According to the IDC Worldwide Semiannual Internet of Things Spending Guide, spending on Internet of Things (IoT) technologies in the Asia/Pacific* region is projected to reach $241 billion in 2025, marking a 12.5% increase over 2024. IDC indicates a gradual growth of the IoT market in the region across the forecasted years (2025-2029) and is expected to reach $355 billion by 2029 with a CAGR of 12.6%.
"The new IoT Spending Guide industry taxonomy provides expansive details into enterprise end-user spending that the vendor supplier market needs to understand IoT tech investment. As an example of the new industry taxonomy structure, goods production to supply chains to retail distribution emerge as one of the more visible investment themes in IoT use cases,โ said Marcus Torchia, research vice president, Data & Analytics Group.
IoT spending will primarily be driven by investments from, manufacturing, government, retail, and utilities, together will account for over half of all IoT spending in 2025. Within the manufacturing sector, industrial manufacturing and consumer goods are the greatest spenders. Meanwhile, the healthcare provider and travel and transportation sectors will provide the fastest spending growth (CAGR) over the five-year forecast period.
Video analytics, manufacturing operations, inventory intelligence, supply chain resilience,and production asset management, are the top 5 sectors with most spent on use cases in the Asia/Pacific* region, which follows similar growth patterns as the host industries. Fastest-growing use cases include public safety and emergency response and leak detection, both driven by increasing demand for real-time data and automation across public and private sectors.
From a technology perspective, hardware will dominate IoT spending in 2025, accounting for more than 60% of all IoT spending, primarily driven by module/sensor purchases for connecting endpoints to the network. Provisioned services will be the fastest-growing technology group with a five-year CAGR, dominated by telecommunications services and SaaS.
โPrioritizing business optimization alongside strategic investments in AI, analytics, and security is crucial for enterprises in the region. Robust IoT solutions will accelerate digital transformation by unlocking data-driven decision-making and enhancing customer experiences,โ says Sharad Kotagi, market analyst, IDC IT Spending Guides, Customer Insights & Analysis.
China) will account for the largest share of spending, more than 60% in 2025, followed by India and South Korea. The fastest growth in IoT-related spending in 2025 is expected in China, India, and Indonesia driven by smart factories and Industry 4.0, along with government-led IoT programs and policies, which have sped up IoT adoption across the Asia/Pacific* region.
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