European organizations are gearing up to invest an estimated $260 billion in Internet of Things (IoT)-related solutions in the year 2024, IDC report said.
According to projections by IDC, this investment is expected to gain momentum, showcasing a five-year compound annual growth rate (CAGR) of 11.8 percent and is predicted to soar to nearly $368 billion by 2027.
The growth trajectory of IoT spending faced a minor setback over the past two years, due to geopolitical and macroeconomic challenges impacting the European economy.
Nevertheless, IoT stands resilient as a driving force behind businesses’ digital transformation initiatives. For companies aiming to streamline operations, improve customer experiences, and achieve strategic goals, IoT emerges as a critical facilitator of operational efficiency, optimizing processes, and automating functions.
Alexandra Rotaru, Senior Research Analyst with IDC’s European Data & Analytics team, emphasizes the strategic importance of IoT in navigating uncertain times.
The surge in European IoT spending is expected to be fueled by investments from the manufacturing, utilities, and professional services sectors. Among the various components, spending on software is projected to witness the most rapid growth over the next five years, with process condition monitoring and production asset management emerging as the leading use cases.
Additionally, organizations are set to concentrate on modules and sensors, along with ancillary services such as industrial maintenance, vertical business process outsourcing, infrastructure as a service, and data as a service. Notably, investments in low power wide area networks (LPWANs) are anticipated to experience substantial growth.
LPWANs offer power-efficient, long-range, and cost-effective connectivity for IoT devices that transmit small amounts of data infrequently. Examples of devices benefiting from LPWANs include smart meters, asset trackers, environmental monitors, and smart agriculture tools, IDC said.
