IoT spending in Asia Pacific to reach $277.5 billion in 2023

Asia/Pacific spending on the Internet of Things (IoT) is forecasted to be $277.5 billion in 2023, an increase of 11% over 2022, according to IDC’s latest Worldwide Semiannual Internet of Things Spending Guide. Rising demand for remote operations, supply chain efficiency, deployment of commercial 5G, and increasing digital footprint are driving IoT adoption in the region. IoT investments are expected to reach $435 billion in 2027, growing at a compound annual growth rate (CAGR) of 11.7% between 2023 and 2027.

“IoT connectivity technology both fixed and wireless continues to improve and play an increasingly important role in IoT adoption. Power-saving IoT devices built with 5G enhanced Machine Type Communications technologies such as 5G Reduced Capacity (RedCap) will start to be introduced into the market to gradually replace LTE Cat 3/4 devices. The result will be more video-enabled endpoints and advanced analytics. 5G Non-Terrestrial Network satellite connectivity is expected to be introduced to the market during the forecast period further extending the reach of IoT to remote areas”, says Bill Rojas, Adjunct Research Director for IDC Asia/Pacific. “Use cases include disaster recovery and response, oil & gas, mining and resources monitoring. 5G-enabled mobile private networks in manufacturing, transportation and utilities will take advantage of mid-band and mmWave IoT device connectivity enabling 4K video cameras and ultra-low latency for automated mobile robots. Fiber connected smart sensors for many applications including monitoring of bridges and highways, and control of smart elevators, traffic lights, and street lights are starting to gain traction and be combined with wireless technologies to provide robust scalable solutions”, he added.

Discrete and Process Manufacturing will see the largest investment in IoT solutions in 2023 and throughout the forecast period, accounting for more than one-third of all IoT spending in the region. State/Local Government and Professional Services are the following largest industries in terms of IoT spending. The potential to improve the quality, efficacy, and customer experience of their products and services is what motivates these organizations to invest in IoT. State/Local Government and Telecommunications will deliver the fastest spending growth over the five-year forecast with CAGRs of 15.1% and 14% respectively. IDC