The Internet of Things Will Be Worth Over $1 Trillion In Just 3 Years

The Internet of Things has been growing at a rapid rate as of late, seeing an annual growth of over 10% in 2022, or 10.6% to be precise. According to an analysis conducted by the IDC, the IoT will be growing at a similar rate for the next few years. After last year’s growth, it currently sits at around $805.7 billion in annual spending.

With all of that having been said and now out of the way, it is important to note that the IoT will start to receive $1 trillion in consumer spending by 2026. Digital infrastructure used to be considered an unnecessary luxury in years gone by. In spite of the fact that this is the case, it appears that it will now be seen as an outright necessity which will do a lot to help fuel faster growth than might have been the case otherwise.

It might initially seem like consumers will be driving this growth, but it turns out that businesses are going to form a far more significant component of the revenue that will be generated by IoT applications in the near future. The biggest chunk of IoT spending will be done by industries in the field of discrete and process manufacturing with all things having been considered and taken into account.

They will account for 33% of total IoT spending, with 25% coming from the Professional Services, Utility and Retail sectors. Organizations will be looking to invest in IoT because of the fact that this is the sort of thing that could potentially end up helping them run more smoothly and efficiently along with bringing down costs.

The bulk of the spending will go towards IoT services, followed by hardware. Spending on IoT software is also seeing a considerable growth rate, so it might eventually surpass hardware as it becomes far more advanced. All in all, around half of all IoT spending will come from Western Europe, the US as well as China, with the remaining half coming from various other countries around the world all of whom will be vying for dominance.

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