Industrial IoT Market Trends and Forecast
The future of the industrial IoT market looks promising with opportunities in the manufacturing, transportation, energy, retail, healthcare, and other industries. The global industrial IoT market is expected to reach an estimated $241 billion by 2030 with a CAGR of 13% from 2023 to 2030. The major drivers for this market are increasing demand for automation in manufacturing industry, increasing adoption for IoT and AI, rising awareness for safety and security, and standardization of IPv6.
Industrial Internet of Things (IIoT) devices utilize a range of raw materials and components, including sensors (for data collection), microcontrollers (for processing), and communication modules (for connectivity). Power sources such as batteries or energy harvesting systems provide operational energy, while enclosures made from plastics or metals protect internal components. Printed circuit boards (PCBs) facilitate electrical connections, and software/firmware enables device functionality and data management. The price of Industrial Internet of Things (IIoT) solutions varies widely based on factors like complexity, scale, and specific application requirements. Compared to traditional industrial automation systems, IIoT solutions can offer cost advantages through enhanced efficiency, predictive maintenance, and scalability. However, initial setup costs for IIoT infrastructure, including sensors, communication networks, and data analytics platforms, can be higher.
• Lucintel forecasts that manufacturing will remain the largest end use industry during the forecast period due to predicative maintenance, demand for technology advancement and need for improved operation efficiency in various industries.
• Wireless connectivity will remain the largest segment due to increasing usage of Wi-Fi, bluetooth, and cellular and satellite technologies.
• Asia Pacific will remain the largest region over the forecast period, supported by growing urbanization, increasing internet penetration, and growing adoption of IoT in various industries in the region.
Country wise Outlook for the Industrial IoT Market
The industrial IoT market is witnessing substantial growth globally, driven by increased demand from various industries such as manufacturing, transportation, energy and retail. Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major industrial IoT producers in key regions: the USA, Canada, China, India, Japan, and Germany.
Emerging Trends in the Industrial IoT Market
Emerging trends in the industrial IoT market shaping its future applications and market dynamics:
• Improved Interoperability of Devices: Improved interoperability in the Industrial IoT involves standardizing protocols, developing integration platforms, and using APIs to enable seamless communication between diverse devices and systems. This enhances data exchange efficiency and supports unified operations in industrial settings.
• Security and Privacy in the IIoT World: Security and privacy in the Industrial Internet of Things (IIoT) are critical concerns due to the interconnected nature and potential vulnerabilities of industrial systems. Measures such as robust encryption, authentication protocols, and secure firmware updates are essential to protect data integrity, prevent cyber threats, and ensure regulatory compliance in industrial environments.
• Edge Computing: Increasing adoption of edge computing to process data closer to the source, reducing latency and enhancing real-time analytics capabilities in industrial environments.
• AI and Machine Learning Integration: Integration of AI and machine learning algorithms into IIoT systems for predictive maintenance, anomaly detection, and optimization of industrial processes.
• 5G Connectivity: Deployment of 5G networks to support high-speed, low-latency communication for IIoT devices, enabling more reliable and responsive industrial applications.
• Cybersecurity Enhancements: Focus on cybersecurity measures to protect IIoT devices and data from cyber threats, including advancements in encryption, authentication, and intrusion detection systems.
A total of 107 figures / charts and 68 tables are provided in this 205-page report to help in your business decisions. A sample figure with insights is shown below.
Recent Developments in the Industrial IoT Market
Ongoing innovations and advancements in various sectors of the industrial IoT market which have been highlighted by recent developments:
• Edge Computing: There is a significant shift towards edge computing in IIoT applications. Edge computing enables data processing closer to the source (e.g., manufacturing equipment), reducing latency and bandwidth usage while improving real-time decision-making capabilities.
• 5G Connectivity: The deployment of 5G networks is expected to revolutionize IIoT by providing high-speed, low-latency connectivity, enabling more devices to be connected simultaneously and facilitating applications that demand real-time data transmission.
• Cybersecurity Enhancements: As the number of connected devices grows, so does the importance of cybersecurity. ThereÄX%$%Xs a heightened focus on implementing robust cybersecurity measures to protect sensitive industrial data and systems from cyber threats.
• Standardization Efforts: Efforts towards standardization continue to be crucial for interoperability among devices and systems from different manufacturers. Standards such as MQTT, OPC UA, and TSN (Time-Sensitive Networking) are gaining traction to facilitate seamless communication and integration in IIoT environments.
• Industry-specific Solutions: There is a trend towards the development of industry-specific IIoT solutions tailored to the unique needs of sectors such as manufacturing, healthcare, energy, and logistics. These solutions aim to address specific challenges and optimize processes within each industry.
Strategic Growth Opportunities for Industrial IoT Market
Various industries around the world present a good number of strategic growth opportunities for the industrial internet of things (IIoT). These include:
• Industry 4.0 Integration: This is an excellent chance for IIoT as Industry 4.0, digitization of production and industrial processes, is being realized. By connecting with sensors, machines and systems that help in real-time data collection, operation optimization and predictive maintenance IIoT comes to effect. Therefore in order to improve efficiency, minimize downtime or enhance product quality manufacturers must opt to use IIoT.
• AI and ML Advances: For the full potential of IIoT data to be unlocked, AI and ML are vital. Analyzing IIoT data streams by using sophisticated analytics as well as machine learning algorithms enables enterprises to have actuable insights about their businesses which can predict equipment failures optimize supply chain logistics decisions made. With this then operational efficiencies are improved leading to cost savings.
• Entering Emerging Markets: The adoption of IIoT in emerging markets offers significant rise chances. These economies are making more efforts towards upgrading industrial infrastructure so as to cut on operational costs and become more competitive. In these countries, they can deploy IIoT solutions that would enable them leapfrog traditional technological limitations which could lead them fast economic development.
• Cybersecurity Solutions: When it comes to developing infrastructure robust cybersecurity becomes essential as IoT implementation grows. Any cyber threat can compromise sensitive information within industrial networks endangering operations. Among secure and reliable IoT solutions offered by manufacturers include such things like encryption, access control and threat detection tools specifically tailor-made for IoT environments.
• Focus on Vertical-Specific Solutions: Developing industry-specific versions of the Industrial Internet of Things (IIOT) could open new doors for application specialization like manufacturing oil & gas healthcare or transportation among others all possess opportunities for tailored applications using IIOT given each has unique requirements that must be addressed by adopting remote monitoring; asset tracking; regulatory compliance etc.
• Sustainability Initiatives: To optimize energy consumption, reduce waste and increase resource efficiency, IIoT can contribute towards achieving sustainability objectives. Companies are increasingly turning to IIoTs for monitoring and managing environmental impact in order to comply with regulations, meet customer demand for sustainable practices.
• Partnerships and Collaborations: Creating strategic alliances with technology vendors, system integrators and industry experts can help accelerate the pace of innovation as well as market penetration of IoT. Such collaborations enable the creation of full-fledged IIoT ecosystems that consist of hardware, software and services aimed at supplying all-encompassing solutions specific to individual customers.
By taking advantage of these strategic growth opportunities, the industrial IoT market can realize its full potential and transform numerous industries through strength, lightness, versatility.
Industrial IoT Market Driver and Challenges
Industrial IoT has a very important role in many industries including residential, commercial, and public institution,. The changing market dynamics are being driven by the boosted demand for strict rules, increasing awareness about fire safety, and technology advancement However, challenges like expensive initial installation, reliability and false alarms, and maintenance and compliance.
The factors responsible for driving the Industrial IoT market include:
1. Operational Efficiency: IIoT allows for real-time monitoring, predictive maintenance, and process optimization; this ultimately leads to improved efficiency and less downtime.
2. Cost Savings: Automation and data driven insights help reduce operational costs through resource optimization and waste minimization.
3. Enhanced Productivity: Industrial processes are automated with predictive analytics when it comes to routine tasks which enhances overall productivity as well as output.
4. Data-Driven Decision Making: This implies that the vast amount of data generated by IIoT can be used to derive meaningful information for decision-making purposes and strategic planning.
5. Competitive Advantage: By improving responsiveness to market demands, agility and customer satisfaction, companies on IIoT have an edge.
Challenges facing the Industrial IoT market are:
1. Cybersecurity Risks: Cyber threats become more dominant as data is increasingly connected and exchanged, and then strengthened by security measures to ensure data’s authenticity.
2. Interoperability: This is in the middle of integration problems between old technology systems with newer IIoT technologies that include standardized protocols and interfaces.
3. High Initial Investment: In some cases, businesses may find themselves unable to afford initial costs associated with infrastructure upgrades, sensors, and deployment of IIoT solutions.
4. Data Management and Privacy: The regulation related to big data handles huge volumes of information which should be governed according to privacy principles.
5. Skill Shortages: Scarcity of well-versed specialists in IIoT technologies, data analytics, cybersecurity and system integration can impede successful implementation and running of the same.
Innovations in the Industrial Internet of Things (IIoT) market are revolutionizing industrial operations with advancements in edge computing for real-time data processing. Enhanced sensors and IoT devices provide accurate monitoring and control, while AI and machine learning algorithms enable predictive maintenance and workflow optimization. Robust cybersecurity solutions protect against cyber threats, ensuring data integrity and operational continuity. Integration with cloud platforms facilitates scalable data storage, analytics, and remote monitoring, driving efficiency and productivity gains across diverse industrial sectors.
Industrial IoT Suppliers and their Market Shares
In this globally competitive market, several key players such as PTC, SAP, Cisco, General Electric, Siemens, etc. dominate the market and contribute to industry’s growth and innovation. These players capture maximum market share. To know the current market share of each of major players contact us.
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies industrial IoT companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the industrial IoT companies profiled in this report include.
• PTC
• SAP
• Cisco
• General Electric
• Siemens
• IBM
• Intel Corporation
• Huawei
• Microsoft
These companies have established themselves as leaders in the industrial IoT industry, with extensive product portfolios, global presence, and strong research and development capabilities. They continually strive to enhance their market positions through strategic partnerships, mergers and acquisitions, and product innovations.
The market share dynamics within the industrial IoT market are evolving, with the entry of new players and the emergence of innovative industrial IoT technologies. Additionally, collaborations between material suppliers, manufacturers, and end-users are fostering technological advancements and expanding market opportunities.
Industrial IoT Market by Segment
The Industrial Internet of Things (IIoT) encompasses major sectors including manufacturing, transportation, energy, retail, and healthcare, leveraging IoT technologies for enhanced efficiency and innovation. In manufacturing, IIoT facilitates predictive maintenance and real-time equipment monitoring, optimizing production processes. Transportation benefits from improved logistics management and vehicle safety through IoT sensors and connectivity. Energy sectors utilize IIoT for smart grid management and energy efficiency enhancements. Retail sectors optimize inventory management and supply chain operations using IoT-driven analytics. Healthcare leverages IoT devices for remote patient monitoring and improved healthcare delivery, demonstrating IIoTÄX%$%Xs diverse applications in optimizing operations and enhancing customer experiences across industries.
This Industrial IoT market report provides a comprehensive analysis of the marketÄX%$%Xs current trends, growth drivers, challenges, and future prospects in all major segments like above. It covers various segments, including industrial IoT technology, component, connectivity, and end-user industries. The report offers insights into regional dynamics, highlighting the major markets for industrial IoT and their growth potentials. The study includes trends and forecast for the global industrial IoT market by end use industry, connectivity, component, device and technology, and region as follows:
Industrial IoT Market by End Use Industry [Value $B Analysis for 2018 – 2030]:
• Manufacturing
• Transportation
• Energy
• Retail
• Healthcare
• Others
Industrial IoT Market by Connectivity [Value $B Analysis for 2018 – 2030]:
• Wired
• Wireless
Industrial IoT Market by Component [Value $B Analysis for 2018 – 2030]:
• Solution
o Remote Monitoring
o Real-Time Location System
o Network Management
o Security
o Data Management
• Service
o Professional Service
o Managed Service
Industrial IoT Market by Device and Technology [Value $B Analysis for 2018 – 2030]:
• Sensors
• RFID
• Industrial Robotics
• Distributed Control System
• Others
Industrial IoT Market by Region [Value $B Analysis for 2018 – 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Features of Industrial IoT Market
• Market Size Estimates: Industrial IoT market size estimation in terms of value ($B)
• Trend and Forecast Analysis: Market trends (2018-2023) and forecast (2024-2030) by various segments and regions.
• Segmentation Analysis: Market size by end use industry, connectivity, component, and device and technology.
• Regional Analysis: Industrial IoT market breakdown by North America, Europe, Asia Pacific, and the Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different end use industry, connectivity, component, device and technology, and regions for the industrial IoT market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape for the industrial IoT market.
• Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in industrial IoT or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q1. What is the industrial IoT market size?
Answer: The global industrial IoT market is expected to reach an estimated $241 billion by 2030.
Q2. What is the growth forecast for industrial IoT market?
Answer: The industrial IoT market is expected to grow at a CAGR of 13% from 2023 to 2030.
Q3. What are the major drivers influencing the growth of the industrial IoT market?
Answer: The major drivers for this market are increasing demand for automation in manufacturing industry, increasing adoption for IoT and AI, rising awareness for safety and security, and standardization of IPv6.
Q4. What are the major applications or end use industries for industrial IoT?
Answer: Manufacturing and transportation are the major end use industries for industrial IoT.
Q5. What are the emerging trends in industrial IoT market?
Answer: Emerging trends, which have a direct impact on the dynamics of the industrial IoT industry, include improved interoperability of devices, security and privacy in the iiot world, and integration of ai and machine learning.
Q6. Who are the key industrial IoT companies?
Answer: Some of the key industrial IoT companies are as follows:
• PTC
• SAP
• Cisco
• General Electric
• Siemens
• IBM
• Intel Corporation
• Huawei
• Microsoft
Q7.Which industrial IoT product segment will be the largest in future?
Answer: Lucintel forecasts that wireless connectivity will remain the largest segment due to increasing usage of Wi-Fi, bluetooth, and cellular and satellite technologies.
Q8: In industrial IoT market, which region is expected to be the largest in next 7 years?
Answer: Asia Pacific is expected to remain the largest region and witness the highest growth over next 7 years.
Q9. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% Customization Without any Additional Cost.
This report answers following 11 key questions
Q.1 What are some of the most promising potential, high growth opportunities for the global industrial IoT market by end use industry (manufacturing, transportation, energy, retail, healthcare, and others), connectivity (wired and wireless), component (solution and service), device and technology (sensors, RFID, industrial robotics, distributed control system, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q. 2 Which segments will grow at a faster pace and why?
Q.3 Which regions will grow at a faster pace and why?
Q.4 What are the key factors affecting market dynamics? What are the drivers and challenges of the market?
Q.5 What are the business risks and threats to the market?
Q.6 What are the emerging trends in this market and the reasons behind them?
Q.7 What are the changing demands of customers in the market?
Q.8 What are the new developments in the market? Which companies are leading these developments?
Q.9 Who are the major players in this market? What strategic initiatives are being implemented by key players for business growth?
Q.10 What are some of the competitive products and processes in this area and how big of a threat do they pose for loss of market share via material or product substitution?
Q.11 What M & A activities have taken place in the last 5 years in this market?
For any questions related to industrial IoT market or related to industrial IoT market share, industrial IoT market analysis, industrial IoT market size, and industrial IoT applications, write to Lucintel analysts at helpdesk@lucintel.com. We will be glad to get back to you soon.