Don’t Doubt the Size of the IoT Market
Readers of this website have been seeing a lot of discussion for the past few years about the Internet of Things (IoT) market. The IoT market is ripening and the next few years will be crucial as this opportunity develops.
IoT Managed Services Worth $30 billion
According to research firm Reportbuyer, the IoT managed services market was just over $30 billion in 2018 and is expected to grow at a CAGR of 18.5%, and is expected to reach 135.0 billion by 2027. Where most managed services opportunities have previously been in the commercial or business markets, I believe IoT has potential in both the residential and commercial arenas.
Few MSPs have seen success in the residential market. Residential customers do not value the benefits of managed services, nor can they justify the cost even if they understand the value. It is possible, perhaps even likely, that one day soon a residential managed services offering could be delivered at a cost reasonable enough for average household consumers to accept.
Residential home defense is an excellent example of an early stage IoT managed service. Home defense and security monitoring can quickly spread into other areas of the home. Environmental devices such as thermostats, water systems, home appliances, televisions, even toasters, could one day become a monitored and managed device under an IoT managed services plan.
While the great focus of IoT has been on the residential side of the market, I believe commercial IoT has an even more significant potential for MSPs. The path to IoT is through security and data protection. MSPs who are already pursuing such a business model should find the transition to IoT somewhat natural.
Businesses, retail stores, transportation, entertainment, military and government, all have a future in IoT and will need IoT devices to be monitored and managed. For these commercial customers, IoT will not be a convenience; it will be a compliance requirement.
As more devices continue to connect with the Internet, IoT’s future will arrive that much sooner. All the MSPs need to do is decide how they will enter the market.