IDC’s latest Worldwide Semiannual Internet of Things (IoT) Spending Guide predicts the global spending on the IoT will surpass the $1 trillion (£790bn) mark in 2022 and will reach $1.1 trillion (£869b) in 2023, at a CAGR of 12.6% on a year-over-year basis.
Carrie MacGillivray, group VP of IoT, 5G, and mobility at IDC, said: “Spending on IoT deployments continues with good momentum and is expected to be $726b (£573b) worldwide this year. While organisations are investing in hardware, software, and services to support their IoT initiatives, their next challenge is finding solutions that help them to manage, process, and analyse the data being generated from all these connected things.”
According to the report, discrete manufacturing, process manufacturing, and transportation will be the three commercial industries that will be spending most on IoT solutions throughout the forecast period. These industries, together, is said to be responsible for nearly one third of the global spending. For the two manufacturing industries, IoT will be majorly used for manufacturing operations whereas the transportation industry will use the technology mainly for freight monitoring.
Moreover, the consumer market will be the second largest category spending on IoT in 2019, will be led by smart home, and connected vehicle use cases. The consumer market is projected to outdo discrete manufacturing in order to become the largest source of IoT spending by 2023, which will be the fastest growth rate across all industries (16.8% CAGR).
The same report that IDC published in February had predicted the APAC region, excluding Japan (APEJ), would be spending approximately 36.9%, making it the highest spender in the world on IoT in 2019. Following APEJ will be the US and Western Europe with 26.1% of the WW IoT spend in 2019, respectively.