European organizations are expected to spend around $227 billion on Internet of Things (IoT) technology in 2023, says IDC.
IoT-related spending is expected to expand at a five-year compound annual growth rate (CAGR) of 11 percent, reaching almost $345 billion by 2027, according to the Worldwide Internet of Things Spending Guide published by International Data Corporation (IDC).
IoT development in Europe reflects enterprises’ evolving digital transformation investment objectives related to cost reduction, process streamlining, automation, and enhanced customer experience.
European IoT spending will be driven by investments from manufacturing, utilities, and professional services organizations. Prominent use cases will include production asset management, distribution automation, and infrastructure for smart buildings.
“IoT will remain a critical tool for improving performance and efficiency and increasing automation capabilities. It will continue to be a key investment area, helping organizations to reduce costs and enhance productivity despite challenges,” says Alexandra Rotaru, senior research analyst with IDC’s European Data & Analytics Team.
