USD 460 Billion by 2024, Says Zinnov
~ Out of 160+ new IoT deals since 2018, 33 were signed by the Industrial vertical ~
~ The addressed market by IoT Service Providers has grown at ~ 30% YoY ~
~ Industry 4.0 is the most adopted use case by enterprises as they find strong alignment with business outcomes ~
BANGALORE, Nov. 4, 2019 /PRNewswire/ -- Zinnov, a leading global management and strategy consulting firm, released its annual ratings titled, 'Zinnov Zones for Internet of Things Technology Services - 2019' today. This pre-eminent rating is aimed at enabling business leaders across industries to make informed decisions in their partner selection across geographies for their Internet of Things (IoT)-led product and service initiatives. The 2019 ratings are unique because for the first time, Zinnov has rated Service Providers across specific verticals and use cases, in addition to assessing them for their overall IoT prowess.
The study titled 'Zinnov Zones for Internet of Things Technology Services - 2019,' analyzed the Global IoT market and trends from both the Spenders' and Service Providers' perspectives. Enterprises continue to increase their investment on IoT initiatives and are crossing the chasm when it comes to enterprise-wide deployments. Growth in IoT is facilitated by increasing adoption of enabling foundational infrastructure. There is an increase in IoT adoption as enabling technologies have evolved to reduce compute, storage, and network costs, while enabling enterprises to access real-time insights for decision-making. Manufacturers are focusing on Industry 4.0 initiatives to drive velocity in the product development process as well as to have enhanced visibility. Advancements in enabling technologies such as machine learning, deep learning, and robotics is further propelling these initiatives. Further, Industry 4.0 use cases are demonstrating a strong alignment with key outcomes such as automation, visibility, productivity, predictability, and overall digital transformation through IoT.
Enterprises are dependent on the IoT Service Provider community to augment their transformation journeys. The study revealed that IoT Service Providers cumulatively addressed a market of USD 7.1 Billion, representing a ~ 30% YoY growth. Large transformative deals signed by enterprises entail advisory services at the top and managed services at the bottom. Further, Service Providers continue to invest in IP and enhance their delivery infrastructure to garner greater wallet shares.
Speaking about the report, Pari Natarajan, CEO, Zinnov, said, "Manufacturers are investing in Industry 4.0 to build an autonomous and cognitive environment to accelerate the product development process. Associated implementation challenges have impeded adoption in the past. Scattered leadership in manufacturing organizations increases the complexity of cross-unit coordination and decision-making. Further, enterprises have data ownership and security-related concerns as well."
"Over the last couple of years, several large firms have benefited from accelerated product development timelines and enhanced asset uptimes while reducing costs. Adoption is only expected to increase further, as Industry 4.0 use cases continue to demonstrate strong alignment with business outcomes," he added.
For this study, Global IoT Service Providers have been rated on their IoT Technology Services' competency. The ratings were done extensively across segments:
- Service lines: IoT Strategy & Consulting, IoT Engineering, IoT SI and Deployment, and Managed Services
- Verticals: Public Infrastructure, Energy & Utility, Retail, and Telecom
- IoT-enabled use cases: Industry 4.0, Connected Worker, Connected Logistics, Connected Assets, and Connected Products.
'Zinnov Zones for IoT Technology Services 2019' rating analyzed 20 Global IoT Service Providers on their overall IoT prowess as well as vertical and use case-specific capabilities, to position them in 4 Zinnov Zones ('Nurture Zone,' 'Breakout Zone,' 'Execution Zone,' and 'Leadership Zone'). Accenture, Altran, Capgemini, Cognizant, eInfochips, Embitel, Happiest Minds, Harman Connected Services, HCL, L&T Infotech, L&T Technology Services, Microland, Mphasis, Persistent Systems, Softdel, TCS, Tech Mahindra, UST Global, Volansys, and Wipro are the global Service Providers assessed for this study.
About Zinnov
Founded in 2002, Zinnov is a global management and strategy consulting firm, with presence in Santa Clara, Houston, Bangalore, and Gurgaon. Over the past 17 years, Zinnov has successfully consulted with over 250+ Fortune 500 customers to develop actionable insights that help them in their transformation journeys. With core expertise in Product Engineering and Digital Transformation, Zinnov assists clients by:
- Providing research and strategy consulting for Technology Service Providers in the areas of Product Engineering and Digital Transformation;
- Enabling companies to develop and optimize a global engineering partner strategy to achieve higher throughput, innovation, productivity, and cost savings;
- Growing revenue for companies' products and services in India and other emerging markets;
- Helping MNCs expand and/or consolidate their globalization footprint;
- Enabling technology Service Providers to identify and create newer business opportunities.
With their team of experienced professionals and research teams, Zinnov serves clients from across software, semiconductor, consumer electronics, travel and hospitality, automotive, storage, telecom & networking, healthcare, banking, financial services, and retail verticals in US, Europe, Japan, and India.
For more information, visit http://zinnov.com
Media contact:
Nitika Goel
Chief Marketing Officer, Zinnov
[email protected]
+91-98450-16255
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