IoT Spending Predicted to Reach $232B This Year

July 7, 2016

1:15 pm

The Internet of Things is still taking over the Internet. According to a report by research firm IDC, the U.S. is predicted to invest over $232 billion this year. This heavy investment will go to everything from hardware, software to connectivity solutions and services. IDC expects IoT revenues to grow at a very healthy compound annual growth rate (CAGR) of 16.1 percent from 2015 through 2019.

Datamotion, reporting on the news, writes:

“American manufacturers will lead in terms of IoT investments ($35.5 billion) followed by transportation firms ($24.9 billion). Cross-industry demand will be strong, as companies spend $31 billion on IoT products that can be applied to a variety of verticals.
Spending will largely be concentrated on sensors and other IoT devices that enable factories to better automate their operations, along with GPS and other location-based devices that allow for better freight tracking and monitoring. Also expected to generate big revenues are smart building technologies that help optimize building maintenance and save energy.”

The growth in IoT investments can only mean that there’s an increase in monetization of the tech trends we see beginning to emerge now. From marketing to AI and robotification, IoT is becoming a significant force within the tech space.

But how exactly will the IoT react be able to work with the industries that already exist within tech? IDC research manager Marcus Torchia comments:

“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.”

For the tech industry to continue to grow, we need to embrace the changes that are on the horizon. And with the changes that IoT will be bringing along, it’s possible that these changes can occur sooner rather than later.

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Cameron is a tech and culture journalist, comic book enthusiast, and lives near New York City. A graduate of Stockton University, she’s using her words to shift the world of online journalism, one byline at a time. When she’s not writing, she can be found reading sci-fi novels, collecting succulents, and planning her next obnoxious hair color.

Cameron is an editorial fellow at Tech.Co. Send your tips to [email protected] or tweet @BlkGirlManifest.

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