Skip to main content

IoT Technology Spending will Reach $1.2 Trillion in 2022

Across the globe, more CIOs and CTOs are exploring new applications for internet-related technologies. As a result, mobile network service providers continue to make infrastructure investments to support the growing demand. Global IT vendors are also developing new product offerings.

International Data Corporation (IDC) announced that Internet of Things (IoT) technology spending will experience a compound annual growth rate (CAGR) of 13.6 percent over the 2017-2022 forecast period and reach $1.2 trillion in 2022.

The forecast is based on the latest worldwide research in the burgeoning IoT technology and associated applications market, which offers business investment opportunities across a spectrum of industries and illuminated through new use case implementations.

IoT Applications Market Development

As the diverse IoT market reaches broad-based critical mass, innovative offerings in analytics software, cloud computing technologies, business and IT services have expanded rapidly.

"The IoT market is at a turning point -- projects are moving from proof of concept into commercial deployments," said Carrie MacGillivray, group vice president at IDC. "Organizations 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."

According to the IDC assessment, the intersection of multiple technology domains is one key to successfully understanding and developing a supply-side product and market development strategy.


The latest IoT Spending Guide release fully aligns to IDC's Industry Taxonomy. IDC analysts are proactively mapping IoT use cases that have segmentations in shared domains, such as in Smart Cities and Digital Transformation investment areas. As a part of these improvements, IoT supports spending forecasts for 100 use cases.

Forecast highlights show that the consumer sector will lead IoT spending growth with a worldwide CAGR of 19 percent, followed closely by the insurance and healthcare provider industries.

Outlook for IoT Applications and Use Cases

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 applications spending.

From an enterprise use case perspective, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) solutions will experience the fastest spending growth (29 percent CAGR) over the forecast period, followed by traffic management and connected vehicle security.

Popular posts from this blog

Think Global, Pay Local: The eCommerce Paradox

The world of eCommerce payments has evolved. As we look toward the latter half of this decade, we're witnessing a transformation in how digital commerce operates, with a clear shift toward localized payment solutions within a global marketplace. The numbers tell a compelling story. According to Juniper Research's latest analysis, global eCommerce transactions are set to reach $11.4 trillion by 2029, marking a 63 percent increase from $7 trillion in 2024. This growth isn't just about volume – it's about fundamental changes in how people pay for goods and services online. Perhaps most striking is the projected dominance of Alternative Payment Methods (APMs), which are expected to account for 69 percent of global transactions by 2029, with 360 billion transactions processed through these channels. eCommerce Payments Market Development What makes this shift particularly interesting is how it reflects the democratization of digital commerce. Traditional card-based systems ar...