A lot of that spending is in software, with device-based apps, tools for handling data, and database or analytics software getting $10.7 billion in investment from fiscal years 2011 to 2015. The report listed IoT investments into three groups in total: software, infrastructure, and cybersecurity for IoT devices.
Cybersecurity was the second priority, with $8.6 billion in investment, followed by wireless devices with $4.5 billion.
Sensors were also a hot topic. The military’s push for biosensors that can display real-time information about active soldiers and their surroundings lead to a growth from $578 million in 2011 to $1.6 billion in 2015. The majority of government spending on sensors – 88 percent – went to large military contractors like Lockheed Martin and Raytheon. In total, sensor spending has grown 56 percent in the last year. NASA and the Department of Homeland Security are the organizations which contribute most to civilian sensor technology.
In total, the government spent almost $35 billion on IoT from 2011 to 2015.
Government spending in this area is likely to trickle down to the private sector, too. IoT technology is becoming increasingly used in factories, as operators find new ways to use the data connected to their smart devices. So far, just one country has proposed a nationwide IoT network.