Connected Enterprise Market Outlook
The Connected Enterprise Market size was USD 441.41 Billion in 2022 and is likely to reach USD 4.18 Trillion by 2031, expanding at a CAGR of 10.4% during 2023 - 2031. The growth of the market is attributed to the increasing need of cloud computing and automation across industries.
Connected enterprise is where every line of business is digitalized. This ecosystem includes connecting of key functions, such as customer service, human resource, finance, sales, manufacturing, and other business sector.
The seamless connectivity provided by connected smart devices encourages the growth of the organization by enabling predictive analytics and giving deeper insights of the business. Three vital components which comprise a connected enterprise are infrastructure, device, and analytics. Connected enterprise offer a various benefits to business, such as enhanced decision making, faster process, high product utilization, and greater reliabilities.
The COVID-19 pandemic outbreak had considerable impact on the market. During the pandemic, enterprise observed human resource crunch, which is affecting the demand of connected enterprise solutions. However, the connected enterprise solutions is adopted by healthcare services and hospitals for automation and ensuring better services to the patients.
Connected Enterprise Market Trends, Drivers, Restraints, and Opportunities
- Increasing usage of technology like big data and Internet of things (IoT) by enterprises is one of the key factors driving the market growth.
- Rising smart city initiative resulting in adoption of connected enterprises by energy & utility sector is projected to boost the market during the forecast period.
- Escalating cost of deployment for connected enterprise solution acts as a major challenge that can restrict the market growth in the coming years.
- Lack of technical expertise with technological skills is expected to hamper the market growth during the projected timeline.
- Growing demand of system integration solutions among enterprises is anticipated to create significant growth opportunities for the market.
Scope of Connected Enterprise Market Report
The report on the global connected enterprise market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Connected Enterprise Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Services (Managed Services and Professional Services), Components (Platform, Solution, and Services), Applications (Food & Beverage, Retail, BFSI, Healthcare, IT & Telecom, Manufacturing, and Others), Platforms (Device Management, Connectivity Management, and Application Enablement & Development), and Solutions (Application Value Management, Customer Experience Management, Remote Monitoring, Business Analytics, and Manufacturing Execution System)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
IBM Corp.; Microsoft Corp.; Rockwell Automation, Inc.; Honeywell International Inc.; and PTC, Inc.
Connected Enterprise Market Segment Insights
IoT environment drive the professional service segment
Based on services, the market is bifurcated into managed services and professional services. The professional segment is expected to grow at a rapid pace during the forecast period due to the escalating demand for operating and managing complex IoT environments. Additionally, need for reducing capital and operational expenditure and the demand for customized IoT services is driving the segment growth further.
On the other hand, the managed segment is anticipated to expand at a substantial CAGR in the coming years owing to growing adoption of these services to reduce IT costs and to focus on core work of organization.
Solution segment is projected to expand at high growth rate
On the basis of components, the global connected enterprise market is fragmented into platform, solution, and services. The solution segment is projected to expand at high growth rate in the projected timeline attributed to these solutions help enterprises to maximize their operational efficiency by helping them achieve real-time asset monitoring. However, the platform segment is anticipated to register a substantial CAGR during the forecast period due to rising adoption of platforms for faster process.
Greater operational efficiency increases the manufacturing segment share
In terms of applications, the market is divided into food & beverage, retail, BFSI, healthcare, IT & telecom, manufacturing, and others. The manufacturing segment is estimated to account for a significant market share during the forecast period attributed to the increased need for adopting digital and smart technologies in manufacturing sector for greater operational efficiency. On the other hand, the food & beverage segment is anticipated to grow at a high CAGR during the projected period owing to need for synchronization of production levels and customer needs.
Connectivity management segment to expand at robust growth rate
Based on platforms, the global connected enterprise market is segmented into device management, connectivity management, and application enablement & development. The connectivity management segment is estimated to expand at robust growth rate during the forecast period due to these platform have the potential to identify and remotely control the current network infrastructure in an integrated ecosystem,. Moreover, the segment growth is further accelerated as these platforms offer real-time analysis of inbound data by triggering events, including filtering, aggregation, and correlation.
Increasing advancements drives the remote monitoring segment
On the basis of solutions, the market is segregated into application value management, customer experience management, remote monitoring, business analytics, and manufacturing execution system (MES). The remote monitoring segment is projected to register at high CAGR in the projected timeline attributed to the increasing advancements in connected technology resulting in need of connected sensors and equipment across manufacturing plants, which is increasing the need for real-time monitoring systems to detect and resolve issues before their acceleration.
On the other hand, the manufacturing execution system segment is anticipated to register a substantial CAGR during the forecast period due to the growth in the industrial computerization and the need to decrease the lead time for increasing output and revenue.
North America is to constitute a key market share
In terms of region, the global connected enterprise market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to growing demand for connected infrastructure and increased technological spending by the key players in the region. However, the market of Middle East & Africa is anticipated to grow at a rapid pace during the forecast period due to the organizations in the region are sourcing a range of innovative digital solutions for enhancing employee engagement and business transformation.
The global connected enterprise market has been segmented on the basis of
- Managed Services
- Professional Services
- Food & Beverage
- IT & Telecom
- Device Management
- Connectivity Management
- Application Enablement & Development
- Application Value Management
- Customer Experience Management
- Remote Monitoring
- Business Analytics
- Manufacturing Execution System
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Key players competing in the global connected enterprise market are IBM Corp.; Microsoft Corp.; Rockwell Automation, Inc.; Honeywell International Inc.; and PTC, Inc. Companies have been widely engaged in strategic partnership, merger & acquisition, new product launch, and collaborations to boost their market share and acquiring new buyers.
For instance, in October 2019 KPMG, multinational service professional network company announced partnership with Salesforce, a U.S. bases cloud-based software company to power its connected enterprise digital transformation offering. In April 2016, IBM Corp. partnered with Kimberly-Clark, a U.S. based company. By this partnership the Kimberly-Clark's professional division will adopt IBM Watson and IBM Cloud IoT platform to develop a new intelligent facilities management app.