Skip to main content

IoT Deployment Revenue will Reach $1 Trillion in 2022

Worldwide spending on the Internet of Things (IoT) is forecast to pass the $1 trillion mark in 2022, reaching $1.1 trillion in 2023. The compound annual growth rate (CAGR) for IoT spending over the 2019-2023 forecast period will be 12.6 percent, according to the latest worldwide market study by International Data Corporation (IDC).

"Spending on IoT deployments continues with good momentum and is expected to be $726 billion worldwide this year," said Carrie MacGillivray, group vice president at IDC.

Internet of Things Market Development

While organizations are investing in hardware, software, and services to support their IoT initiatives, their next challenge is finding solutions that help them to manage, process, and analyze the huge amounts of data being generated from all these connected things.

The three commercial industries that will spend the most on IoT solutions throughout the forecast period are discrete manufacturing, process manufacturing, and transportation.

Together, these three industries will account for nearly a third of worldwide spend total in 2023. The primary IoT use case for the two manufacturing industries will be manufacturing operations while transportation industry spending will largely go toward freight monitoring.

The consumer market will be the second-largest source of IoT spending in 2019, led by smart home and connected vehicle use cases. With the fastest five-year growth rate across all industries (16.8 percent CAGR), the consumer market is forecast to overtake discrete manufacturing to become the largest source of IoT spending by 2023.

IoT services will be the largest technology category through the end of the forecast after overtaking hardware spending this year. Together, these two categories account for roughly two-thirds of all IoT applications spending.

Services spending goes toward traditional IT and installation services as well as ongoing services such as content as a service. Hardware spending is dominated by module or sensor purchases. Software will be the fastest growing technology category with a five-year CAGR of 15.3 percent with a focus on application and analytics software purchases.

According to the IDC assessment, two additional trends within the IoT software category include the dominance of vertical industry IoT platforms and the rise of cloud computing deployments for IoT software.

More than three-quarters of all spending on IoT platform software -- middleware that provides the device management, connectivity management, data management, visualization, and applications enablement for connecting IoT endpoints -- will go toward software packages that integrate and support devices, applications, data schemas, and standards of a single industry.

Outlook for IoT Applications Growth

And, organizations are increasingly deploying their IoT software, including applications, analytics software, and IoT platforms, to the public cloud. By the end of the forecast, nearly one-third of IoT software spending will go toward public cloud deployments, compared to less than 20 percent spent on cloud deployments in 2018.

The United States and China will account for roughly half of all IoT applications spending throughout the forecast, followed by Western Europe and Asia-Pacific (excluding Japan and China). The regions that will see the fastest IoT application spending growth are Latin America and the Middle East and Africa with CAGRs of 23.1 percent and 19.5 percent respectively.

Popular posts from this blog

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun

Secure Digital Workspace Apps Enable the Future Enterprise

In early 2020, as the world responded to the COVID-19 pandemic disruption, many organizations were forced to rapidly transform their communications networks and IT infrastructure to support an unprecedented shift to remote work. Before the pandemic, approximately 38 percent of employees were remote full-time or had a flexible work arrangement where they split time between home and office locations. During the pandemic, the percentage of remote workers that CIOs had to support reached almost 72 percent. Future Enterprise Technology Market Development Enterprise leaders have been forced to adapt to a new state, shifting from traditional office-based operations to distributed workforce environments that must still provide the same level of connectivity, security, and efficiency across the organization. According to the latest worldwide market study by International Data Corporation (IDC), addressing connectivity across geographies and transforming networks to become more virtual and agile