A report by the International Data Corporation (IDC) released today has forecast worldwide spending on Internet of Things (IoT) technologies will reach US $1.2 trillion in 2022, growing at a compound annual rate of 13.6 per cent over the 2017-2022 forecast period.
In its publication of the latest Worldwide Semiannual Internet of Things Spending Guide (version 2H17), the agency has said the forecast was based on the latest research in the burgeoning IoT technology market. “The IoT market is at a turning point – projects are moving from proof of concept into commercial deployments,” said Carrie MacGillivray, Group Vice President, Internet of Things and Mobility. “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 IDC IoT Spending Guide is an industry defining market intelligence tool that details end-user adoption and spending across multiple segmentations, said IDC. “The latest IoT Spending Guide release fully aligns to IDC’s Industry Taxonomy. We now forecast all 20 standard IDC Industries,” said Marcus Torchia, research director, Customer Insights & Analysis. “As a result, 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, IoT supports spending forecasts for 100 use cases.”
From a total spending perspective, discrete manufacturing and transportation will each exceed $150 billion in spending in 2022, making these the two largest industries for IoT spending. From an enterprise use case perspective, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) solutions will experience the fastest spending growth (29% CAGR) over the forecast period, followed by traffic management and connected vehicle security.
The Worldwide Semiannual Internet of Things Spending Guide forecasts IoT spending for 14 technologies across 20 vertical industries in nine regions and 53 countries through 100 use cases. Unlike any other research in the industry, this comprehensive spending guide was designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today.