Internet of Things Services Market Will Double by 2020—Everest Group
Dallas, TX (PRWEB) January 24, 2017 -- Given the huge potential of the Internet of Things (IoT)—most of which is yet to be realized—enterprises are making significant investments in partnership with key service providers to explore new growth areas. As a result, Everest Group expects that the IoT services market will more than double in the next three years, reaching US$18 billion by 2020.
Enterprises are exploring ways that IoT can be used to achieve higher efficiency, enable data-driven decision-making and develop new revenue opportunities through customer-centric products and services.
**Read more about how enterprises are “Seizing the IoT Opportunity”**
With enterprises and service providers considering IoT as their next big opportunity, Everest Group has identified intriguing trends that are emerging from the current adoption pattern:
- Eighty-seven percent of enterprises are optimistic about the returns on their investments in IoT.
- The percentage of IoT projects moving from pilot to production has jumped four-fold from 2014 to 2016.
- All industries are gearing up for IoT adoption, with manufacturing leading the way with 36 percent of IoT adoption across all industries.
- Developing a strong partner ecosystem is extremely complex and requires disruptive vision.
“Enterprises are increasingly adopting IoT to improve operational efficiency and create disruptive business models,” said Chirajeet Sengupta, vice president at Everest Group. “A number of players across the IoT stack are making huge investments to grab a larger share of the pie, but most fall short on expectations of a transformation partner. Service providers can use this opportunity to draw on their engineering and services expertise and embrace new engagement models to help enterprises with long-term innovation.”
The current use cases of IoT are dominated by the need of enterprises to drive operational efficiency. However, we do expect enterprises to leverage IoT to fundamentally transform their business going forward. In fact, Everest Group has identified four distinct classifications of enterprises based upon the business objectives they hope to accomplish through their IoT initiatives:
- Engagers: Engagers represent 17 percent of IoT adopters; these enterprises drive IoT adoption largely for customer engagement and creation of experiences.
- Optimizers: Optimizers (63 percent) adopt IoT mainly to solve operational issues and improve internal efficiencies.
- Integrators: For Integrators (14 percent), the objective of IoT adoption is growth for the entire enterprise ecosystem.
- Innovators: IoT adoption by Innovators (6 percent) results in transformative disruption and “unthinkable” business models.
“Enterprises should adopt IoT across all categories, which will lead to new revenue streams and adoption of new business models,” added Sengupta.
Announcing the IoT Services Market Leaders
In its inaugural Internet of Things PEAK Matrix assessment, Everest Group explores the vision, services suite, scale of operations and domain investments of 16 IoT service providers. Everest Group has identified the following Leaders, Major Contenders and Aspirants:
- Leaders: Accenture, Atos, HCL Technologies and IBM
- Major Contenders: Cognizant, EPAM, HPE, L&T Infotech, NTT Data, TCS, Tech Mahindra and Wipro.
- Aspirants: CGI, Infosys, Luxoft and Prodapt
***Download Complimentary 4-page PEAK Matrix™ Preview http://www..everestgrp.com/reportaction/EGR-2016-4-GP-2025/Marketing [Here __title__ ]***
Trends in the IoT services market as well as detailed insights into each of the 16 providers listed above are provided in the 92-page report, “Internet of Things Services — PEAK Matrix™ Assessment and Market Trends — IoT: Bigger Than the Hype.” A preview report is available for complimentary download http://www..everestgrp.com/reportaction/EGR-2016-4-R-2025/Toc [here __title__ ].
*** Download Publication-Quality Graphics***
High-resolution graphics illustrating key takeaways from this report can be included in news coverage, with attribution to Everest Group. Graphics include:
- Internet of Things Adoption is Led by “Optimizers”
- The Internet of Things Technology and Services Provider Ecosystem
- Internet of Things Adoption Trends
- Internet of Things and the Transformation Agenda
- Internet of Things Adoption: A Definitional Framework
About the PEAK Matrix™
The Everest Group PEAK Matrix is a proprietary framework for assessing the relative market success and overall capability of service providers based on Performance, Experiences, Ability and Knowledge. Each service provider is comparatively assessed on two dimensions: market success and delivery capabilities. The resulting matrix categorizes service providers as Leaders, Major Contenders, and Aspirants. Companies that demonstrate strong upward movement in successive reports are recognized as Star Performers. Everest Group recently announced a recalibrated methodology, in which innovation, intellectual property and technology take center stage.
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empower clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.
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Contact:
Andrea M. Riffle, Everest Group
andrea.riffle(at)everestgrp(dot)com
Jennifer Fowler, Cathey Communications for Everest Group
+1-865-386-6118
Jennifer(at)cathey(dot)co
Andrea M. Riffle, Everest Group, http://www.everestgrp.com, +1 954-801-8474, [email protected]
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