MEA IoT market to boom in 2015
The Internet of Things (IoT) market in Central and Eastern Europe, the Middle East, and Africa (CEMA) region is taking off. Although still nascent, it is growing rapidly and offers considerable potential for the rest of the decade, according to IDC.
In 2015, the Internet of Things market in CEMA will soar, bringing critical technology innovation, enabling business process innovation, and driving the digital transformation further than has been possible so far. IDC expects the CEMA IoT market to exceed $50 billion by 2018, at about the same time the installed base will reach approximately two billion autonomous devices or "things" connected to networks across CEMA. That said, the IoT adoption rate will be far from uniform across industry sectors.
The IDC's regional market intelligence team 2015 predictions include:
- Strong enthusiasm for IoT-based solutions will accelerate digital transformation in CEMA healthcare.
- The Internet of Things will help to overcome barriers to the adoption of cloud technologies in manufacturing.
- Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) communication will become critical areas for the future success of the connected vehicle market.
- Spending on the IoT for omnichannel operations will double by 2018.
- In-store consumer digital offers/personalized promotions will keep customers in stores.
- CEMA telcos will struggle with the complexity of M2M.
- Security will be the top concern of companies deploying IoT, thus presenting opportunities for security solutions providers.
- Public safety and emergency response will account for more than one-third of government IoT spending between 2013 and 2018.
- By 2020, upwards of 35% of commercial and public people monitoring systems in Central and Eastern Europe will be directly connected to traffic and other public management systems.
- Smart cities dynamics will remain fragmented across the region.
In 2015, the IoT market will record double-digit growth and provide high revenue opportunity for all vendors in this ecosystem due to the unparalleled opportunity to connect 'things' in a consumer and enterprise context. "While the Internet of Things market in CEMA is still in its early stages, growth momentum has already picked up," notes Milan Kalal, senior research analyst with IDC CEMA. "However, the development of this market will not be consistent across all industry sectors. Those that have already implemented IoT or have plans to do so (e.g., manufacturing, transportation, and healthcare entities) will record the most immediate growth."