IDC Predicts Increase in Internet of Things Spending in 2018

Worldwide spending on the Internet of Things (IoT) will jump up 14.6 percent in 2018, reaching $772.5 billion, according to the latest report from International Data Corp. The market research company's Worldwide Semiannual Internet of Things Spending Guide forecasts sustained growth for the category, at a compound annual growth rate (CAGR) of 14.4 percent all the way through 2021 — ultimately reaching $1.1 trillion.

IoT hardware, such as modules, sensors, infrastructure and security, is expected to account for the largest portion of spending, hitting $239 billion in 2018. Services will come in second, followed by software and connectivity, the IDC report said. Software and services will be the fastest growing segments, at five-year CAGRs of 16.1 percent and 15.1 percent, respectively.

"By 2021, more than 55 percent 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 organizations indicate that software and services are the key areas of focused investment for their IoT projects," said Carrie MacGillivray, vice president for Internet of Things and mobility at IDC, in a statement. "Software creates the foundation upon which IoT applications and use cases can be realized. However, it is the services that help bring all the technology elements together to create a comprehensive solution that will benefit organizations and help them achieve a quicker time to value."

According to IDC, the industries that will spend the most on IoT in 2018 are manufacturing, transportation and utilities, with consumer spending coming in fourth. In addition, cross-industry spending will be a major factor: "Cross-Industry IoT spending, which represent use cases common to all industries, such as connected vehicles and smart buildings, will be nearly $92 billion in 2018 and rank among the top areas of spending throughout the five-year forecast," IDC said.

The Worldwide Semiannual Internet of Things Spending Guide analyzes global IoT spending for 14 technologies and 54 use cases across 20 vertical industries, including government and education. For more information, go to the IDC site.

About the Author

Rhea Kelly is editor in chief for Campus Technology, THE Journal, and Spaces4Learning. She can be reached at [email protected].

Featured

  • students using digital devices, surrounded by abstract AI motifs and soft geometric design

    Ed Tech Startup Kira Launches AI-Native Learning Platform

    A new K-12 learning platform aims to bring personalized education to every student. Kira, one of the latest ed tech ventures from Andrew Ng, former director of Stanford's AI Lab and co-founder of Coursera and DeepLearning.AI, "integrates artificial intelligence directly into every educational workflow — from lesson planning and instruction to grading, intervention, and reporting," according to a news announcement.

  • horizontal stack of U.S. dollar bills breaking in half

    ED Abruptly Cancels ESSER Funding Extensions

    The Department of Education has moved to close the door on COVID relief funding for schools, declaring that "extending deadlines for COVID-related grants, which are in fact taxpayer funds, years after the COVID pandemic ended is not consistent with the Department’s priorities and thus not a worthwhile exercise of its discretion."

  • lightbulb

    Register Now for Tech Tactics in Education: Overcoming Roadblocks to Innovation

    Tech Tactics in Education will return on Sept. 25 with the conference theme "Overcoming Roadblocks to Innovation." Registration for the fully virtual event is now open.

  • school building protected by a glowing blue shield with circuit patterns, blocking red-orange cyber threat icons

    Establishing a Proactive Defense Against Evolving Cyber Threats

    Here are six good starting points for K-12 districts that want to improve their cybersecurity mitigation strategies and take a more proactive approach to mitigating risk.