Feb 2019 - Market Forecast - Doc # AP44373918
Asia/Pacific (Excluding Japan) Internet of Things Spending Forecast Update, 2018–2022
This study is IDC's sixth semiannual forecast for IoT in APEJ. Some highlights are:
- IDC defines IoT as "a network of networks of uniquely identifiable endpoints (or "things") that communicate without human interaction using IP connectivity — whether locally or globally."
- IDC has identified an IoT ecosystem as having 14 technology segments (previously 12 layers): module/sensors, connectivity, security hardware, storage, server, other hardware, IT and installation services, ongoing service or content as a service, analytics software, applications software, IoT horizontal platforms, IoT vertical platforms, security software, and other software.
- IDC expects the overall market for IoT in APEJ to grow at a CAGR of 12.7% from US$210.3 billion in 2017 to US$381.8 billion in 2022.
- The presence of a strong manufacturing base with pervasive wireless (low-power WAN [LPWAN], 3G wideband code division multiple access [WCDMA], 4G Long-Term Evolution [LTE] cellular, including NB-IoT and Cat M1 LTE and satellite) and wireline broadband infrastructure presents the most ideal environment for IoT to flourish in.
- With 5G just over the horizon, expected to go commercial in 2019–2021, depending on the market, operators that have built coverage for LTE NB-IoT and Cat M1 will be in good shape to extend to massive IoT once 5G release 16 is available and installed, which is expected by 2021.
- The top 5 vertical sectors in 2022 by revenue in APEJ will be discrete manufacturing, consumer, process manufacturing, transportation, and state/local government.