The Asia Pacific excluding Japan IoT market is on track to grow 12.1% to reach $291.7 billion this year, according to IDC.
China is expected to account for the majority of spending (64.2% or $187.3 billion), and is expected to maintain this dominance over the next five years, with spending growing at a CAGR of 12.8% from 2017-2022.
But IDC said adoption of IoT technology in other countries in the region is gaining ground. Korea is expected to account for 9.8% of the region’s spending this year, with India close behind with an 8.8% share.
The top five industries driving IoT spending in the region are consumer, discrete manufacturing, process manufacturing, transportation and utilities. But the fastest growing industries will be consumer, construction, healthcare provider, insurance, and retail.
Broken down by technology, connectivity is expected to account for 20% of total spending by 2022, with services and software combined making up 56.1% of the market.
APeJ is the leader in worldwide IoT spending with the region accounting for more than 40% of the total worldwide IoT expenditure in 2018,” IDC Asia/Pacific senior research manager Ashutosh Bisht said.
“[The] majority of IoT spending is likely to be generated in developing economies primarily driven by PRC and India.”