MarketsandMarkets forecasts the IoT telecom services market size to grow from USD 2.90 Billion in 2016 to USD 17.67 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 43.6%.

The Internet of Things (IoT) telecom services is a set of services offered by the telecom firms to their commercial clients to ensure easy deployment of smart connectivity technologies to their networks and business processes and offers enhanced data security and privacy, interoperability, asset management, real-time analytics, and many others. IoT telecom services primarily are being deployed by telcos for their commercial clients to ensure critical machine centric connectivity. The critical need for continuous connectivity and smart monitoring of network are majorly addressed by IoT telecom services.

The scope of this report covers the IoT telecom services market by component, connectivity technology, service, application, and region. The M2M billing services segment is expected to dominate the market, at the highest CAGR during the forecast period due to the need for tracking and managing the billing and rating of NaaS subscription, offered by various telecom service providers in the IoT space.

The NB-IoT connectivity technology component of market is estimated to grow at the highest rate during the forecast period due to the emergence of low-power high-range wireless connectivity technologies. The market is also projected to grow at the highest rate in the transportation, logistics tracking, and traffic management application during the forecast period due to the adoption of smart technologies for managing traffic and logistics. Network security management solution is expected to grow at the highest rate during the forecast period as it secures the data and resources in a network by employing firewall and other IoT-enabled security solutions for effective network management.

North America is expected to account for the largest market share in the IoT telecom services market, followed by Europe in 2016. Due to rising adoption of smart connected devices and technologies and telcos promoting OTT applications are the factors increasing the adoption of IoT telecom services.

Lack of regulation for spectrum allocation is a major restraint to the growth of the market. The IoT telecom services market is highly fragmented wherein relationships with telecom service providers and IoT platform vendors can change regionally, thereby considerably impacting the relationships between IoT platform providers and Network-as-a Service providers.

There are several established players in this market such as AT&T, Inc. (U.S.), Ericsson (Sweden), Verizon Communications, Inc. (U.S.), Deutsche Telekom AG (Germany), Huawei Technologies Co., Ltd. (China), and others. To further strengthen their position in the market, the major vendors have opted to strengthen their product portfolio by launching new products and services.

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