Internet of Things (IoT) spending may surpass USD 8 billion in the MEA region this year

Significant investment is expected.
The industries that are expected to spend the most are manufacturing, government, consumer and utlities
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The industries that are expected to spend the most are manufacturing, government, consumer and utlities

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According to IDC, IoT spending in the MEA region will grow 15.9 percent year on year in 2019 and reach USD 17.63 billion by 2023. This may be true as organizations in the Middle East and Africa are expected to invest over USD 8.47 billion on the IoT technologies this year. The bulk of the spending will be done by governments and businesses to ramp up their investments in digital transformation projects.

The big four countries in the region are South Africa, Saudi Arabia, Turkey and the UAE. And together, they are expected to account for 62 percent of the total IoT expenditure in the MEA region in 2019. The industries that are expected to spend the most are manufacturing, government, consumer, transportation and utilities.

Manufacturers will direct most of their spending towards solutions that support their operations and product asset management. In the government sector, public infrastructure asset management, public safety and emergency response, and intelligent transport systems will account for over 66 percent of IoT spending in 2019. Consumer IoT spending will involve investments in smart home technologies, remote health monitoring and connected vehicles whereas smart grids for electricity will make up the majority of total spending in the utilities sector.

Program manager for telecommunications and IoT at IDC MEA, Krishna Chinta believes “(The) ongoing national transformation programmes and digital transformation projects will continue to fuel IoT adoption over the coming 12 months, particularly in Saudi Arabia and the UAE. As such, these two countries are expected to contribute a combined $2.13 billion of the MEA region’s total IoT spending of $8.47 billion in 2019.” 

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