INDUSTRIES, governments, and consumers are the top drivers of the adoption of Internet of Things (IoT) in 2019.
As a result the spending on IoT worldwide is seen by the International Data Corporation (IDC) to rise to US$745 billion this year, which marks an increase of 15.4 percent compared to 2018’s spending of $646 billion.
IDC reported this on January 3 on the update to its Worldwide Semiannual Internet of Things Spending Guide.
IoT adoption taking place in industries, governments, consumers
The premier global provider of market intelligence, advisory services, and events for various markets “expects worldwide IoT spending will maintain a a double-digit annual growth rate throughout 2017-2022 forecast period and surpass the $1 trillion mark in 2022.”
And IoT adoption occurs in many where it drives efficiency, said Carrie MacGillivray, IDC vice president for Internet of Things and Mobility.
“Adoption of IoT is happening across industries, in governments, and in consumers’ daily lives. We are increasingly observing how data generated by connected devices is helping businesses run more efficiently, gain insights into business processes, and make real-time decisions.
“For consumers, access to data is changing how they are informed about the status of households, vehicles, and family members as well as their health and fitness,” she said.
MacGillivray noted that IoT’s next chapter is only starting as shown by a shift from digitally enabling the physical to automating and augmenting the human experience with a connected world.
IDC’s spending guide named the industries predicted to pour the most money on IoT solutions this year.
They are discrete manufacturing at $119 billion; process manufacturing, $78 billion; transportation, $71 billion; and utilities, $61 billion.
Home automation, smart appliances on the rise
On the manufacturers’ side, IDC said IoT spending will be more focused on solutions that support manufacturing operations and production cost management.
On the other hand, transportation points to more than half of IoT spending going to freight monitoring, then fleet management.
For utilities industry, they will spend on IoT largely by smart grids for electricity, gas, and water.
Meanwhile, insurance at 17.1 percent, federal/central government at 16.1 percent, and healthcare at 15.4 percent are the industries in 2019 to experience the fastest compound annual growth rates (CAGR) over the five-year forecast period.
Marcus Torchia, IDC research director for Customer Insights & Analysis, explained why consumer segment is seen to be the quickest in growth.
“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 smart home, personal wellness, and connected vehicle infotainment,” he said.
“Within smart home, home automation and smart appliances will both experience strong spending growth over the forecast period and will help to make consumer the fastest growing industry segment overall with a five-year CAGR of 17.8 percent.”
IDC’s spending guide identified the IoT use cases forecast to experience the greatest levels of investment this year to be 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),” IDC said.
Its guide forecasts that the United States ($194 billion) and China ($182 billion) in in IoT spending in 2019.
Coming in far behind are Japan ($65.4 billion), Germany ($35.5 billion), Korea ($25.7 billion), France ($25.6 billion), and the United Kingdom ($25.5 billion). (EKU)