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IDC IoT forecast is out. It states global spending on the Internet of Things (IoT) may reach US $745 billion in 2019, an increase of 15.4 per cent over the $646 billion spent in 2018.
The update to the International Data Corporation (IDC) Worldwide Semiannual Internet of Things Spending Guide, said worldwide IoT spending will maintain a double-digit annual growth rate throughout the 2017-2022 forecast period and surpass the $1 trillion mark in 2022.
According to Carrie MacGillivray, Vice-president, Internet of Things and Mobility at IDC, the adoption of IoT was happening across industries, in governments, and in consumers’ daily lives. The next chapter of IoT was just beginning as we see a shift from digitally enabling the physical to automating and augmenting the human experience with a connected world.
IDC IoT forecast the industries that were probably slotted to spend the most on IoT solutions in 2019 were:
- discrete manufacturing ($119 billion)
- process manufacturing ($78 billion)
- transportation ($71 billion)
- utilities ($61 billion)
IoT spending among manufacturers will be largely focused on solutions that support manufacturing operations and production asset management.
In transportation, the IDC IoT forecast said more than half of IoT spending will go toward freight monitoring, followed by fleet management. IoT spending in the utilities industry will be dominated by smart grids for electricity, gas, and water. The industries that will see the fastest compound annual growth rates (CAGR) over the five year forecast period were insurance (17.1 pc), federal/central government (16.1 pc), and healthcare (15.4 pc).
“Consumer IoT spending will reach $108 billion in 2019, making it the second largest industry segment. The leading consumer use cases will be related to the smart home, personal wellness, and connected vehicle infotainment,” said Marcus Torchia, research director, Customer Insights & Analysis.
The IoT use cases that will see the greatest levels of investment in 2019 are driven by the industry spending leaders: manufacturing operations ($100 billion), production asset management ($44.2 billion), smart home ($44.1 billion), and freight monitoring ($41.7 billion). The IoT use cases that are expected to deliver the fastest spending growth over the 2017-2022 forecast period provide a picture of where other industries are making their IoT investments. These include airport facility automation (transportation), electric vehicle charging (utilities), agriculture field monitoring (resource), bedside telemetry (healthcare), and in-store contextualized marketing (retail).
According to the IDC IoT forecast, the United States and China will be the global leaders for IoT spending in 2019 at $194 billion and $182 billion respectively. They will be followed by Japan ($65.4 billion), Germany ($35.5 billion), Korea ($25.7 billion), France ($25.6 billion), and the United Kingdom ($25.5 billion). The countries that will see the fastest IoT spending growth over the forecast period are all located in Latin America: Mexico, Colombia and Chile.
The Worldwide Semiannual Internet of Things Spending Guide forecasts IoT spending for 14 technology categories and 82 named use cases across 20 industries in nine regions and 53 countries.