Report:
Magic Quadrant for Managed IoT Connectivity Services, Worldwide
How does Gartner define the Managed IoT Connectivity Services, Worldwide market in 2024?
Gartner defines managed IoT connectivity services as a market that enables connectivity, data collection and analysis, and additional decision services that are necessary for connected solutions. For large organizations, managed IoT connectivity services are normally delivered fully managed, including dedicated help desk and project and service management capabilities. For midsize and small organizations, they are frequently delivered as a self-service provided through an IoT connectivity management portal, including Level 2 and Level 3 back-office support. Connections can use various technologies including cellular (2G, 3G, 4G/LTE and 5G); satellite, low-power wide-area (LPWA) networks (3GPP and non-3GPP); and managed field-area networks (FANs). Additionally, managed IoT connectivity services may encompass integrated and managed IT infrastructure and systems, operational technology (OT) infrastructure and systems, software, network services (connectivity), and IT services.
Key Facts for Magic Quadrant for Managed IoT Connectivity Services, Worldwide in 2024
- Publication Date: 12 February 2024
- Document ID: G00786935
- Coverage: Worldwide
- Authors: Pablo Arriandiaga, Kameron Chao, and 1 more
- Core Purpose: This Magic Quadrant assesses global vendors providing managed IoT connectivity services to help CIOs building IoT-enabled businesses reduce complexity when sourcing IoT connectivity and integrating it with devices and cloud IoT deployments across multiple geographies.
Strategic Planning Assumptions
- By 2026, the number of IoT connectivity management platforms managing multiple 5G private network deployments within a single enterprise will grow to more than 10
How was the Managed IoT Connectivity Services, Worldwide market evolved in 2024?
- Market enables connectivity, data collection and analysis, and decision services for connected solutions
- Services delivered fully managed for large organizations, self-service for midsize/small organizations
- Connections use various technologies: cellular (2G, 3G, 4G/LTE, 5G), satellite, LPWA networks (3GPP and non-3GPP), and managed field-area networks
- Must-have capabilities include sourcing/logistics management, IoT connectivity management portal, service management/support, and SIM/subscription management
- Standard capabilities include device management and security management
- Optional capabilities include application management, multisourcing service integration, and data/analytics
- 19 vendors evaluated in this Magic Quadrant
- Market experiencing repositioning as smart managed connectivity enablers for IoT
- Cyberthreats driving significant but insufficient improvements in IoT security
- LTE Cat 1 and Cat 1bis continuing as alternatives to 3GPP LPWA networks for global/regional deals
- Managed IoT connectivity serving as bridge to 5G, private mobile networks and edge computing
What product features are required to be included in this year's evaluation?
- Sourcing and logistics management
- IoT connectivity management portal
- Service management and support
- SIM and subscription management
What are the common features of top products in the Managed IoT Connectivity Services, Worldwide space?
- Device management
- Security management
Scope Exclusions
- Public hot spots
- Laptops, tablets, or smartphones for mobile broadband connections (unless exclusive use as IoT gateway or HMI terminal)
- Mi-Fi devices (unless functioning as gateway for IoT solution)
Inclusion Criteria
Vendors must, among other requirements:
- At least 7,500,000 connected IoT devices under management by 30 June 2023
- Panregional or global services delivery to at least three of five geographies with direct local commercial presence
- At least $32 million in managed IoT connectivity-related revenue
- At least four new clients in at least three different regions since 30 June 2022
- At least 100,000 managed IoT connections in at least two industries
- Life cycle management services including professional and support services
- Portal for accessing data related to monitored assets/processes
- Infrastructure and network systems that add value to resale of network services
- IoT hardware and connectivity management available as separate saleable offerings
Ability to Execute — Relative Weighting
- Product or Service - High
- Overall Viability - Low
- Sales Execution/Pricing - High
- Market Responsiveness/Record - Medium
- Marketing Execution - Medium
- Customer Experience - High
- Operations - High
Completeness of Vision — Relative Weighting
- Market Understanding - High
- Marketing Strategy - Medium
- Sales Strategy - High
- Offering (Product) Strategy - High
- Business Model - Medium
- Vertical/Industry Strategy - High
- Innovation - High
- Geographic Strategy - High
FAQs
Q: What does this research cover?
A: This research evaluates 19 global vendors providing managed IoT connectivity services worldwide. It assesses their ability to enable connectivity, data collection and analysis, and decision services necessary for connected solutions across various technologies including cellular (2G-5G), satellite, LPWA networks, and managed field-area networks. The research examines vendors' capabilities across must-have features (sourcing/logistics, IoT connectivity management portals, service management, SIM management), standard features (device and security management), and optional features (application management, multisourcing integration, data/analytics).
Q: Who should use this research?
A: CIOs building IoT-enabled businesses should use this research to assess global vendors for IoT connectivity-related services when sourcing IoT connectivity and integrating it with devices and cloud IoT deployments across multiple geographies. The research helps reduce complexity in vendor selection by evaluating providers' ability to execute and completeness of vision, enabling organizations to select contracts that support critical functions and business objectives while assessing providers for future capabilities as enterprises work toward broader IoT solutions.
Q: What are the mandatory features of vendors included in this market?
A: Vendors must offer sourcing and logistics management, an IoT connectivity management portal for self-service and monitoring, comprehensive service management and support capabilities, and SIM and subscription management functionalities. These features enable enterprises to manage the complete lifecycle of their IoT connectivity from procurement through operational management.
Q: What are some reasons for not being included in this report?
A:
- Fewer than 7,500,000 connected IoT devices under management
- Insufficient geographic presence (not serving at least three of five regions with direct local commercial presence)
- Revenue below $32 million threshold
- Insufficient customer wins (fewer than four new clients in three different regions)
- Limited industry diversity (fewer than 100,000 connections in two industries)
- Lack of comprehensive life cycle management services
- No customer-facing portal for asset monitoring and management
- Insufficient infrastructure (not operating as heavy or light MVNO)
- Only offering bundled solutions without separate connectivity offerings
Q: What differentiates Ability to Execute vs. Completeness of Vision?
A: Ability to Execute evaluates vendors on current performance, focusing on the quality and efficacy of processes, systems, and methods that enable competitive, efficient, and effective performance. It emphasizes current product/service capabilities, sales execution, customer experience, and operations. Completeness of Vision evaluates vendors on their ability to articulate logical statements about market direction, innovations, customer needs, and competitive forces. It focuses on future strategy, including market understanding, product roadmap, business model innovation, vertical/industry strategy, and geographic expansion plans. Essentially, Ability to Execute measures 'how well they do it now' while Completeness of Vision measures 'where they're going and how they'll get there.'
Reference
- Gartner, Magic Quadrant for Managed IoT Connectivity Services, Worldwide, 12 February 2024, ID G00786935
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