IoT Analytics has launched a brand new evaluation figuring out the 9 most in-demand IoT system integration providers driving the enterprise methods of system integrators and consulting corporations.
The findings are primarily based on insights from IoT Analytics’ IoT System Integration and Skilled Companies Market Report 2024–2030.
The worldwide marketplace for IoT skilled providers has skilled a 46% development over the previous three years. In 2024, the IoT system integration {and professional} providers market roughly $56 billion. The highest 5 skilled service suppliers, collectively holding 20% of the market, embody Accenture (Eire), Deloitte (UK), Tata Consultancy Companies (TCS, India), Infosys (India), and Capgemini (France).
Key insights:
As IoT expertise matures and turns into extra engrained with different applied sciences like AI, IoT integrators are shifting from strategic and siloed IoT integration providers to extra end-to-end challenge assist and holistic integrations, in line with IoT Analytics’ IoT System Integration and Skilled Companies Market Report 2024–2030 (printed December 2024).
5 corporations held 20% of the ~$56 billion IoT skilled providers market in 2024.
IoT Analytics presents the 9 most in-demand IoT system integration providers which are driving the enterprise of system integrator/consulting corporations.
Choose quotes:
Knud Lasse Lueth, CEO at IoT Analytics, feedback that “The IoT professional services market is valued at ~$56 billion in 2024 and we expect it to grow to $125 billion by 2030 as companies progress in IoT maturity. The demand for IoT services is shifting with fewer standalone IoT strategy projects and more end-to-end implementations. Integrators are also increasingly asked to help out with regulatory compliance, data management, and AI integration, among other things.”
Justina-Alexandra Sava, Market Analyst at IoT Analytics, provides that:
“AI-driven IoT transformation demands new data strategies, with enterprises leaning on system integrators to tackle both technology and operational levels. Making sure that integrators identify and provide in-demand services and align with the right partners will be key to sustaining growth in this dynamic market.”
IoT system integrator {and professional} providers market snapshot
The worldwide IoT skilled providers market has grown 46% in 3 years. In 2024, the marketplace for IoT system integration {and professional} providers was roughly $56 billion, up from $38.4 billion in 2021 when IoT Analytics final printed analysis on this market. The market is comprised of hundreds of corporations, together with the biggest skilled providers corporations on this planet and a few boutique corporations that focus particularly on IoT. The highest 5 skilled service distributors, which make up 20% of the market, are Eire-based Accenture, UK-based Deloitte, India-based Tata Consultancy Companies (TCS), India-based Infosys, and France-based Capgemini.
Some IoT integrators battle, however the majority continues to increase. A number of IoT-focused system integrators have not too long ago confronted insolvency, together with Tresmo, Vodafone-owned Grandcentrix (each German IoT integrators), and Management Techniques Design & Integration, Inc. (a U.S.-based industrial automation providers supplier). These cases spotlight the monetary challenges some corporations encounter within the aggressive IoT integration market. Nonetheless, these examples are outliers, as many different system integrators proceed to develop and report robust numbers, pushed by growing demand for IoT options in industries akin to manufacturing, power, and transportation.
The shifting focus of the IoT integrator
IoT providers shift from technique to implementation. Since IoT Analytics’ 2021 report on IoT integration {and professional} providers, the final focus of IoT providers that corporations have requested has moved from main technique subjects, akin to formulating holistic digital and IoT methods, towards extra ground-level resolution design and particular person resolution implementation. Right now, most shoppers have plans and methods in place and are performing on these methods they formulated 3-5 years in the past.
“Our IoT customers’ priorities have shifted over time. 5 years ago, many focused on developing a general IoT strategy. Today, while some revisit earlier decisions, most seek support with designing and implementing specific use cases and solutions.” – Vincent Ohana, managing director at Idea Reply
IoT system integrators stay integral to IoT tasks amid ability shortages. In 2023, practically 50% of IoT tasks concerned custom-built options, a lot of that are constructed by system integrators, in line with IoT Analytics analysis. Nonetheless, corporations implementing IoT tasks lately have confronted a scarcity of IoT expertise involving features of the IoT tech stack—e.g., knowledge administration and storage, software program growth, and the general ecosystem—leaving them with out the mandatory inside experience to finish their initiatives. To fill these ability gaps, corporations repeatedly work with IoT methods integrators and different skilled service suppliers who’re employed to handle and implement the tasks and get them launched.
Progressing IoT maturity is altering among the integration subjects. In comparison with different expertise areas, the deployment of IoT expertise has turn into significantly advanced. As proven under, many corporations are progressing of their IoT maturity, going from early network-enabled property and connectivity levels (levels 1 and a couple of, respectively) to constructing new, self-centric purposes able to using IoT knowledge and, on the similar time, connecting to present software program purposes (stage 4). Seemingly across the nook is stage 5, when corporations combine AI into their options and purposes to allow AI-driven use circumstances akin to predictive upkeep and course of automation.
In brief, the main focus of the IoT system integrator is altering. Extra mature IoT tasks require a broader vary of experience to attach numerous units with doubtlessly numerous purposes. This implies bigger groups with very totally different ability units which have traditionally been separated, together with safe embedded design and engineering, connectivity administration, cloud and IT structure, knowledge science, and software growth. The significance of an IoT system integrator supplying consultants and managers with these expertise and serving to corporations construct and scale IoT tasks has by no means been higher.
9 IoT subject areas are in excessive demand. Based mostly on interviews with quite a few professionals within the IoT area, the IoT Analytics group has created a heatmap of IoT subject areas, 9 of that are presently in excessive demand alongside the IoT system integration {and professional} providers worth chain. Most of those providers have remained in excessive demand since 2021, when IoT Analytics recognized 7. Gaining traction over the previous 3+ years are companion/ecosystem technique, regulatory compliance, and resolution assist, whereas product commercialization providers have turn into a much less in-demand service.
(Observe: The heatmap is predicated on 10+ discussions with consultants within the IoT system integration subject and will solely be handled as a sign because of the comparatively small pattern measurement. Scorching subjects are outlined as those who had been in biggest demand in line with the IoT System Integration and Skilled Companies Market Report 2024–2030.)
The 9 most demanded IoT system integration providers
1. Companion/ecosystem technique
Companion and ecosystem technique consultants assist corporations future-proof their IoT initiatives. Whether or not trying to custom-build their very own IoT stack or companion with a vendor for an IoT initiative, corporations face many expertise and vendor choices. Firms additionally should take into account finest future-proof their ecosystem, and with out inside IoT experience, wanting forward could be daunting.
Firms initiating IoT tasks are turning to consultants who concentrate on IoT companion and vendor choice in addition to in ecosystem technique. These consultants work with corporations to re-visit their near-, mid-, and long-term expertise imaginative and prescient. These specialists typically have data about numerous vendor choices, together with how interoperable their options are.
Instance 1: World accounting and expertise advisory agency KPMG gives Expertise Technique and Choice providers, citing an goal, technology-agnostic strategy to finest fulfill their shoppers’ wants.
Instance 2: Idea Reply gives IoT Platform Evaluation providers. With this service, the corporate helps clients revisit present IoT platforms and associated structure choices made prior to now and evaluates the flexibility to assist upcoming use case priorities, shifting necessities, and compliance with safety and rules.
“We often engage in vendor selection projects where we step in with our independent consulting service line. Our role is to assess the business and technology challenges and create a technology option space for our customers to resolve those challenges. It is important to note that we also have non-vendor-agnostic units (e.g., for Microsoft, ServiceNow, AWS) but these groups naturally have some biases due to their specific focus areas.” – Enterprise analyst at an expert providers firm throughout an IoT Analytics interview (2024)
2. Regulatory compliance
Current rules drive the necessity for regulatory compliance consultants. In the previous few years, a good variety of knowledge safety and sustainability-oriented rules have been enacted worldwide—on the regional, nationwide, and even state or province degree—every together with penalties for non-compliance. Such rules add quite a lot of complexity to IoT tasks: interconnected methods generate massive volumes of knowledge that want safety, and sustainability rules have created the necessity for corporations to gather and report numerous knowledge factors associated to power use and their carbon footprints (an space the place IoT can truly assist, e.g., by way of sensors).
Additional complicating issues, although a rustic will not be headquartered or have main branches in a territory with a given regulation, the regulation should still impression its operations if it does enterprise there, creating an awesome want to trace all relevant rules and comply. Examples of rules with broad impression embody:
The EU Knowledge Act – Establishes guidelines for entry to and sharing knowledge generated by IoT merchandise positioned on the EU’s market and requires compliance by September 2025
The EU Company Sustainability Reporting Directive (CSRD) – Requires each massive corporations primarily based within the EU or non-EU corporations that generate over €150 million in EU-related income to report data associated to the dangers and alternatives arising from environmental and different points and the impression of their actions associated to these points
The US state of California’s Local weather Company Knowledge Accountability Act – Requires enterprise entities shaped beneath the legal guidelines of any US state that does enterprise within the state with over $1 billion in income (in whole, not simply from California) to start out disclosing their greenhouse gasoline emissions by 2027
These challenges—and alternatives—related to regulatory compliance are driving the elevated demand for compliance consultants who can navigate the advanced regulatory panorama whereas guaranteeing that IoT methods meet each authorized and moral requirements.
Instance 1: UK-based skilled providers Ernst & Younger (buying and selling as EY) gives EY Regulatory Compliance Supervisor, which permits shoppers to digitally handle compliance by figuring out regulation adjustments, steps to be compliant, and monitor ongoing compliance.
Instance 2: UK-based PricewaterhouseCoopers (branded as PwC) gives regulatory threat and compliance providers to assist its shoppers consider the impacts of latest rules on their enterprise fashions and develop/implement risk-based compliance management frameworks.
“The green energy segment is also heavily influenced by new sustainability regulations, data privacy concerns, and the need for knowledgeable professionals and flexible systems.” – World VP for expertise, companion enterprise, and software program at Schneider Electrical throughout an IoT Analytics interview (2024)
3. Upskilling
New or up to date expertise requires skilled coaching and certification. When adopting IoT and even upgrading or including to present IoT methods, there could also be a niche between the calls for of the expertise and the prevailing workforce. If preferring to maintain IoT expertise in-house, corporations typically flip to IoT change administration consultants to design and coordinate coaching packages to equip their workers with the abilities wanted for the brand new expertise.
Upskilling for IoT integration is commonly supplied by IoT integrators to their clients via a mixture of formal coaching, certifications, and hands-on expertise, together with:
Instance 1: Coaching packages. Many integrators provide tailor-made workshops or coursework on IoT protocols, platforms, and integration finest practices. Capgemini, for instance, gives programs throughout quite a few expertise fields, both as on-line group programs or in-company. One such course for IoT integration is its Software program Integration Basis course, designed to show the ideas, strategies, and applied sciences behind linked units.
Instance 2: Certifications. A number of massive expertise suppliers provide credentials that validate and formally certify an integrator’s potential to implement and combine their expertise after assembly particular necessities. For instance, US expertise firm Dell Applied sciences gives quite a few certification programs, akin to Dell Zero Belief Design for cybersecurity and several other networking certifications for connectivity.
Instance 3: On-the-job studying. Actual-world tasks and pilot deployments provide invaluable sensible expertise. TCS gives employee help and coaching as a part of its Linked Crops & Sensible Manufacturing “connected workforce” choices. When TCS developed digital twins for Tata Chemical substances Ltd.’s (TCL) carbonation boilers and towers, it provided on-site coaching on the applied methods and processes.
4. Use case ideation and choice
Skilled providers assist corporations dwelling in on the appropriate use circumstances. Connecting units and property via IoT opens up alternatives for lots of of use circumstances. However how ought to corporations go about choosing which use case is finest? Ought to an organization prioritize predictive upkeep of its property, real-time stock administration of its merchandise, or power monitoring for prices and sustainability? With restricted sources and expertise, the quite a few alternatives can turn into overwhelming when deciding. That is the place skilled providers consultants might help.Our analysis reveals that almost all IoT system integration {and professional} providers corporations have developed some type of framework (typically following the design pondering philosophy) to assist their shoppers navigate the subject of use case ideation and prioritization.
Instance: US-based expertise and consulting providers supplier IBM has a collaborative framework referred to as IBM Storage, which helps clients establish enterprise alternatives, use circumstances, and required expertise capabilities (in addition to permits stakeholders to co-create, prototype, and scale their options).
5. Answer design
IoT system design complexities drive want for IoT integrators {and professional} providers. As talked about, practically 50% of IoT tasks contain custom-built options, the place skilled providers play a necessary function because the challenge designers and enablers. Designing an IoT resolution typically requires skilled challenge administration (setting targets and the top aim) and expertise experience (the know-how to make it occur)—skillsets that IoT skilled providers and system integration corporations have prepared.
Instance: Germany-based digital transformation providers firm Siemens Advanta (a strategic enterprise unit of Siemens) gives Options Growth, providers tailor-made for digital product growth and system integration. Additional, Siemens Advanta gives Options Prototyping, which permits corporations to plan, design, check, and consider their initiatives (be it a bodily product, software program, or a course of/service).
6. Course of optimization
IoT system integrators assist corporations establish operational areas for IoT-driven enchancment. Firms utilizing IoT options of their operations or manufacturing setup typically ask IoT system integrators to investigate and enhance their processes. In flip, key providers and options that skilled IoT providers corporations deal with embody predictive upkeep, real-time monitoring, digital twin integration, and course of automation to reinforce industrial productiveness.
Instance: Deloitte has constructed 5 showcase good factories demonstrating superior manufacturing applied sciences in Wichita, Düsseldorf, Kyoto, Tokyo, and Montreal. The factories present Deloitte’s shoppers with hands-on environments through which they will suppose via their manufacturing course of optimization challenges and discover IoT options to reinforce their effectivity and productiveness.
“A lot of companies focus on IoT for process optimization with the ultimate goal to save costs. IoT in the last years has become much less about generating new revenue and more about how much money can be saved.” – Vincent Ohana, managing director at Idea Reply
7. Knowledge administration
Skilled providers corporations are serving to corporations put together for AI via knowledge administration.
Many CEOs are advocating for his or her organizations to undertake AI. In current quarters, C-suite discussions about AI have moved from the novelty of generative AI fashions and chatbots to how they will leverage AI to higher their operations. Nonetheless, there isn’t any AI technique with out a knowledge technique, and this shift towards AI integration is prompting corporations to rethink (and even develop) their IoT knowledge administration methods. Skilled providers corporations are providing enterprise knowledge administration and analytics options to assist corporations assess and/or develop their knowledge administration methods for AI.
Instance: Infosys. The corporate gives common Knowledge for Digital providers geared toward serving to its shoppers handle numerous enterprise knowledge and preserving it constant throughout totally different methods. Moreover, Infosys gives Knowledge Analytics and AI providers, which assist enterprises handle and govern firm knowledge after which put together for and undertake AI options.
8. Integration
Firms nonetheless search conventional integration providers. Classical system integration continues to play an vital function in 2024. Key themes embody:
Integrating and migrating workloads into the cloud (together with hybrid and multi-cloud architectures)
Connecting disparate purposes and platforms (e.g., IoT platforms and enterprise useful resource planning)
Harmonizing the edge-to-cloud setup
Complicated integration options require new skilled service experience. Techniques have gotten ever extra interconnected, and providing conventional end-to-end integration capabilities has turn into essential for system integrators that search to fulfill buyer wants. Nonetheless, it’s difficult for IoT integration corporations to scale end-to-end digital capabilities organically. Partnerships, collaboration, and strategic acquisitions play an vital function.
That’s the reason the IoT system integration vendor panorama is witnessing continued merger and acquisition exercise.
Instance: In April 2024, Capgemini acquired the Digital Twin Skilled Companies arm of Unity, a US-based sport and interactive experiences software program firm. The acquisition permits Capgemini to embed real-time 3D (RT3D) capabilities into its enterprise transformation providers, aiming to assist shoppers higher visualize, perceive, and work together with bodily methods via digital twins.
9. Answer assist
Answer assist ensures IoT scalability and efficiency. Answer assist providers play a important function in guaranteeing the long-term success of IoT implementations by addressing lifecycle administration and post-deployment challenges and optimizing system efficiency—all in demand by corporations adopting IoT initiatives. These providers assist IoT methods’ steady operation and scalability by integrating updates and patches as applied sciences evolve.
“[A] lot of the head count growth […] is the additions to our managed services team during—over the course of the past year. […] This is an area where we continue to see excellent growth potential business.” – John Kelly, CFO at Huron Consulting (Q1 2024 earnings name on April 30, 2024)
Analyst opinion: Wanting forward at stage 5
AI-driven IoT transformation reshapes enterprise knowledge methods. As corporations transfer to stage 5 of IoT maturity (changing into AI-enabled companies), their wants shift from fundamental operational enhancements to completely autonomous, AI-driven methods. This may doubtless result in AI integration into IoT operations, not simply at a technological degree but in addition at an operational one, requiring a rethinking of how knowledge is used throughout enterprises.
Development hinges on overcoming knowledge and scalability challenges. Reaching this degree, nonetheless, comes with challenges, significantly round knowledge harmonization, scalability, and cross-system interoperability. Identical to with earlier expertise improvements, organizations will more and more depend upon and demand IoT system integrators to handle the complexities round knowledge administration, deploy AI fashions at scale, guarantee IT-OT integration, and preserve system reliability.
IoT system integrators should adapt to maintain development. IoT adoption, generally, has had its challenges lately, with a number of tech corporations exiting (e.g., Google’s IoT Core). Regardless of this, the evaluation within the IoT System Integration and Skilled Companies Market Report 2024–2030 reveals excessive, worthwhile development for the IoT system integrator market within the years to come back. The shuttering of some IoT-focused integrators like grandcentrix reveals that IoT system integrators will not be proof against failure. Firms should comply with buyer tendencies and desires, such because the 9 most in-demand providers above. Solely those that adapt their focus accordingly, in addition to align with the appropriate expertise companions, will proceed succeeding on this market.
Disclosure: Firms talked about on this article—together with their merchandise—are used as examples to showcase market developments. No firm paid or obtained preferential therapy on this article, and it’s on the discretion of the analyst to pick which examples are used. IoT Analytics makes efforts to fluctuate the businesses and merchandise talked about to assist shine consideration to the quite a few IoT and associated expertise market gamers. It’s price noting that IoT Analytics might have business relationships with some corporations talked about in its articles, as some corporations license IoT Analytics market analysis. Nonetheless, for confidentiality, IoT Analytics can’t disclose particular person relationships.
Supply: IoT Analytics
