NEWSBYTE The Internet of Things (IoT) connectivity market is set to grow in value from $3.8 billion this year to $8.9 billion by 2024, more than doubling over the forecast period, with a compound annual growth rate (CAGR) of 18.7 percent.

That’s according to a new report, The IoT Connectivity Market by Component, Organisation Size, Application Areas, and Region – Global Forecast to 2024, published by MarketsandMarkets.

Key factors driving that growth will include an increase in demand for connected devices, the need for reliable, secure, high-speed network connectivity; and the ability to integrate the standalone and networked components of the IoT ecosystem, says the report.

Services are expected to grow at a higher rate than the platform segment of the market, it adds.

“The demand for services is increasing with the growing adoption of IoT connectivity by enterprises across major application areas. These services assist end-users in reducing costs, increasing overall revenues, and improving business performance. With the help of these services, organisations can connect their edge devices effectively.”

Meanwhile, managed services will register higher growth than professional services over the next five years. Managed services help clients to manage their IoT connectivity operations from consultancy to deployment and maintenance. The prime responsibility of providers is to improve the efficiency of inbound and outbound operations cost-effectively for enterprises.

North America will be the biggest market over the forecast period, due to the pace of digital transformation and the high growth of IoT devices and services, along with artificial intelligence (AI) and cloud computing, says the report.