Industrial IoT is an ecosystem of devices, sensors, applications, and associated networking equipment that work together to collect, monitor, and analyze data from industrial operations. Analysis of such data helps increase visibility and enhances troubleshooting and maintenance capabilities. It can also increase efficiencies, reduce costs, and improve safety & security. IIoT technology has an enormous potential to improve quality control, sustainable and environment-friendly practices, overall supply chain efficiency, and supply chain traceability for industrial enterprises.
In the new era of digitalization, the Industrial IoT market is expected to witness rapid growth, with a profound impact across industries including manufacturing, transport & logistics, oil & gas, building management systems, medical & healthcare, and energy & utilities. Recent insights from Meticulous Research illuminate the path ahead for the Industrial IoT Market. Projections forecast a potential worth of $408.2 billion by 2031, driven by a noteworthy Compound Annual Growth Rate (CAGR) of 19.3% from 2024 to 2031.
Key Applications of IIoT Technology
The Internet of Things (IoT) is a fast-developing technology that has made its way into every sector. Industrial IoT is transforming traditional industries, creating new opportunities. Some of the key applications of Industrial IoT are as follows:
- Manufacturing: Businesses can automate and increase the operational efficiency of their manufacturing processes.
- Agriculture: Businesses can adopt smart farming practices by collecting data and extracting meaningful insights to enhance productivity.
- Healthcare: Hospitals & clinics can utilize IIoT technology to gather real-time patient health data, automate operations, and minimize human error.
- Oil & Gas: Companies can improve productivity and reduce risks by proactively identifying hazards.
- Energy: Organizations can use IIoT to lower costs, enhance worker & plant safety, and improve reliability.
- Construction: Companies can leverage IIoT technology to collect construction-related data, optimize project delivery times, and centralize site monitoring.
- Automotive: IIoT solutions aid companies in creating safer and more efficient smart vehicles.
Rising Investments in Industry 4.0 Technologies
Industry 4.0 is the integration of technologies such as cloud computing, AI, IoT, and robotics into industrial processes, which ensures that the whole production chain is automated and connected. Both public and private sector players are investing heavily in transforming their manufacturing facilities. Industry 4.0 has increased the adoption of digital technologies, such as automation, data analytics, and Industrial IoT (IIoT), transforming economies, production systems, and the delivery of goods & services. This transformation has important implications in terms of industrial development, skill requirements, and global value chains.
The European Commission (EU) has announced plans to invest USD 10.8 billion (EUR 9.2 billion) from 2021 to 2027 in shaping and supporting the digital transformation of Europe’s society and economy. In 2021, India’s manufacturing sector invested approximately USD 6.5 billion in its Industry 4.0 transformation. In February 2021, Singapore announced plans to allocate USD 18.1 billion over the next three years to help local businesses innovate and build the capabilities needed to take them through the next transformation phase with the adoption of emerging technologies, including 5G, Artificial Intelligence (AI), and cybersecurity. Such investments are expected to increase the adoption of Industrial IoT across industries.
Addressing the Limitations of IIoT Technology
In today’s modern connected world, data breaches have become a major concern for both users and service providers. Security is an important consideration in the adoption of IoT technology. Despite its numerous benefits, Industrial IoT architecture is highly susceptible to data theft and breaches. Also, distributing data across large networks with numerous devices and data centers operating far from company premises can create problems in network visibility and control. Similarly, several IoT devices have limited authentication and encryption capabilities, making them highly susceptible to tampering, eavesdropping, malicious congestion, and identity forging.
Cybersecurity is essential in the implementation of IIoT since the consequences of poor security go well beyond financial and brand harm. Millions of linked gadgets are at risk with an ever-expanding attack surface. Also, many IIoT networks have direct access to enterprise resource planning systems, which include sensitive information and even company trade secrets. Any large-scale cyberattack can lead to dire consequences. Thus, IoT devices’ vulnerability to data thefts and breaches is a major challenge impacting the growth of the Industrial IoT market.
Increasing Use of Industrial IoT for Predictive Maintenance
Predictive maintenance is important for all industries, as breakdowns and operational downtime are quite expensive for businesses. Unplanned downtimes can be avoided by planning maintenance activities proactively. The incorporation of Industrial IoT solutions during product development stages can help organizations plan maintenance schedules and predict failures before they occur. It can also save additional costs associated with maintenance and ensure production completion within the stipulated time. For instance, spindles in milling machines are prone to breakage, with replacement being expensive. Hence, IoT-based special (ultrasonic or vibration) sensors are used to identify breakage patterns and generate data, which may help prevent further instances of breakage.
The incorporation of Industrial IoT solutions, such as digital twins and other automation devices in product development, allows professionals to analyze equipment performance in varied work conditions and create simulations to predict failure scenarios.
Key Companies
Key players operating in the Industrial IoT market include ABB Ltd. (Switzerland), General Electric Company (U.S.), Emerson Electric Co. (U.S.), Intel Corporation (U.S.), Cisco Systems, Inc. (U.S.), SAP SE (Germany), IBM Corporation (U.S.), Honeywell International Inc. (U.S.), Amazon Web Services, Inc. (U.S.), Siemens AG (Germany), Huawei Technologies Co, Ltd. (China), Rockwell Automation, Inc. (U.S.), PTC, Inc. (U.S.), Dassault Systemes (France), Robert Bosch GmbH (Germany), KUKA AG (Germany), Microsoft Corporation (U.S.), Schneider Electric SE (France), Advantech Co., Ltd. (Taiwan), and C3.ai, Inc. (U.S.). The Industrial IoT market report from Meticulous Research offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years.
High Market Growth Anticipated in Asia-Pacific
The Industrial IoT market in Asia-Pacific is expected to witness significant development in the coming years. According to Meticulous Research’s recent analysis of the Industrial IoT Market, in 2024, Asia-Pacific is expected to account for the largest share of over 38% of the global Industrial IoT market. Asia-Pacific’s industrial sector contributes significantly to the region’s economy and is undergoing a rapid transformation. The growing adoption of disruptive technologies such as AI, machine learning, and IoT is driving cloud adoption across the region, boosting the demand for cloud-based Industrial IoT solutions.
Key Takeaways and Future Outlook
IIoT is being increasingly integrated into industrial environments and systems, improving operations, resource utilization, inventory management, and other functions through sensors and smart machinery. IIoT solutions offer immense benefits, from quicker and cheaper issue resolution to better quality control and the implementation of green practices.
The Internet of Things (IoT) is a fast-developing technology that has penetrated every sector. The use of IoT technology has transformed how industries operate, communicate, and utilize data. This comprehensive overview of the Industrial IoT Market from Meticulous Research provides a valuable perspective on the evolving IIoT landscape and future directions for the technology.
