Global Internet of Things (IoT) spending is set to grow at a compound annual growth rate (CAGR) of 13.6% over the 2017-2022 forecast period and reach (USD) $1.2 trillion in 2022, according to IDC.
The findings come from the analysts worldwide semiannual Internet of Things spending guide, which forecasts IoT spending for 14 technologies across 20 vertical industries in nine regions and 53 countries through 100 use cases.
According to IDC, as the ‘diverse’ IoT market reaches a broad-based critical mass, innovative offerings in analytics software, cloud technologies, and business and IT services have expanded rapidly.
IDC group vice president for Internet of Things and Mobility Carrie MacGillivray says, “The IoT market is at a turning point – projects are moving from proof of concept into commercial deployments.
"Organisations 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."
IDC forecast highlights show that the consumer sector will lead IoT spending growth with a worldwide CAGR of 19%, followed closely by the insurance and healthcare provider industries.
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.
Looking at enterprise use cases, 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.
IDC says the intersection of multiple technology domains is one key to successfully understanding and developing a supply-side product and market development strategy for IoT.
IDC says its spending guide is designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today, and is now perfectly aligned with the Analyst’s taxonomy as it forecast all 20 standard IDC Industries.