MEA to see $6.6 billion investment in Internet of Things this year
Governments and businesses in the Middle East and Africa (MEA) region will invest more than $6.6 billion in Internet of Things (IoT) hardware, software, services and connectivity in 2016, according to figures released by market research and consultancy firm International Data Corporation (IDC).
The consultancy expects 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 $14.3bn in 2020.
Manufacturing and transportation are the leading vertical industries that attract much of the IoT investment in the region. IDC estimates that spend in the two industries will reach $1.1bn each this year, followed by utilities, with investments of nearly $800 million.
“Looking across all of the 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,” says Wale Babalola, a research analyst for telecommunications, IoT and digital media at IDC Middle East, Africa and Turkey.
“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 to 2020 forecast period are Smart buildings, insurance telematics and Smart grid (gas),” adds Babalola.
He further said that 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.
IDC forecasts that, in addition to manufacturing and transportation spending, levels will increase by more than 100 per cent over the next four years in construction, consumer, insurance, manufacturing, retail and telecommunications industries.
Cross-industry investments, which represent use cases common to all industries, are also forecast to see revenues more than double during this period.