In what could be considered as a stellar achievement for the Indian tech market, a recent report by research and strategy consultancy Zinnov Zones has highlighted that the Indian subcontinent holds a whopping 43 per cent of the global Internet of Things (IoT) market.

According to the research report, Indian information technology (IT) services companies now own about two-fifth of the global IoT market, which comes out at $1.5 billion of the global $3.5 bn market. The report noted that Bengaluru city was deemed as the top location in India for IoT processes.

After India's first position with 43 per cent market share, the second position is occupied by Western Europe with 27 per cent and North America with 23 per cent.

The report shared that according to the current dynamics of the Indian IoT market, managed IoT services will be seeing the fastest growth. The report projected the growth to occur at a compounded annual rate (CAGR) of 23.5 per cent, which will translate to a promising Rs 2,036 crore of annual business for Indian companies. The Zinnov Zones report also revealed that with Rs 4,168 crore business in 2017 till now, Product engineering has emerged with largest share of Indian IoT services.

TCS, Wipro, Infosys, HCL, Tech Mahindra, Persistent, Genpact and L&T Technologies found a place in the report as global leading innovators and market leaders in IoT. The report classified companies into nurture, breakout, execution and leadership zones, based on various competencies. Zinnov Zones also clarified that the rankings were also based on which companies chose to respond to the survey queries send by them within the specified time period.

In a statement to Business Standard, Sidhant Rastogi, partner at Zinnov said, "Companies not in the list don't necessarily mean they aren't good but there could have been issues in responding to the survey. Most of the big names in the IoT space from the services standpoint have been covered."

Rastogi also specified that based on their research, companies like L&T Technologies, TATA Elxsi, Persistent Systems, L&T Infotech and Happiest Minds have moved up significantly in rankings among Indian providers in the past one year.

According to the report furnished by Zinnov Zones research and strategy consultancy, TCS, Infosys and Wipro, which are the top three Indian IT service firms, garner less than 20 per cent of their overall revenue from digital technology-based services, which includes IoT. The report also notes that 76 per cent of total IoT revenue comes from top 20 of its service providers all around the world.

However, the report also warned that the growth of Asian markets might witness a dip in next five years, with an expected CAGR of 17 per cent in line. The North American market is expected to show a CAGR of 21 per cent.

While HARMAN Connected Services came on the top of list, companies such as TCS, HCL, Wipro and Tech Mahindra ran a close chase across several categories.

While Persistent Systems made its way into the leadership zones for 'Platform and Application Competency', 'Big Data Management' and 'Analytics Services', L&T Technologies broke into five new categories compared to its last year's ratings.

India accounting for 43 per cent of the global IoT market is a good sign for Indians seeking employment in the sector. According to a recent study titled ‘IoT India Salary Study 2017’ carried out by IoT India Magazine, the salaries of IoT professionals in India is around 76% higher than that of IT professionals. The median salary of IoT professionals is INR 15.2 lakh compared to INR 8.65 lakh per annum in IT sector.

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