TRENDING
…SIX INDUSTRIES WILL
SEE IOT SPENDING
LEVELS INCREASE BY
MORE THAN 100%
OVER THE 2016–2020
FORECAST PERIOD
– CONSTRUCTION,
CONSUMER, INSURANCE,
MANUFACTURING,
RETAIL, AND
TELECOMMUNICATIONS
• Smart grid (Electricity), where non-
smart meter field devices owned by
the electric utility are used to control
and optimise power flow to ensure
efficient, safe, and reliable service.
The devices are used throughout
the electricity distribution grid for
tasks such as line sensing, substation
automation, and feeder & line
equipment control and optimisation.
Utility owned in-home devices are
included in this category when used
for grid operations.
Looking across all industries in the MEA
region, freight monitoring will receive
the greatest level of IoT investment
throughout the forecast period,
followed by smart grid (electricity) and
manufacturing operations. In addition
to these use cases, remote health
monitoring, smart buildings, and smart
home concepts will see significant
levels of investment over the next
few years. The IoT use cases that
will experience the greatest revenue
growth over the 2016–2020 forecast
period are smart buildings, insurance
telematics, and smart grid (gas).
“IoT solution deployments across
MEA will continue to see increased
adoption rates, both in the public
and private sectors, as stakeholders
begin to realise an immediate
return on their investments,” says
Wale Babalola, a research analyst
for telecommunications, IoT, and
digital media at IDC Middle East,
Africa, and Turkey. “In addition, the
growing development of purpose-built
IoT platforms and the continuing
proliferation of smart devices will serve
as catalysts for IoT adoption across
the region’s industry spectrum.”
While manufacturing and
transportation will lead the way in
terms of overall IoT investments in the
MEA region, six industries will see IoT
spending levels increase by more than
100% over the 2016–2020 forecast
period – construction, consumer,
insurance, manufacturing, retail, and
telecommunications. Cross-industry
investments, which represent use cases
common to all industries, are also
forecast to see revenues more than
double during this period.
“A use case represents a detailed
composition of a technology
investment that is made to produce
a set of end-user benefits,” says
Marcus Torchia, research manager for
IoT within IDC’s Customer Insights
and Analysis team. “The long-term
opportunity for IoT vendors is helping
to identify and create immediate and
residual benefits for end users through
their technologies. We see strong
opportunities across many industries.
For example, in highly instrumented
verticals like manufacturing and
transportation, large data sets are
used to optimise operational processes
and extend the life of high-capital cost
assets. In other sectors like healthcare
and consumer, IoT technology is being
used to produce benefits that improve
quality of life.”
The Worldwide Semiannual Internet
of Things Spending Guide forecasts
IoT revenues for 12 technologies
and 47 use cases across 20 vertical
industries in eight regions and 52
countries. Unlike any other research
in the industry, the comprehensive
spending guide was designed to
help vendors clearly understand the
industry-specific opportunity for IoT
technologies today.
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