The industrial internet of things (IIoT) refers to the extension and use of the internet of things (IoT) in industrial sectors and applications. Industrial IoT, or the Industrial Internet of Things (IIoT), is a vital element of Industry 4.0. IIoT harnesses the power of smart machines and real-time analysis to make better use of the data that industrial machines have been churning out for years. The principal driver of IIoT is smart machines, for two reasons. The first is that smart machines capture and analyze data in real-time, which humans cannot. The second is that smart machines communicate their findings in a manner that is simple and fast, enabling faster and more accurate business decisions.
IIoT is used across a range of industries from manufacturing, logistics, oil and gas, transportation, mining, aviation, energy, and more. Its focus is to optimize operations–particularly the automation of processes and maintenance. IIoT capabilities enhance asset performance and better manage maintenance. In the long run, it moves the industry toward a demand service model, increases customer intimacy, and creates new revenue streams–which all contributes to the digital transformation of industries.
Currently production sectors use IIoT technology the most. Smart machines, enabled with IIoT, can self-monitor and anticipate possible production hurdles. This results in lowered downtime and better efficiency.
With a strong focus on machine-to-machine (M2M) communication, big data, and machine learning, the IIoT enables industries and enterprises to have better efficiency and reliability in their operations. The IIoT encompasses industrial applications, including robotics, medical devices, and software-defined production processes.
Industrial Internet Of Things Market
The global industrial internet of things market size was valued at USD 216.13 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 22.8% from 2021 to 2028. The aggressive rate of IIoT adoption in line with the advances in technology and the easing availability of affordable sensors and processors, which can facilitate real-time access to information, is expected to drive the growth of the industrial internet of things (IIoT) market over the forecast period. The ever-increasing need to augment operational competence tied with solid cooperation among the key market players to deliver the same is anticipated to drive the market expansion. Also, the strategies being drafted to establish a unified digital-human workforce are expected to open substantial growth opportunities.
The industrial internet of things market is segmented based on end-use into manufacturing, energy and power, oil and gas, healthcare, logistics and transport, agriculture, and others. The manufacturing segment is expected to dominate the market over the forecast period, and account for nearly 30% of the revenue share by 2028.
Manufacturing entities are aggressively adopting digital manufacturing technologies and IIoT plays a vital role in such advanced technologies. The market is poised for substantial growth in the near future in line with the strategic partnerships and alliances stakeholders are striking and the need for a connected supply chain to ensure flexibility, operational efficacy, and regulatory compliance, which is rising continuously.
The logistics and transport segment is projected to register the highest CAGR of more than 26% from 2021 to 2028. The growth can primarily be attributed to the strong emphasis logistics and transportation companies are putting on enhancing asset management and subsequently on the adoption of smart transportation. Conventionally, the logistics industry has been using RFID tags, which are now being replaced by internet-connected trackers, which can potentially support a wide range of functionalities. The adoption of contemporary solutions, such as Bluetooth tags and beacons, is also increasing noticeably. Such solutions offer data tracking in smaller and confined areas but can contribute significantly to enhancing operational management.
North America dominated the global IIoT market in 2020 with a revenue share of more than 30%. North America is home to several established market players. The region has also been an early adopter of IIoT and has gradually emerged as a hub of innovation. Canada has also been experiencing significant growth, primarily due to the initiatives being pursued by the government to encourage the adoption of IIoT solutions in the country.
Asia Pacific is anticipated to emerge as the fastest-growing regional market and register a CAGR of more than 26% from 2021 to 2028. The region is increasingly witnessing a strong adoption of advanced factory automation solutions, typically in Japan, China, and Taiwan. Manufacturing organizations across the region are gradually realizing the benefits associated with the implementation of robot arm technology. China is poised to emerge as the precision manufacturing hub by 2027 owing to the policies, such as “Made in China 2025”, drafted by the government to prioritize the adoption of advanced automation technologies in the region. At the same time, many venture capitalists across the region are backing IIoT-based firms to encourage technological developments in industrial IoT. For instance, in June 2019, SwitchOn, an AI-powered IIoT platform developed by The Abee Research Labs Pvt. Ltd. of India, secured USD 1 million from venture capitalist pi Ventures.