The global Industrial IOT market was valued at USD 226.49 Billion in 2022 and is projected to reach USD 807.74 Billion by 2030, registering a CAGR of 18.41% for the forecast period 2023-2030.
Market Definition
Industrial IOT is driven by the growing usage of new technologies in various sectors and industries are moving toward IIoT as a result of the requirement for real-time data and analytics, which enables them to better meet customer needs and supply goods and services. Adoption of IIoT is fueling the capacity to remotely monitor and operate industrial processes and assets, particularly in difficult or dangerous locations.
The major factor driving the Industrial IOT is the growing adoption of the industry 4.0 which is integration of automation with data and connectivity leading to smart factories with solutions such as robotics, artificial intelligence, and machine learning reshaping the way industries operate, leading to more streamlined and cost-effective processes and also plays an important role in optimizing energy usage, reducing waste, and minimizing environmental impact.
Market Size:
- 2022: USD 226.49 billion
- 2030: USD 807.74 billion
- CAGR (2023-2030): 18.41%
Industrial IOT Market Dynamics
Drivers Propelling the Demand for Industrial IOT include:
Rising advancement of technologies and adoption of industry 4.0 are boosting the market growth for Industrial IOT : Increasing usage of the Internet of Things in different sectors is the primary factor driving the growth of the worldwide industrial Internet of Things (IIoT) market Manufacturing, energy management, utilities, oil and gas, and other industries all utilize IOT. Factory operations may become more intelligent, agile, and controllable with the help of Industrial Internet of Things (IIoT) solutions that use linked assets, real-time data analytics, and monitoring. IoT applications are state-of-the-art technical solutions that facilitate better decision-making, automation, and optimization for the oil and gas industry. These applications include energy management, process control, safety and environmental monitoring, preventative maintenance, and real-time equipment monitoring. Further the rising investment in the technology such as big data analytics from the developing countries is fueling the market’s growth.
Recent Developments
February 2023, Qualcomm expands its traditional hardware business model with IOT services. The new platform launched by Qualcomm i.e. Qualcomm Aware to target real-time supply chain visibility and intelligence to accelerate the company’s digital transformation programs.
January 2023, Cognizant acquires Mobica an IOT software engineering service provider to expand its capabilities across technology and automotive industries.
March 2023, Aeris a leading IOT solutions provider announced acquisition of Ericsson’s IOT accelerator and connected vehicle business. This acquisition will create IOT-first connectivity management service platforms with operational capabilities worldwide.
September 2023, This partnership will get IOT with AI to face many challenges across industries such as manufacturing plants, medical devices and connected products.
Restraint
Data security concerns to hinder the growth of the market : There are certain obstacles facing the Industrial Internet of Things (IIoT). Initially, one of the main concerns is protecting devices and data against hackers. Furthermore, ensuring interoperability amongst disparate equipment and systems can be challenging. Additionally, there is a lot of data to manage, which needs to be securely stored and examined. IIoT must adhere to the regulations that many businesses must abide by. IIoT setup can be expensive, so not all companies can afford it. It's also difficult to find knowledgeable individuals who know how to make it work. Privacy concerns are also present, particularly in the healthcare industry. Lastly, implementing new technology within a corporation might be challenging because employees may not like the change and the procedure may be complex.
Opportunities
Adoption of industry 4.0 to provide immense opportunities : The Industrial Internet of Things (IIoT) sector offers interesting opportunities. Digital technology is being used by an increasing number of sectors to enhance their processes. This indicates that the need for IIoT solutions is rising. Businesses want to increase the effectiveness and cost-efficiency of their operations, and IIoT may support that goal. It involves more than just manufacturing and large machinery; it also involves agriculture, energy production, and transportation. IIoT will become progressively more crucial to the intelligence and prosperity of businesses as technology advances. Thus, businesses offering IIoT solutions stand to gain as they expand and introduce cutting-edge technology to the market.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 226.49 Billion |
| Market Forecast in 2030 | USD 807.74 Billion |
| Compound Annual Growth Rate (CAGR) | 18.41 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Component, By Deployment, By Connectivity, By End-Use & By region |
| By Component |
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| By Deployment |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Industrial IOT Market
The Industrial IOT market is segmented by Component, Deployment, Connectivity, End-use, and region.
By Component
The solution segment held the largest market share in 2022 : The market for the Industrial IOT based on components is further classified into solution, services, and platform. Further solutions is subdivided into remote monitoring, data management, analytics, security solutions, and other. Services are subdivided into professional and managed. And platform is subdivided into connectivity management, application management, device management. The solution segment dominated the market for industrial IOT in 2022. The solution gained major share as the companies benefits with the implementation by getting the real-time data collection and analysis for better decision making.
By End-Use
The discrete automation segment to hold major share in 2022 : With a market share of over 17.12% in 2022, the manufacturing sector led the market in terms of market share and is expected to maintain its dominance over the forecast period. IIoT is gaining popularity in discrete and process manufacturing as the industry develops because it offers many opportunities to optimize operations, decrease downtime, boost efficiency, and support data-driven decision-making. These benefits quickly translate into higher profit margins and lower costs associated with IoT adoption. Digital manufacturing technologies are also being rapidly adopted by the manufacturing sector; IoT implementation is essential to these cutting-edge technologies, which is expected to propel the global market's growth.
Regional Analysis
North America occupied the largest market share in 2022 : Asia-Pacific to lead the Industrial IOT market in 2022. For instance, according to International Federation of Robotics (IFR) world reported 553,052 industrial robot installations in factories around the world. By region, 73% were installed in Asia, 15% in Europe, and 10% in America. China is the largest market in 2022 with annual installations of 290,258 units to fulfill the dynamic market domestic and international robot suppliers established production plants in china and is continuously increasing its production capacity. Robots installations in Japan were upto 9% i.e. 50,413 units. The European union remains the second largest market in 2022 with Germany, France, and UK contributing with 25,636:11,475: 2,534 units respectively. With above the markets in Asia such as
Japan the largest producer of the robots and factory automation systems with the presence of key players such as Omron Corp, Yaskawa Electric, Mitsubishi Electric, and many other. On the other hand, china is major producer is sensors, batteries, microchips and other components used for the IOT systems. These factors contributed to the region’s growth.
List of the prominent players in the Industrial IOT Market:
- ABB Ltd.
- ARM Holding Plc
- Atmel Corporation
- Cisco Systems, Inc.
- General Electric Company
- International Business Machines Corporation
- Intel Corporation
- Rockwell Automation, Inc.
- Siemens AG
- Microsoft Corporation
Segmentation Analysis of the Industrial IOT Market
By Component
- Solution
- Remote Monitoring
- Data Management
- Analytics
- Security Solutions
- Others
- Services
- Professional
- Managed
- Platform
- Connectivity Management
- Application Management
- Device Management
- On-Cloud
- On-Premises
- Wired
- Wireless
- Hybrid
- Metal & Mining
- Chemical
- Manufacturing
- Energy & Power
- Oil & Gas
- Healthcare
- Logistics & Transport
- Agriculture
- Others
Impact of the COVID-19 Pandemic on the Industrial IOT Market:
COVID-19 significantly impacted the Industrial IOT market. The pandemic led to closure of factories and plants and even travel restrictions imposed by the governments created shortages of raw materials, labors, and supply chain disruption impacted the overall production volumes which decreased the demand for the Industrial IOT products & services in addition to it postponed of canceled the projected implementations of various automation projects. The industrial IOT market is growing because more industries are using digital technology in their production and supply chains. This includes areas like agriculture, electricity, mining, oil, gas, and transportation. The pandemic showed how important IOT is for all kinds of businesses, and so more companies started using it. They wanted to automate tasks to reduce the number of workers needed. This helped the industrial IOT market grow, and it's using Industry 4.0 technology to do even better. Further, to overcome the impact companies are investing more into the IOT based solutions that is contributing the overall growth of the market.
