Published in IoT

Internet of Things to hit $1.3 trillion in 2019

by on15 December 2015


IDC’s latest prediction not taking the Pythia

The Augers, Soothsayers and Pythoness department of IDC has been chewing laurel leaves and sitting over volcanic cracks to receive oracles about the Internet of Things.

Speaking in iambic hexameter, the department prophesised that the worldwide spending on the Internet of Things (IoT) will grow at a 17 per cent a year from $698.6 billion in 2015 to nearly $1.3 trillion in 2019.

The growth will be most noticed in the Asia Pacific region with more than 40 per cent of the worldwide total coming from this region in 2015. North America and Western Europe are the second and third largest regions with combined spending of more than $250 billion in 2015. The regions that will experience the fastest growth in IoT spending over the five-year forecast period are Latin America followed by Western Europe, and central and Eastern Europe.

Marcus Torchia, IDC’s research and auspices manager said that the Asia Pacific region's growth was due to the fact that developing countries' technology investment needs are not fully met with traditional IT. As a result China, India and the Philippines were incorporating more and more IoT elements; and a burgeoning new consumer class is accelerating expenditures in goods and services, including those with IoT components.

From a vertical industry perspective, manufacturing and transportation led the way in worldwide IoT spending with 2015 totals of $165.6 billion and $78.7 billion, respectively. Over the next five years, the industries forecast to have the fastest IoT spending growth will be insurance, healthcare, and consumer. The fast expanding consumer IoT market will be the third largest IoT spending category by the end of the forecast period.

IDC added that in central & eastern Europe (CEE) and the Middle East & Africa (MEA), the fastest growing IoT category is smart buildings, where IoT technology that utilizes advanced automation and integration is being used to measure, monitor, control, and optimize building operations and maintenance.

In Latin America, the fastest growing IoT category is maintenance and field service, where service data is automatically measured, recorded, and transferred remotely from the field for monitoring and use by technicians.

Last modified on 15 December 2015
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