Internet of Things commonly called IoT is a buzzing word nowadays. All thanks to the tremendous IoT expenditure. There is an increase in the spending of IoT to strengthen its network in the world. According to a new Research, the Internet of Things is seeing a growth of 16% by 2020 driven by hardware investments, primarily by manufacturers.
There is a report from a Journal on the release of “World Semiannual Internet of Things Spending Guide” by International Data Corp. (IDC). The IDC report found that IoT spending will reach to $1.29 trillion worldwide by 2020 and represent a 15.6% compound annual growth between 2015 and 2020. The growth has its own significance in the network market across the globe.
The IoT allows the objects to be sensed or controlled remotely across the existing network infrastructure. It is the inter-networking of physical devices vehicles also termed as smart-devices, buildings and other items embedded with electronics, software, sensors, actuators and network connectivity to enable these objects to collect and exchange data. Researchers have found that manufacturing industry is expected to make the biggest of IoT investments in next five years.
As the improvements in sensor technology continue, IDC sees much of IoT expenditure going towards hardware, which comprises the largest spending category through the forecast. It is predicted that hardware spending will reach $200 billion by 2020. The bulk of the hardware will comprise of modules and sensors that connect endpoints to a network.
The opportunities responsible for driving IoT investments is expected to derive from different areas. The IDC report found that the number of IoT devices will increase by 200% to 46 billion by 2021.
IoT has a bright future and is booming in present scenario. Hardware investment in IoT can be seen as a stepping stone to build a robust network connectivity.