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The spending on Internet of Things (IoT) in the Asia-Pacific region will rebound to reach $288B in 2021
FREMONT, CA : Due to the pandemic, key economies in Asia-Pacific in 2020 lowered spending growth to 7.1 percent, down from 12.5 percent projected before to Covid-19. Service providers in industries such as personal and consumer services, transportation, and discrete manufacturing resources that were hit hard by the pandemic saw a drop in IoT spending which corresponded to a drop in overall IT spending. With resumption of economic activities in the region due to better control of pandemic, these industries expenditures are expected to rebound back in 2021 and achieve double digit growth in till 2024, according to IDC's 'Worldwide Semiannual Internet of Things Spending Guide.' Driven by the pandemic in 2020, emphasis on overall health, work from home, safety, and need for better connectivity resulted in exponential growth.
According to a IDC estimate, expenditure on Internet of Things (IoT) in the Asia-Pacific area would rebound in 2021, reaching $288.6 billion at a compound annual growth rate (CAGR) of 11.7 percent. In 2021, China, Korea, and India will account for more than three-quarters of all IoT spending in the area, followed by Australia and Indonesia. Alternatively, China, Malaysia and Hong Kong will experience the fastest growth in IoT spending. The current COVID-19 pandemic has slowed IoT spending growth in 2020, while also emphasising the importance of rearranging public priorities in IoT for public healthcare and telemedicine, remote/online education, disaster management, automated manufacturing, online retail, food delivery, logistics and transportation, and smart home services. Healthcare use cases such as bedside telemetry and remote healthcare monitoring, as well as use cases that eliminate human contacts such as omni-channel operations, advanced payment/shopping, and so on, will experience the fastest spending growth.
Although COVID-19 continues to impact the economies in Asia/Pacific, more than two thirds of the organizations intend to retain their IoT budgets at the same or increased level -- 50 per cent of which will increase the IoT investments. Due to a long-term focus on environmental conservation use cases such as electric car charging and environmental monitoring detection will expand by 17.8% and 17.7%, respectively.