IoT Enterprise Spending Forecast for Boost

Research company IoT Analytics (IotA) has published a report that predicts growth in enterprise IoT sales would start to experience a slowdown by the end of 2024, continuing a downward trend first noticed in 2023, as economic uncertainty results in industry players scaling back their spending. 

The IoTA paper found that enterprise IoT spending grew 15% year-on-year, reaching $269 billion by 2023, but noted this was less than the 18% that was recorded in 2022. 

Upward trajectory 

It forecast that overall sales would grow 12% to $301 billion inside of 2024 and pointed to signs of an upward trajectory for 2025, with a compound annual growth rate (CAGR) of 15% predicted from then all the way through to 2030. 

Despite this upward trend, the report warned that related services and hardware are “currently the hardest hit” by a general slowdown in corporate spending. Nevertheless, it also predicts that spending in China will grow 17% in 2024, with India tipped to increase by 14% and the US by 13%.   

Investment needed 

The research company predicted automotive manufacturers’ spending will grow 14% in 2024 year and 18% in 2025, spurred by a “significant change” in the industry as electric vehicles become more prominent, along with a need for “substantial investment” in connectivity, real-time data processing and the use of advanced driver assistance systems. 

IoTA warned that vehicle makers “must redesign entire factories” in terms of data infrastructure and connectivity as they shift from internal combustion engines to electric power. 

Process manufacturing was also tipped as a growth vertical, with spending expected to rise 13% in 2024 and remain up to 2% higher than the annual market average until 2030. 

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