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INTERNATIONAL Data Corporation forecasts spending on Internet of Things to reach nearly US$1.3 trillion in 2019, led by widespread initiatives and outlays, especially across the Asia Pacific region.
IDC indicates worldwide spending on the Internet of Things (IoT) will grow at a 17.0 percent compound annual growth rate (CAGR) from US$698.6 billion in 2015 to nearly US$1.3 trillion in 2019.
More than 40 percent of the worldwide total spend came from the Asia Pacific in 2015, while North America and Western Europe were the second and third largest regions respectively, with combined spending of more than US$250 billion in 2015.
The regions that will experience the fastest growth in IoT spending over the five-year forecast period are Latin America (26.5 percent CAGR), followed by Western Europe, and Central and Eastern Europe.
The reason for the Asia Pacific’s strong IoT spending is based on three factor:
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developing countries’ technology investment needs are not fully met with traditional IT, allowing opportunities for investments into IoT
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government investments in infrastructure development and local business modernisation, many of which require IoT
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a burgeoning new consumer class with demand for goods and services,many of which include IoT
Worldwide, IoT spending for 2015 was led by Manufacturing and Transportation, as the technology slots into the supply chains, products, customers and workflows. Over the next five years, the industries forecast to have the fastest IoT spending growth will be Insurance, Healthcare, and Consumer.
As different industries find different ways to implement IoT, different regions have different growth areas.
In Central & Eastern Europe (CEE) and the Middle East & Africa (MEA), the fastest growing IoT category is smart buildings, where IoT technology that utilises advanced automation and integration is being used to measure, monitor, control, and optimize building operations and maintenance.
In Latin America, the fastest growing IoT category is maintenance & field service, where service data is automatically measured, recorded, and transferred remotely from the field for monitoring and use by technicians.
In Asia/Pacific, 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.
In North America, in-store contextual marketing is growing rapidly as retailers seek to capture continuous, real-time streams of data from mobile devices, online customer activity, in-store Wi-Fi routers/beacons, and video cameras in order to gain insight into customer behavior and desires.
Connected vehicles which communicate with each other and with infrastructure is also a fast growing use case.