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12 Feb 2019

New IDC Forecast Expects the Internet of Things Spending in Asia/Pacific excluding Japan to Reach USD 381.8 Billion by 2022

SINGAPORE, February 13th, 2019 – The latest IDC Worldwide Semiannual Internet of Things Spending Guid e reveals that the Asia/Pacific excluding Japan (APEJ) region will be the global leader for IoT Spending in 2019 with around 36.9% of the WW spend, followed by United States of America and Western Europe with 26.1% of the WW IoT Spend in 2019 respectively. China is the top spender in the region with $159.1 Billion accounted for the year 2018 followed by South Korea and India with a spending of $22.6 Billion and $19.6 Billion in 2018 respectively.

IoT services is the largest technology category in 2018 with $83.5 billion going toward traditional IT and installation services as well as non-traditional device and operational services. Hardware spending is close behind at $78.4 billion led by more than $65.7 billion in module/sensor purchases. IoT software spending total $43.3 billion in 2018 and will see the fastest growth over the five-year forecast period (2017-22) with a CAGR of 15.8%. Services spending will also grow faster than overall IoT spending with a CAGR of 13.3%.

“The per capita IoT spending among the APEJ 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,” said Ashutosh Bisht, Senior Research Manager in IDC.

Bisht adds, “South Korea is the top APEJ 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.”

The top three industries spending most on IoT solutions in 2018 are discrete manufacturing ($43.9 billion), process manufacturing ($33.2 billion), and utilities ($20.1 billion). IoT spending among manufacturers will be largely focused on solutions that support manufacturing operations and production asset management. In Utilities, more than half of IoT spending will go toward smart grid(electricity), followed by smart grid(gas). The industries that will see the fastest compound annual growth rates (CAGR) over the five-year forecast period are Telecommunications (16.6%), Construction (15.9%), and Healthcare (15.6%).

"Internet of Things across Asia/Pacific (excluding Japan) continues to grow steadily as government, 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 infrastructures, 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 Hugh Ujhazy, Associate Vice President for IoT and Telecommunications at 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, are moving closer to the reality of pervasive broadband IoT connectivity," Ujhazy added.

The IDC Worldwide Semiannual Internet of Things Spending Guide   forecasts IoT spending for 14 technologies across 20 vertical industries in nine regions and 53 countries through 100 use cases. Unlike any other research in the industry, this comprehensive spending guide was designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today.

The IoT Readiness Index study offers a deep dive into countries in Asia/Pacific (excluding Japan) (APEJ) with respect to their preparedness for IoT solutions across different verticals. This index is a comprehensive combination of technical metrics (such as IT and IoT spends), economic criteria (gross domestic product, ease of doing business), and specific banking parameters (digital trust index, percentage of bankable population, percentage of digital and mobile payments, and so forth).

For more information about the IoT Spending Guide, please contact Hugh Ujhazy hujhazy@idc.com Ashutosh Bisht abisht@idc.com. For media inquiries, contact Tessa Rago trago@idc.com  or Alvin Afuang aafuang@idc.com.

To learn more about IDC’s Customer Insights & Analysis Group, visit www.idc.com/promo/customerinsights

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About IDC Spending Guides

IDC's Spending Guides provide detail on key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn

*Asia Pacific excluding Japan (APEJ)

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Contact
For more information, contact:

Ashutosh Bisht
abisht@idc.com
+91 124 4762304

Hugh Ujhazy
hujhazy@idc.com
+61299252203

Alvin Afuang
aafuang@idc.com
+63917 7974586

Theresa Rago
trago@idc.com
+65 9159 3053