10% Growth Expected For The IoT Market In 2023

Global services, hardware, and software sales for IoT projects are expected to reach $850 billion this year and then pass the $1 trillion mark in 2023. Demand continues to come mainly from the industry.

The contributions of States and telecom players to the global IoT market should experience the most substantial growth between now and 2027, respectively, 12% and 11.7% per year on average. 

The IDC analyst points to the strong growth that the global IoT market is currently experiencing and which it is promised for the years to come. According to the research firm, the sector should generate $850.7 billion in turnover in 2023, thus increasing by 10.6% in value compared to the previous 12 months.

This amount should be increased to $ 1 trillion in 2026, under the effect of an average annual growth rate of 10.4%, which will last at least until 2027. In Western Europe, sales should record an average annual growth rate of 11% during the next five years, compared to 8% in the United States and 13.2% in China.

40% of spending goes to services

Around the world, nearly 40 % of business investment in the IoT is devoted to the use of services. Dominated by purchases of sensors and modules, the hardware segment ranks second in expenditure. As for software, it ranks only in third place but should experience an increase of 11% per year until 2027. All areas combined, it is the processing and manufacturing industries that will consume the most this year, just like during the period 2023-2027, by securing a third of its revenues to the global IoT market.

The combined share of professional services players, gas, water, and electricity suppliers and distributors stands at 25%. For their part, the contributions of States and telecom players should experience the strongest growth between now and 2027, respectively, 12% and 11.7% per year on average.

The two main use cases apply to the industry.

Given this ranking of investors, it is not surprising that the two use cases that will capture the most spending in 2023 are manufacturing operations ( $73 billion ) and the management of production tools ($68.2 billion). $ billion ). Next comes inventory management ($37.6 billion), smart grids ($36.9 billion), and supply chain resilience ($31.6 billion).

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