Internet of Things Spending to Reach $1.29 Trillion by 2020

A new forecast from International Data Corp. estimates that the total worldwide spending on the Internet of Things (IoT) will reach $1.29 trillion by 2020. According to the market research firm's Worldwide Semiannual Internet of Things Spending Guide, that represents a compound annual growth rate of 15.6 percent over the 2015-2020 forecast period.

Much of that spend will go toward hardware — the largest spending category throughout the forecast, followed by services, software and connectivity, according to IDC. The company predicts that hardware spending will approach $400 billion by 2020; modules and sensors that connect endpoints to networks will represent the bulk of hardware purchases. On the other hand, IDC said, hardware will be the slowest growing IoT technology category, beaten out by software and services.

IDC points to manufacturing as the industry expected to make the largest investment in the IoT; the fastest spending growth will come out of the insurance, consumer, healthcare and retail industries. In addition, "Cross-Industry IoT investments, which represent use cases common to all industries, such as connected vehicles and smart buildings, will rank among the top segments throughout the five-year forecast," said the firm in a press release.

"A fairly close relationship exists between high-growth IoT use cases in consumer product and service oriented verticals like retail, insurance, and healthcare," said Marcus Torchia, an IDC research manager for IoT, in a statement. "In some cases, these are green field opportunities with tremendous room to run. In other verticals, like manufacturing and transportation, large market size and more moderate growth rate use cases characterize these verticals. As a whole, the IoT opportunity is a diverse developing marketplace for vendors and end users alike."

For more information on the Worldwide Semiannual Internet of Things Spending Guide, visit the IDC site.

About the Author

Rhea Kelly is editor in chief for Campus Technology, THE Journal, and Spaces4Learning. She can be reached at [email protected].

Featured

  • college students in a classroom focus on a silver laptop, with a neural network diagram on the monitor in the background

    Report: 93% of Students Believe Gen AI Training Belongs in Degree Programs

    The vast majority of today's college students — 93% — believe generative AI training should be included in degree programs, according to a recent Coursera report. What's more, 86% of students consider gen AI the most crucial technical skill for career preparation, prioritizing it above in-demand skills such as data strategy and software development.

  • repeating abstract pattern featuring cloud icons, neural network shapes, data streams, and circuit-like elements in muted tones

    Google Report: Infrastructure Is the Missing Piece in Gen AI Strategy

    While Gen AI has become central to digital transformation strategies, a new Google Cloud report reveals most organizations aren't yet equipped to support it at scale.

  • illustration of a football stadium with helmet on the left and laptop with ed tech icons on the right

    The 2025 NFL Draft and Ed Tech Selection: A Strategic Parallel

    In the fast-evolving landscape of collegiate football, the NFL, and higher education, one might not immediately draw connections between the 2025 NFL Draft and the selection of proper educational technology for a college campus. However, upon closer examination, both processes share striking similarities: a rigorous assessment of needs, long-term strategic impact, talent or tool evaluation, financial considerations, and adaptability to a dynamic future.

  • semi-transparent AI brain with circuit elements under a microscope

    Anthropic Develops AI 'Microscope' to Reveal the Hidden Mechanics of LLM Thought

    Anthropic has unveiled new research tools designed to provide a rare glimpse into the hidden reasoning processes of advanced language models — like a "microscope" for AI.