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US IoT Professional Services Market

ID: MRFR/ICT/13433-HCR
100 Pages
Garvit Vyas
October 2025

US IoT Professional Services Market Research Report By Service (IoT Consulting Services, IoT System Design and Implementation Services, Support and Maintenance Services, Education and Training Services), Organization Size (Large Enterprises, Small and Medium-sized Enterprises), Application Area (Smart Cities, Smart Buildings, Smart Manufacturing, Smart Retail, Smart Healthcare, Smart Transport - Logistics and Smart Energy) and Region (North America, Europe and the Rest of the World) - Forecast till 2035

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US IoT Professional Services Market Infographic
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US IoT Professional Services Market Summary

As per analysis, the US iot professional services market is projected to grow from USD 8.99 Billion in 2025 to USD 18.21 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.22% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US IoT professional services market is poised for substantial growth driven by technological advancements and sector-specific demands.

  • The Smart Home segment remains the largest contributor to the US IoT professional services market, reflecting a robust consumer interest in connected living solutions.
  • Industrial Automation is currently the fastest-growing segment, indicating a shift towards more automated and efficient manufacturing processes.
  • Healthcare is emerging as a rapidly growing sector within IoT professional services, driven by the need for enhanced patient monitoring and data management.
  • Key market drivers include the growing demand for smart infrastructure and increased focus on data analytics, which are shaping service offerings.

Market Size & Forecast

2024 Market Size 8.45 (USD Billion)
2035 Market Size 18.21 (USD Billion)
CAGR (2025 - 2035) 7.22%

Major Players

IBM (US), Microsoft (US), Cisco (US), Amazon (US), Accenture (US), Capgemini (US), Deloitte (US), Oracle (US), AT&T (US)

US IoT Professional Services Market Trends

The US IoT professional services market is currently experiencing a transformative phase, characterized by rapid advancements in technology and increasing demand for integrated solutions. Organizations across various sectors are recognizing the potential of IoT to enhance operational efficiency, improve customer experiences, and drive innovation. As businesses seek to leverage IoT capabilities, the need for specialized professional services has become paramount. This includes consulting, system integration, and managed services tailored to meet the unique requirements of different industries. The market appears to be evolving, with a focus on developing robust frameworks that facilitate seamless connectivity and data management. Moreover, the landscape of the US IoT professional services market is shaped by regulatory considerations and the growing emphasis on cybersecurity. As more devices become interconnected, the potential for vulnerabilities increases, prompting organizations to prioritize security measures. This trend indicates a shift towards comprehensive service offerings that not only address implementation but also ongoing support and risk management. The interplay between technological advancements and regulatory frameworks suggests that the market will continue to adapt, fostering an environment conducive to innovation and sustainable growth.

Increased Focus on Cybersecurity Solutions

As the number of connected devices rises, the US IoT professional services market is witnessing a heightened emphasis on cybersecurity. Organizations are increasingly aware of the risks associated with IoT deployments, leading to a demand for services that ensure data protection and secure device management. This trend reflects a broader recognition of the importance of safeguarding sensitive information in an interconnected environment.

Integration of AI and Machine Learning

The integration of artificial intelligence and machine learning into IoT solutions is becoming a prominent trend within the US IoT professional services market. Companies are seeking to harness these technologies to enhance data analytics, automate processes, and improve decision-making. This convergence of IoT with advanced analytics capabilities is likely to drive innovation and create new opportunities for service providers.

Emphasis on Industry-Specific Solutions

There is a growing trend towards the development of industry-specific IoT solutions within the US IoT professional services market. Service providers are increasingly tailoring their offerings to meet the unique needs of sectors such as healthcare, manufacturing, and transportation. This specialization allows organizations to leverage IoT technologies more effectively, resulting in improved operational outcomes and enhanced competitiveness.

Market Segment Insights

By Application: Smart Home (Largest) vs. Industrial Automation (Fastest-Growing)

The US IoT professional services market is significantly influenced by various application segments, with Smart Home leading the charge. This segment enjoys the largest market share, fueled by the growing demand for home automation technologies and enhanced consumer convenience. Other prominent applications include Industrial Automation, Healthcare, Transportation, and Agriculture, each contributing to the market's diversity and expansion, catering to a wide range of industries seeking competitive advantages through IoT solutions. The growth trends within these application segments reveal differing trajectories, with Industrial Automation emerging as the fastest-growing area. Driven by advancements in connectivity and automation technologies, industries are increasingly adopting IoT solutions to optimize processes and enhance operational efficiency. The Healthcare sector is also witnessing a notable increase due to the rise in telehealth and remote patient monitoring, while Agriculture continues to leverage IoT for precision farming and resource management.

Smart Home (Dominant) vs. Agriculture (Emerging)

The Smart Home segment is characterized by its focus on enhancing consumer lifestyles through interconnected devices that offer convenience, security, and energy efficiency. As a dominant player in the US IoT professional services market, Smart Home solutions encompass a wide range of devices and applications, including smart thermostats, security systems, and lighting automation. With growing consumer awareness and the proliferation of affordable smart devices, the Smart Home segment continues to thrive. In contrast, the Agriculture segment is emerging as a vital area of growth, utilizing IoT technologies for precision agriculture, crop monitoring, and resource management. Although still developing compared to Smart Home, Agriculture is gaining traction among farmers seeking to increase yields and optimize inputs, positioning it as a promising application in the IoT space.

By End Use: Manufacturing (Largest) vs. Healthcare (Fastest-Growing)

In the US IoT professional services market, the end use segments display a varied distribution of market share. Manufacturing remains the largest segment, driven by the increasing need for automation and efficiency in production processes. The retail segment also holds a significant share, capitalizing on IoT implementations for inventory management and customer experience enhancement. Energy and transportation follow, relying on IoT to optimize operations and maintenance, while healthcare is showing rapid growth as remote patient monitoring and smart healthcare solutions gain traction.

Manufacturing: Dominant vs. Healthcare: Emerging

Manufacturing is characterized by a strong emphasis on operational efficiency and automation, leveraging IoT solutions to enhance productivity and reduce downtime. This segment prioritizes technologies that facilitate real-time data analysis and predictive maintenance, putting it at the forefront of IoT adoption. Conversely, healthcare is emerging as a vital segment in the IoT professional services market, fueled by innovations in telehealth and wearable devices. As providers seek to improve patient care and streamline operations, IoT applications are being integrated into various healthcare settings, showcasing their potential to transform healthcare delivery and increase patient engagement.

By Service Type: Consulting (Largest) vs. Managed Services (Fastest-Growing)

In the US IoT professional services market, Consulting emerges as the largest segment, capturing significant market share due to its critical role in helping organizations strategize their IoT initiatives. System Integration and Support and Maintenance follow closely but with smaller shares, as businesses increasingly recognize the importance of a cohesive approach in their IoT deployments. Managed Services, while previously overshadowed, is gaining considerable traction as organizations seek to optimize operational efficiency and minimize internal resource burdens. Training, though essential, represents a smaller share compared to these dominant segments. The growth trends in this segment highlight a broader shift towards managed services as a strategic choice for technology adoption. Driven by the increasing complexity of IoT deployments, businesses are leveraging Managed Services to ensure continuous operation and proactive management of their IoT systems. Additionally, the demand for consulting services continues to burgeon as companies seek expert guidance. Overall, while Consulting retains its lead, Managed Services is on a growth trajectory, indicating a transition in the market dynamics as enterprises prioritize adaptability and specialization in their IoT strategies.

Consulting (Dominant) vs. Training (Emerging)

Consulting services dominate the US IoT professional services market, characterized by a strong demand for expert insights and strategic guidance. Organizations are reaching out to consultants for tailored solutions that address their unique IoT challenges, ensuring successful deployment and integration of IoT systems. On the other hand, Training is emerging as a significant segment, driven by the need for upskilling internal teams to manage IoT technologies effectively. While Consulting provides the roadmap for implementation, Training equips staff with the necessary skills to operate and maintain IoT solutions. As companies recognize the importance of a knowledgeable workforce in maximizing their IoT investments, both segments are crucial in shaping the future of the market, albeit with different focal points.

By Technology: Cloud Computing (Largest) vs. Edge Computing (Fastest-Growing)

In the US IoT professional services market, Cloud Computing leads the charge, providing a crucial backbone for various IoT applications. This segment leverages scalable resources and on-demand services, making it the predominant choice among enterprises. Meanwhile, Edge Computing is gaining traction, capturing attention for its ability to process data locally, thus minimizing latency and enhancing responsiveness for IoT implementations. As organizations increasingly seek efficient data management solutions, both segments play pivotal roles in shaping the market strategy.

Technology: Cloud Computing (Dominant) vs. Edge Computing (Emerging)

Cloud Computing serves as the dominant technology within the US IoT professional services market, recognized for its robust scalability and extensive application across various industries. It enables businesses to efficiently manage and analyze vast amounts of data, thus facilitating innovative IoT solutions. In contrast, Edge Computing is emerging rapidly due to its capability to operate near data sources, allowing real-time data processing and reduced latency. The growing demand for automation and real-time analytics is propelling Edge Computing into a significant market position, particularly as organizations look for solutions that enhance operational efficiency and responsiveness.

By Deployment Model: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

In the US IoT professional services market, the deployment model segment showcases a diverse landscape. Currently, Cloud-Based solutions dominate the market due to their scalability and flexibility, appealing to a wide range of industries. They hold the largest share, enabling businesses to leverage IoT technologies without substantial hardware investments. On-Premises services, while historically significant, are experiencing a resurgence fueled by increasing demand for data security and regulatory compliance, thus holding a competitive share in the market. The growth trends in this sector are strongly influenced by the ongoing digital transformation initiatives across various sectors. Organizations are shifting towards Cloud-Based models to enhance operational efficiency, while the On-Premises model is being adopted by firms prioritizing data control. Hybrid solutions are gaining traction as they offer a balanced approach, combining the strengths of both models, making them increasingly popular among businesses that seek to optimize their IoT implementations.

Cloud-Based (Dominant) vs. On-Premises (Emerging)

The Cloud-Based deployment model stands out as the dominant force in the IoT professional services market, providing unparalleled scalability and rapid deployment capabilities. Companies favor this model for its cost-effectiveness and ease of access to IoT capabilities. In contrast, the On-Premises model is emerging as a preferred choice for organizations that require stringent data security measures and customization options. This segment appeals to sectors with specific compliance standards, such as finance and healthcare. The Hybrid model, while gaining traction, acts as a bridge, allowing businesses to integrate both deployments effectively. As the market continues to evolve, these characteristics position Cloud-Based solutions as an essential segment, while On-Premises approaches remain critical for security-focused enterprises.

Get more detailed insights about US IoT Professional Services Market

Key Players and Competitive Insights

The IoT professional services market in the US is characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for integrated solutions. Key players such as IBM (US), Microsoft (US), and Accenture (US) are strategically positioned to leverage their extensive expertise in cloud computing, data analytics, and AI to enhance service offerings. These companies are focusing on innovation and partnerships to create comprehensive IoT ecosystems, which collectively shape a competitive environment that is increasingly collaborative yet fiercely competitive.

In terms of business tactics, companies are localizing their services and optimizing supply chains to better meet regional demands. The market appears moderately fragmented, with a mix of large enterprises and specialized firms vying for market share. The collective influence of major players like Cisco (US) and Deloitte (US) is significant, as they drive trends in digital transformation and operational efficiency, thereby impacting the overall market structure.

In November 2025, IBM (US) announced a strategic partnership with a leading telecommunications provider to enhance its IoT platform capabilities. This collaboration aims to integrate advanced connectivity solutions, which is likely to bolster IBM's position in the smart city and industrial IoT sectors. Such strategic moves indicate a clear focus on expanding service offerings and enhancing customer engagement through innovative solutions.

In October 2025, Microsoft (US) unveiled a new suite of IoT services designed to streamline data management and analytics for enterprises. This initiative reflects Microsoft's commitment to empowering businesses with actionable insights, thereby enhancing operational efficiency. The introduction of these services is expected to strengthen Microsoft's competitive edge by addressing the growing need for data-driven decision-making in various industries.

In September 2025, Accenture (US) acquired a niche IoT consultancy firm, which is anticipated to enhance its capabilities in delivering tailored IoT solutions. This acquisition underscores Accenture's strategy to deepen its expertise in specific verticals, allowing for more customized service offerings. Such strategic actions are indicative of a broader trend where companies are increasingly focusing on specialization to differentiate themselves in a crowded market.

As of December 2025, current competitive trends are heavily influenced by digitalization, sustainability, and AI integration. Strategic alliances are becoming pivotal in shaping the landscape, as companies seek to combine strengths to deliver comprehensive solutions. Looking ahead, competitive differentiation is likely to evolve from traditional price-based competition to a focus on innovation, technology, and supply chain reliability, suggesting a shift towards more sustainable and technologically advanced service offerings.

Key Companies in the US IoT Professional Services Market market include

Future Outlook

US IoT Professional Services Market Future Outlook

The US IoT professional services market is projected to grow at a 7.22% CAGR from 2024 to 2035, driven by increased demand for automation, data analytics, and enhanced connectivity.

New opportunities lie in:

  • Development of customized IoT integration solutions for smart cities
  • Expansion of predictive maintenance services for industrial IoT applications
  • Creation of IoT cybersecurity frameworks for enterprise protection

By 2035, the market is expected to be robust, driven by innovation and strategic partnerships.

Market Segmentation

US IoT Professional Services Market End Use Outlook

  • Manufacturing
  • Retail
  • Energy
  • Transportation
  • Healthcare

US IoT Professional Services Market Technology Outlook

  • Cloud Computing
  • Edge Computing
  • Artificial Intelligence
  • Big Data Analytics
  • Blockchain

US IoT Professional Services Market Application Outlook

  • Smart Home
  • Industrial Automation
  • Healthcare
  • Transportation
  • Agriculture

US IoT Professional Services Market Service Type Outlook

  • Consulting
  • System Integration
  • Support and Maintenance
  • Managed Services
  • Training

US IoT Professional Services Market Deployment Model Outlook

  • On-Premises
  • Cloud-Based
  • Hybrid

Report Scope

MARKET SIZE 20248.45(USD Billion)
MARKET SIZE 20258.99(USD Billion)
MARKET SIZE 203518.21(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)7.22% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledIBM (US), Microsoft (US), Cisco (US), Amazon (US), Accenture (US), Capgemini (US), Deloitte (US), Oracle (US), AT&T (US)
Segments CoveredApplication, End Use, Service Type, Technology, Deployment Model
Key Market OpportunitiesIntegration of advanced analytics and artificial intelligence in US IoT professional services enhances operational efficiency.
Key Market DynamicsGrowing demand for IoT professional services driven by technological advancements and evolving regulatory frameworks in the US.
Countries CoveredUS

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