According to IDC revenues for the European Internet of Things (IoT) market are to reach $171 billion in 2019, a 19.8% increase, before surpassing $241bn in 2022 through double-digit growth during the 2017-2022 period.
W. Europe accounts for the lion's share of the market, since the apetite for IoT solutions remains evident throughout the region. German spending is set to reach $35bn, followed by France and the UK spending $25bn, and Italy with $19bn. Meanwhile CEE accounts for 7% of 2019 European IoT revenues.
"We’re still just scratching the surface of how powerful IoT solutions can be when combined with the massive scale of IoT endpoints, world-class connectivity and advanced technology," the analyst says. "That said, organisations across industries are gradually experiencing that driving business outcomes with IoT requires not only new technologies and expertise in areas like edge infrastructure, wired and wireless networking, security, and edge-to-cloud architectures, but also viable use cases that deliver short-term results and help drive a strategic IoT innovation road map."
The industries spending most on IoT solutions in IoT are discrete manufacturing ($20bn), utilities ($19bn), retail ($16bn) and transportation ($15bn). IoT spending among manufacturers is largely focused on solutions to support manufacturing operations and production asset management. In the utilites sector, IoT spending is dominated by smart grids for electricity, gas and water.
Omni-channel operations are the largest use case within the retail sector. In transportation, over 60% of IoT spending goes into freight monitoring and logistics solutions. The industries seeing the fastest annual growth throughout the 2017-2022 period are retail (18.5%), healthcare (17.9%) and state/local government (17.1%).
That said, the true leader in 2019 IoT spending is the consumer segment, with revenues reaching over $32bn. The largest consumer use cases are related to smart home, personal wellness and connected vehicles. Within smart home, home automation and smart appliance both see strong spending growth over the forecast period, making consumer the fastest-growing industry segment overall with a 5-year CAGR of 20%.
Hardware is the largest technology category in 2019, with revenues of $66bn led by module and sensor purhcases. IoT services follow at $60bn going toward traditional IT and installation services, as well as non-traditional device and operational services. IoT software spending will total $35bn in 2019, and should see the fastest growth over the 2017-2022 forecast period with a CAGR of 18.9%. IoT connectivity spending is to total $10bn.
