HFS Horizons: IoT Service Providers, 2024

The HFS Horizons: IoT Service Providers, 2024 report is for enterprise leaders and IoT decision-makers evaluating and selecting service providers that can turn connected-device investments into measurable business outcomes in the age of the Generative Enterprise.

Overview

HFS Horizons: IoT Service Providers, 2024 assesses and rates the Internet of Things (IoT) service capabilities of 23 providers across four dimensions, examining the role service providers play in the evolving IoT landscape in the age of the Generative Enterprise™, an HFS-coined term. It focuses on the supply side, detailing each provider’s strengths and growth opportunities as IoT combines with AI, 5G, edge computing, and digital twins to deliver measurable business outcomes.

Key findings

1. Horizon 3 Market Leaders include Accenture, Capgemini, Cognizant, Eviden, HCLTech, Hitachi Digital Services, IBM, Infosys, L&T Technology Services, and TCS. Horizon 2 Enterprise Innovators include Bosch, Cyient, Deloitte, KPMG, LTIMindtree, PwC, Tech Mahindra, and Wipro. Horizon 1 Disruptors include DXC Technology, FPT Software, NTT DATA, Persistent, and UST.
2. The report rates 23 IoT service providers across four equally weighted dimensions, value proposition, execution and innovation capabilities, go-to-market strategy, and market impact, each carrying 25% of the score.
3. Approximately 90% of IoT engagements still rely on traditional pricing models such as time and materials and fixed price, with outcome-based pricing limited mostly to scenarios such as connected vehicles.
4. Accenture invested $2.5 billion in 25 strategic acquisitions in fiscal year 2023, illustrating the acquisition-led growth strategy providers use to expand IoT capabilities and scale.
5. Named client outcomes include Accenture’s IoT work with Haier Europe and Schneider Electric, delivering predictive maintenance and asset monitoring.

HFS finds that GenAI is transformative for IoT but has not changed its fundamentals, remaining a “nice to have” rather than a “must have” while most enterprises stay in the proof-of-concept stage. HFS assesses that the IoT narrative is shifting from connectivity and data collection toward measurable business outcomes, with providers broadening their transformation scope through industry-specific focus, strategic partnerships, and technologies such as Industry 4.0, 5G, and edge computing.

Research methodology

The report draws on HFS Pulse demand-side survey data covering roughly 600 service provider ratings, detailed vendor briefings, and reference checks with 13 active clients and 25 active partners of the 23 participating providers, conducted in 2024.

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