Internet of Things spending grew 17.9% in 2016
TweetFollow Us on Twitter

Internet of Things spending grew 17.9% in 2016

Internet of Things spending grew 17.9% in 2016
Worldwide spending on the Internet of Things (IoT) is forecast to have reached US$737 billion in 2016 as organizations invest in the hardware, software, services, and connectivity that enable the IoT. According to a new update by International Data Corporation (IDC), global IoT spending will experience a compound annual growth rate (CAGR) of 15.6% over the 2015-2020 forecast period, reaching $1.29 trillion in 2020.

According to the research group, the industries forecast to make the largest IoT investments in 2016 are manufacturing ($178 billion), transportation ($78 billion), and utilities ($69 billion). Consumer IoT purchases, the fourth largest market segment in 2016, will become the third largest segment by 2020. Meanwhile, Cross-Industry IoT investments, which represent use cases common to all industries, such as connected vehicles and smart buildings, will rank among the top segments throughout the five-year forecast. The industries that will see the fastest spending growth are insurance, consumer, healthcare, and retail, according to IDC.

Given manufacturing's position as the leading IoT industry, it's no surprise that manufacturing operations is the IoT use case that will see the largest investment ($102.5 billion) in 2016. Other IoT use cases being deployed in manufacturing include production asset management and maintenance and field service.

The second largest use case, freight monitoring ($55.9 billion), will drive much of the IoT spending in the transportation industry, according to IDC. In the utilities industry, combined investments in Smart Grid for electricity and gas will total $57.8 billion in 2016.

Smart Home investments by consumers will more than double over the forecast period, reaching more than $63 billion by 2020. In the Insurance industry, telematics will be the leading use case while remote health monitoring will see the greatest investment in the healthcare industry. Retail firms are already investing in a variety of use cases, including omni-channel operations and digital signage.

"A fairly close relationship exists between high growth IoT use cases in consumer product and service oriented verticals like retail, insurance, and healthcare," said Marcus Torchia, research manager, IoT, with IDC's Customer Insights and Analysis team. "In some cases, these are green field opportunities with tremendous room to run. In other verticals, like manufacturing and transportation, large market size and more moderate growth rate use cases characterize these verticals. As a whole, the IoT opportunity is a diverse developing market place for vendors and end users alike.”

From a technology perspective, hardware will remain the largest spending category throughout the forecast, followed by services, software, and connectivity. And while hardware spending will nearly double over the five-year timeframe, it represents the slowest growing IoT technology group. Software and services spending will both grow faster than hardware and connectivity.

IDC predicts that hardware spending will approach $400 billion by 2020. Modules and sensors, that connect end points to networks, will dominate hardware purchases, while application software will represent more than half of all IoT software investments.

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Latest Forum Discussions

See All

Combo Quest (Games)
Combo Quest 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Combo Quest is an epic, time tap role-playing adventure. In this unique masterpiece, you are a knight on a heroic quest to retrieve... | Read more »
Hero Emblems (Games)
Hero Emblems 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: ** 25% OFF for a limited time to celebrate the release ** ** Note for iPhone 6 user: If it doesn't run fullscreen on your device... | Read more »
Puzzle Blitz (Games)
Puzzle Blitz 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Puzzle Blitz is a frantic puzzle solving race against the clock! Solve as many puzzles as you can, before time runs out! You have... | Read more »
Sky Patrol (Games)
Sky Patrol 1.0.1 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0.1 (iTunes) Description: 'Strategic Twist On The Classic Shooter Genre' - Indie Game Mag... | Read more »
The Princess Bride - The Official Game...
The Princess Bride - The Official Game 1.1 Device: iOS Universal Category: Games Price: $3.99, Version: 1.1 (iTunes) Description: An epic game based on the beloved classic movie? Inconceivable! Play the world of The Princess Bride... | Read more »
Frozen Synapse (Games)
Frozen Synapse 1.0 Device: iOS iPhone Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Frozen Synapse is a multi-award-winning tactical game. (Full cross-play with desktop and tablet versions) 9/10 Edge 9/10 Eurogamer... | Read more »
Space Marshals (Games)
Space Marshals 1.0.1 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.1 (iTunes) Description: ### IMPORTANT ### Please note that iPhone 4 is not supported. Space Marshals is a Sci-fi Wild West adventure taking place... | Read more »
Battle Slimes (Games)
Battle Slimes 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: BATTLE SLIMES is a fun local multiplayer game. Control speedy & bouncy slime blobs as you compete with friends and family.... | Read more »
Spectrum - 3D Avenue (Games)
Spectrum - 3D Avenue 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: "Spectrum is a pretty cool take on twitchy/reaction-based gameplay with enough complexity and style to stand out from the... | Read more »
Drop Wizard (Games)
Drop Wizard 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Bring back the joy of arcade games! Drop Wizard is an action arcade game where you play as Teo, a wizard on a quest to save his... | Read more »

Price Scanner via MacPrices.net

Apple’s M4 Mac minis on sale for record-low p...
B&H Photo has M4 and M4 Pro Mac minis in stock and on sale right now for up to $150 off Apple’s MSRP, each including free 1-2 day shipping to most US addresses. Prices start at only $469: – M4... Read more
Deal Alert! Mac Studio with M4 Max CPU on sal...
B&H Photo has the standard-configuration Mac Studio model with Apple’s M4 Max CPU in stock today and on sale for $300 off MSRP, now $1699 (10-Core CPU and 32GB RAM/512GB SSD). B&H also... Read more

Jobs Board

All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.