Internet of Things Technology Spend Expected to Grow at 18%, to Reach USD 322 Billion in 2022, Says Zinnov

BANGALORE, August 3, 2017 /PRNewswire/ --

North America contributes to ~43% of the total spend

Zinnov, a leading Management Consulting firm, today released the ratings for Zinnov Zones 2017 - Internet of Things Technology Services. This pre-eminent rating will enable 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.

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According to the report, the overall IoT Technology spend stands at USD 140 Billion in 2017, and is expected to grow at 18% to USD 322 Billion in 2022. The study points out that Industrial, Automotive, and Energy & Utilities verticals are the biggest spenders, currently contributing to over 45% of the overall IoT Technology spend.

Out of the total IoT Technology spend of USD 140 Billion, USD 78 Billion is spent on IoT Technology services alone. This spend is expected to grow at 19%, year-on-year, to reach USD 190 Billion in 2022. The report also highlighted that the addressable IoT Technology market for Service Providers stands at USD 46 Billion. An analysis of 200 Service Providers reveals an addressed market of USD 3.3 - 3.8 Billion in a consolidated structure, with the top 20 Service Providers addressing 76% of the market.

Talking about the study, Sidhant Rastogi, Partner & Practice Head, Zinnov, said, "North America continues to lead the IoT Technology spend, accounting for ~40% of the current global spend, while India is addressing ~44% of the total outsourced market. With the increasing focus on IoT, Service Providers are making IoT a dedicated P&L, exploring newer engagement models, and strengthening end-to-end expertise across the IoT value chain through internal investments, or through acquisitions and partnerships."

Sidhant further added, "The core of IoT Technology Services will move towards buying and selling outcomes and not just technology. The focus on data sciences will thus increase multifold. Strong managed services competency will additionally help Service Providers win large end-to-end IoT projects."

The Zinnov report highlighted some of the key trends from the study. Some of them are:
- IoT is blurring the industry lines and is helping enterprises explore newer business models and additional revenue streams.
- The power of connectivity and data is providing unprecedented visibility, control, autonomy and intelligence across verticals and use cases.
- Security, privacy, and interoperability remain the top challenges for IoT adoption.
- Technology enablers at each layer of IoT are investing to provide solutions that cater to the challenges.
- Enterprises and Service Providers are pushing for standardization in IoT through consortiums to allow interoperability of billions of connected devices.
- Innovations across the technology stack to cater to the potential IoT threats are expected to continue driving IoT investments and penetration.

About the Study: 

The study titled 'Zinnov Zones 2017 - 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 Engineering, System Integration, Managed Services and their respective sub-segments to analyze the overall position of an SP. Detailed ratings and the study are available on:

About Zinnov 

Zinnov was founded in 2002, and is headquartered in Bangalore, with presence in Gurgaon, Silicon Valley, and Houston. Since its inception, Zinnov has built in-depth expertise in Product Engineering and Digital Transformation. They assist their clients by:

- Research and strategy consulting for software 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 company's products and services in India and other emerging markets
- Helping MNC GICs to consolidate their geographic footprint
- Enabling technology Service Providers to identify and create newer business opportunities

For more information, visit

For any further media queries, please contact:
Nitika Goel

SOURCE Zinnov Management Consulting

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