IDC recently released the 2022 V1 version of IDC "Global Internet of things Expenditure Guide" (IDC Worldwide Internet of Things Spending Guide). According to the latest IDC forecasts, global Internet of things (enterprise) spending will reach $690.26 billion in 2021 and is expected to reach $1.1 trillion in 2026, with a five-year (2022-2026) compound growth rate (CAGR) of 10.7%. Among them, the size of China's enterprise market will reach US $294 billion in 2026, with a compound growth rate (CAGR) of 13.2%. The global share is about 25.7%, continuing to maintain the largest market volume of the Internet of things in the world.

An Overview of the Internet of things Market in China

Compared with the 2021V2 version, because of the negative impact of the epidemic, IDC lowered the scale of China's Internet of things market expenditure in 2022 in this forecast. However, with the dynamic adjustment of epidemic prevention and control policies and the continuation of the 14th five-year Plan, IDC has maintained its market growth forecast of more than 10 per cent from 2023 to 2025.

Hardware is the technology dimension with the highest proportion of expenditure on the Internet of things.

The hardware expenditure of the Internet of things will continue to account for the largest proportion of China's enterprise-grade Internet of things market in the next five years. IDC predicts that the Internet of things hardware market will account for 42.8% of the market in 2026. With the growth of Internet of things data analysis and platform applications, IDC has slightly increased the expenditure scale of Internet of things infrastructure hardware (servers, storage, network devices, etc.). At the same time, due to the gradual transformation of Internet of things application software customization (low code) development, IDC slightly reduced the expenditure of general application software, and correspondingly increased the expenditure of development services. In addition, due to the impact of the "speed up and fee reduction" policy, IDC reduced network connection expenditure slightly.

Manufacturing, government, retail and public utilities are the industries with high expenditure on the Internet of things.

Manufacturing, government, retail and public utilities are still industries with significant demand for the Internet of things. IDC predicts that by 2026, the manufacturing industry represented by smart factories, the government industry represented by Smart City, the retail industry represented by online and offline omni-channel operation, and the public utility industry represented by smart grid, the above four major industries will account for more than 60% of China's enterprise-level Internet of things market expenditure. In addition, smart buildings (service industry), smart logistics (transportation industry) and smart hospitals (medical industry) also have huge market growth potential.