According to the IDC, global spending on the Internet of Things (IoT) will reach over $800 billion in 2017, with the utilities industry investing $66bn in IoT this year.The IDC says that the industries making the largest IoT investments in 2017 are manufacturing ($183 billion), transportation ($85 billion) and utilities ($66 billion).

It notes that cross-industry Internet of Things investments, which represent use cases common to all industries, such as connected vehicles and smart buildings, will be $86 billion in 2017 and rank among the top segments throughout the five-year forecast (2017-2021).

Carrie MacGillivray, vice-president, internet of things and mobility at IDC, was reported saying that: “The discussion about IoT has shifted away from the number of devices connected. The true value of IoT is being realized when the software and services come together to enable the capture, interpretation, and action on data produced by Internet of Things endpoints."

According to the IDC's forecast global spending on internet of things (IoT) is set to grow 16.7% year-on-year, reaching over $800 billion in 2017 and nearly $1.4 trillion by 2021.

With regard to growth by region, the IDC says that the regions that will experience the fastest growth in IoT spending are Latin America (21.7% compounded annual growth rate or CAGR), the Middle East and Africa (21.6% CAGR) and central and eastern Europe (21.2% CAGR).

IoT technology

The IDC explains that from the technology perspective, hardware will be the largest spending category until the last year of the forecast when it will be overtaken by the faster growing services category.

The fastest growing areas of technology spending are said to be in the software category, where horizontal software and analytics software will have five-year CAGRs of 29.0% and 20.5%, respectively. Security hardware and software will also see increased investment, growing at 15.1% and 16.6% CAGRs, respectively.

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