The spending on IoT software totaled US$ 43.3 billion and will witness the fastest growth over the forecast period of 2017-22, as per IDC report
India spent US$ 19.6 billion on Internet of Things (IoT) in 2018, making it the third top spender in the Asia Pacific (APAC) region, excluding Japan, according to a recently published report by IDC.
In 2018, the top spender in the region was China with US$ 159.1 billion, followed by South Korea with US$ 22.6 billion spending on IoT.
The report projected that the APAC region, excluding Japan, will spend about 36.9 per cent of the total worldwide spend, making it the top IoT spending region in 2019, followed by the US and Western Europe.
In terms of per capita spending on IoT, South Korea took the leadership position, followed by Australia and New Zealand.
Per capita IoT spending
Commenting on the findings, Ashutosh Bisht, Senior Research Manager at IDC, said, “The per capita IoT spending among the APAC (excluding Japan) countries is quite varied, it is primarily related to the demographics, broadband penetration, coverage and capacity of the nation’s infrastructure, including telecommunications, modernity of commercial buildings, firm demographics, highways, and electricity/gas/water distribution.
“South Korea is the top APAC (excluding Japan) country in terms of per capita IoT spending followed by Australia and New Zealand. The key drivers of IoT penetration will include proliferation of cloud-based back-end services for data acquisition and analytics, and 5G fixed wireless deployments that are expected in Australia, New Zealand, and Philippines before 2020,” Bisht said.
IoT services saw largest spending
In 2018, IoT services is the largest technology category with a spending of US$ 83.5 billion on traditional IT and installation services, along with non-traditional device and operational services. The spending on hardware was US$ 78.4 billion, on the back of over US$ 65.7 billion spent on module/sensor purchases.
The spending on IoT software totaled US$ 43.3 billion and will witness the fastest growth over the forecast period of 2017-22, recording a compound annual growth rate (CAGR) of 15.8 per cent. The spending on services will also grow faster as compared to the overall IoT spending with a CAGR of 13.3 per cent, the report says.
Last year, the top three industries spending most on IoT solutions were discrete manufacturing with US$ 43.9 billion, followed by process manufacturing with US$ 33.2 billion spending and utilities with US$ 20.1 billion.