According to the new report by International Data Corporation (IDC) worldwide spending on the Internet of Things (IoT) to grow 16.7 percent year over year in 2017, reaching just over $800 billion.
The report says that by 2021, global IoT spending is expected to total nearly $1.4 trillion as organizations continue to invest in the hardware, software, services, and connectivity that enable the IoT.
"The discussion about IoT has shifted away from the number of devices connected," said Carrie MacGillivray, vice president, Internet of Things and Mobility at IDC.
Carrie says that "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 IoT endpoints. With our Worldwide IoT Spending Guide, IDC provides insight into key use cases where investment is being made to achieve the business value and transformation promised by the Internet of Things."
It also pointed out that the IoT use cases that are expected to attract the largest investments in 2017 include manufacturing operations ($105 billion), freight monitoring ($50 billion), and production asset management ($45 billion). Smart grid technologies for electricity, gas, and water and smart building technologies are also forecast to see significant investments this year ($56 billion and $40 billion, respectively).
"As enterprises are adopting to new and innovative services provided by different vendors a lot of new threats are introduced, so it's very important to upgrade existing security systems to ensure that an optimal business outcome can be reached and ROI can be justified," said Ashutosh Bisht, research manager for IT Spending across APeJ.
IDC says that the Worldwide Semiannual Internet of Things Spending Guide forecasts IoT spending for 12 technologies and 54 use cases across 20 vertical industries in eight regions and 52 countries. Unlike any other research in the industry, the comprehensive spending guide was designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today.