Jan 12 2017

IDC: IoT Spending to Jump to $1.29 Trillion in 2020

The manufacturing, transportation and utilities segments are investing the most in the Internet of Things, according to the research firm.

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.