Internet of Things (IoT) spending is expected to grow at 14.6 percent to $772.5 billion in 2018 from $674 billion in 2017 – led by manufacturing sector and China, according to IDC.
IDC predicts India IoT market to reach $34 billion by 2021, according to a CIO survey. While IDC gave country specific information on top countries for 2018, the report did not give any indication on Indian IoT for the next year.
“Businesses have realized the value of working closely among all the stakeholders for IoT. Over 70 percent of IoT deployment involves stakeholders from multiple departments including IT, business and other decision makers; thus, requiring a holistic approach to creating and sustaining the value from IoT projects,” said Arjun Vishwanathan, associate director, Emerging Technologies at IDC India.
IDC said the worldwide IoT spending will achieve a compound annual growth rate (CAGR) of 14.4 percent through the 2017-2021 forecast period surpassing the $1 trillion mark in 2020 and reaching $1.1 trillion in 2021.
Spending on IoT hardware will be $239 billion in 2018 mainly on modules and sensors along with some spending on infrastructure and security.
Spending on IoT services will be the second largest technology category, followed by software and connectivity. Services spending will also grow at a faster rate than overall spending with a CAGR of 15.1 percent and will nearly equal hardware spending by the end of the forecast.
IoT software spending will be led by application software along with analytics software, IoT platforms, and security software. Software will also be the fastest growing technology segment with a five-year CAGR of 16.1 percent.
“By 2021, more than 55 percent of spending on IoT projects will be for software and services. This is directly in line with results from IDC’s 2017 Global IoT Decision Maker Survey where organizations indicate that software and services are the key areas of focused investment for their IoT projects,” said Carrie MacGillivray, vice president, Internet of Things and Mobility at IDC.
Manufacturing sector’s IoT spending will be $189 billion next year. IDC said IoT spending among manufacturers will be largely focused on solutions that support manufacturing operations and production asset management.
Transportation will be spending $85 billion on IoT. Transportation segment will keep two thirds of IoT spending toward freight monitoring, followed by fleet management.
Utilities will be spending $73 billion on IoT. IoT spending in the utilities industry will be dominated by smart grids for electricity, gas, and water.
Cross-Industry IoT spending, which represent use cases common to all industries, such as connected vehicles and smart buildings, will be nearly $92 billion in 2018 and rank among the top areas of spending throughout the five-year forecast.
Consumer IoT spending will reach $62 billion in 2018, making it the fourth largest industry segment.
Asia Pacific excluding Japan will be spending $312 billion on IoT.
North America including the United States and Canada will be spending $203 billion on IoT.
Europe, the Middle East, and Africa (EMEA) will be spending $171 billion on IoT.
China will be spending $209 billion on IoT, driven by investments from manufacturing, utilities, and government.
United States will be spending $194 billion for IoT in 2018, led by manufacturing, transportation, and the consumer segment.
Japan will be spending $68 billion on IoT.
Korea will be spending $29 billion on IoT — driven by the manufacturing industry.
Latin America will deliver the fastest overall growth in IoT spending with a five-year CAGR of 28.3 percent.