IDC said global IoT spending will reach $745 billion this year
Internet of things spending in the United States is expected to reach $194 billion this year, according to a recent study by IDC.
China will be the second-largest market for IoT, with annual spending of $182 billion during the year, IDC said.
They will be followed by Japan ($65.4 billion), Germany ($35.5 billion), Korea ($25.7 billion), France ($25.6 billion), and the UK ($25.5 billion). The countries that will see the fastest IoT spending growth over the forecast period are all located in Latin America: Mexico (28.3% compound annual growth rate), Colombia (24.9% CAGR), and Chile (23.3% CAGR).
IDC highlighted that worldwide spending on the IoT is forecast to reach $745 billion this year, an increase of 15.4% over the $646 billion spent in 2018. IDC also expects that worldwide IoT spending will maintain a double-digit annual growth rate through 2022, when it will surpass the $1 trillion mark.
“Adoption of IoT is happening across industries, in governments, and in consumers’ daily lives. We are increasingly observing how data generated by connected devices is helping businesses run more efficiently, gain insight into business processes, and make real-time decisions. For consumers, access to data is changing how they are informed about the status of households, vehicles, and family members as well as their own health and fitness,” said Carrie MacGillivray, vice president, IoT and Mobility at IDC.
“The next chapter of IoT is just beginning as we see a shift from digitally enabling the physical to automating and augmenting the human experience with a connected world,”MacGillivray said.
The industries which are expected to spend the most on IoT solutions this year are discrete manufacturing ($119 billion), process manufacturing ($78 billion), transportation ($71 billion), and utilities ($61 billion). IoT spending among manufacturers will be largely focused on solutions that support manufacturing operations and production asset management, according to IDC. In transportation, more than half of IoT spending will go toward freight monitoring, followed by fleet management, IDC said.
IoT spending in the utilities industry will be mainly dominated by smart grids for electricity, gas, and water. The industries that will see the fastest CAGR over the five-year forecast period are insurance (17.1%), federal/central government (16.1%), and healthcare (15.4%).
Specific IoT use cases that are expected to deliver the fastest spending growth over the 2017-2022 forecast period are airport facility automation (transportation), electric vehicle charging (utilities), agriculture field monitoring (resource), bedside telemetry (healthcare), and in-store contextualized marketing (retail).
IDC also said that IoT software spending will total $154 billion in 2019 and will see the fastest growth over the five-year forecast period with a CAGR of 16.6%. Services spending will also grow faster than overall IoT spending, with a CAGR of 14.2%. IoT connectivity spending will total $83 billion in 2019.
