The worldwide IoT spending will reach $745 billion in 2019, a 15.4 percent increase over the $646 billion spent in 2018, and surpass the $1 trillion mark in 2022, according to IDC’s latest forecast.
IDC’s report titled, “Worldwide Semiannual Internet of Things Spending Guide” further reveals that the IoT spending will maintain a double-digit annual growth rate throughout the 2017-2022 forecast period. The insurance industry will see the fastest compound annual growth rates (CAGR) over the five-years at 17.1 percent, followed by federal/central government (16.1 percent), and healthcare (15.4 percent).
In terms of technology, IoT services will be the largest category in 2019 with $258 billion going toward traditional IT and installation services as well as non-traditional device and operational services. Hardware spending will be close behind at $250 billion led by more than $200 billion in module/sensor purchases.
Meanwhile, IoT software spending will total $154 billion in 2019 and see the fastest growth over the five-year period with a CAGR of 16.6 percent. Services spending will also grow faster than overall IoT spending with a CAGR of 14.2 percent. IoT connectivity spending will total $83 billion in 2019.
The report also looks at IoT use cases and says the ones that will see the most investment in 2019 are driven by the industry spending leaders: manufacturing operations, production asset management, smart home, and freight monitoring.
The IoT use cases that are expected to deliver the fastest spending growth also 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).