A new report by IDC projects spending on Internet of Things (IoT) devices, services and support will reach $745 billion in 2019, with industrial users leading the way.
Total spending on Internet of Things (IoT) implementations and support will increase 15.4 percent in 2019 to more than $745 billion, according to a new report by market analyst firm IDC. Most of the IoT investments and spending will go toward solutions that support manufacturing operations and asset management, as well as logistics and asset tracking.
The Lowdown: IoT spending continues to accelerate as more businesses — particularly in heavy industries such as manufacturing, utilities,
The Details: According to the new IDC Worldwide Semiannual Internet of Things Spending Guide, manufacturing sectors will dominate IoT investments. Of the $745 billion in projected spending, $119 billion will come from discrete manufacturing, $78 billion from process manufacturing, $71 billion from transportation and logistics, and $61 billion from utilities and smart-grid investments. Only $44 billion of IoT spending will come from consumer and smart home IoT sales.
More of the global IoT spending will happen in the United States and China, where investments will top $194 billion and $182 billion, respectively.
The Impact: IoT spending isn’t exclusively on devices. IDC says a significant amount of IoT spending will look like traditional IT investments in software, integration, and support. The IDC report indicates that $258 billion will go toward traditional IT product and installation services, much of which flows through the channel. Another $154 billion will go toward software and support. And $83 billion is slated for IoT connectivity services. About $200 billion of the IoT spending is earmarked for devices, sensors, and other hardware.
The Buzz: “Adoption of IoT is happening across industries, in governments, and in consumers’ daily lives,” said Carrie MacGillivray, vice president of Internet of Things and Mobility at IDC. “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.”
Channelnomics Point of View: While IoT is a high-growth opportunity for the overall IT industry, the channel remains somewhat behind in the trend. According to The 2112 Group’s 2018 Channel Forecast, less than 20 percent of solution providers saw IoT as a growth opportunity last year, although IoT topped the list of growth opportunities generating enthusiasm. Nevertheless, solution providers remain focused on traditional product and services opportunities rather than IoT.