The Asia/Pacific* region will be the global leader for Internet of Things (IoT) Spending in 2019 with around 35.7% of the WW spend, followed by United States of America and Western Europe with 27.3% and 21.2% of the WW IoT Spend in 2019 respectively. China is the top spender in the region with $168.6 Billion accounted for the year 2019 followed by South Korea and India with a spending of $26.2 Billion and $20.6 Billion in 2019 respectively.
IoT services is the largest technology group in 2019 with $94.6 billion going toward traditional IT and installation services as well as non-traditional device and operational services. Hardware spending is close behind at $91.6 billion led by more than $74.8 billion in module/sensor purchases. IoT software spending total $39.3 billion in 2019 and will see the fastest growth over the five-year forecast period (2018-23) with a CAGR of 14.4%. Services spending will also grow faster than overall IoT spending with a CAGR of 12.6%.
“In Asia/Pacific, there is considerable support and mandates from governments, such as PRC, South Korea, Taiwan, Hong Kong and Singapore, to promote the development of IoT across all major industries, particularly energy and resources, transportation, manufacturing, agriculture, government, healthcare, and retail. In PRC and Hong Kong, individual municipalities have embarked on Smart City zones oftentimes in cooperation with local universities and businesses,” says Ashutosh Bisht , Senior Research Manager at IDC Asia/Pacific. “Willingness towards the implementation of 5G infrastructure will help to accelerate IoT growth of applications that will benefit from low-latency and more bandwidth such as video-centric applications,” Bisht added.
The three commercial industries that will spend the most on IoT solutions throughout the forecast are Discrete Manufacturing, Process Manufacturing, and Utilities. Together, these three industries will account for nearly 40% of worldwide spend total in 2019. The primary IoT use case for the two manufacturing industries will be manufacturing operations and Production Asset Management while Utilities industry spending will largely go toward Smart Grid (Electricity). In Utilities, more than half of IoT spending will go toward smart grid(electricity), followed by smart grid(gas). The industries that will see the fastest compound annual growth rates (CAGR) over the five-year forecast period are Construction (15.0%), Telecommunication (14.2%) and Healthcare (13.6%).