IDC has announced that it expects to see worldwide spending on the Internet of Things to reach $1 trillion in 2022 and $1.1 trillion in 2023. It said discrete manufacturing, process manufacturing, and transportation were the three biggest commercial industries that will be spending on IoT solutions in 2023, together making nearly a third of all IoT spend.
The largest source of IoT spending by 2023, though, is expected to be the consumer market. At the moment, it’s the second largest source of spending but the growth rate is expected to rapidly increase. IDC revealed that smart home devices were leading in the consumer market with connected vehicles coming in second.
Discussing the findings, Carrie MacGillivray, group vice president, Internet of Things, 5G, and Mobility at IDC, said:
“Spending on IoT deployments continues with good momentum and is expected to be $726 billion worldwide this year. 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 data being generated from all these connected things.”
Unsurprisingly, the biggest IoT spenders will be the world’s biggest economies, the United States, and China; these will make up roughly half of all spending throughout the forecast. They will be followed by Western Europe and the Asia Pacific region excluding Japan and China. The fastest growth in spending will be observed in Latin America, the Middle East, and Africa. These developments will occur to the backdrop of sluggish smartphone sale growth, and massive spend on 5G.