The latest IDC Worldwide Semiannual Internet of Things Spending Guide estimates compound annual growth rate (CAGR) for IoT spending over the 2019-2023 forecast period will be 12.6%.
Carrie MacGillivray, group vice president, Internet of Things, 5G, and Mobility at IDC, says finding solutions to help manage, process and analyse the data generated from IoT as the next big challenge for organisations.
$726 billion industry – so what?!?
The three commercial industries that will spend the most on IoT solutions throughout the forecast are
IoT spending in the discrete manufacturing, process manufacturing, and transportation sectors, will account for a third of worldwide spend total in 2023. Manufacturers will use IoT mostly to improve or enhance operations whereas those in the transportation industry are looking at freight monitoring.
Smart home and connected vehicle use cases are the primary focus for those in the consumer sector – the second largest group of IoT spending. With a CAGR of 16.8%, the consumer market is poised to overtake discrete manufacturing in terms of IoT spending by 2023.
While it is understood that the cloud is direction where most IoT application and data will reside, the real excitement will be in the IoT platform software – middleware that provides the device management, connectivity management, data management, visualization, and applications enablement for connecting IoT endpoints. Budgets will go toward software packages that integrate and support devices, applications, data schemas, and standards of a single industry.
"The new Deployment Type segmentation in the IoT Spending Guide draws sharp lines that identify opportunities for software growth via public cloud services. Segmented at the deepest level, clients can now prioritize strategy planning at the region/country, industry, and use case levels," said Marcus Torchia, research director, Customer Insights & Analysis.