INDUSTRIAL IOT MARKET ANALYSIS

The global Industrial IoT market size was valued at US$ 101.45 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 20.5% from 2022 to 2030.  The market is driven by the growing demand for advanced industrial automation solutions. These solutions help enterprises to cut maintenance costs and avoid unplanned downtime, thereby increasing profitability. The market is also propelled by the rising investments in IoT devices across various industries, owing to their increasing applications and a growing number of benefits.

Global Industrial IoT Market: Regional Insights

North America is anticipated to gain significant growth in the global industrial IoT market over the forecast period. The region is one of the fastest adopters of novel technologies. With increasing early adoption of technologies and investments, the region continues to witness technological developments. The adoption of latest technological developments has accelerated among large companies functioning in the ecosystem of Industrial IoT. Moreover, the availability of funding, favorable market conditions for scientific advancements, and high economy in the region are driving growth of the market.

Europe is expected to show major growth in the global industrial IoT market over the forecast period, owing to widespread awareness regarding IoT among manufacturers and their collective collaboration and partnerships. Moreover, the adoption of Wi-Fi-enabled sensors across industries is increasing to assist in management of inventory, and traditional machines are being replaced by connected machines. Thus, the region is likely to show robust growth in the global industrial IoT market in the coming future.

Figure 1. Global Industrial IoT Share (%), By Region, 2022

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Global Industrial IoT Market Drivers:

Growing demand for IIoT applications in smart industries to boost market growth

Industrial IoT (IIoT) has offers various features such as production integration, asset optimization, remote diagnosis, and smart monitoring, which allows improved operational efficiency, utmost performance of equipment, and high productivity. Moreover, it potentially impacts manufacturing industry, which promotes modernized maintenance and asset monitoring. Smart manufacturing is a specific application of IIoT and operates using IIoT enabled machinery for keeping a check on the production. The use of IIoT in smart industries promotes automation in operations. Thus, the demand for IIoT applications continues to increase in smart industries, which is expected to augment growth of the global industrial IoT market over the forecast period.

Low cost of sensors and advanced sensor technology to propel market pace

The use of digital infrastructure is growing, which in turn has promoted IIoT in various industries. Designers are planning integration of IIoT into all the possible segments due to the scalability of the technology. With this technology, line managers can supervise all the individual components and machineries in their production lines to gain complete transparency. The use of sensors is growing across these industries for various purposes, as their cost is low and the advancements in sensor technologies are growing. Thus, the global Industrial IoT market is expected to gain major growth over the forecast future.

Global Industrial IoT Market Opportunities:

Growing integration of Machine Learning, AI, and Big Data to bring business opportunities in the global Industrial IoT market over the forecast period. As digital transformation has become a lucrative initiative across several industries, the demand for various technologies such as mobile robotics, Software-as-a-service, and virtual reality is increasing rapidly. Artificial Intelligence is one of the key technologies being used to accelerate digital transformation. This technology helps develop intelligent machines that can perform reasoning, learning, and problem solving among others. As a result, the adoption of Industrial IoT is expected to increase creating lucrative opportunities in the market.

Increasing use of IoT in healthcare sector to create growth opportunities in the global industrial IoT market over the forecast period. The implementation of IoT network can allow monitoring of patient health, which further allows healthcare institutes to track variances in order to offer rapid actions in case of the declining health of a patient. The use of blockchain technology is increasing in this industry for security of the patient data and to share real-time and trusted patient data to insurance companies. Thus, the global Industrial IoT market is expected to witness growth opportunities in the coming future.

Global Industrial IoT Market Trends:

Growing adoption of digital twin is a recent trend

Digital twin is a virtual replication of physical components available in the real world. With the use of recorded data gathered from cameras, sensors, and other data collecting devices, a virtual copy of a particular asset, and individual product, or a whole facility can be made. There are various advantages of digital twin including higher dependability of manufacturing lines, greater productivity, reduced machine downtime, and improved performance among others. Thus, adoption of this technology is increasing across several industry, and this trend is expected to drive growth of the global industrial IoT market over the forecast period.

Increased popularity of 3D printing is another trend

The manufacturing processes are continuously advancing. These processes are of four types, which are additive manufacturing, casing manufacturing, molding manufacturing, and subtractive manufacturing. 3D printing is a part of additive manufacturing, and it is a process of making three-dimensional objects using a digital image. This technology has become advantageous in various industries, due to which its adoption continues to grow with time. This trend is likely to continue in the global industrial IoT market in the coming future.

Global Industrial IoT Market Restraints:

Integration of IIoT into existing technology to limit the market growth

Traditional industrial processes are time consuming as well as inconvenient, as a result, it fails to obtain desired efficiency level. With integration of industrial IoT, the current scenario of technology has made tasks more efficient and convenient. Integration of these technologies can cut down the time and efforts required for these processes. However, integration of novel IIoT into existing technology is an expensive, tedious, and time-consuming process. This factor in turn is expected to hinder adoption of industrial IoT technologies in the coming future.

Security concerns regarding IIoT to hamper the market growth

The amount of sensor data and connectivity between sensors and control equipment has increased with the advent of IIoT. Huge amounts of data from various sites, sensor, and customer information gets accumulated in internet-based and enterprise-level database. Due to IIoT, the digital advancement in industrial sites has increased significantly. However, the concerns regarding security of such large amount of data remains a challenges. With increasing amount of online data, the risk of data breaches and cyber-attacks are also increasing. This factor in turn is expected to hamper growth of the global industrial IoT market over the forecast period. However, with increasing technological advancements, solutions with better security are being introduced in the market. This in turn is expected to support the market growth in the near future.

Figure 2. Global Industrial IoT Market Share (%), By Ecosystem, 2022

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Global Industrial IoT Market Segmentation:

The global Industrial IoT market report is segmented into Ecosystem, Technology, Application, and Industry.

Based on Ecosystem, the market is segmented into Hardware, Platform, Services, Connectivity, Wired Technologies (Ethernet, Modbus, PROFINET, and FOUNDATION Fieldbus), Wireless Technologies (Wi-Fi, ZigBee, Bluetooth and Bluetooth Low Energy, Cellular Technology, and LPWAN Technology). Out of which, Hardware is expected to dominate the global market over the forecast period and this is attributed to the increasing demand for hardware equipment of IoT in various industries. In the ecosystem of an industrial IoT, hardware is the equipment, with which automation, trend detection as well as sending and receiving with high accuracy and precision becomes possible. Thus, the demand for this segment is increasing rapidly, which in turn is expected to support the market growth.

Platform segment is also expected to witness significant growth in the near future and this is owing to the widespread use of software platform of industrial IoT. A platform is a group of software which is used as a base to run different applications on it. A software can make a task easy, quick, and convenient. Thus, demand for software platform is increasing across several industries, which is expected to support the market growth in the near future.

Based on Technology, the market is segmented into Sensors, Distributed Control System (DCS), Camera, Condition Monitoring, Radio Frequency Identification (RFID), GPS, Yield Monitor, Industrial Robotics, Flow and Application Control Devices, and Others. Out of which, Sensors is expected to dominate the global market over the forecast period and this is attributed to increasing technological developments in sensor technology used in conventional machining techniques. Sensors are used to detect and respond to any type of optical and electrical signals. An electronic sensor can convert physical parameter such as humidity, temperature, and pressure into a signal that can be measured electrically. Due to various advantages of using sensors, the demand for this segment is likely to growing in the coming years.

Distributed Control System (DCS) segment is also expected to witness significant growth in the near future and this is owing to the growing use of these DCSs in industrial processes across various industries. A distributed control systems included regionally distributed control loops that cover the whole factor or floor space. These systems are widely being used in industrial processes as well as in chemical plants, agriculture, food processing, and automobile manufacturing among others. Thus, the segment is likely to show strong growth in the near future.

Based on Application, the market is segmented into Data Management Solutions for Analytics, Distribution Management System, Manufacturing Execution System (MES), Outage Management System, Product Lifecycle Management, Remote Monitoring, Retail Management System, Predictive Maintenance, and Others. Out of which, Data Management Solutions for Analytics is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of data management solutions among businesses and enterprises. As data management solutions offers various benefits due to which adoption of this technology is increasing to effectively use large amount of data, with the use of artificial learning techniques such as big data. This in turn helps in making business decisions for obtaining deeper insights into opportunities and customer behavior.

Distribution Management System segment is also expected to witness significant growth in the near future and this is owing to the growing need for product management in manufacturing industry among others. Distribution management involves managing products from production location to the point of sale. It includes storage at warehouse for delivering products at distribution plants. It also includes determining optimal quantity of product for delivery to storage locations, for achieving efficient deliveries to consumers.

Based on Industry, the market is segmented into Energy and Utilities, Automotive, Manufacturing, Retail, Agriculture, Healthcare, Metal and Mining, Others. Out of which, Energy and Utilities is expected to dominate the global market over the forecast period and this is attributed to the rapidly growing adoption of IoT in the sector. The adoption IoT technologies is increasing in this sector to promote economic and social coordination. Smart metering and smart grid are one of the essential applications areas of Industrial IoT ecosystem in this industry. Thus, the segment is likely to gain substantial growth in the coming years.

Automotive segment is also expected to witness significant growth in the near future and this is owing to the increasing integration of IoT technologies in automotive industry applications. As most of the automotive facilities around the world lack connectivity between machines and humans. However, the number of automotive manufacturers embracing the Industrial IoT technologies is increasing rapidly, which in turn is driving growth of this segment.

Global Industrial IoT Market: Key Developments

In April 2021, Intel and John Deere announced partnership to offer its AI technology in order to help address a costly, and old problem in manufacturing welding process. Deere is creating a solution that can automatically spot common defects using computer vision in the automated welding process in its manufacturing facilities.

In September 2020, Nvidia announced plans of Arm acquisition for building an extraordinary company contributing to every technology market in the world. Nvidia acquired this UK-based company for US$ 40 billion in Grouping of stock and cash deal.

In December 2021, Silicon Labs announced the launch of Custom Part Manufacturing Service, using which manufacturers will be customizing their Silicon Labs hardware at the factory. The hardware portfolio of Silicon Labs include wreleass SoCs, MCUs, and modules.

In October 2020, Honeywell and Microsoft entered into partnership for integration of the Honeywell Forge industrial analytics platform with the Dynamic 365 Field Service Offering and Azure.

Global Industrial IoT Market: Key Companies Insights

The global Industrial IoT market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global Industrial IoT market are ABB Ltd., GE Digital, PTC Inc., Robert Bosch GmbH, Siemens AG, Accenture plc., Capgemini, and HCL Technologies Limited.

*Definition:  The Internet of Things is a network of devices and sensors that are interconnected to gather data. It connects to the cloud and transforms that data into useful information. Industrial IoT is a form of the Internet of Things that’s used in industrial settings to optimize production, increase quality control, and more.