The Internet of Things Management Platform Market Breaks Bn Barrier in 2024

The Internet of Things Management Platform Market Breaks $1Bn Barrier in 2024

January 14, 2025 Catherine Williams - Chief Editor Tech

The Evolving Landscape of IoT Connectivity Management Platforms

Early IoT connectivity management platforms (CMPs) were developed when the market was filled with inflated expectations, but the industry now faces the challenge of declining average revenue per unit (ARPU) for IoT connectivity services, according to a recent study.

The market dynamics in the IoT CMP market have evolved significantly. Suppliers are focusing on responding to the challenge of declining ARPU by exiting the space or rethinking their product and pricing strategies, often involving tiered offerings and the addition of value-added services. This transformation has led to a new type of product category called connectivity management orchestration (CMO) platforms, which ride on top of IoT CMPs through application programming interface integrations introduced by suppliers like IoTM Solutions and Simetric. Several other IoT CMP suppliers and IoT MVNOs have since followed suit.

The study forecasts that annual IoT CMP revenues will grow at a CAGR of 12% from $1 billion in 2024 to reach $1.8 billion by 2029. This growth is influenced by various trends. First, IoT CMPs and value-added services can play a key role in helping mobile operators drive revenue in the enterprise market from their 5G network infrastructure. Second, increased consolidation of operations to key markets by mobile operator groups will lead to a growing number of independent mobile operators, thereby increasing the addressable market for third-party CMPs.

The adoption of eSIM technology is also boosting the market. The eSIM IoT specification SGP.32 enables smaller mobile operators to utilize their existing SM-DP+ systems to offer eSIM services for the IoT market. However, Berg Insight cautions that these operators will need to complement their offerings with IoT CMPs.

Leading the pack is Cisco, which holds a strong position in all major geographies and partners with about 60 mobile operators worldwide. Cisco’s IoT Control Centre manages approximately 262 million SIMs. Aeris ranks second with 28 mobile operator partners and 84 million connected devices at the end of 2024, having successfully modernized its operations after taking over Ericsson’s IoT business in early 2023.

Mavoco has emerged as a significant player, with more than 10 mobile operator partners at the year-end. Its cloud- and core-agnostic IoT CMP allows mobile operators to utilize existing infrastructure cost-effectively to address IoT customers globally. Other notable suppliers include Comarch, Nokia, and Vodafone.

IoT CMPs are also integral to the value proposition from suppliers like 1NCE, 1oT, Emnify, Eseye, and FloLIVE, who operate as technology providers for mobile operators and IoT MVNOs. AT&T is an example of a mobile operator that has fully embraced the CMO concept by introducing the IoT Console Single Pane of Glass in November 2024, in collaboration with Simetric. Enea provides adjacent products, enabling mobile operators to offer a multi-tenant, private APN service to their enterprise customers through its IoT CCS service, which works in concert with existing IoT CMPs.

New investments are being focused on remote SIM provisioning platform integrations, eSIM orchestration, and connectivity management orchestration capabilities. The integration of machine learning-based analytics, security services, and programmable network capabilities enabled by 5G SA is also driving innovation. As the market continues to evolve, these advancements are poised to transform the IoT landscape further.

Conclusion: The Evolution​ of‍ IoT Connectivity Management Platforms—A Radiant Future Ahead

As ‍the Internet of Things (IoT) continues to transform industries wiht its unprecedented connectivity opportunities, the landscape of IoT Connectivity Management Platforms (CMPs) is ‌undergoing meaningful transformations. Initially developed during a period of high market optimism,early CMPs faced the harsh reality of declining Average Revenue Per Unit (ARPU) for‍ IoT‌ connectivity services.This challenge, however, presented a catalyst⁢ for innovation.

Today, the market dynamics in the‍ IoT CMP space are characterized by suppliers evolving their strategies ⁣to combat declining ARPU. Many incumbent vendors are exiting the market, while others are rethinking their offerings by⁤ implementing tiered pricing models ⁣and adding value-added services.This evolution has given⁣ rise to a new category of platforms: Connectivity Management Orchestration (CMO) platforms.‌ These platforms integrate seamlessly with IoT CMPs through submission programming interface (API) ⁤integrations, pioneered by innovators like IoTM Solutions and Simetric. This integration has enabled comprehensive management solutions,⁢ further⁣ amplifying‌ the potential⁤ of IoT deployments.

The‌ future looks promising for the IoT CMP market. A recent study forecasts annual ⁣revenues‍ to grow at a ⁢12% Compound Annual growth ⁣Rate (CAGR) from $1 billion in 2024 to $1.8 billion by 2029. This forecast is ⁢driven by several key trends. Firstly,IoT CMPs ‌and⁤ their associated value-added services are poised to play ⁣a crucial role in⁢ driving revenue in the enterprise IoT market⁣ from ‌5G network infrastructure. Secondly, the consolidation of mobile operator operations into key markets is expected to increase the addressable market for ⁣third-party CMPs.

Thirdly,the advent of the new​ eSIM IoT specification,SGP.32, is set to enable smaller mobile operators to leverage their existing Systems for Mobile-Based Services plus (SM-DP+) systems for offering eSIM services. This development,combined with the ⁢effective integration of these services through IoT CMPs,promises to open new avenues for IoT deployments‌ globally.

the evolving landscape of iot CMPs is a testament to the ‌industry’s resilience and adaptability. As we move‍ forward, these platforms will continue to play a pivotal role in enabling seamless IoT connectivity solutions.⁣ With ⁣ongoing investments in⁢ RSP platform integrations, eSIM orchestration, ​machine⁤ learning-based analytics, security services, and programmable ​network capabilities, the⁢ future of IoT ⁢connectivity management looks brighter than ever.

By embracing ‌innovation and integration, stakeholders are poised to capitalize on the $1.8 billion possibility⁢ by 2029. As ⁢we navigate ⁢this transformative era,it is indeed clear that IoT CMPs will remain at​ the forefront of IoT solutions,driving efficiency,enhancing performance,and ultimately shaping the future‌ of global connectivity.
Conclusion: The Evolution of IoT Connectivity Management Platforms—A Radiant Future Ahead

The Internet of Things (IoT) has revolutionized numerous industries with its unparalleled connectivity opportunities. However, as the IoT market scaled, it faced the challenge of declining Average Revenue Per unit (ARPU) for IoT connectivity services. This period of high market optimism gave way to a more nuanced and competitive landscape. Yet,rather than hindering progress,this challenge has catalyzed innovation within the iot connectivity Management Platforms (CMP) sector.

The current market dynamics in the IoT CMP space reflect the resilience and adaptability of industry suppliers. by exiting the space or rethinking their product and pricing strategies, vendors have shifted their focus towards tiered offerings and the addition of value-added services. This change has led to the emergence of a new category: connectivity management orchestration (CMO) platforms, which seamlessly integrate with IoT CMPs via application programming interface (API) integrations introduced by pioneers like iotm Solutions and Simetric. Consequently, several other IoT CMP suppliers and IoT Mobile Virtual Network Operators (MVNOs) have followed suit, truly transforming the landscape of IoT connectivity management.

Berg Insight’s latest findings underscore the promising future of the IoT CMP market. With annual revenues forecasted to grow at a Compound Annual Growth Rate (CAGR) of 12% from $1 billion in 2024 to $1.8 billion by 2029, the market is poised for significant expansion. This growth is driven by several key trends: the increasing role of IoT CMPs and value-added services in helping mobile operators drive revenue from their 5G network infrastructure, the consolidation of mobile operator groups into key markets leading to a larger addressable market for third-party CMPs, and the adoption of eSIM technology that enables smaller operators to offer advanced IoT services.

leading players such as Cisco, Aeris, and Mavoco have solidified their positions in the market.Cisco, with its strong global presence and partnership with over 60 mobile operators, manages approximately 262 million SIMs. Aeris, having modernized its operations after acquiring Ericsson’s IoT business, boasts 84 million connected devices and 28 mobile operator partnerships. Mavoco’s cloud-agnostic approach has made it a significant player, enabling cost-effective IoT customer management globally.

The integration of remote SIM provisioning, eSIM orchestration, and connectivity management orchestration capabilities is driving further innovation in the sector. Additionally, investments in machine learning-based analytics, security services, and programmable network capabilities enabled by 5G SA are reshaping the IoT landscape. Examples like AT&T’s introduction of the IoT Console Single Pane of Glass and Enea’s provision of a multi-tenant private APN service further illustrate this transformative trend.

the evolution of IoT CMPs is not just a response to market challenges but a testament to the industry’s agility and dedication to innovation.As these platforms continue to evolve, they will play a crucial role in shaping the future of IoT connectivity, driving revenue, and enhancing customer experience. The future of IoT CMPs is radiant, promising a decade of exponential growth and revolutionary advancements in IoT connectivity management.