Key Market Overview:
Industrial Internet of Things market size is expected to reach USD 139.1 Billion by 2030 from the value of USD 76.9 Billion in 2022, register a CAGR of 6.8% during the forecast period (2023-2030)
Industrial Internet of Things (IIoT) refers to the use of internet-connected sensors, devices, and machines in industrial settings. IIoT assists in functions including collection of data, automation, optimization, and predictive maintenance. The technology is transforming traditional industrial processes by making them more efficient, flexible, and productive. The IIoT relies on a combination of various advanced technologies, including artificial intelligence, edge computing, data analytics, cloud computing, and machine learning. IIoT has numerous applications across multiple industries, including manufacturing, transportation, energy, automotive and healthcare.
For instance, the BMW (Automotive manufacturer) and Microsoft Azure collectively developed IIoT platform to digitalize the manufacturing process. Currently more than 3000 machines, robots and autonomous transportation systems are connected via IIoT platform. Therefore, the manufacturing sector pose as a lucrative opportunity for IIOT market in forthcoming years.
Market Dynamics:
Drivers:-
Applications in automotive manufacturing plants for functions including machine/ industrial automation, asset/equipment monitoring, real-time equipment monitoring, automated workflow, and predictive maintenance is one of the major drivers for IIoT technology market. The key application is for industrial automation according to IMB survey back in 2018. For instance, in 2021 Toyota builds company wide, standardized IoT platform to promote data utilization in association with Microsoft Inc. Moreover, manufacturing industry as a whole is extensively integrating IIoT solution to enhance and streamline manufacturing and logistics operations for instance, in 2019 Shree cement (cement manufacturer based in India) integrated IIoT technology to enhance their supply chain. The company deployed IIoT technology to develop Integrated Logistics Management System (ILMS) encompassing its fleet vehicles, weigh bridges, and production systems.
Restraints:-
High Cybersecurity risks associated with industrial internet of things is a major restraining factor hindering the market growth. Rising adoption of IIoT technologies has also resulted into higher risk of cyberattacks. IIoT infrastructure is at constant risk of cyberattack from hackers, rival companies, corporate spying personnel, or even disgruntled employees. Cyber incursions cause severe equipment damage, result in the loss of critical data and damage corporate reputation, and even lead to injury or loss of life. IIoT infrastructure is based on cloud technologies therefore, risk of cyberattacks is much higher.
Opportunities:-
The rise of industry 4.0 is projected to be one of the most lucrative opportunity for IIoT technology in forthcoming years. Industry 4.0 refers to integration of modern technologies including artificial intelligence, machine learning, digital twin and most important IIoT into industrial settings to automate and enhance the manufacturing process. In industry 4.0 IIoT will be used for collection of data, automation, optimization, energy management, supply chain management and predictive maintenance. For instance, according a 2019 McKinsey & Company report the Industry 4.0 could have an estimated value-creation potential for manufacturers and suppliers of USD3.7 trillion in 2025.
Industrial Internet of Things Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion ) | 139.1 Billion |
| CAGR (2023-2030) | 6.8% |
| By Component | Solution (Hardware, Software) and Service |
| By Application | Predictive Maintenance, Smart Logistics Management, Product Optimization, Distribution Management Systems, Smart Package Management, Power Management, and SCADA (Supervisory Control And Data Acquisition) |
| By End User Industry
|
Transportation & Logistics, Oil & Gas, Manufacturing, Healthcare, Energy & Power, and Others |
| By Geography | North America, Europe, Asia Pacific,
Latin America, Middle East, and Africa |
| Key Players | Microsoft crop., ABB, IBM (International Business Machine), Intel Corporation, Ericsson (Telefonaktiebolaget LM Ericsson),AWS (Amazon),Cisco Systems, Inc., Dassault Systems ,Honeywell International, Inc., Huawei Technology Co |
Market Segmentation:
By Component: –
On the basis of component the IIoT market is divided into solution (hardware, software) and service .The solution segment accounted for largest market share in 2022. Rising number of industries including oil & gas, transportation & logistics and most notable industrial manufacturing are extensively integrating IIoT technologies in their operations. Implementation of IIoT technologies for industrial automation and production optimization is propelling the demand for IIoT solutions.
Furthermore, the service segment is expected to showcase substantial market growth over the forecasted period. Positive growth trends in adoption of XaaS (everything as a service) will likely propel the demand for IIoT technology as a service in near future.
By Application:-
According to applications the IIoT market is segmented into predictive maintenance, smart logistics management, product optimization, distribution management systems, smart package management, power management, and SCADA (supervisory control and data acquisition). The predicative maintenance application accounted for largest market share in 2022. For predicative maintenance multiple sensors are mounted on manufacturing equipments and autonomous systems. The collected data is analyzed using advanced data analytics systems to predict potential breakdowns and maintenance needs in advance. The Industrial Internet of Things (IIoT) technology interconnects various aspects of manufacturing, including machines, sensors, and data analytics systems, to create a unified system that can efficiently and effectively predict maintenance.
Furthermore, the smart logistics management application is expected to showcase considerable market growth over the forecasted period. IIoT technology are used for real-time tracking, remote monitoring, and smart parking of raw material/finished goods. IIoT is highly effective in streamlining and enhancing the industries supply chains.
By End User Industry:-
According to end user industry the IIoT market is divided into transportation & logistics, oil & gas, manufacturing, healthcare, energy & power, and others. The manufacturing segment accounted for largest market share in the year 2022. Automotive manufacturing extensively deploys IIoT technology in operations. Various technologies such as digital twin, artificial intelligence and machine learning are unified with the help of industrial internet of things (IIoT) to enhance the production capabilities. For instance, Audi has collaborated with Intel to build a smart factory at its Ingolstadt plant in Germany. The factory uses advanced technologies such as artificial intelligence (AI), industrial Internet of Things (IIoT), and 5G networks to automate and optimize the manufacturing process. Mainly the company use IIoT to inspect and wield the cars.
Moreover, transportation and logistics market is expected to showcase considerable market growth over the forecasted period. Rising number of industries are integrating IIOT technologies to live track and real time monitor the vehicles. Moreover logistics, inventories and storages are integrated with IIoT technology to streamline the supply chain.
By Region
The regional segment is divided into Asia-pacific, Europe, North America, South America, and Middle East & Africa. The North America region accounted for largest market share in the year 2022. Presence of key automotive players including Tesla, Ford, GM, and Chevrolet among various others is the one of the major reason for high demand for IIoT technology in this North America region. Moreover, presence of key IIoT solution providers such as IBM, Microsoft, AWS and others makes this region dominant.
Furthermore, the Asia Pacific region is estimated to showcase substantial market growth over the forecasted period. Developing manufacturing sector in Asia Pacific region is likely to propel the demand for IIoT technologies in forth coming years. Moreover, advancements in automotive industry in countries including Japan, South Korea and India is projected to positively impact the demand for IIoT technologies in Asia Pacific region in forth coming years.
Industrial Internet of Things Market Competitive Landscape:
The competitive landscape of the Industrial Internet of Things industry comprises detailed profiling of key market players operating in this market. Major companies been analyzed. It was found that Key players are leading the market through their investments in R&D with product innovation. Furthermore, this report contains company overviews, production capacity, SWOT analysis, financial data, revenues, market potential, global presence, production sites, with product application.
Following are some of the major players in this market:-
IBM (International Business Machine)
Semtech Corporation
Intel Corporation
Ericsson (Telefonaktiebolaget LM Ericsson)
AWS (Amazon)
Cisco Systems, Inc.
Dassault Systems
Honeywell International, Inc.
Huawei Technology Co
Recent development
- January 2023 Semtech Corporation announced completion of acquisition of Sierra Wireless.
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