China to reach 10.25 billion IoT connections by 2026: report
IoT connections related to the manufacturing and public facilities sectors will reach approximately 300 million and 2.2 billion by 2026
China is expected to experience a strong growth in the Internet of Things (IoT) sector and and the Asian nation is expecting its overall base of IoT connections to reach 10.25 billion by 2026, Chinese press reported, citing a report by research firm IDC.
According to the report, the domestic consumption sector in China will account for the larger portion of these IoT connections, with the smart home and wearable devices fields continuing to be the major growth drivers.
The number of consumption-related IoT connections is expected to be approximately 5.98 billion by 2026, while IoT connections related to the manufacturing and public facilities sectors will reach approximately 300 million and 2.2 billion, respectively, the report said
IDC also forecasts a double-digit expansion of IoT connections in the health care and education industries in the coming years.
IoT spending in the Asia-Pacific (APAC) region is forecasted to reach $436 billion in 2026, growing at a CAGR of 11.8% during the 2021-2026 period, according to a previous report by IDC.
IDC noted that a number of factors including semiconductor shortages and supply chain disruption caused by geopolitical tensions have limited the growth in 2022 to single digits, and rising inflation may dampen growth. However, rising demand for remote operations, better network coverage, and the deployment of commercial 5G and testbeds are driving IoT adoption in the region, according to the research firm.
IDC noted that discrete and process manufacturing will continue to be the top industries investing in IoT solutions this year and in forecasted years, followed by state/local government and professional services.
According to IDC, China was expected to represent 60% of the regional IoT spending in 2022, followed by South Korea and India. Countries with the fastest IoT spending in 2022 were Singapore and Hong Kong.