Worldwide Internet of Things (IoT) spending will hit $1.2 trillion by 2022, according to IDC, growing at a compound annual growth rate (CAGR) of 13.6 percent to that date.

The analyst firm’s forecast is based on its latest research into the expanding markets for a range of IoT technologies, including: sensors; modules; storage; servers; security hardware and software; IoT platforms (horizontal and vertical); analytics software; applications; IT and installation services; content services; and connectivity.

In total, IDC’s Worldwide Semiannual Internet of Things Spending Guide looks at 14 technologies across 20 vertical industries in 53 countries.

According to the report, the consumer sector – including smart home sensors, security, and connected devices (such as home hubs and smart doorbells) – will lead IoT spending growth, with a worldwide CAGR of 19 percent, followed closely by the insurance and healthcare provider industries.

Manufacturing and transportation will each exceed $150 billion by 2022, making these the two largest industries overall for IoT spending.

But from an enterprise use-case perspective, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) solutions will experience the fastest spending growth (29 percent CAGR to 2022), followed by traffic management and connected vehicle security.

Other use cases explored in the report include smart buildings, smart lighting, and environmental monitoring and detection, all areas where sensors will experience strong rates of growth.

IDC believes that, collectively, this diverse market is reaching critical mass. “The IoT market is at a turning point – projects are moving from proof of concept into commercial deployments,” said Carrie MacGillivray, IDC’s group vice president, Internet of Things and Mobility.

“Organisations are looking to extend their investment as they scale their projects, driving spending for the hardware, software, services, and connectivity required to enable IoT solutions.”

This intersection of multiple technology domains is key to both understanding and developing a supply-side product and market development strategy, said IDC.

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