Global IoT spend to reach $772bn in 2018

The Worldwide Semiannual Internet of Things Spending Guide forecasts worldwide IoT spending to sustain a compound annual growth rate (CAGR) of 14.4% through 2017-2021, surpassing the $1 trillion mark in 2020 and reaching $1.1 trillion in 2021.

IoT hardware will be the largest technology category in 2018 with $239 billion going largely toward modules and sensors along with some spending on infrastructure and security.

Services will be the second largest technology category, followed by software and connectivity. Software spending will be led by application software along with analytics software, IoT platforms and security software.

Carrie MacGillivray, vice-president, Internet of Things and Mobility at IDC, said: "By 2021, more than 55% of spending on IoT projects will be for software and services. This is directly in line with results from IDC’s 2017 Global IoT Decision Maker Survey where organisations indicate that software and services are the key areas of focused investment for their IoT projects."

The industries that are expected to spend the most on IoT solutions in 2018 are manufacturing ($189bn), transportation ($85bn) and utilities ($73bn).