IoT spending increases as strategies mature

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Apparently the Internet of Things (IoT) isn’t just a passing fad.

Global spending on IoT is expected to grow 16.7% year over year in 2017, reaching just over $800 billion. That’s according to technology research giant IDC in an update to its Worldwide Semiannual Internet of Things Spending Guide. By 2021, IDC says, enterprise spending on IoT hardware, software, services and network connectivity will nearly double to $1.4 trillion.

Manufacturers, by far, are the most aggressive investors in IoT technologies, spending $183 billion this year, more than twice the amount spent by the second-place industry, transportation ($85 billion). At $66 billion, the utility sector is third in 2017 spending on IoT.

So what exactly are these industries expecting of IoT?

In the case of manufacturers, the aim is to make operations more efficient; more than half of IoT spending by manufacturers this year ($105 billion) is targeted toward operations. And nearly 60% ($50 billion) of IoT spending by transportation companies is spent on monitoring freight delivery. Utilities, not surprisingly, are all about smart grids for electricity, gas and water, with 85% ($56 billion) of 2017 spending going toward smart technology that help utility operating margins.

While IoT use cases vary across industries, the main drivers remain fundamentally the same:

  1. Data generation, which can lead to greater insights, better decision-making and improved risk management
  2. Cost reductions through automation and more efficient processes

Further, enterprises in multiple sectors are adopting a more mature approach to IoT, according to Carrie MacGillivray, IDC vice president, Internet of Things and Mobility.

“The discussion about IoT has shifted away from the number of devices connected,” she said in a statement announcing the updated spending guide. “The true value of IoT is being realized when the software and services come together to enable the capture, interpretation and action on data produced by IoT endpoints.”

Is your enterprise benefiting yet from the Internet of Things?

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  3. […] Of course, similar to the rise of web applications, e-commerce, and most other technologies a lack of inherent security and privacy concerns within IoT devices are unlikely to slow adoption by either consumers or enterprises in any discernable way.  By 2021, IDC expects enterprise IoT spending to reach $1.4 trillion. Have a look at the post IoT spending increases as strategies mature. […]

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