International Data Corporation (IDC) has predicted the Asia/Pacific Internet of Things (IoT) industry will continue its strong growth, with the number of units - or 'things' - connected to increase from 3.1 billion to 8.6 billion by 2020.
Over this same period, the total Asia/Pacific excluding Japan (APeJ) market size will increase from $250 billion (Bt8.09 trillion) to $583 billion.
Charles Reed Anderson, an associate vice-president and head of Mobility and Internet of Things at IDC Asia/Pacific said the IoT industry has matured considerably over the past year, with a number of large government initiatives across APeJ, and China in particular, driving demand.
This increase in market demand has led to an increased focus on IoT from leading ICT vendors, as well as start-ups with each keen to grab its share of the growing IoT market.
“High-level IoT market forecasts of information by region or country can be useful to certain audiences. It adds little value to those functional areas with more specific requirements. Sales and marketing, for instance, require IoT forecasts aligned to industry verticals so they can effectively set targets and tailor their go-to-market messaging; while product management requires IoT forecasts aligned to use cases such as digital signage so they can understand the addressable market for their solution portfolio across multiple industries,” said Anderson.
IDC’s IoT Market Forecast shows that China not only will continue to dominate the Asia/Pacific region, accounting for 59 per cent of the APeJ market opportunity by 2020, but also be one of the leading markets globally with nearly 1 out of every 5 units connected by 2020 to be in China.
However, market size is not the same as market maturity. The top three most mature markets were South Korea, Australia, and New Zealand, while China came in sixth out of the 13 APeJ Countries.
The IoT market forecast also looks at which industries are leading the way with IoT. The government industry leads the way, as national, regional and city governments aggressively try to leverage IoT solutions to drive new revenue streams, reduce costs and enhance citizen services as part of their Smart Government initiatives. Other leading industries include
utilities, discrete manufacturing, healthcare and retail.