By Li Panpan
(JW Insights) Jul 18 -- China's IoT spending is expected to reach about $300 billion in 2027, ranking first globally and accounting for about one-fourth of the global IoT total investment, according to a recent report by the research institute IDC.
With solid support from the government, the compound annual growth rate of China's Internet of Things IT spending is expected to reach 13.2%, which is higher than the global average, said the IDC report. China released the "Three-Year Action Plan for New Infrastructure Construction of the Internet of Things (2021-2023)" last year.
The total global IoT spending in 2022 was approximately $730 billion, and it is expected to be close to $1.2 trillion in 2027, with a five-year compound growth rate (CAGR) of 10.4%, said IDC.
The report shows that hardware is the technology market with the largest proportion of the Internet of Things, accounting for nearly half of the total IT investment in the Internet of Things. The IoT server market will usher in rapid growth, with a five-year growth rate exceeding 20%. The service market accounts for 40% of the investment in the Internet of Things industry, which is also quite a large proportion.
The IoT data analysis-related software submarket—Analytics Software technology will have a good market prospect, with a five-year growth rate of more than 25%.
In the next five years, the primary end users of China's IoT spending will be industries of manufacturing, government, public utilities, professional services, and retail, contributing nearly 70% of the expenditure. Production asset management in application scenarios related to the manufacturing industry will become the most prominent investment direction in the IoT market in the next few years.
