NEWSBYTE Internet of Things (IoT) spending will hit $1.2 trillion by 2022, according to a new report.
Analyst firm IDC has announced the findings its latest Worldwide Semiannual Internet of Things Spending Guide.
The report forecasts that IoT spending will experience a compound annual growth rate (CAGR) of 13.6 percent over the next five years, to reach a worldwide total of $1.2 trillion.
Other forecast highlights show that the consumer sector will lead IoT spending growth, with a worldwide CAGR of 19 percent, followed closely by the insurance and healthcare provider industries.
From a total spending perspective, discrete manufacturing and transportation will each exceed $150 billion in IoT spending by 2022, making these the two largest sectors for IoT spending overall.
However, from an enterprise use case perspective, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) solutions will experience the fastest spending increases – 29 percent CAGR – over the forecast period, followed by traffic management and connected vehicle security.
As the diverse IoT market reaches broad-based critical mass, innovative offerings in analytics software, cloud technologies, and business and IT services have expanded rapidly, says the report.
“The IoT market is at a turning point: projects are moving from proof of concept to commercial deployments,” explained Carrie MacGillivray, group vice president, Internet of Things and mobility, at the analyst company.
“Organisations are looking to extend their investment as they scale their projects, driving spending for the hardware, software, services, and connectivity required to enable IoT solutions.”
The intersection of multiple technology domains is key to understanding and developing a supply-side product and market development strategy, says the report.
Marcus Torchia, research director, Customer Insights & Analysis, added: “We are proactively mapping IoT use cases that have segmentations in shared domains, such as in smart cities and digital transformation investment areas. As a part of these improvements, the IoT supports spending forecasts for 100 different use cases.”
Internet of Business says
While the spending forecast is impressive, the real key with IoT deployments is whether they add real value to society, cities, citizens, and organisations. Nonetheless, the finding that transport is at the centre of this revolution, alongside manufacturing, echoes Internet of Business’ own informal findings, with connected transport and vehicles being a strong theme in 2018, alongside security and healthcare.
However, it’s interesting to contrast the report with an earlier IDC finding: a year ago, the analyst company forecast IoT spending would hit $1.4 trillion by 2021, so this latest report reveals that predictions are subject to constant adjustment and reassessment.