A new report has revealed that total spend on the Internet of Things (IoT) market could reach $322 billion (£246 billion) by 2022.

According to the ‘Zinnov Zones 2017 – Internet of Things Technology Services’ report, the overall IoT technology expenditure currently stands at $140 billion (£107 billion) in 2017. Management consultancy firm Zinnov has forecast that the market will grow by 18 per cent by 2022.

The study highlighted industrial, automotive, and energy and utilities as the biggest spenders, currently contributing to over 45 per cent of the overall IoT technology spend.

Out of the total IoT technology expenses of $140 billion, $78 billion (£59 billion) is spent on services alone. This figure is expected to grow at 19 per cent year-on-year to reach $190 billion (£145 billion) in 2022.

The report also highlighted that the addressable IoT technology market for service providers stands at $46 billion (£35 billion). Zinnov said that an analysis of 200 service providers revealed an addressed market of between $3.3 billion (£2.5 billion) and $3.8 billion (£2.9 billion) in a consolidated structure, with the top 20 service providers addressing 76 per cent of the market.

Sidhant Rastogi, partner and practice head at Zinnov, said: “The core of IoT technology services will move towards buying and selling outcomes and not just technology. The focus on data sciences will thus increase multifold. Strong managed services competency will additionally help service providers win large end-to-end IoT projects.”

The report also found that the IoT is “blurring the industry lines” and is helping enterprises explore newer business models, while increased connectivity is providing unprecedented visibility, control, autonomy and intelligence.

It was also revealed that security, privacy, and interoperability remain the top challenges for IoT adoption. However, technology enablers across every layer of the IoT are investing to provide solutions to these challenges.

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