IoT Takes Faith in Tech to the Bank with 15% Funding Increase in 2018
For a technology initiative that has barely been on corporate radar screens for less than five years, the internet of things (IoT) it sure is attracting a lot of funding. According to recent research out of IDC, worldwide spending on IoT is forecast to reach $772.5 billion in 2018, an increase of almost 15 percent over the $674 billion that was spent in 2017. Worldwide IoT spending is expected to sustain a compound annual growth rate exceeding 14 percent through the 2017-2021 forecast period, surpassing the $1 trillion mark in 2020 and reaching $1.1 trillion in 2021.
Joe McKendrick of RTInsights.com covered the burgeoning investment in IoT, predicting the trillion-dollar mark to be exceeded in two years. Taking his cue from IDC, the premier global market intelligence firm, he wrote,
“For many in the tech industry, the booming IoT space represents fertile ground for new opportunities. Bernd Gross, CEO of Cumulocity, a division of Software AG, for one, says his business has already invested more than 2 billion euros in IoT technologies and solutions. At the same time, ‘we’re still at the early market of IoT,’ he points out. The industries that are expected to spend the most on IoT solutions over the coming year, as found by IDC, include manufacturing ($189 billion), transportation ($85 billion), and utilities ($73 billion). “IoT spending among manufacturers will be largely focused on solutions that support manufacturing operations and production asset management. In transportation, two-thirds of IoT spending will go toward freight monitoring, followed by fleet management.”
When you consider the number of connected appliances and machines already reach into the multiple millions, billions of internet-connected machines will be having conversations and responding to commands from anywhere in the world. Not only are appliances being given a voice, entire houses are being set up to respond to smart phones. Spending on security for IoT devices is expected to reach $840 million by 2020, according to tech research firm Gartner.