Worldwide spending on the Internet of Things is forecast to surpass A$1 trillion this year, a 10.6 per cent leap over the previous year.

According to a new International Data Corporation (IDC) Worldwide Internet of Things Spending Guide, investments in the IoT ecosystem will hit A$1.185 trillion this year, with a compound annual growth rate of 10.4 per cent over the 2023-2027 forecast period.

The most investment will be made in the manufacturing industries: Manufacturing Operations and Production Asset Management. The next largest use cases – Inventory Intelligence, Smart Grid (Electricity), and Supply Chain Resilience – will benefit from strong investments from the Retail and Utilities industries, according to IDC.

The fastest spending growth will be seen in Electric Vehicle Charging (30.9 per cent CAGR), Next Generation Loss Prevention (14.5 per cent CAGR), Agriculture Field Monitoring (13.9 per cent CAGR), and Connected Vending and Lockers (13.8 per cent CAGR).

“The last few years have shown that connecting with a digital infrastructure is no longer a luxury, but a necessity,” said Carlos M. González, research manager for the Internet of Things at IDC.

“For organisations to excel in data-driven operations, investing in IoT projects is essential. Connecting devices to data networks to gather insight, expand operations, and increase performance are the hallmarks of executing an IoT ecosystem.”