Manufacturing and supply chain to spend over $200 billion on IoT in 2017
A new update to the International Data Corporation (IDC) Worldwide Semiannual Internet of Things Spending Guide forecasts worldwide spending on the Internet of Things (IoT) to grow 16.7% year over year in 2017, reaching just over $800 billion. By 2021, global IoT spending is predicted to total nearly $1.4 trillion as organizations continue to invest in the hardware, software, services, and connectivity that enable the IoT.
Industrial Internet of Things (IIoT) use cases are expected to attract the largest investments in 2017, exceeding $200 billion. These include manufacturing operations ($105 billion), freight monitoring ($50 billion), and production asset management ($45 billion). The industries making the largest investments in 2017 are Manufacturing ($183 billion) and Transportation ($85 billion).
The report predicts that Asia/Pacific (excluding Japan) will be the IoT investment leader throughout the forecast with spending expected to reach $455 billion in 2021. The second and third largest regions will be the United States ($421 billion in 2021) and Western Europe ($274 billion). Manufacturing will be the leading industry for investments in all three regions. The regions that will experience the fastest growth in IoT spending are Latin America (21.7% CAGR), the Middle East and Africa (21.6% CAGR), and Central and Eastern Europe (21.2% CAGR).
To learn more about the impact of the Internet of Things on manufacturing and supply chain operations, download the “2017 MHI Annual Industry Report: Next-Generation Supply Chains: Digital, On-Demand and Always-On.”