The innovation as a service market comprises products and services that facilitate the development of new products, solutions and processes across various industry verticals. Some key offerings in this market include consulting, ideation & brainstorming, concept development & validation, intellectual property management and technology commercialization. With growing focus on reducing time-to-market and increasing ROI, many organizations are leveraging innovation as a service to accelerate innovation.

The Global Innovation as a Service Market is estimated to be valued at US$ 2.41 Bn in 2024 and is expected to exhibit a CAGR of 17. % over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the innovation as a service are Accenture, Deloitte, IBM, PwC,

Cognizant, Capgemini, Ernst and Young Global Limited, KPMG N.V., Wipro, HCL

Technologies Limited, Infosys Limited, Tech Mahindra Limited, TATA Consultancy Services Limited, Hitachi, Ltd. The growing demand for innovation from industries across different sectors has boosted the growth of innovation as a service market. Many companies are offering innovation as a service on a global scale to tap into overseas markets and enhance their footprint.

Innovation as a Service Market size is growing due to increasing digitalization and rapid technology evolutions, which have made the ability to innovate quickly a key competitive factor for businesses. Industries are increasingly adopting innovation as a service to leverage external expertise and resources for innovation. This is helping them reduce costs and focus internal capabilities on other strategic areas.

Market key trends

Democratization of innovation is a major trend in the innovation as a service market.

Platforms are being developed to engage a wider network of partners, including start-ups and communities, in the innovation process. This allows companies to crowd source ideas and cocreate with external experts. Such an approach facilitates exploration of unconventional and breakthrough ideas beyond the constraints of internal processes.

Porter’s Analysis

Threat of new entrants: New players may find it difficult to enter this market as it requires high capital investment and existing players have already established strong market position and brand name.

Threat of new substitutes: Threat of substitutes is moderate as newer digital technologies can offer alternative innovation approaches and workflows. However, complete substitution is difficult due to entrenched business processes, customer relationships and investments in existing innovation solutions.

Bargaining power of buyers: Innovation as a Service Market Challenges and Opportunities include buyers having high bargaining power due to the presence of many established players offering similar innovation services. Buyers can negotiate on price and switch between service providers easily.

Bargaining power of suppliers: Service providers have moderate bargaining power due to low switching costs and availability of alternative innovation solutions. However, some service providers with specialized expertise may have stronger position.

Competitive rivalry: The market has high competitive rivalry among major Players due to their strong global presence and capabilities in providing end-to-end innovation services. Players compete on parameters like pricing, service portfolios, domain expertise, experience and quality of services.

Geographical Regions

North America accounts for the largest share in the innovation as a service market in terms of value. Presence of major service providers and advanced technologies adopted by businesses for innovation drive the market growth in this region.

Asia Pacific is expected to witness fastest growth during the forecast period owing to increasing innovation spending by companies, emergence of startups and growing digitalization across industries in major countries like China and India. Rising economy, government initiatives for entrepreneurship, and availability of skilled workforce support the market expansion.

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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)