That’s a 12.5 per cent jump from this year, and they expect it to grow steadily to $355 billion by 2029. Apparently, the region just can’t get enough of smart sensors and connected kit.
IDC research vice president Marcus Torchia said the new IoT Spending Guide gives vendors a deeper dive into where the money is going. It covers 21 technology types, 140 use cases and 27 industries across 53 countries. It breaks out sectors like automotive, aerospace, and electronics to give a clearer picture of how these industries are throwing their weight behind IoT.
“Goods production to supply chains to retail distribution emerge as one of the more visible investment themes in IoT use cases,” he said.
Big spenders in 2025 will be manufacturing, government, retail and utilities, which together will blow more than half the total IoT budget. Within manufacturing, the industrial and consumer goods crowd are expected to splash the most cash. Healthcare and transport sectors, meanwhile, are tipped to grow the fastest over the next five years.
Top five use cases getting the most attention in the region are video analytics, manufacturing ops, inventory intelligence, supply chain resilience and asset management. Fast-growing areas include public safety and leak detection, all thanks to rising demand for real-time data and automated systems.
When it comes to the tech, it’s hardware that will hoover up the bulk of spending in 2025, more than 60 per cent of it. This is mostly going on sensors and modules to hook things up to networks. But services will grow faster, particularly telecoms and software-as-a-service (SaaS).
IDC market analyst Sharad Kotagi said, “Prioritising business optimization alongside strategic investments in AI, analytics, and security is crucial for enterprises in the region. Robust IoT solutions will accelerate digital transformation by unlocking data-driven decision-making and enhancing customer experiences.”
China will lead the spending spree with more than 60 per cent of the total in 2025, followed by India and South Korea. Growth will be strongest in China, India and Indonesia, thanks to smart factory rollouts and state-sponsored tech programmes encouraging more IoT adoption.
