According to the latest forecast data from IDC, the global Internet of Things (enterprise) spending will reach US$690.26 billion in 2021 and is expected to reach US$1.1 trillion in 2026, with a five-year (2022-2026) compound growth rate (CAGR) 10.7%.
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Among them, the size of China’s enterprise-level market will reach US$294 billion in 2026, with a compound growth rate (CAGR) of 13.2%. The global share is about 25.7%, and it continues to maintain the world’s largest IoT market volume.
Moreover, IDC said that with the dynamic adjustment of epidemic prevention and control policies and the continuous development of the “14th Five-Year Plan” project, IDC maintained its forecast for market growth of more than 10% from 2023 to 2025.
Based on IoT hardware spending will continue to occupy the largest proportion of the market in the next five years, IDC predicts that the IoT hardware market will account for 42.8% in 2026. With the growth of IoT data analysis and platform applications, IDC The scale of spending on IoT infrastructure hardware (servers, storage, networking equipment, etc.) has been revised up slightly.
At the same time, due to the gradual transformation of IoT application software into customized (low-code) development, IDC slightly lowered the expenditure on general-purpose application software and increased the expenditure on development services accordingly. In addition, due to the impact of the “speed-up and fee-reduction” policy, IDC slightly lowered network connection spending.
At the same time, manufacturing, government, retail, and public utilities are still the industries with a more significant demand for IoT. IDC predicts that by 2026, the manufacturing industry represented by smart factories, the government industry represented by smart cities, and the retail industry represented by online and offline omnichannel operations.
Moreover, in the public utility industry is represented by smart grids, the above four industries will account for more than 60% of enterprise IoT market spending. In addition, smart buildings (service industry), smart logistics (transportation industry), and smart hospitals (medical industry) also have huge market growth potential.
