Internet of Things (IoT) spending will achieve a compound annual growth rate (CAGR) of 13.6 percent over the 2017-2022 forecast period and reach $1.2 trillion in 2022, according to an IDC report.

“We are mapping IoT use cases that have segmentations in shared domains, such as in Smart Cities and Digital Transformation investment areas,” Marcus Torchia, research director, Customer Insights & Analysis, IDC.

The consumer sector will lead IoT spending growth with a CAGR of 19 percent, followed by the insurance and healthcare provider industries.

Discrete manufacturing and transportation will each exceed $150 billion in IoT spending in 2022, making these the two largest industries for IoT spending.

Vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) solutions will experience the fastest spending growth (29 percent CAGR) over the forecast period, followed by traffic management and connected vehicle security.