Billions of devices, trillions of dollars! Insurance, healthcare and consumer markets expected to see the fastest growth over the next five years.
Worldwide spending on the Internet of Things is expected to be $698.6 billion this year and grow at a 17% CAGR to nearly $1.3 trillion in 2019, according to the International Data Corporation (IDC).
At the moment, the Asia-Pacific region accounts for more than 40% of worldwide IoT spending, followed by North America and Western Europe. The APAC’s activity is being fueled by developing countries’ continuing technology investment needs, government investments incorporating more IoT components, and a burgeoning new consumer class spending more on smart goods and services.
However, the regions that will experience the fastest growth in IoT spending over the five years are Latin America (26.5% CAGR), followed by Western Europe, and Central and Eastern Europe.
While manufacturing and transportation led the world in IoT spending ($165.6 billion and $78.7 billion, respectively) in 2015, the insurance, healthcare and consumer verticals are projected to experience the fastest growth through 2020.
The IDC also points out some of the unique fastest growing use cases in each global region. Take North America, for example. The IoT is thriving thanks to retailers deploying in-store contextual marketing like beacons, real-time streams of data from mobile devices, online consumer activity, as well as video cameras to gain insight into behavior and trends.
In Asia-Pacific, vehicle-mounted devices are being employed to monitor driver behavior to determine insurance rates, whereas in EMEA, a great deal of money is being poured into smart buildings to automate maintenance and operations. Meanwhile in Latin America, the fastest growing IoT category is field service, where service data is automatically measured, recorded and transferred remotely for monitoring and use by technicians.
This report piggybacks off recent research from Gartner which estimated that by the end of 2016, 6.4 billion devices will be connected to the Internet with as many as 5.5 million new things joining every day. That number represents a 30% jump from 2015, and will continue rising to 20.8 billion by 2020.