Study Projects Global IoT Tech Spend Reaching USD 253 Billion in 2016

Bangalore-based management consultancy Zinnov has released a study that shows an overall global IoT technology spend stands at USD 120 billion in 2016 that is expected to grow to USD 253 Billion. 

The survey's geographical analysis shows that North America as the biggest spender followed by Asia, led by Japan and China, and Europe. The report added that the current addressable IoT Technology market for service providers stands at USD 34 billion and is expected to reach USD 69 billion in 2021. Out of the USD 34 billion addressable market, USD 28 billion is currently addressed. An analysis of 200 service providers reveals a highly consolidated space with the Top 20 service providers addressing 82% of the market.

An examination of the Top 2000 spenders revealed a consolidated structure with Top 100 companies contributing to 46% of the total spend. The study notes that industrial, BFSI and automotive verticals are the biggest spenders contributing to over 46% of the overall IoT Technology spend. 

The Zinnov report also indicates that enterprises are examining newer business models and additional revenue streams through IoT implementation, and that there is a drive to form IoT standards to enable interoperability of billions of connected devices. Companies and service providers are apparently joining consortium and alliances across the technology stack and are collaborating even with their peers to promote standards. Service providers are also exploring new IoT specific engagement models. Innovations across the technology stack to cater the potential IoT threats are expected to continue driving IoT investments and penetration.

The study, dubbed 'Zinnov Zones 2016 - Internet of Things Technology Services', rated global service providers on their IoT technology services competency across various segments that include advisory & consulting, product development engineering, managed services and their respective sub segments.