IoT market to reach $1.29 trillion by 2020: IDC
Worldwide spending on the internet of things (IoT) will reach $1.29tn by 2020, a year-on-year growth rate of 15.6% over the 2015-2020 forecast period, according to a forecast from IDC. The market research company predicts that although spending on hardware, will approach $400bn by 2020, more innovation is expected in the development of software and services. Although the fastest growth in spending will come from the insurance, consumer, healthcare and retail industries, the manufacturing industry is expected to invest the largest amount in the IoT.
Research

Internet of Things Spending to Reach $1.29 Trillion by 2020

A new forecast from International Data Corp. estimates that the total worldwide spending on the Internet of Things (IoT) will reach $1.29 trillion by 2020. According to the market research firm's Worldwide Semiannual Internet of Things Spending Guide, that represents a compound annual growth rate of 15.6 percent over the 2015-2020 forecast period.

Much of that spend will go toward hardware — the largest spending category throughout the forecast, followed by services, software and connectivity, according to IDC. The company predicts that hardware spending will approach $400 billion by 2020; modules and sensors that connect endpoints to networks will represent the bulk of hardware purchases. On the other hand, IDC said, hardware will be the slowest growing IoT technology category, beaten out by software and services.

IDC points to manufacturing as the industry expected to make the largest investment in the IoT; the fastest spending growth will come out of the insurance, consumer, healthcare and retail industries. In addition, "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," said the firm in a press release.

"A fairly close relationship exists between high-growth IoT use cases in consumer product and service oriented verticals like retail, insurance, and healthcare," said Marcus Torchia, an IDC research manager for IoT, in a statement. "In some cases, these are green field opportunities with tremendous room to run. In other verticals, like manufacturing and transportation, large market size and more moderate growth rate use cases characterize these verticals. As a whole, the IoT opportunity is a diverse developing marketplace for vendors and end users alike."

For more information on the Worldwide Semiannual Internet of Things Spending Guide, visit the IDC site.