Commentary

IoT Spending Soars, AI Investments Heading To $46 Billion

One thing for sure about the Internet of Things is that there’s a lot of money around it.

Research, tracking and forecast stats come out on a regular basis documenting various IoT aspects ranging from the number of wearables being shipped or sold to the overall size of the market.

IoT uses range from consumers buying and installing smart devices in their homes to deployments by global corporations aimed at improving efficiency or customer service.

Now some new numbers are out showing the global scale of the Internet of Things. IoT technology spending will hit $.5 trillion, or 7% of all technology spending, with services revenue topping $200 billion, by 2025.

The forecast from Strategy Analytics also identifies that 70% of current IoT deployments in the U.S. involve fewer than 500 devices and two-thirds of companies spent less than $100,000 on IoT projects.

The study is based on interviews of technology decision makers in nine vertical markets in the U.S., U.K., France and Germany.

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Much of the power and value underlying IoT technology involves cognitive and artificial intelligence systems and IDC has new data in that arena.

Worldwide revenue or cognitive and AI systems will reach $13 billion this year, an increase of 59% over 2016, according to IDC.

Global spending on cognitive and AI solutions will grow 54% through 2020 when revenues are projected to pass $46 billion.

These technologies will enable processes that automatically learn and make recommendations or predictions.

One of the main areas of development is expected to be in automated customer service agents.

The AI market still appears to be somewhat segmented, based on the study. The top use case based on 2017 market share is the category of ‘other,’ providing an idea of just how many applications there are in progress.

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All of the main IoT applications will be discussed at the MediaPost IoT Marketing Forum May 18 in New York. Here’s the agenda

 

 

 

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