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The Innovation as a Service model provides value-added activities associated with facilitating the development and commercialization of new technologies, products, services, and business models. It involves concept development, prototyping, product design and engineering, testing, pilot manufacturing, distribution and logistics support, training, and maintenance services. Companies can leverage their core strengths to focus on core business activities while outsourcing innovation needs to specialized third-party service providers.
The global Innovation as a Service Market is estimated to be valued at US$ 1.76 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the Innovation as a Service market is the growing demand for outsourcing of innovation needs. As companies find it difficult to focus on innovation along with core business functions, they are increasingly relying on external expertise and infrastructure to advance new technologies and business models. innovation as a service providers help reduce fixed costs and offer flexible support tailored to the client’s specific needs. They also provide access to a wider pool of skills and capabilities. This factor is expected to drive increased adoption of the IaaS model going forward. Another trend is the growing popularity of platforms that connect innovation seekers with solution providers. These platforms offer discovery and matching capabilities to efficiently facilitate innovation partnerships between different organizations.
Porter’s Analysis
Threat of new entrants: Low barriers to entry due to availability of technology and expertise. However, established players have strong brand equity and distribution networks.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and focus on cost-effectiveness. Buyers can negotiate on price and demand value-added services.
Bargaining power of suppliers: Technology providers and subject matter experts have moderate-to-high bargaining power due to specialized skills and scarcity of talent.
Threat of new substitutes: Threat from alternative solutions is moderate as organizations constantly seek newer methods to gain competitive advantage.
Competitive rivalry: Intense competition among existing players to gain market share through differentiation and innovation.
Key players: Key players operating in the Innovation as a Service market are Johnson & Johnson (DePuy Synthes), Medtronic plc, Stryker Corporation, Zimmer Biomet Holdings, Inc., Smith & Nephew plc, NuVasive, Inc., Globus Medical, Inc., Wright Medical Group N.V., Arthrex, Inc., DJO Global, Inc., Össur hf., CONMED Corporation, Breg, Inc., Orthofix Medical Inc., and Bioventus LLC. Key players are focusing on developing innovative service offerings and strategic collaborations to strengthen their market positions.
Key Takeaways
The global Innovation as a Service Market is expected to witness high growth. The global Innovation as a Service Market is estimated to be valued at US$ 1.76 Bn in 2023 and is expected to exhibit a CAGR of 17% over the forecast period 2023 to 2030.
The market in North America is projected to experience the fastest growth during the forecast period owing to focus on innovation-driven strategies, strong economic conditions, and presence of major innovation service providers in the US and Canada. The Asia Pacific market is anticipated to grow at a significant pace with expanding digital transformation programs across industries in major economies like China and India.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
