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Manufacturing, transport and utilities will fuel IoT spending

There will be steady growth in spending on IoT hardware, software and services in the next few years, according to IDC

If you were to play the Christmas parlour game 'what's going to be big in tech next year?' then one of the first answers to be blurted out would be 'IoT'.

The hype around the Internet of Things might be reaching a crescendo but underneath all of the talk of smart cars and fridges there is gathering momentum in industralised solutions.

Already some of the channel have moved to make sure they are ready for the IoT growth surge and resellers now have several distributors to work with that have been developing their expertise.

The other positive for resellers is this appears to be early days with IoT and the growth that is being forecast is more slow and steady, rather than explosive.

IDC's forecast on the worldwide spending on IoT is predicting a 14.6% increase in sales next year to hit $772.5bn.

That level of growth will be maintained until 2021, with the market breaking through the $1trn mark in 2020.

The largest category will be IoT hardware with modules and sensors being in demand. The channel will also have the opportunity to sell infrastructure and security.

At some point in the next couple of years spending on IoT services and software will overtake hardware.

"By 2021, more than 55% of spending on IoT projects will be for software and services. This is directly in line with results from IDC’s 2017 Global IoT Decision Maker Survey where organizations indicate that software and services are the key areas of focused investment for their IoT projects," said Carrie MacGillivray, vice president, Internet of Things and Mobility at IDC.

"Software creates the foundation upon which IoT applications and use cases can be realized. However, it is the services that help bring all the technology elements together to create a comprehensive solution that will benefit organizations and help them achieve a quicker time to value," she added.

The verticals that should be spending the most on IoT include manufacturing, transportation and utilities.

Europe will be behind Asia Pacific and the US in terms of IoT spending thanks to the strength of some of those heavily investing verticals.

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