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An IDC spending guide projects the IoT industry will see a 17% CAGR in the period 2015–2019 to reach $1.3 trillion at the end of the timeframe. Asia/Pacific will dominate spending from a geographical point of view, accounting for 40% of the worldwide total in 2015. North America and Western Europe will take second and third place, accounting for $250 billion in combined spending during 2015. However, combined spending will witness the fastest growth in spending over the forecast period, trailed by Western Europe, and Central and Eastern Europe.
Marcus Torchia, Research Manager of the Internet of Things at IDC, said: “The Asia/Pacific region’s robust IoT spending outlook builds on three dynamics: developing countries’ technology investment needs which are not fully met with traditional IT, government investments of infrastructure development and local business modernization, and a burgeoning new consumer class is accelerating expenditures in goods and services.”
On the vertical front, manufacturing and transportation dominated worldwide IoT spending in 2015, totalling $165.6 billion and $78.7 billion respectively. However, during the forecast period, insurance (31.8% CAGR), healthcare, and consumer are set to be the fastest growing verticals.
Vernon Turner, Senior Vice President and IoT Research Fellow, said: “Manufacturing and Transportation are both a good fit for IoT deployments. Both industries have been connecting their supply chains, products, customers, and even workers for some time now and really embrace the value of business outcomes.”
Smart buildings are the fastest growing IoT category in Central & Eastern Europe and the Middle East & Africa, whereas maintenance & field service led growth in Latin America. In the Asia/Pacific region, insurance telematics is being utilized to track driver behaviour and to ascertain insurance policies and rates. In North America, in-store contextual marketing is seeing rapid adoption as retailers look to gain continuous, real-time streams of data from mobile devices such as online customer activity, in-store Wi-Fi routers/beacons, and video cameras used to garner insight into customer behaviour.
Additionally, connected vehicles were among the fastest growing use cases across five of the six geographic regions. This category includes emergency, infotainment, security, vehicle-to-vehicle (V2V), and vehicle-to-infrastructure (V2I) applications.
Do you agree with IDC’s projections for IoT spending? Let us know in the comments.
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