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Internet of Things spending will grow from $699 billion in 2015 to nearly $1.3 trillion in 2019

The Internet of Things (IoT) is on the cusp of a high-growth age and will reach almost $1.3 trillion in spending in 2019, according to a new report. The Asia-Pacific region is currently leading the way, while manufacturing and transportation are the industries currently seeing the biggest IoT spending.

IoT spending is expected to be $698.6 billion in 2015, according to the International Data Corporation (IDC). This figure is forecast to grow at a 17.0 percent compound annual growth rate (CAGR) to nearly $1.3 trillion in 2019. The IDC defines IoT as “a network of uniquely identifiable, autonomously communicating endpoints (or ‘things’).”

Related: What is the Internet of Things?

Today, the Asia-Pacific region accounts for more than 40 percent of worldwide IoT spending, followed by North America and Western Europe. Asia-Pacific’s big spending on IoT is driven by countries’ continuing technology investment needs, government investments incorporating more IoT components, and a blossoming new consumer class spending more on IoT goods and services, according to Marcus Torchia, research manager of IoT for the IDC.

Latin America is expected to see the fastest five-year growth from now until 2019 with a 26.5 percent CAGR.

While manufacturing and transportation led the world in IoT spending ($165.6 billion and $78.7 billion, respectively) in 2015, the insurance, health care, and consumer verticals are expected to see the fastest growth over the next five years.

The IDC also notes the unique IoT fastest growing use cases of prominence in each global region. For instance, in North America, IoT is flourishing thanks to retailers deploying in-store contextual marketing (think beacons). In Asia-Pacific, vehicle-mounted devices are used to monitor driver behavior to determine insurance rates.