The world is to see a major increase in the investments on the Internet of Things (IoT) over the next five years, led by projects in inventory and supply chain management. According to a study from the Cambridge, Mass-based consulting, and advisory firm Forrester Research, companies would pay $434.9 billion annually to plan, design, build, and run IoT applications within the year 2023.
The Forrester’s report separated those statistics into six sectors including IoT-specific security software, service provider connectivity, platform software, application software, hardware, and professional services. The reportrevealed that the major use of IoT solutions will be in SCM and inventory. The IoT investment is expected to increase at 20.2 percent compound annual growth rate (CAGR), statistically to reach $113.5 billion by 2023.
Other areas which will show IoT developments in their functions include smart products, which are expected to reach $50.3 billion, investments for smart buildings to reach $49.6 billion,and fleet management, which is predicted to gain $10.4 billion, by 2023.
In July 2017, a study by Juniper Research estimated that the IoT cybersecurity solutions market will achieve $6 billion worldwide by 2023. It is predicted to increase by about 300 percent from 2018 to 2023.
According to statistics from the PYMNTS IoT Tracker, IoT developments are not only likely to continue, but also likely to continue to increase. There will be an expected rate of 18 billion IoT solutions and connected devices in the market by the end of 2018, with retail markets from the complete product range like groceries to yoga pants, to beer and beyond.
Today, U.S. is the largest consumer of IoT devices, but European markets are growing steadily. Asia and China are on the pathway to reach the highest growth rates of IoT investments in the global technology market, Forrester states.
The investment boom on IoT applications in the market is being fueled by various platforms like hardware, software, and sensors that are able to boost IoT offerings. Therefore, the future is expected to have a flexible and feasible market for IoT and its applications.