According to recent research conducted by IDC, IoT services will be the largest technology category through the end of their forecast after overtaking hardware spending this year. These combined two categories account for roughly two thirds of all IoT spending. Services spending is geared toward traditional IT and installation services, as well as ongoing services such as content as a service. Hardware spending is dominated by end point module or sensor purchases. Software is projected to be the fastest growing technology category with a five-year CAGR of 15.3%, and focus will be on application and analytics software purchases. the following press release provides the additional details.

Worldwide spending on the Internet of Things (IoT) is forecast to pass the $1.0 trillion mark in 2022, reaching $1.1 trillion in 2023. A new update to the International Data Corporation (IDC) Worldwide Semiannual Internet of Things Spending Guide shows the compound annual growth rate (CAGR) for IoT spending over the 2019-2023 forecast period will be 12.6%.

“Spending on IoT deployments continues with good momentum and is expected to be $726 billion worldwide this year,” said Carrie MacGillivray, group vice president, Internet of Things, 5G, and Mobility at IDC. “While organizations are investing in hardware, software, and services to support their IoT initiatives, their next challenge is finding solutions that help them to manage, process, and analyze the data being generated from all these connected things.

Read up on the full release here

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