Global Demand for IoT Professional Services Surges as Cloud Deployments and AI Integration Accelerate

According to the latest market research study published by P&S Intelligence, the global IoT professional services market is set to generate an estimated USD 132.5 billion in 2024, and is forecast to grow at a compound annual growth rate of 6.6% between 2025 and 2030, reaching USD 194.8 billion by 2030. This robust growth is driven by the widespread adoption of IoT across multiple sectors — including manufacturing, healthcare, energy, retail, transportation, and logistics — as organizations leverage professional services to maximize return on their IoT investments.

Fueled by accelerating digital-transformation initiatives and the growing complexity of IoT deployments, demand for expert support in system integration, consultancy, infrastructure design, and deployment is rising sharply. As enterprises seek to navigate interoperability challenges, optimize costs, and unlock data-driven value, the need for specialized IoT services becomes ever more critical — positioning the market for sustained expansion through 2030.

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Key Insights

• The market’s segmentation by service type shows that IoT consulting remains the largest category, commanding a 40% share of the market in 2024. This dominance reflects growing demand for business-case building, ROI analysis, and strategic guidance prior to large-scale IoT investments.
• System designing and integration is identified as the fastest-growing service segment over the forecast period. As companies seek seamless integration of IoT solutions into existing infrastructure, the complexity and customization required — across diverse industries — drives demand for these services.
• In terms of deployment type, cloud-based solutions dominate, contributing around 70% of market revenue in 2024. Cloud-based deployments benefit from scalability, lower upfront costs, flexibility in access and management, and easier integration with enterprise systems. They are projected to grow at a CAGR of 7% from 2024 to 2030.
• Regarding end-user industries, manufacturing holds the largest share — contributing approximately 55% of revenue in 2024. This trend reflects rising demand for services such as predictive maintenance, asset tracking, quality control, and broader Industry 4.0 adoption. Meanwhile, healthcare is expected to be the fastest-growing end-user sector over 2024–2030, driven by increasing adoption of telemedicine, remote patient monitoring, wearable devices, and hospital asset management.
• On the organization size front, large enterprises dominate with about 75% of revenue in 2024, supported by their greater financial resources, existing IT infrastructure, and capacity for large-scale IoT initiatives. At the same time, SMEs (Small and Medium Enterprises) are set to grow at a CAGR of roughly 7% through 2030, thanks to increasing awareness, affordability, and tailored IoT offerings suitable for smaller businesses.
• From a regional perspective, North America remains the largest market region in 2024, supported by well-established players and high IoT adoption across industries. In contrast, Asia-Pacific (APAC) is projected to grow fastest, with a CAGR of 8% between 2024 and 2030 — driven by rapid industrialization, smart-city initiatives, expanding industrial IoT applications, and increasing adoption in countries such as China, India, Japan, and South Korea.
• Technological advancement remains a key driver: evolving IoT sensors and devices (smaller, more powerful, energy-efficient), new connectivity standards, edge-to-cloud architectures, and expanding IoT platforms fuel continuous demand for professional services to design, deploy, and manage these solutions.
• The integration of advanced analytics — notably through Artificial Intelligence (AI) and Machine Learning (ML) — is emerging as a significant trend. By applying AI/ML to the vast data generated by IoT devices, service providers help organizations extract deep insights, predict maintenance needs, automate decision-making, and deliver higher value. This trend is reshaping the nature and scope of IoT professional services.
• Amidst growth, the market faces challenges — notably data privacy and regulatory compliance. Given the volume of data collected by IoT devices, compliance with laws such as the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), and data-protection laws in other regions complicates IoT deployments. These regulations may restrict data collection practices, demand explicit consent, and impose security requirements — which can slow adoption or increase costs.
• The competitive landscape remains fragmented, with both large global players and smaller niche firms active. Prominent providers include IBM Corporation, General Electric Company, AT&T Inc., Atos SE, Accenture PLC, and others including regional and specialized firms. Large players typically offer end-to-end services for complex, large-scale implementations; smaller firms often provide industry-specific or customized solutions — contributing to the market’s fragmented nature.
• Given the breadth of end-user industries, deployment types, and service offerings, the IoT professional services market presents significant opportunities: from offering specialized integration and consulting for SMEs to supporting edge-cloud IoT architectures, AI/ML-enabled analytics, and industry-specific IoT business models — especially in high-growth regions such as Asia-Pacific.