EDITOR’S QUESTION
HOW IS IOT
IMPACTING
YOUR SECURITY
PORTFOLIO?
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W
orldwide spending on the
Internet of Things (IoT) is
forecast to reach US$745 billion
in 2019, an increase of 15.4% over the
US$646 billion spent in 2018, according
to a new update to the International Data
Corporation’s (IDC) Worldwide Semiannual
Internet of Things Spending Guide.
IDC expects worldwide IoT spending will
maintain a double-digit annual growth rate
throughout the 2017 to 2022 forecast period
and surpass the US$1 trillion mark in 2022.
Carrie MacGillivray, Vice President, Internet of
Things and Mobility at IDC, said: “Adoption
of IoT is happening across industries, in
governments and in consumers’ daily lives. 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.
For consumers, access to data is changing
how they are informed about the status of
households, vehicles and family members as
well as their own health and fitness.
“The next chapter of IoT is just beginning
as we see a shift from digitally enabling the
physical to automating and augmenting the
human experience with a connected world.”
The industries that are forecast to spend the
most on IoT solutions in 2019 are discrete
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INTELLIGENTCIO
manufacturing (US$119 billion), process
manufacturing (US$78 billion), transportation
(US$71 billion) and utilities (US$61 billion).
IoT spending among manufacturers will be
largely focused on solutions that support
manufacturing operations and production
asset management. In transportation,
more than half of IoT spending will go
toward freight monitoring, followed by fleet
management. IoT spending in the utilities
industry will be dominated by smart grids for
electricity, gas and water.
The industries that will see the fastest
compound annual growth rates (CAGR) over
the five-year forecast period are insurance
(17.1%), federal/central government
(16.1%) and healthcare (15.4%).
“Consumer IoT spending will reach US$108
billion in 2019, making it the second largest
industry segment. The leading consumer
use cases will be related to the smart home,
personal wellness and connected vehicle
infotainment,” said Marcus Torchia, Research
Director, Customer Insights and Analysis.
“Within smart homes, home automation and
smart appliances will both experience strong
spending growth over the forecast period
and will help to make consumers the fastest
growing industry segment overall with a five-
year CAGR of 17.8%.”
www.intelligentcio.com