The consumer sector will lead IoT spending followed by insurance and healthcare
Global internet of things (IoT) spending will experience a compound annual growth rate of 13.6% between 2017-2022 and reach $1.2 trillion in 2022, according to a recent study by research firm IDC.
“The IoT market is at a turning point – projects are moving from proof-of-concept into commercial deployments,” said Carrie MacGillivray, group vice president for IoT and mobility at IDC. “Organizations are looking to extend their investment as they scale their projects, driving spending for the hardware, software, services, and connectivity required to enable IoT solutions.”
According to the IDC report, the consumer sector will lead IoT spending growth with a worldwide CAGR of 19%, followed closely by the insurance industry, with a CAGR of 17.5% and healthcare providers with a CAGR of 16.9%.
From a total spending perspective, manufacturing and transportation will each exceed $150 billion in spending in 2022, making these the two largest industries for IoT spending. From an enterprise use case perspective, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) solutions will experience the fastest spending growth (29% CAGR) over the forecast period, followed by traffic management and connected vehicle security, according to the study.
Global IoT platform market to generate revenues of almost $5 billion in 2022
In related news, the global market for IoT device management and application enablement platforms reached $1.1 billion in 2017, according to a recent study by Swedish IoT analyst firm Berg Insight.
Growing at a CAGR of 36.2%, the total market value is expected to reach $4.9 billion in 2022.
IoT platforms provide middleware to connect and manage devices and integrate collected data into various applications and services. These platforms are intended to reduce the cost and development time for IoT solutions by providing standardized components that enterprises can build upon. The IoT platform market is notably crowded and hosts a multitude of players spanning from small start-ups to major companies in the technology and industrial sectors, Berg Insights said.
These companies have developed offerings that typically have a specific focus on a set of capabilities, often related to their core businesses. GE and PTC currently lead the effort of promoting IoT in the industrial sector on a broader scale. Software AG’s Cumulocity IoT business and the wireless IoT module vendor Telit have also built strong positions in the industrial sector, the research firm said.
Additional providers with high involvement in the industrial sector include Bosch, IBM, SAP, Oracle, Exosite, Device Insight and Altair Engineering.
“The involvement of the cloud infrastructure providers will over time lead to commoditization of some services currently offered by vendors in the IoT platform market and result in further specialisation of IoT platform providers”, said Fredrik Stalbrand, IoT analyst for Berg Insight.
Berg Insight’s report also highlighted that merger and acquisition activity has risen sharply in recent time and the market has now entered a consolidation phase. “Some level of fragmentation in the market is expected to remain due to lack of standards, but also due to specific requirements in industries characterized by mission-critical applications such as automotive, healthcare and manufacturing, as well as in the critical infrastructure industries,” Stalbrand added.
