IoT spending to smash the $1 trillion barrier by 2019

Western Europe one of the fastest-growing regions in the market over the next five years

The Internet of Things (IoT) trend is growing so fast that spending in the market will surpass $1tn by 2019.

IDC claims that in 2015, global spending on IoT will reach $698.7bn (£461.8bn), but that over the next five years, a 17 per cent compound annual growth rate will see that figure soar past the $1tn barrier to $1.3tn.

Yesterday, Cisco executive chairman John Chambers claimed that 2015 will be looked upon as the inflection point for the IoT.

According to IDC, the Asia-Pacific market is the "clear leader" when it comes to IoT spending, with more than 40 per cent of the global total coming from the region this year. North America and western Europe were the second- and third-largest regions, respectively, with a combined spend of £250bn in 2015.

Western Europe is expected to be one of the fastest-growing regions for the IoT over the next five years, IDC added.

In terms of customer segments, the healthcare and consumer markets will invest most in IoT spending in the coming five years. In 2015, manufacturing and transportation led the way, spending almost $250bn collectively.

"Manufacturing and transportation are both a good fit for IoT deployments," said IDC research fellow Vernon Turner. "Both industries have been connecting their supply chains, products, customers, and even workers for some time now, and really embrace the value of business outcomes."