Skip to main content

American IoT Market Revenue will Reach $357 Billion

The progressive American companies have adopted the notion that there's real value in connecting their Things to the public Internet. International Data Corporation (IDC) forecasts that U.S. firms will invest more than $232 billion in the Internet of Things (IoT) hardware, software and services market in 2016.

Furthermore, IDC expects IoT revenues in the U.S. market will experience a compound annual growth rate (CAGR) of 16.1 percent over the 2015-2019 forecast period -- eventually reaching more than $357 billion in 2019.

According to the IDC assessment, the industries leading the way in U.S. IoT investments are Manufacturing and Transportation at $35.5 billion and $24.9 billion, respectively, in 2016.

U.S. IOT Market Development Momentum

However, cross-industry investment -- which represents use cases that are common to all industries -- will approach $31 billion this year. The IoT use cases receiving the greatest levels of investment from U.S. organizations across these three industry segments are:

Manufacturing Operations, which supports digitally-executed manufacturing, or how manufacturers use intelligent and interconnected I/O (input output) tools to enable the different components in the manufacturing field -- such as machine tools, robots, conveyor belts -- to autonomously exchange information, trigger actions and control each other independently.

Freight Monitoring, which uses radio frequency identification (RFID), global positioning system (GPS), GPRS, and GIS technologies to create an intelligent, Internet-connected transportation system. This system carries out the intelligent recognition, location, tracking and monitoring of freight and cargo through exchanging information and real-time communications via terrestrial wireless or satellite communication channels.

Smart Buildings, which utilize advanced automation and integration to measure, monitor, control, and optimize building operations and maintenance. The key concept is optimization – meaning the deployment of a set of integrated control systems capable of adapting in real time to both internal policies and external signals. These systems manage how building equipment operates to use energy in the most efficient and cost-effective way.

Looking across all U.S. industries, these three IoT use cases will receive the greatest levels of investment throughout the forecast period. And, the next three largest IoT use cases in terms of U.S. revenue will be Remote Health Management, Smart Grid (Electricity), and Smart Home.

Upside Opportunities for Exponential Growth

The IoT use cases that will experience the greatest revenue growth in the U.S. over the 2015-2019 forecast period are In-Store Contextualized Marketing, Connected Vehicles, and Insurance Telematics.

"A use case represents a detailed composition of a technology investment that is made to produce a set of end user benefits," said Marcus Torchia, research manager at IDC.

The long term opportunity for IoT vendors is helping to identify and create immediate and residual benefits for end users through their technologies. IDC analysts believe that there are already significant opportunities across many industries.

For example, in highly instrumented industries like manufacturing and transportation, large data sets are used to optimize operational processes and extend the life of high cost assets. In other sectors, such as healthcare and consumer, IoT technology is being used to produce benefits that improve quality of everyday life.

While Manufacturing and Transportation will lead the U.S. in terms of overall IoT investments, the Insurance, Retail, and Healthcare industries will see IoT spending levels increasing by 135 percent, 101 percent, and 96 percent, respectively, over the forecast period. In addition to driving some of the largest IoT investments, the Cross Industry segment will also see revenue growth of more than 100 percent through 2019.

Popular posts from this blog

Digital Transformation Investment at $3.4 Trillion

Business technology leadership matters. Across the globe, more leaders have been pursuing bold Digital Transformation (DX) initiatives with the goal of creating new sources of business value through digital products, services, and experiences. As an additional benefit, the COVID-19 pandemic revealed that digital transformation efforts improve an organization's resilience against global market disruptions. Global DX investment is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to the latest worldwide market study by International Data Corporation (IDC). Digital Transformation Market Development "Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust," said Craig Simpson, senior research manager at IDC . The benefits of investing in DX technology -- including aut

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p

How to Apply Sustainability to Drive Value Creation

Global climate change policy initiatives have been an emerging topic for CEOs and their leadership teams, as they look to the future. Many organizations are preparing to play their part and help reduce carbon emissions. Eighty-seven percent of business leaders expect to increase their organization’s investment in sustainability over the next two years, according to the latest worldwide market study by Gartner. Customers are the stakeholder group creating pressure for these organizations to invest or act on sustainability issues -- selected by 80 percent of executives, followed by investors (60 percent) and regulators (55 percent). Sustainability Market Development "Sustainability enables businesses to cope with disruption," said Kristin Moyer, VP analyst at Gartner . "Economic uncertainty, geopolitical conflict and escalating materials and energy costs are forcing businesses to reexamine all forms of expenditure." According to Gartner, this focus on essentialism --