The IoT market in Asia Pacific will grow in 2022 by 9.1 percent, accelerating from 6.9 percent in 2021, according to IDC.
Challenges such as semiconductor shortages and supply chain disruption caused by geopolitical tensions have limited the growth of IoT market in Asia Pacific in 2022 to single digits, and rising inflation may impact growth.
Rising demand for remote operations, better network coverage, and the deployment of commercial 5G and testbeds are driving IoT adoption in the Asia Pacific region. IDC expects Asia Pacific spending on Internet of Things (IoT) to reach $436 billion in 2026, with a CAGR of 11.8 percent for the period 2021-2026.
The deployment and expansion of 5G will drive the growth of connectivity use cases that utilize massive narrowband IoT as well as wideband/broadband IoT such as 4K IP cameras. Low Earth Satellites including nanosatellites and Very High Throughput Satellites will enable a range of remote connectivity uses cases, says Bill Rojas, Research Director for IDC Asia Pacific.
China holds the lion’s share in IoT spending, with more than 60 percent, followed by South Korea and India. Countries with the fastest IoT spending in 2022 are Singapore and Hong Kong. Government-led IoT initiatives and policies and the emergence of Smart factories and Industry 4.0 have accelerated the IoT adoption across Asia Pacific countries.