Worldwide spending on the Internet of Things (IoT) will reach $698.6 billion this year, and grow at a 17% CAGR) to nearly $1.3 trillion in 2019, research firm IDC predicts.
Asia-Pacific is leading the way with more than 40% of the worldwide total coming from this region in 2015.
"The Asia-Pacific region’s robust IoT spending outlook builds on three dynamics: developing countries’ technology investment needs are not fully met with traditional IT, which is allowing IoT investments to accelerate; government investments in infrastructure development and local business modernization, in China, India and the Philippines for example, are incorporating more and more IoT elements; and a burgeoning new consumer class is accelerating expenditures in goods and services, including those with IoT components," said Marcus Torchia, Research Manager, Internet of Things.
From a vertical industry perspective, manufacturing and transportation led the way in worldwide IoT spending with 2015 totals of $165.6 billion and $78.7 billion, respectively.
"Manufacturing and transportation are both a good fit for IoT deployments," said Vernon Turner, Senior Vice President and IoT Research Fellow. "Both industries have been connecting their supply chains, products, customers, and even workers for some time now, and really embrace the value of business outcomes."
Over the next five years, however, the industries forecast to have the fastest IoT spending growth will be insurance (31.8% CAGR), healthcare, and consumer. The fast expanding consumer IoT market will be the third largest IoT spending category by the end of the forecast period.
In Asia-Pacific, IDC said insurance telematics is being used to monitor driver behavior through a vehicle-mounted device and the data is rapidly being employed as a means of determining insurance policies and rates.