IDC recently released the 2022 V2 version of IDC “Worldwide Internet of Things Spending Guide” (IDC Worldwide Internet of Things Spending Guide). IDC data shows that in 2021, the global Internet of Things enterprise-level investment scale is about 681.28 billion US dollars, which is expected to increase to 1.1 trillion US dollars in 2026, with a five-year compound growth rate (CAGR) of 10.8%.
China IoT Market Overview
Affected by the epidemic, in this forecast, IDC has slightly lowered the scale of IT spending in China’s Internet of Things market in 2022. However, with the optimization and adjustment of epidemic prevention and control policies and measures, the development of China’s Internet of Things will remain stable and positive in the next five years. Specifically, IDC predicts that in 2026, China’s Internet of Things IT expenditure will be close to 298.12 billion US dollars, accounting for about a quarter of the total global Internet of Things investment, and the investment scale will lead the world. In addition, China’s IoT IT spending has grown steadily at a five-year CAGR of 13.4%, exceeding the global average.
technical dimension
Compared with the 2022V1 version, the hardware market accounts for 40% of the IT investment scale of the Internet of Things, and is still the technology market with the largest proportion of the Internet of Things. It is worth noting that with the promotion and deployment of the Internet of Things, the Internet of Things market has gradually accumulated a large amount of IoT data, and the analysis and application of IoT data is becoming the focus of the next stage. Based on market development, IDC has raised the scale of IT investment in the server (Server) and storage (Storage) markets in this forecast.
In addition, in terms of connection technology, China’s fixed-mobile integration and broadband-narrow combination IoT access capabilities are rapidly improving. On the one hand, China is vigorously developing the application and promotion of the cellular Internet of Things, and on the other hand, the scenario application and commercialization of low-power wide-area networks are accelerating. Therefore, the scale of IT investment in cellular network (Cellular) and low power wide area network (LPWAN) has been slightly increased.
Industries and Application Scenarios
From an industry perspective, during the five-year forecast period, manufacturing, government, public utilities, professional services, and retail are the main end users of China’s IoT spending, accounting for more than 60% of China’s IoT spending. In addition, this forecast increases the investment scale of the banking and construction industries in the IoT market. Specifically, in recent years, the banking industry has actively increased investment in the Internet of Things to achieve the precision of financial services and management, promote the application of Internet of Things technology in collateral management, customer service and other fields, and explore the establishment of Internet of Things data platforms. Guided by China’s urban and rural carbon peaking and intelligent construction policies, the construction industry will promote innovative applications in the fields of digital design, intelligent production, intelligent construction, construction industry Internet, construction robots, and intelligent supervision, thus driving the development of Internet of Things technology. put in.
With the development of smart manufacturing, smart city, smart retail and other scenarios, manufacturing operations (Manufacturing Operations), public safety and emergency response (Public Safety and Emergency Response), omni-channel operations (Omni-Channel Operations) and production asset management (Production Asset Management) and other application scenarios will become the main direction of investment in China’s Internet of Things industry.
