MEA IoT spend to hit $12.6bn by 2021: IDC
Manufacturing will be the top industry to spend on IoT solutions in 2018
International Data Corporation (IDC) has forecasted that the Internet of Things (IoT) industry will grow 15% year on year in 2018, with an expected spend of $6.99bn, in the Middle East and Africa region.
The report, Worldwide Semiannual Internet of Things Spending Guide, revealed that organisations will increase investment in hardware, software, services and connectivity, pushing spend to reach $12.6bn by 2021.
IDC stated that IoT services will be the market's largest technology category in 2018, with the majority of spend going towards ongoing services, IT services and installation services. Hardware will be second, followed by software and then connectivity.
Wale Babalola, a research analyst for telecommunications and IoT at IDC MEA, said: "IoT adoption in the MEA region is expected to accelerate over the coming year as organisations from both the public and private sectors increasingly digitalise their businesses in a bid to automate their operations and ramp up productivity.
"As organisations increasingly realise the added value that is provided by IoT, we can expect to see further development of innovative industry-specific solutions."
IDC also found that the industries expected to invest the most this year in IoT solutions include manufacturing ($1.07bn), transportation ($0.85bn), cross industries ($0.76bn), utilities ($0.75bn), and consumer ($0.68bn). Additionally, in the "cross industries" category, which represents use cases common to all industries, IoT spending will largely focus on smart buildings and connected vehicles.
"The growing implementation of initiatives that leverage digital solutions will continue to fuel IoT adoption over the coming 12 months, particularly in Saudi Arabia and the UAE. As such, these two countries combined are expected to contribute $1.57bn of the MEA regions total IoT spending of $6.99bn in 2018," concluded Babalola.