Global Technology Spending On IoT To Touch $1.2 Tn By 2022

Technology spending on IoT or the Internet of Things on a global scale is expected to increase significantly in the coming years and could touch $1.2 trillion in next five years, a freshly out IDC forecast report suggests.

The report, named Worldwide Semiannual Internet of Things Spending Guide, says the Internet of Things (IoT) spending will experience a compound annual growth rate (CAGR) of 13.6% over the 2017-2022 forecast period and reach $1.2 trillion in 2022.

The forecast is based on the latest research in the burgeoning IoT technology market, which offers business investment opportunities across a spectrum of industries and illuminated through use case implementations.

“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. “Organizations 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 forecast report says that the consumer sector will lead the technology spending on IoT with a worldwide CAGR of 19%, followed closely by the insurance and healthcare provider industries with a CAGR of 17.5%.

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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 intersection of multiple technology domains is one key to successfully understanding and developing a supply-side product and market development strategy. 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.

“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.”

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