By 2020, total spending in the Asia-Pacific on the Internet of Things (IoT) will reach US$57.96 billion, up from US$9.96 billion this 2014.
This was according to a press statement by the Mountain View, California-based marketing research and consultancy firm, Frost & Sullivan as it announced the release of its latest report, "Analysis of the Internet of Things Market in the Asia Pacific."
Citing the report, it said making this possible will be a compound average growth rate (CAGR) of 34.1% on IoT spending in the APAC from 2014 to 2020. Spending on IoT applications for manufacturing will account for a CAGR of 52.7 % between 2014 and 2020. IoT spending on the consumer technology segment will also exhibit phenomenal growth, but percentages or statistics were not provided.
Cited as top drivers for heightened IoT spending were the following:
- Efforts by governments to improve the competitiveness of their countries' respective economies
- City planners' efforts to address social demographic challenges in their cities
- Further miniaturization and reduced costs of sensors, enabling them to be integrated at the chip level
- Such integration enabling chips with sensors to be found in almost every home device and appliance
- Improved communications infrastructure in the Asia-Pacific
- Availability of cost-effective storage through cloud computing
The press statement noted that early adopters to IoT in the APAC include Japan, Singapore, China, Australia and South Korea while India, Malaysia, Thailand and Indonesia are expected to be the fastest growing IoT market in the APAC between 2014 and 2017.
However, the Forrester report also cited challenges that possibly could prevent rapid adoption in the APAC of IOT technology, namely:
- Security and information privacy issues
- Lack of a framework for standardization and data sharing
- The need to provide sustainable and cost-effective power supply to millions and even billions of connected devices
Notwithstanding these challenges, Frost & Sullivan said the APAC market for IoT is expected to grow strongly and develop on multiple fronts.
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