Spending on Internet of Things (IoT) technologies in the Middle East and Africa (MEA) is set to top $8.47 billion this year, according to the latest f
Spending on Internet of Things (IoT) technologies in the Middle East and Africa (MEA) is set to top $8.47 billion this year, according to the latest forecast from global technology research and consulting firm International Data Corporation (IDC).
A recent update to the firm’s Worldwide Semiannual Internet of Things Spending Guide shows that IoT spending in the MEA region will grow 15.9% year on year in 2019 and reach $17.63 billion by 2023 as governments and businesses ramp up their investments in digital transformation projects.
The big four countries in the region, namely South Africa ($1.9 billion), Saudi Arabia ($1.49 billion), Turkey ($1.24 billion), and the UAE ($0.65 billion), are expected to account for 62% of total IoT expenditure in the MEA region in 2019. The industries that are expected to spend the most on IoT solutions in 2019 are manufacturing ($1.52 billion), government ($1.11 billion), consumer ($1.09billion), transportation ($1.06 billion), and utilities ($0.73 billion).
Manufacturers will direct most of their IoT spending in 2019 towards solutions that support manufacturing operations and production asset management. In the government sector, public infrastructure asset management, public safety and emergency response, and intelligent transport systems, will account for over 66% of IoT spending in 2019.
Over 75% of consumer IoT spending in 2019 will be driven by investments around smart home technologies, remote health monitoring, and connected vehicles.
In the transportation sector, fleet management and freight monitoring solutions together will account for approximately 80% of IoT spending in 2019.
Meanwhile, smart grids for electricity will account for 78% of total IoT spending in the utilities sector.
“IoT adoption in the MEA region is expected to accelerate over the coming years as organizations from both the public and private sectors look to improve their provision of customer services, expedite decision making, improve the quality of products and services, accelerate their time to market, reduce costs, and increase productivity,” says Krishna Chinta, program manager for telecommunications and IoT at IDC MEA.
“And as organizations continue to reap the value generated by IoT, we can expect to see further development of innovative industry-specific solutions.”