Revenues for Europe’s IoT market is estimated to grow by about 20% in 2019 to reach $171 billion. Data indicates that the European Internet of Things will see double digital growth during the 2017-2022 period. By 2022, it is expected to be worth over $241 billion.
Western Europe Will Take the Lion’s ShareWhile the IoT market is expected to see sweeping growth in the whole region, Western Europe will see most of this growth. Germany will be the leader in Europe and is expected to see spending of about $35 billion. Other Western European nations where spending is going to be significant are France and the UK, which will spend over $25 billion. Italy will follow closely, spending about $19 billion.
Industries that Will See Most Growth
Discrete manufacturing, utilities, retail, and transportation will be the industries where most spending will occur. Each of them will see spending of $20 billion, $19 billion, $16 billion, and $15 billion respectively.
Manufactures that spend on the Internet of Things will mainly focus on solutions to support manufacturing operations and asset management. Utilities will focus on spending on smart grids. In the retail sector, the biggest use is going to be in the omnichannel operations. In transportation, two-thirds of spending will be on logistics and freight monitoring solutions.
The industries where growth will be the fastest in the 2017-2019 period are healthcare, retail, and government, which will see 17%, 18.5%, and 17.1% growth respectively.
The Consumer SegmentThe biggest growth is going to come from the consumer segment. Revenues are expected to go well above $32 billion. The major use case by consumers will be in personal wellness, smart homes, and connected cars. In the smart homes, smart appliances and home automation will see huge growth, which will cause the consumer segment to experience the most growth. The five-year CAGR for the consumer segment will be 20%.
The Hardware Sector in 2019
In Europe, the hardware is going to be the biggest technology sector in Europe. Revenue is expected to be above $66 billion. The leader in the hardware segment will be sensor and module purchases. Services will come in a close second at $60 billion. Most of it will go to installation and traditional IT services.
Besides that, non-traditional operational and device services will play a huge role. Software spending is expected to be about $35 billion for 2019 and will see most of the growth in the five-year period with a CAGR of 18.9%. Connectivity spending will also be huge in 2019 with estimated spending of $10 billion.
The Worldwide Semiannual Internet of Things Spending Guide prepared this forecast. It looked at 14 technologies and 82 use cases across 20 industries in 9 regions and 53 nations. Unlike other types of research for the sector, the guide is designed with vendors in mind. This way, they can understand the opportunities that exist for them in the industry and focus on them.
The world has barely scratched the surface of how powerful solutions provided by this tech can be. It is especially so when combined with the massive scale of endpoints, advanced tech, and excellent connectivity. However, organizations across the various industries are finding that using this tech requires new expertise and technology.
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