Spending on Internet of Things (IoT) is set to take off in Canada in 2015 according to a Canadian forecast on IoT released by International Data Corporation (IDC).It is the first detailed forecast on the IoT market in Canada, that explores the size and growth by industry for 36 specific use cases. IDC has evaluated the components, processes, IT support, and connectivity for the key IoT use cases and segmented this market by 11 vertical markets to help market players identify growth areas. The report is designed to pinpoint the key addressable use cases for Internet of Things technologies and solutions.
"Over the next 10 years, the Internet of Things market will see significant vertical-focused growth. To tap into this fast-growing market, IT vendors will need to pinpoint the largest and fastest-growing industry opportunities and create solutions that address the unique business processes specific to each industry use case" says Nigel Wallis, IDC Canada's Research Director, IoT & Vertical Markets.
In addition, IDC Canada's research anticipates that:
- The fastest-growing industry sectors are consumer, manufacturing, and insurance. Based on specific industry and technology drivers, the industry sectors with the greatest ICT opportunity in terms of overall size are manufacturing, healthcare, transportation, and consumer.
- Vendors of IT, communications and operational technology will all play in the IoT marketplace as solutions are comprised of multiple components, including: intelligent or enhanced traditional embedded systems; connectivity and service enablement, as well as service provider equipment and system infrastructure; IoT purpose-built platforms; analytics; applications; security; and services.
- Growth in IoT in Canada is hindered by significant remaining market inhibitors including: security and privacy; cost; solutions still require customization, not configuration; and the traditional Canadian conservatism toward emerging technologies.
"2015 is when the IoT market will really take off in Canada. IDC forecasts that growth in IoT revenue will be very high but will still be linear" adds Mr. Wallis. "Spending on the key addressable use cases in Canada will grow from C$2.88 billion in 2013 to C$6.5 billion in 2018 for a CAGR of 18%." This report is designed to help clients target and attack opportunities, assign resources and segment the market. It presents a bottom-up model with 36 defined use cases on an industry-by-industry basis, built on 15 technology sub-segments. Note that previously released market size estimates for IoT should not be compared to the aggregate spending provided in this report, as this study isolates the top 36 use cases in select industries in Canada.