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

  • AI toolbox containing a wrench, document icon, gears, and a network symbol

    Common Sense Media Releases Free AI Toolkit, AI Readiness & Implementation Guides

    Common Sense Media has developed an AI Toolkit for School Districts, available to educators free of charge, that provides guidelines and resources for implementing AI in education.

  • elementary school building with children outside, overlaid by a glowing data network and transparent graphs

    Toward a Holistic Approach to Data-Informed Decision-Making in Education

    With increasing access to data and powerful analytic tools, the temptation to reduce educational outcomes to mere numbers is strong. However, educational leadership demands a more holistic and thoughtful approach.

  • three silhouetted education technology leaders with thought bubbles containing AI-related icons

    Ed Tech Leaders Rank Generative AI as Top Tech Priority

    In a recent CoSN survey, an overwhelming majority of ed tech leaders (94%) said they see AI as having a positive impact on education. Respondents ranked generative AI as their top tech priority, with 80% reporting their districts have gen AI initiatives underway, or plan to in the current school year.

  • AI-powered individual working calmly on one side and a burnt-out person slumped over a laptop on the other

    AI's Productivity Gains Come at a Cost

    A recent academic study found that as companies adopt AI tools, they're not just streamlining workflows — they're piling on new demands. Researchers determined that "AI technostress" is driving burnout and disrupting personal lives, even as organizations hail productivity gains.