Dive Brief:
- Worldwide spending on the Internet of Things will reach $800 billion, growing 16.7% year-over-year in 2017, according to a press release announcing an update to the International Data Corporation Worldwide Semiannual Internet of Things Spending Guide.
- In terms of industry, manufacturing, transportation and utilities currently lead the charge in terms of total spending on IoT. In the next five years, connected vehicles and smart building IoT investments are projected to near the top of the list.
- The largest use cases for IoT currently exist in the supply chain: the manufacturing operations segment is forecast to spend $105 billion this year; freight monitoring will invest $50 billion; and production asset management will spend $45 billion.
Dive Insight:
The spending data shows just how quickly IoT technology is spreading, proliferating with it a string of benefits for the supply chain.
The number one benefit is one supply chain managers have been clamoring for: real-time visibility and increased access to data. IoT devices transmit select information from an associated, non-connected object, to a server on the cloud. This can be a complex, insight-generating tool like a Fitbit or a smart watch, but it doesn't have to be. Often, at least in industrial cases, it is simply a recording mechanism consistently sending data on location or other product details.
The most clear example lies in logistics, where a device can be attached to a truck, trailer, or even a product to provide visibility information regardless of the step of the chain. Or, in the near future, packagers could include IoT tech on each item, allowing warehouse drones to spot, collect and deposit specific SKUs and eliminate the wasted time searching for items.
In the age of Big Data, shippers are looking for big insights. IDC data suggests they're investing heavily in IoT technology to achieve this goal.
