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

  • person signing a bill at a desk with a faint glow around the document. A tablet and laptop are subtly visible in the background, with soft colors and minimal digital elements

    California Governor Signs AI Content Safeguards into Law

    California Governor Gavin Newsom has officially signed off on a series of landmark artificial intelligence bills, signaling the state’s latest efforts to regulate the burgeoning technology, particularly in response to the misuse of sexually explicit deepfakes. The legislation is aimed at mitigating the risks posed by AI-generated content, as concerns grow over the technology's potential to manipulate images, videos, and voices in ways that could cause significant harm.

  • abstract image of fragmented, floating geometric shapes with holographic lock icons and encrypted code, set against a dark, glitchy background with intersecting circuits and swirling light trails

    Education Sector a Top Target for Mobile Malware Attacks

    Mobile and IoT/OT cyber threats continue to grow in number and complexity, becoming more targeted and sophisticated, according to a new report from Zscaler.

  • An abstract depiction of a virtual reality science class featuring two silhouetted figures wearing VR headsets

    University of Nevada Las Vegas to Build VR Learning Hub for STEM Courses

    A new immersive learning center at the University of Nevada, Las Vegas is tapping into the power of virtual reality to support STEM engagement and student success. The institution has partnered with Dreamscape Learn on the initiative, which will incorporate the company's interactive VR platform into introductory STEM courses.

  • Campus Technology Product Award

    Call for Entries: 2024 Campus Technology Product Awards

    The entry period for the 2024 Campus Technology Product Awards is now open.