The International Data Corporation (IDC) latest forecast has
stated that organizations in the Middle East and Africa (MEA) will invest more
than $6.6 billion in Internet of Things (IoT) hardware, software, services, and
connectivity in 2016, reports ITRealms.
The global ICT consulting
and advisory services firm, disclosed this in an update to its Worldwide
Semiannual Internet of Things Spending Guide, expecting that IoT revenues in
the region to increase at a compound annual growth rate (CAGR) of 21.3 per cent
over the next four years to total more than $14.3 billion in 2020.
IDC also stated that manufacturing and transportation are the
vertical industries leading the way in terms of IoT investment in MEA, with
both expected to spend an estimated $1.1 billion each in 2016. The next largest
industry, utilities, is expected to see IoT investments of almost $800 million
this year. The IoT use cases receiving the greatest levels of investment from
MEA organizations across these three industries are:
• Manufacturing Operations, which supports digitally-executed
manufacturing, or how manufacturers use intelligent and interconnected
input/output tools (sensors, actuators, drives, vision/video equipment etc.) to
enable different components in the manufacturing field (e.g. machine tools,
robots, conveyor belts) to autonomously exchange information, trigger actions,
and control each other independently.
• Freight Monitoring, which uses RFID, GPS, GPRS, and GIS
technologies to create an intelligent, Internet-connected transportation
system. This system carries out the intelligent recognition, location,
tracking, and monitoring of freight and cargo by exchanging information and
real-time communications via wireless, satellite, or other channels.
• Smart Grid (Electricity), where non-smart meter field devices
owned by the electric utility are used to control and optimize power flow to
ensure efficient, safe, and reliable service. The devices are used throughout
the electricity distribution grid for tasks such as line sensing, substation
automation, and feeder & line equipment control and optimization. Utility
owned in-home devices are included in this category when used for grid
operations.
IDC further said that by looking across all industries in the MEA region, freight
monitoring will receive the greatest level of IoT investment throughout the
forecast period, followed by smart grid (electricity) and manufacturing
operations. In addition to these use cases, remote health monitoring, smart
buildings, and smart home concepts will see significant levels of investment
over the next few years. The IoT use cases that will experience the greatest
revenue growth over the 2016–2020 forecast period are smart buildings,
insurance telematics, and smart grid (gas).
"IoT solution deployments across MEA will continue to see
increased adoption rates, both in the public and private sectors, as
stakeholders begin to realize an immediate return on their investments,"
says Wale Babalola, a research analyst for telecommunications, IoT, and digital
media at IDC Middle East, Africa, and Turkey. "In addition, the growing
development of purpose-built IoT platforms and the continuing proliferation of
smart devices will serve as catalysts for IoT adoption across the region's
industry spectrum."
While manufacturing and transportation will lead the way in
terms of overall IoT investments in the MEA region, six industries will see IoT
spending levels increase by more than 100% over the 2016–2020 forecast period –
construction, consumer, insurance, manufacturing, retail, and
telecommunications. Cross-industry investments, which represent use cases
common to all industries, are also forecast to see revenues more than double
during this period.
"A use case represents a detailed composition of a
technology investment that is made to produce a set of end-user benefits,"
says Marcus Torchia, research manager for IoT within IDC's Customer Insights
and Analysis team. "The long-term opportunity for IoT vendors is helping
to identify and create immediate and residual benefits for end users through
their technologies. We see strong opportunities across many industries. For
example, in highly instrumented verticals like manufacturing and
transportation, large data sets are used to optimize operational processes and
extend the life of high-capital cost assets. In other sectors like healthcare
and consumer, IoT technology is being used to produce benefits that improve
quality of life."
The Worldwide Semiannual Internet of Things Spending Guide
forecasts IoT revenues for 12 technologies and 47 use cases across 20 vertical
industries in eight regions and 52 countries. Unlike any other research in the
industry, the comprehensive spending guide was designed to help vendors clearly
understand the industry-specific opportunity for IoT technologies today.
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