It’s a great time to be in IoT managed services as the global market is set to jump from $21.5 billion to $94.4 billion by 2026.

That’s according to a new report by Persistence Market Research, which expects a compound annual growth rate (CAGR) of more than 20 percent in terms of revenue.

The report identifies key players in the market, including such companies as Cisco, Oracle, IBM, Accenture, Microsoft, Honeywell and Google.

The factors driving the market are IoT adoption across the industry, an increase in the availability of managed cloud services, and an increase in government investments in projects such as smart cities. The high cost of infrastructure and services, however, as well as data security and privacy, and interoperability of connected devices are some of the major challenges that hamper market growth, according to the report.

In terms of services, IoT managed services is broken down into security management, network management, infrastructure management, device management and data management. The network segment is expected to lead the way through 2026, with a market share of more than 27 percent and nearly 30 percent in 2018 and 2026, respectively.

By vertical, the market is divided into manufacturing, automotive, health care, retail, IT and telecom, and others. Adoption of IoT managed services by manufacturing businesses is expected to skyrocket over the next several years, growing from $959 million this year to a whopping $23 billion in 2026.

In 2017, North America dominated the overall market, while the fastest-growing region was APAC. North America also is expected to hold a majority of the market share in 2026.