Investment in the Internet of Things is set to jump signficiantly in the years ahead, according to a recent report from IDC, as more organizations connect devices wirelessly to the internet and use IoT for analytics to increase efficiency. Worldwide IoT spending reached $737 billion in 2016, the research firm found, as organizations invested in the hardware, software, services and connectivity that enable the IoT.
According to IDC, global IoT spending will experience a compound annual growth rate of 15.6 percent over the 2015-2020 forecast period, reaching $1.29 trillion in 2020.
The industries that IDC thinks made the largest IoT investments in 2016 were 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, IDC expects.
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 expected to b insurance, consumer, healthcare and retail.