Insurance, consumer, healthcare and retail sectors to grow investments in IoT

Internet of Things, revenues

The insurance, consumer, healthcare and retail sectors are forecast to account for the fastest spending growth on the IoT by 2020, according to new research.

In 2016, the manufacturing, transportation and utilities verticals were the biggest spenders, according to IDC.

The research house said they were on track to invest $178 billion, $78 billion and $69 billion respectively in areas such as operations, freight management and smart grids.

Consumer IoT purchases, the fourth largest market segment in 2016, will become the third largest segment by 2020.

IDC predicted that consumers will spend $63 billion on smart home products and services by 2020, more than double what they spent in 2015.

Telematics will be the leading insurance use case, remote health monitoring will drive healthcare, while omnichannel operations and digital signage are expected to feature heavily in retail.

In total, spending on the IoT, across hardware, software, services, and connectivity, will grow from $737 billion in 2016 to $1.3 trillion in 2020.

Excluding Japan, the Asia-Pacific region will spend the most, followed by the US and Western Europe.

IDC Research Manager Marcus Torchia said:"A fairly close relationship exists between high growth IoT use cases in consumer product and service oriented verticals like retail, insurance.

"In some cases, these are green field opportunities with tremendous room to run. In other verticals, like manufacturing and transportation, large market size and more moderate growth rate use cases characterize these verticals.

“As a whole, the IoT opportunity is a diverse developing market place for vendors and end users alike."

Read more

The IoT will contribute max 5% to operator revenues, say market watchers

More News

VEON hires Huawei exec to lead global comms VEON hires Huawei exec to lead global comms VEON has appointed Huawei veteran Roland Sladek to drive its PR as the operator continues its attempt to reinvent itself as a tech company. More detail
Bouygues serves up new digital media content to fixed and mobile customers Bouygues serves up new digital media content to fixed and mobile customers Bouygues Telecom is giving subscribers free access to over 1,000 online publications, as it looks to tap into what it described as a surge in digital media usage. More detail
Altice consigns Portugal Telecom, SFR brands to history Altice consigns Portugal Telecom, SFR brands to history Altice will become a major brand in the telecoms world as the owner of Portugal Telecom and SFR unveiled a new global identity. More detail
Vodafone merges Maltese opco with Melita in new convergence play Vodafone merges Maltese opco with Melita in new convergence play Vodafone has agreed a deal with the owners of Melita to merge their operations in Malta. More detail
Telcos need to focus on context, conference hears Telcos need to focus on context, conference hears Context is key to the future success of telcos, speakers at the DigiWorld Future event have said. More detail
    

@eurocomms