IDC: China's IoT IT spending will reach nearly US$298.12 billion in 2026

IDC recently released the 2022 V2 version of the IDC Worldwide Internet of Things Spending Guide . According to IDC data, the scale of global enterprise-level investment in the Internet of Things in 2021 is about US$ 681.28 billion, and is expected to increase to US$ 1.1 trillion in 2026 , with a five-year compound growth rate ( CAGR ) of 10.8% .

Overview of China's Internet of Things Market

Affected by the epidemic, IDC slightly lowered the scale of IT spending in China's IoT market in 2022 in this forecast. However, with the optimization and adjustment of epidemic prevention and control policies and measures, China's IoT development will maintain a stable and positive trend in the next five years. Specifically, IDC predicts that China's IoT IT spending will be close to US$ 298.12 billion in 2026 , accounting for about 1/4 of the global IoT investment , and the investment scale will lead the world. In addition, China's IoT IT spending has grown steadily at a five-year CAGR of 13.4% , which is higher than the global average.

Technical Dimension

Compared with the 2022V1 version, the hardware market accounts for 40% of the IoT IT investment scale and is still the largest technology market for the IoT. It is worth noting that with the promotion and deployment of the IoT, the IoT market has gradually accumulated a large amount of IoT data, and the analysis and application of IoT data are becoming the focus of the next stage. Based on market development, IDC has raised the IT investment scale of the server and storage markets in this forecast .

In addition, in terms of connection technology, China's fixed-mobile convergence and broadband-narrowband IoT access capabilities are rapidly improving. On the one hand, China is vigorously developing the application and promotion of cellular IoT, and on the other hand, the scene application and commercialization process of low-power wide area networks are accelerating. Therefore , the scale of IT investment in cellular networks ( Cellular ) and low-power wide area networks ( LPWAN ) has been slightly increased.

Industries and Application Scenarios

From an industry perspective, during the five-year forecast period, manufacturing, government, public utilities, professional services and retail are the main end users of China's IoT spending, accounting for more than 60% of China's IoT spending. In addition, this forecast has increased the scale of investment in the IoT market by the banking and construction industries. Specifically, the banking industry has actively increased its investment in the IoT in recent years to achieve precision financial services and management, promote the application of IoT technology in areas such as collateral management and customer service, and explore the construction of IoT data platforms. Guided by China's policies on carbon peak and smart construction in urban and rural areas, the construction industry will promote innovative applications in digital design, smart production, smart construction, construction industry Internet, construction robots, smart supervision and other fields, thereby driving investment in IoT technology.

With the development of scenarios such as smart manufacturing, smart cities, and smart retail, application scenarios such as manufacturing operations , public safety and emergency response , omni -channel operations , and production asset management will become the main investment directions of China's Internet of Things industry.