Spending on Internet of Things (IoT) in Asia Pacific will grow by 9.6 percent in 2021, accelerating from 1.5 percent in 2020, according to IDC’s Semiannual Internet of Things Spending Guide.
Spending on IoT in the Asia Pacific region across the forecasted years (2021-2025) is expected to reach $437 billion by 2025 with a CAGR of 12.1 percent. This growth is driven by the adoption of location tracking, facial recognition, remote working, cold chain logistics & tracking of vaccines, video-centric application, and deployment of 5G.
“IoT in the Asia Pacific excluding Japan (APEJ) markets continues to grow steadily across multiple industries including transportation, retail, manufacturing, resources, and utilities driven by the increased capacity and reliability of fiber and cellular network infrastructure,” says Bill Rojas, Adjunct Research Director at IDC Asia/Pacific.
China, Korea, and India will account for more than three-fourths of overall IoT spending in APEJ throughout the forecast, followed by Australia and Indonesia.
Increased focus on building smart infrastructures such as wider connectivity coverage, 5G deployment, public wi-fi zones, smart grid, and initiatives like smart cities, Industry 4.0, and special economic zones are the main driving factors for the IoT growth in the countries across Asia Pacific region. Countries that will see the fastest IoT spending are Hong Kong, Singapore, and Malaysia.