Global IoT tech spending to reach $1.2 trillion in 2022

IDC forecasts IoT spending will experience a compound annual growth rate (CAGR) of 13.6% over the 2017-2022 forecast period and reach $1.2 trillion in 2022. The forecast is based on the latest research in the burgeoning IoT technology market, which offers business investment opportunities across a spectrum of industries and illuminated through use case implementations.

As the diverse IoT market reaches broad-based critical mass, innovative offerings in analytics software, cloud technologies, and business and IT services have expanded rapidly. “The IoT market is at a turning point – projects are moving from proof of concept into commercial deployments,” said Carrie MacGillivray, group vice president, Internet of Things and Mobility. “Organizations are looking to extend their investment as they scale their projects, driving spending for the hardware, software, services, and connectivity required to enable IoT solutions.”

The intersection of multiple technology domains is one key to successfully understanding and developing a supply-side product and market development strategy. “We are proactively mapping IoT use cases that have segmentations in shared domains, such as in smart cities and digital transformation investment areas. As a part of these improvements, IoT supports spending forecasts for 100 use cases,” said Marcus Torchia, research director, Customer Insights & Analysis.

Forecast highlights show that the consumer sector will lead IoT spending growth with a worldwide CAGR of 19%, followed closely by the insurance and healthcare provider industries.

From a total spending perspective, discrete manufacturing and transportation will each exceed $150 billion in spending in 2022, making these the two largest industries for IoT spending.

From an enterprise use case perspective, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) solutions will experience the fastest spending growth (29% CAGR) over the forecast period, followed by traffic management and connected vehicle security.