The world is investing in more IoT. Source: Pexels

Should the APAC spend $291.7b on IoT this year?

HAVE you ever wondered about the benefits that the internet of things (IoT) can bring to companies? Of course, you have.

It’s the technology that puts companies in the customer’s office space and shop floor, allowing them to collect data extensively, even after a product has been sold and is with the end-user. For the first time ever.

As a result, companies across the world are excited and exploring how the technology can help their business and transform their business model.

This year alone, according to IDC, the APAC will spend about US$291.7 billion on the IoT.

China will account for 64.2 percent of the overall spending and is likely to maintain its dominance with a five-year compound annual growth rate (CAGR) of 12.8 percent during the forecast period (2017-22).

Adoption of IoT technology in other countries in the region are also steadily gaining ground, with Korea and India accounting for 9.8 percent and 8.8 percent share respectively of the overall technology spending in 2018.

Use cases for manufacturing operations represent the biggest share of overall technology spending, at 17.7 percent, with production asset management touching 5.8 percent, are largely driven by the adoption of industry 4.0 approaches.

Freight monitoring has the second highest use case with 8 percent share of spending.

Over the forecast period (2017-22), according to IDC, connected vehicles will register exceptional increase with a five-year CAGR of 33.8 percent.

According to IDC’s forecasts, IoT services is expected to be the market’s largest technology group with 28.9 percent share, accounting for US$84.1 billion this year.

Hugh Ujhazy, Associate Vice President, IDC Asia/Pacific said:

“In terms of market size by 2022, the top five industries driving IoT spending will be consumer, discrete manufacturing, process manufacturing, transportation and utilities with a combined share of 60 percent of the total spending in APeJ.

“The top five fastest growing industries, however, will be consumer, construction, healthcare provider, insurance, and retail. Connectivity will account for 20 percent of total spending in 2022, while services and software combined will account for 56.1 percent of total spending in 2022.”