Spending on the Internet of Things will reach $745 billion worldwide in 2019, fuelled by manufacturing, transportation and utilities, according to new analysis from research firm IDC.
This is a 15.6% increase over the $646 billion spent globally in 2018. Furthermore, by 2022, IoT spending will surpass the $1 trillion mark, and will maintain double-digit growth from 2017 to 2022.
While consumer-related spending on IoT will amount to $108 billion, with most of that earmarked for smart home products and connected vehicle infotainment systems -- Apple's CarPlay or Google's Android Auto, for example -- the real money is in the industrial trio of manufacturing ($197 billion, split over discrete manufacturing, at $119 billion, and process manufacturing, at $78 billion), transportation ($71 billion) and utilities ($61 billion). In total, this amounts to $329 billion -- just under half of all IoT spending.
In terms of countries, the US and China lead the way on IoT spending, standing at $194 billion and $182 billion respectively. Japan follows in third, on $65.4 billion, while the UK is only in seventh, with IDC forecasting the country to spend $25.5 billion on IoT in 2019.
Carrie MacGillivray, vice president, Internet of Things and Mobility at IDC, notes: "Adoption of IoT is happening across industries, in governments, and in consumers' daily lives. We are increasingly observing how data generated by connected devices is helping businesses run more efficiently, gain insight into business processes, and make real-time decisions. For consumers, access to data is changing how they are informed about the status of households, vehicles, and family members as well as their own health and fitness."
"The next chapter of IoT is just beginning as we see a shift from digitally enabling the physical to automating and augmenting the human experience with a connected world."