MANILA — Worldwide spending on the Internet of Things is seen to grow at double digit clips in the next few years to hit $1.29 trillion in 2020 according to market research firm IDC.
According to IDC, organizations spending on IoT hardware, software, services, and connectivity will push annual growth rate of 15.6%, with last year’s spending expected at $737 billion.
The heavy hitters last year in terms of industries are topped by manufacturing ($178 billion), transportation ($78 billion), and utilities ($69 billion). Seen to come up in fourth place by 2020 is consumer IoT purchases, while the fastest spending growth areas will be in insurance, consumer, healthcare and retail.
“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, IDC research manager. “In some 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.”
In terms of verticals, hardware is expected to be the largest spending category followed by services, software, and connectivity. Modules and sensors, which connects end points to networks, will top hardware purchases while application software will corner over half of IoT software spending.