Also expected to reach US$20 billion in 2025.
Internet of Things (IoT) spending in Australia and New Zealand is set to reach more than US$14.3 billion this year, according to research from IDC.
According to the research firm’s Worldwide Semiannual Internet of Things Spending Guide, the ANZ IoT market will gradually and steadily recover in 2021 and will have a compound annual growth rate (CAGR) of 9.5 percent through to 2025. The expected spending number by then is estimated to be around US$20 billion.
Some of the drivers for this growth was the increase in demand for smart devices, digital infrastructure, automation and growing government initiatives.
“2020 was a volatile year around the globe. Organisations and individuals adapted to COVID-19 and adjusted course relative to how they worked and lived despite restrictions and constantly changing protocols,” IDC APEJ vice president of telecom and IoT Hugh Ujhazy said.
“Such events have highlighted the need for accelerated digital transformation and IoT based use cases can assist in delivering remote and distributed operations across the enterprise” notes. Though the pandemic caused temporary slowdown in IoT investments, we expect transformation initiatives to pick up pace as enterprises look to become more resilient and thrive despite the pandemic.”
Most of the spending is expected to come from asset-rich, device-rich, and physically intense industries like manufacturing, utilities and transportation, accounting fro more than 50 percent of overall IoT spend.
The fastest growing sectors in 2021 are construction and utilities as restrictions on construction sites get lifted and utility transmission and distribution networks become more digitised.
Some use cases seeing the most spending are related to host industries such as manufacturing operations, production asset management, smart grid (electricity) and freight monitoring, which all together would account for one-third of overall spend. The fastest growing use cases are healthcare-related like bedside telemetry and reducing human interactions like advanced payment/shopping and maintenance and field service.
IDC APAC market analyst Sharad Kotagi said, "Other than Cloud and AI/ML, IoT or Industrial IoT is one of the top three technologies which will enable remote operations for enterprises thereby improving productivity during these challenging times."
"As per IDC’s Future Enterprise Resiliency and Spending Survey (Wave 4), a large majority of A/NZ enterprises indicated growing inclination to invest in IoT related projects in next 12 months, pointing towards a healthy growth in future."