A recent press release from International Data Corporation (IDC), has forecast the spending on IoT market to grow cumulatively up to 16.7 percent by 2017, worldwide, and is expected to reach over 800 billion USD.By 2021, this spending is expected to reach nearly 1.4 trillion USD, led by the company's investment services, connectivity, hardware and software that enable the IoT worldwide.
"The discussion about IoT has shifted away from the number of devices connected and the true value of IoT is being realised when the software and services come together to enable the capture, interpretation, and action on data produced by IoT endpoints. With our Worldwide IoT Spending Guide, IDC provides insight into key use cases where investment is being made to achieve the business value and transformation promised by the Internet of Things"- said Carrie MacGillivray, vice president, Internet of Things and Mobility at IDC.
The use cases of IoT that are expected to attract the largest investment includes freight monitoring, production asset management and manufacturing, that will attract the largest investments. The smart grid technologies for gas, water, electricity and smart buildings expect to see significant investment gains in the next few years. Long tail investments in smart home technologies and in-store contextual marketing will grow exponentially over the next five years in IoT market.
The IoT hardware spending will be focussed on sensors and modules that connect end-points to networks, whereas software and services spending will dominate in the spheres of content, installation and IT services. As organisations are adopting new innovative services by different marketers, a lot of threats are found.To safeguard the system from these threats, it is very important to upgrade the existing security systems to establish optimal business outcome and justify ROI.
In terms of industry investments, transportation and manufacturing have been making 85 billion USD and 183 billion USD respectively. More utilities are coming together for IoT technologies, with an expected spending of around 66 billion USD.