Publication date: 17 Jan 2024
European IoT Spending Is Estimated to Exceed $260 Billion in 2024, Showing Resilience Amid Global Uncertainty, Says IDC
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For more information, contact:- Alexandra Rotaru (arotaru) Email: arotaru@idc.com Phone number: +40 21 4112743
MUNICH, January 23, 2024 — According to the latest release of the Worldwide Internet of Things Spending Guide published by International Data Corporation (IDC), European organizations are projected to invest approximately $260 billion in Internet of Things (IoT)-related solutions in 2024. IDC predicts that IoT spending growth will gradually pick up momentum in 2024 and beyond with the recovery of the European economy, recording a five-year compound annual growth rate (CAGR) of 11.8% and reaching almost $368 billion by 2027.
IoT market growth exhibited a slight deceleration in the last two years due to geopolitical and macroeconomic impacts on the European economy. However, IoT continues to serve as a catalyst for businesses to undertake digital transformation initiatives. For organizations seeking to reduce costs, enhance customer experience, and realize their strategic objectives. IoT is a key enabler of operational efficiency, helping to optimize processes and automate operations.
“IoT should be viewed as a strategic enabler for organizations to achieve their resilience objectives amid unprecedented geopolitical, macroeconomic, and health-related challenges”, says Alexandra Rotaru, senior research analyst with IDC's European Data & Analytics team. “IoT can help organizations transform their operations, generate new value, and create new business opportunities. In the current climate of uncertainty and volatility, such benefits underscore the importance of leveraging IoT as a strategic asset.”
European IoT spending will primarily be driven by investments from the manufacturing, utilities, and professional services sectors. Spending on software is anticipated to post the fastest growth over the five-year forecast period, with process condition monitoring and production asset management being the leading use cases.
Furthermore, organizations will be focusing on modules and sensors, as well as related services like industrial maintenance, vertical business process outsourcing, infrastructure as a service, and data as a service. Investments in low power wide area networks (LPWANs) are predicted to post significant growth. These networks provide a power-efficient, long-range, and cost-effective connectivity for IoT devices that only require infrequent transmission of small amounts of data. Examples of such devices include smart meters, asset trackers, environmental monitors, and smart agriculture tools.
About IDC’s Worldwide Internet of Things Spending Guide
The Worldwide Internet of Things Spending Guide (December, V2 2023) forecasts IoT spending for 18 technology categories and more than 80 named use cases across 19 industries in nine regions and 52 countries. The spending guide also includes an IoT connectivity forecast for cellular, Low-Power Wide Area Networks, and other connectivity, including wired, short-range wireless, and satellite. This provides tech buyers and providers with a tool to understand how the plethora of IoT use cases call for multiple connectivity types, driven by different latency, bandwidth, and data frequency expectations.
For more information, please contact Alexandra Rotaru at arotaru@idc.com or Gabriele Roberti at groberti@idc.com.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.