• by Chuck Martin , Staff Writer, December 8, 2017

Worldwide spending on the Internet of Things is moving from the billions to more than $1 trillion.

IoT spending this year will hit $674 billion and then grow 14% a year to pass $1 trillion in three years, according to the new forecast from International Data Corporation (IDC).

By 2021, IoT spending is forecast to reach $1.1 trillion.

Hardware leads the way, with spending next year of $239 billion, going mostly to sensors and modules along with security.

Services are the second largest category, followed by software and connectivity.  

Consumer IoT spending will reach $62 billion next year. Here are the top industry areas by spending:

• 21% -- Consumer
• 20% -- Insurance
• 18% -- Healthcare provider
• 17% -- Cross industries
• 17% -- Resource industries

The leading areas of that spending will involve the smart home, including smart appliances, home automation and security.

Spending will be global, led by the Asia-Pacific region. Here’s projected spending by region for the next year:

• $209 billion -- China
• $194 – United States
• $171 billion – Europe, Middle East, Africa
• $68 billion – Japan
• $29 billion -- Kora

Interestingly, the fastest growing industry segment will be smart appliances, according to IDC.

I’m expecting that part of the reason is that more appliances are, de facto, smart appliances. The question still out is how many consumers will tap into the capabilities that are incorporated into appliances they buy.

For example, a smart clothes washer still can wash clothes if it isn’t internet connected.

No matter, the money will be spent on the smart appliances.