The size of the global IoT telecom services market is estimated to grow to $17.67 billion by 2021 from $2.90 billion in 2016, at a Compound Annual Growth Rate (CAGR) of 43.6 percent.
A report published by MarketsandMarkets said that the main growth drivers are the need for connectivity solution to connect smart devices, need for smart network bandwidth management and automation in back-end communication operations, and the increase in adoption of BYOD among enterprises.
Telecom network operators are promoting an OTT application that helps to boost the adoption of IoT telecom services.
The report said transportation, connected logistics, and traffic management application is expected to grow at the highest CAGR in the IoT telecom services market.
Application of IoT with regards to connected logistics allows the clients and logistics providers to make adjustments, in case there is any delay in the shipment. IoT services strengthen the supply chain management by offering them transparency so that they can take effective decisions in real-time.
Telecoms offer connectivity solutions to IoT-enabled smart vehicles and trucks for location and tracking of assets, and real-time management of logistics services and control systems and smart devices to control and manage basic home functions automatically over the internet and network connectivity provided by telecom service providers.
Machine to Machine (M2M) billing management services segment is expected to hold the largest market share in the IoT telecom services market and the current trend is expected to continue.
M2M billing management services track the usage of IoT services subscribed by users of M2M connected devices and manages the billing and rating of network-as-a service subscription offered by various telecoms in the IoT space.
Data generated on M2M and IoT devices can create revenue opportunity for telecom service providers, by providing a range of features including remote monitoring, ubiquitous connectivity, automatic exchange of data, real-time notification, and many others which helps in better management of M2M billing of its associated services.
North America is expected to hold the largest market share and would dominate the IoT telecom services market from 2016 to 2021, due to the presence of a large number of IoT telecom service providers offering tailored solutions to multiple application areas. North America has been witnessing a high adoption of IoT telecom services on a large scale as they are the early adopters of smart technologies.
Asia Pacific offers potential growth opportunities for the IoT telecom services market to grow, as countries in the region are investing in the development of IoT telecom services owing to the rising adoption of smart devices and smart technologies.
