As per a recent IDC Worldwide Semiannual Internet of Things Spending report, APAC regions excluding Japan would see IoT spending on various products and solutions to reach $381.8 billion by 2022.
The report says the region will be the global leader for IoT Spending in 2019 with around 36.9% of the world wide spend, followed by United States of America and Western Europe with 26.1% of the world wide IoT Spend in 2019 respectively. China is the top spender in the region with $159.1 Billion accounted for the year 2018 followed by South Korea and India with a spending of $22.6 Billion and $19.6 Billion in 2018 respectively.
IoT services is the largest technology category in 2018 with $83.5 billion going toward traditional IT and installation services as well as non-traditional device and operational services. Hardware spending is close behind at $78.4 billion led by more than $65.7 billion in module/sensor purchases. IoT software spending total $43.3 billion in 2018 and will see the fastest growth over the five-year forecast period (2017-22) with a CAGR of 15.8%. Services spending will also grow faster than overall IoT spending with a CAGR of 13.3%.
“The per capita IoT spending among the APEJ countries is quite varied, it is primarily related to the demographics, broadband penetration, coverage and capacity of the nation’s infrastructure, including telecommunications, modernity of commercial buildings, firm demographics, highways, and electricity/gas/water distribution,” said Ashutosh Bisht, Senior Research Manager in IDC.
Bisht adds, “South Korea is the top APEJ country in terms of per capita IoT spending followed by Australia and New Zealand. The key drivers of IoT penetration will include proliferation of cloud-based back-end services for data acquisition and analytics, and 5G fixed wireless deployments that are expected in Australia, New Zealand, and Philippines before 2020.”
The top three industries spending most on IoT solutions in 2018 are discrete manufacturing ($43.9 billion), process manufacturing ($33.2 billion), and utilities ($20.1 billion). IoT spending among manufacturers will be largely focused on solutions that support manufacturing operations and production asset management. In Utilities, more than half of IoT spending will go toward smart grid(electricity), followed by smart grid(gas). The industries that will see the fastest compound annual growth rates (CAGR) over the five-year forecast period are Telecommunications (16.6%), Construction (15.9%), and Healthcare (15.6%).
“Internet of Things across Asia/Pacific (excluding Japan) continues to grow steadily as government, municipalities, and enterprises move from proof of concept and tests to live deployments as part of a strategy to enhance productivity and efficiency, build Smart City infrastructures, capitalize on new technologies (e.g., software-defined networking, next-generation industrial automation, deep learning, mobile edge and 5G mobile and 5G fixed wireless access), and embrace digital transformation,” says Hugh Ujhazy, Associate Vice President for IoT and Telecommunications at IDC Asia/Pacific.
The IDC Worldwide Semiannual Internet of Things Spending Guide forecasts IoT spending for 14 technologies across 20 vertical industries in nine regions and 53 countries through 100 use cases. Unlike any other research in the industry, this comprehensive spending guide was designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today.
The IoT Readiness Index study offers a deep dive into countries in Asia/Pacific (excluding Japan) (APEJ) with respect to their preparedness for IoT solutions across different verticals. This index is a comprehensive combination of technical metrics (such as IT and IoT spends), economic criteria (gross domestic product, ease of doing business), and specific banking parameters (digital trust index, percentage of bankable population, percentage of digital and mobile payments, and so forth).