Spending on Internet of Things (IoT) technologies in the Asia Pacific region is projected to hit $241 billion in 2025, reflecting a 12.5 percent increase, according to IDC’s Worldwide Semiannual Internet of Things Spending Guide. This growth trend is expected to continue steadily, reaching $355 billion by 2029, at a compound annual growth rate (CAGR) of 12.6 percent, Marcus Torchia, research vice president, Data & Analytics Group at IDC, said.
Industries Leading IoT Investment
Manufacturing, government, retail, and utilities will collectively drive over half of the total IoT spending in 2025:
Manufacturing stands out as the top spender, particularly in industrial manufacturing and consumer goods.
Government spending is focused on public safety, emergency response, and infrastructure modernization.
Retail is investing in inventory intelligence, supply chain resilience, and video analytics to improve operational efficiency and customer engagement.
Utilities are accelerating investments in leak detection and smart metering for better resource management.
Other industries showing rapid growth in IoT investment include healthcare providers and transportation, both of which are leveraging IoT for real-time monitoring and service optimization.
High-Growth Use Cases
The leading areas of IoT spending by use case in 2025 include:
Video analytics
Manufacturing operations
Inventory intelligence
Supply chain resilience
Production asset management
Meanwhile, the fastest-growing use cases over the next five years are:
Public safety and emergency response
Leak detection systems
These are being driven by rising demand for automation and real-time data analytics across both public and private sectors.
Technology Investment Focus
From a technology perspective:
Hardware will account for over 60 percent of all IoT spending in 2025, led by purchases of modules and sensors to connect devices to networks.
Provisioned services, particularly telecom services and Software-as-a-Service (SaaS) platforms, will experience the fastest growth, driven by the need for scalable, managed IoT solutions.
Country-Level Spending
China is set to lead the region with more than 60 percent of total IoT spending in 2025, followed by India and South Korea.
The fastest-growing markets in 2025 are China, India, and Indonesia, propelled by smart factory initiatives, Industry 4.0 adoption, and government-backed IoT programs.
As enterprises across the region continue to prioritize digital transformation, investment in IoT, AI, analytics, and cybersecurity is seen as crucial for driving efficiency, resilience, and customer experience innovation.
Rajani Baburajan
