European IoT market revenues to expand by 19.8% y-o-y in 2019: IDC
Germany, France and the U.K. will be the markets with the highest level of IoT adoption in 2019
Revenues for the European internet of things market are forecast to increase by 19.8% year-on-year to reach $171 billion in 2019, according to a recent report by IDC.
Total spending on IoT solutions in Europe will maintain a double-digit annual growth rate through 2022, and it is expected to surpass $241 billion in 2022, according to the report.
IDC also highlighted that the markets experiencing the highest adoption of IoT this year will be Germany ($35 billion in predicted revenues), France ($25 billion), U.K ($25 billion) and Italy ($19 billion).
Central and Eastern Europe (CEE) will account for 7% of the total European IoT revenues in 2019.
“We’re still just scratching the surface of how powerful IoT solutions can be when combined with the massive scale of IoT endpoints, world-class connectivity and advanced technology,” said Milan Kalal, program manager at IDC. “That said, organizations across industries are gradually experiencing that driving business outcomes with IoT requires not only new technologies and expertise in areas like edge infrastructure, wired and wireless networking, security, and edge-to-cloud architectures, but also viable use cases that deliver short-term results and help drive a strategic IoT innovation road map.”
The industries that are forecast to spend the most on IoT solutions in 2019 are discrete manufacturing ($20 billion), utilities ($19 billion), retail ($16 billion), and transportation ($15 billion). IoT spending among manufacturers will be largely focused on solutions that support manufacturing operations and production asset management. In the utilities sector, IoT spending will be dominated by smart grids for electricity, gas, and water, according to IDC’s study.
Within the retail sector, omni-channel operation will be the single largest use case this year.
In transportation, two thirds of IoT spending will go into freight monitoring and logistics solutions, IDC said. The industries that will see the fastest annual growth rates throughout the 2017-2022 period are retail (18.5%), healthcare (17.9%), and government (17.1%).
In the consumer segment, IoT spending will exceed $32 billion this year.The largest consumer use cases will be related to the smart home, personal wellness, and connected vehicles.
“We are now experiencing a dichotomy scenario across European IoT adopters: While a few advanced users are leveraging IoT technologies in full swing, there is still a large portion of users struggling to prove and replicate initial pilots and proof of concepts,” said Andreas Siviero, a research manager at IDC.