[June 22, 2016] |
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IDC Spending Guide Finds U.S. Organizations Accelerating Their Investment in the Internet of Things as Meaningful Use Cases Find Their Way to Fruition
In a new update to the Worldwide
Semiannual Internet of Things Spending Guide, the International
Data Corporation (IDC)
forecasts that U.S. organizations will invest more than $232 billion in
Internet of Things (IoT) hardware, software, services, and connectivity
this year. And IDC (News - Alert) expects U.S. IoT revenues will experience a compound
annual growth rate (CAGR) of 16.1% over the 2015-2019 forecast period,
reaching more than $357 billion in 2019.
The industries leading the way in U.S. IoT investments are Manufacturing
and Transportation at $35.5 billion and $24.9 billion, respectively, in
2016. However, Cross-Industry investment, which represents use cases
common to all industries, will approach $31 billion this year. The IoT
use cases receiving the greatest levels of investment from U.S.
organizations across these three industry segments are:
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Manufacturing Operations, which supports digitally-executed
manufacturing, or how manufacturers use intelligent and interconnected
I/O (input output) tools - e.g. sensors, actuators, drives,
vision/video equipment etc. - to enable the different components in
the manufacturing field - e.g. machine tools, robots, conveyor belts
etc.- to autonomously exchange information, trigger actions and
control each other independently.
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Freight Monitoring, which uses radio frequency identification
(RFID), global positioning system (GPS), GPRS, and GIS technologies to
create an intelligent, Internet-connected transportation system. This
system carries out the intelligent recognition, location, tracking and
monitoring of freight and cargo through exchanging information and
real-time communications via wireless, satellite or other channels.
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Smart Buildings, which utilize advanced automation and
integration to measure, monitor, control, and optimize building
operations and maintenance. The key concept is optimization - meaning
the deployment of a set of integrated control systems capable of
adapting in real time to both internal policies and external signals.
These systems manage how building equipment operates to use energy in
the most efficient and cost-effetive way.
Looking across all U.S. industries, these three IoT use cases will
receive the greatest levels of investment throughout IDC's forecast. The
next three largest IoT use cases in terms of U.S. revenue will be Remote
Health Management, Smart Grid (Electricity), and Smart Home. The IoT use
cases that will experience the greatest revenue growth in the U.S. over
the 2015-2019 forecast period are In-Store Contextualized Marketing,
Connected Vehicles, and Insurance Telematics.
"A use case represents a detailed composition of a technology investment
that is made to produce a set of end user benefits," said Marcus
Torchia, research manager, IoT for IDC's Customer
Insights and Analysis team. "The long term opportunity for IoT
vendors is helping to identify and create immediate and residual
benefits for end users through their technologies. We see strong
opportunities across many industries. For example, in highly
instrumented verticals like manufacturing and transportation, large data
sets are used to optimize operational processes and extend the life of
high capital cost assets. In other sectors like healthcare and consumer,
IoT technology is being used to produce benefits that improve quality of
life."
While Manufacturing and Transportation will lead the U.S. in terms of
overall IoT investments, the Insurance, Retail, and Healthcare
industries will see IoT spending levels increasing by 135%, 101%, and
96%, respectively, over the forecast period. In addition to driving some
of the largest IoT investments, the Cross Industry segment will also see
revenue growth of more than 100% through 2019.
The Worldwide
Semiannual Internet of Things Spending Guide forecasts
IoT revenues for 12 technologies and 47 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.
About IDC Spending Guides IDC's Spending Guides provide a
granular view of key technology markets from a regional, vertical
industry, use case, buyer, and technology perspective. The spending
guides are delivered via pivot table format or custom query tool,
allowing the user to easily extract meaningful information about each
market by viewing data trends and relationships.
For more information about IDC's Spending Guides, please contact Monika
Kumar at [email protected].
About IDC International Data Corporation (IDC) is the
premier global provider of market intelligence, advisory services, and
events for the information technology, telecommunications, and consumer
technology markets. With more than 1,100 analysts worldwide, IDC offers
global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries. IDC's analysis and
insight helps IT professionals, business executives, and the investment
community to make fact-based technology decisions and to achieve their
key business objectives. Founded in 1964, IDC is a subsidiary of IDG,
the world's leading technology media, research, and events company. To
learn more about IDC, please visit www.idc.com.
Follow IDC on Twitter (News - Alert) at @IDC.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160622005156/en/
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