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TECH SUPPLIER Feb 2019 - Market Forecast - Doc # AP44373918

Asia/Pacific (Excluding Japan) Internet of Things Spending Forecast Update, 2018–2022

By: Bill RojasAdjunct Research Director, IDC Asia/Pacific, Shaily ShahResearch Manager, Hugh UjhazyVice President, IoT and Telecommunications

Abstract

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.

"Internet of Things across Asia/Pacific (excluding Japan) continues to grow steadily as governments, municipalities, and enterprises move from proof of concept and tests to live deployments as part of a strategy to enhance productivity and efficiency, build Smart City infrastructure, capitalize on new technologies (e.g., software-defined networking, next-generation industrial automation, deep learning, mobile edge, and 5G mobile and 5G fixed wireless access), and embrace digital transformation," says Bill Rojas, adjunct research director, IDC Asia/Pacific. "We are still in the early stages of IoT adoption and ecosystem development, with industrial IoT, telematics, retail, smart grids, smart buildings, and smart homes leading the way in terms of use cases, but with the impending advent of 5G and low-Earth-orbit satellites, we are moving closer to the reality of pervasive broadband IoT connectivity," he added.


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