The latest note from analyst firm IDC has predicted that the Asia Pacific (APAC) region will be the global leader for IoT spending in 2019 – confirming the company’s previous forecast.
The most recent Worldwide Semiannual Internet of Things Spending Guide, predicts that APAC will account for more than a third (35.7%) of global spend, followed by the US and Western Europe with 27.3% and 21.2% of the spend, respectively.
In the APAC region, China is the top spender with $168.6 billion (£135bn), followed by South Korea with $26.2bn (£21bn) and India with $20.6bn (£16.4bn) in 2019. IoT services are the largest technology group with $94.6bn (£76bn) being invested in traditional IT and installation services as well as non-traditional device and operational services.
Spending on hardware is close behind at $91.6bn (£73bn) led by more than $74.8bn (£60bn) in module/sensor purchases. Spending on IoT software will total $39.3b (£31.4bn) in 2019 and will see the fastest growth over the five-year forecast period (2018-23) with a CAGR of 14.4%.
In February, IDC had predicted that the APAC region, excluding Japan (APEJ), will spend around 36.9% of the worldwide spend, making it the global leader for IoT spending in 2019.
Last month, looking at global trends, the analyst firm predicted the global spending on the IoT will surpass the $1tn (£790bn) mark in 2022 and will reach $1.1tn (£869bn) in 2023, at a CAGR of 12.6% on a year-over-year basis. According to the report, discrete manufacturing, process manufacturing, and transportation will be the three commercial industries that will be spending most on IoT solutions throughout the forecast period. These industries, together, are said to be responsible for nearly one-third of the global spending.