Companies Go for IoT
Companies will spend $434.9 billion to design, plan, build, and run Internet of Things (IoT) solutions by 2023, up from $186.1 billion in 2017, according to research company Forrester.
This spending includes IoT-specific security software, platform software, service provider connectivity, application software, hardware, and professional services. Notably, Forrester predicts that spending in each of these categories will increase year-over-year. Spending on software platforms will be the fastest-growing sector at 34.2 percent annually, reaching $8.7 billion by 2023.
As IoT impacts businesses across industries, Forrester forecasts that:
Inventory and supply chain management will be the largest use case with the market to grow at a 20.2 percent CAGR (compound annual growth rate), reaching $113.5 billion by 2023. IoT-enabled solutions help firms manage supply chain relationships, track inventory levels, and manage warehouse operations.
Smart buildings will improve worker productivity and drive business growth with spending on smart buildings to reach $49.6 billion by 2023 at a 12.4 percent CAGR. Because IoT-enabled building management solutions can provide tangible benefits such as increased energy efficiency, worker productivity will improve as well, and drive business growth.
Fleet management will drive fuel efficiency and preventive maintenance services as spending grows 8.4 percent annually, pushing it from $6.4 billion to $10.4 billion over the next six years. Multiple industry verticals—including construction, transportation, and utilities—are implementing fleet management solutions to help comply from both a safety and environmental perspective.