The world’s getting more connected. According to IDC, spending on the Internet of Things is set to increase by 15% over the next year, reaching $772.5 billion by the end of 2018.
And that rise is set to continue. IDC predicts that spending on the technology is set to grow at an annual rate of 14% till the end of 2020.
According to the research, published in IDC’s ) Worldwide Semi-annual Internet of Things Spending Guide, Most of that expenditure is going to go on hardware, with about $239 billion to be spend on modules and sensors, Services will be the second highest, followed by software and connectivity. However, the fastest rate of increase in the next four years will be software, with an annual increase of 16.1% - by 2021, spending on this sector will almost be equal to spending on hardware.
Industries expected to spend the most on IoT in the coming year are manufacturing ($189 billion), transportation ($85 billion), and utilities ($73 billion). There will also be $92 billion spent on cross-industry initiatives, such as connected vehicles and smart buildings.
It’s not just industry: there’s also set to be a rise in consumer IoT as more of us to look to connect devices at home. IDC estimates that $62 billion will be spent in 2018, on areas such as home automation, security, and smart appliances.
"By 2021, more than 55% of spending on IoT projects will be for software and services. Organizations indicate that software and services are the key areas of focused investment for their IoT projects," said Carrie MacGillivray, vice president, Internet of Things and Mobility at IDC. "Software creates the foundation upon which IoT applications and use cases can be realized. However, it is the services that help bring all the technology elements together to create a comprehensive solution that will benefit organizations and help them achieve a quicker time to value."