By Emmanuel Elebeke
AN update to the International Data Corporation, IDC, Worldwide semi annual Internet of Things Spending Guide, forecasts worldwide spending on the Internet of Things (IoT) to grow by 16.7 percent year over year in 2017, reaching just over $800 billion.
The forecast shows that by 2021, global IoT spending is expected to total nearly $1.4 trillion as organizations continue to invest in the hardware, software, services, and connectivity that enable the IoT.
Vice President, Internet of Things and Mobility at IDC, Carrie MacGillivray, said the discussion about IoT has shifted away from the number of devices connected. “The true value of IoT is being realized when software and services come together to enable the capture, interpretation and action on data produced by IoT endpoints. With our Worldwide IoT Spending Guide, IDC provides insight into key use cases where investment is being made to achieve the business value and transformation promised by IoT,” he added.
IoT use cases that are expected to attract the largest investments in 2017 include; manufacturing operations, $105 billion, freight monitoring, $50 billion and production asset management, $45 billion. The report further indicated that smart grid technologies for electricity, gas and water, as well as smart building technologies, are also forecast to see significant investments this year to the tune of $56 billion and $40 billion, respectively.
While these use cases will remain the largest areas of IoT spending in 2021, smart home technologies are forecast to experience strong growth, 19.8 percent CAGR over the five-year forecast. “The use cases that will see the fastest spending growth are airport facilities automation, 33.4 percent CAGR, electric vehicle charging, 21.1% CAGR and in-store contextual marketing 20.2 percent CAGR,” the report stated.