Global spending for the Internet of Things (IoT) is expected to jump 15.4 percent this year to $745 billion from $646 billion in 2018.
Research firm International Data Corporation (IDC) also expects double-digit annual growth rates through 2022 and to surpass the $1-billion mark by then.
Big industry spenders year include: manufacturing operations ($100 billion), production asset management ($44.2 billion), smart home ($44.1 billion), and freight monitoring ($41.7 billion).
In the manufacturing sector, IoT spending will be largely focused on solutions that support manufacturing operations and production asset management, IDC said.
Meanwhile, in transportation, it is expected that more than half of IoT spending will go toward freight monitoring and fleet management. In the utilities industry, spending will be dominated by smart grids for electricity, gas, and water and industries.
However, the sectors that will see the fastest compound annual growth rates (CAGR) over the five-year forecast period are insurance (17.1 percent), federal/central government (16.1 percent), and healthcare (15.4 percent).
The research firm also see IoT use cases delivering the fastest spending growth in airport facility automation (transportation), electric vehicle charging (utilities), agriculture field monitoring (resource), bedside telemetry (healthcare), and in-store contextualized marketing (retail).
"Adoption of IoT is happening across industries, in governments, and in consumers' daily lives. We are increasingly observing how data generated by connected devices is helping businesses run more efficiently, gain insight into business processes, and make real-time decisions,” said Carrie MacGillivray, vice president, Internet of Things and Mobility at IDC.
On the consumer side, IDC forecasts IoT spending to reach $108 billion this year, making it the second largest industry segment, according to Marcus Torchia, research director, Customer Insights & Analysis.
“The leading consumer use cases will be related to the smart home, personal wellness, and connected vehicle infotainment," said Torchia. "Within smart home, home automation and smart appliances will both experience strong spending growth over the forecast period and will help to make consumer the fastest growing industry segment overall with a five-year CAGR of 17.8 percent."
Among countries, IDC predicts the United States and China to be the global leaders for IoT spending in 2019 at $194 billion and $182 billion respectively.
They will be followed by Japan ($65.4 billion), Germany ($35.5 billion), Korea ($25.7 billion), France ($25.6 billion), and the United Kingdom ($25.5 billion).
The countries that will see the fastest IoT spending growth over the forecast period are all located in Latin America: Mexico (28.3 percent CAGR), Colombia (24.9 percent CAGR), and Chile (23.3 percet CAGR).
IDC’s Worldwide Semiannual Internet of Things Spending Guide forecasts IoT spending for 14 technology categories and 82 named use cases across 20 industries in nine regions and 53 countries.