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IoT spend set for massive increase

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In a new update to the Worldwide Semiannual Internet of Things Spending Guide, the IDC forecasts that US organisations will invest more than $232-billion in Internet of Things (IoT) hardware, software, services, and connectivity this year.
And IDC expects US IoT revenues will experience a compound annual growth rate (CAGR) of 16,1% over the 2015-2019 forecast period, reaching more than $357-billion in 2019.
The industries leading the way in US IoT investments are Manufacturing and Transportation at $35,5-billion and $24,9-billion, respectively, in 2016.
However, Cross-Industry investment, which represents use cases common to all industries, will approach $31-billion this year.
The IoT use cases receiving the greatest levels of investment from US organisations across these three industry segments are manufacturing operations, freight monitoring and smart buildings.
The next three largest IoT use cases in terms of US revenue will be Remote Health Management, Smart Grid (Electricity), and Smart Home. The IoT use cases that will experience the greatest revenue growth in the US over the 2015-2019 forecast period are In-Store Contextualised Marketing, Connected Vehicles, and Insurance Telematics.
“A use case represents a detailed composition of a technology investment that is made to produce a set of end user benefits,” says Marcus Torchia, research manager: IoT for IDC’s customer insights and analysis team.
“The long term opportunity for IoT vendors is helping to identify and create immediate and residual benefits for end users through their technologies.
“We see strong opportunities across many industries. For example, in highly instrumented verticals like manufacturing and transportation, large data sets are used to optimize operational processes and extend the life of high capital cost assets.
“In other sectors like healthcare and consumer, IoT technology is being used to produce benefits that improve quality of life.”