Global Industrial IoT Market Research Report, 2024-29

The Industrial Internet of Things (IIoT) is rapidly transforming the global manufacturing landscape. It represents a powerful network of interconnected machines, sensors, and devices that collect and exchange real-time data across industrial operations. This data deluge unlocks a treasure trove of insights, empowering manufacturers to optimize production processes, improve efficiency, and gain a significant competitive edge. Beyond the core functionalities of data collection and analysis, IIoT offers a unique blend of capabilities that are fundamentally changing the way manufacturing operates. One of the most impactful aspects is the concept of predictive maintenance. Traditionally, maintenance schedules were based on pre-defined intervals or reactive approaches triggered by equipment failures. IIoT disrupts this paradigm by enabling proactive maintenance. Sensors embedded in machinery can continuously monitor performance metrics, allowing for early detection of potential issues before they snowball into major breakdowns. This not only minimizes downtime and associated production losses but also extends the lifespan of valuable equipment, leading to substantial cost savings. Furthermore, IIoT paves the way for the democratization of automation. Traditionally, large-scale automation solutions were often prohibitively expensive for smaller or medium-sized manufacturers. However, IIoT offers a more modular and scalable approach. By leveraging a network of connected sensors and actuators, even smaller manufacturers can automate specific tasks within their production lines. This allows them to compete more effectively with larger players by improving efficiency and reducing labor costs. This democratization of automation is particularly relevant in a globalized manufacturing landscape where agility and responsiveness are crucial for success. According to the research report, “Global Industrial IOT Market Research Report, 2029” published by Actual Market Research, the market is anticipated to cross USD 630 Billion by 2029, increasing from USD 230Billion in 2023. The global IIoT market is a dynamic and multifaceted landscape, with significant variations in adoption and maturity across different regions. Developed economies like North America, Europe, and Japan have been at the forefront of IIoT adoption, driven by factors like strong manufacturing bases, advanced technological infrastructure, and government support for industrial automation initiatives. These regions boast a high concentration of established players in the IIoT ecosystem, offering a wide range of hardware, software, and platform solutions. Additionally, the presence of a skilled workforce with expertise in data analytics, cybersecurity, and industrial automation has further facilitated the rapid integration of IIoT solutions into various industries within these developed markets. However, the IIoT story extends beyond established economies. Emerging economies in Asia Pacific (APAC), particularly China and India, are witnessing a phenomenal rise in IIoT adoption. This surge is fueled by a confluence of factors, including rapid industrialization, government initiatives focused on building smart manufacturing capabilities, and a growing emphasis on Industry 4.0 principles. Unlike their developed counterparts, APAC nations are often leapfrogging traditional infrastructure stages and deploying cutting-edge IIoT solutions directly into new factories and facilities. This "greenfield" approach allows them to avoid the complexities of retrofitting existing infrastructure and paves the way for the development of highly automated and interconnected industrial ecosystems from the ground up. Market Drivers • Demand for Increased Operational Efficiency: In today's competitive global market, manufacturers and industrial organizations are constantly under pressure to optimize production processes, reduce costs, and improve overall efficiency. The global Industrial IoT market is being driven by the increasing adoption of IIoT solutions that address these critical needs. By enabling real-time data collection, predictive maintenance, and process automation, IIoT empowers businesses to identify and eliminate inefficiencies, reduce downtime, and optimize resource utilization. This translates to significant cost savings, improved product quality, and a stronger competitive edge in the global marketplace. • Government Initiatives and Industry 4.0: Governments around the world are recognizing the transformative potential of Industrial IoT and are actively promoting its adoption through various initiatives. These initiatives include financial subsidies for IIoT deployments, tax breaks for companies investing in smart manufacturing solutions, and funding for research and development in indigenous IIoT technologies. Additionally, the concept of Industry 4.0, which envisions a future of highly interconnected and automated factories, is gaining significant traction globally. IIoT serves as a key enabler for Industry 4.0, and government support for this vision is driving the growth of the global Industrial IoT market. • Evolving Customer Demands and Mass Customization: The global marketplace is undergoing a shift towards mass customization, with customers demanding increasingly personalized products. This trend is driving the adoption of IIoT solutions in manufacturing facilities. By enabling real-time data collection and dynamic production line reconfiguration, IIoT empowers businesses to produce smaller batches of customized goods efficiently. Additionally, the global Industrial IoT market is being driven by the evolving demands of modern customers. Customers today expect greater transparency and visibility into the supply chain. IIoT solutions can facilitate track and trace functionalities, allowing customers to monitor the progress of their orders and ensuring the authenticity of products. Market Challenges • Lack of Standardization and Interoperability: The global IIoT market suffers from a lack of universal standardization in communication protocols and data formats. This can lead to compatibility issues between devices from different vendors, hindering seamless integration and data exchange across IIoT ecosystems. The absence of clear standards also creates challenges for system maintenance and scalability. Standardization efforts by industry consortia and regulatory bodies are underway, but achieving a global consensus remains an ongoing challenge. This lack of standardization poses a significant hurdle for wider IIoT adoption and necessitates careful planning and vendor selection for industrial companies looking to implement IIoT solutions. • Security Concerns and Data Privacy Risks: The growing integration of IT and OT systems within industrial facilities exposes them to increased cybersecurity threats. Unsecured networks and device vulnerabilities can leave industrial operations vulnerable to cyberattacks, potentially leading to data breaches, operational disruptions, and even physical damage to equipment. Additionally, the vast amount of data generated by IIoT systems raises concerns about data privacy. Companies need to implement robust cybersecurity measures, comply with data privacy regulations, and establish clear data ownership protocols to mitigate these risks and build trust with stakeholders. • Skilled Workforce Gap: The successful implementation and management of IIoT solutions require a workforce with specialized skillsets. This includes personnel with expertise in areas like data analytics, cybersecurity, and industrial automation. However, there's a growing gap between the demand for these skills and the available talent pool in many regions. Businesses need to invest in training programs and upskilling initiatives to bridge this gap and ensure they have the manpower necessary to effectively harness the power of IIoT. Market Trends • Convergence of IT and OT (Operational Technology): Traditionally, Information Technology (IT) and Operational Technology (OT) functioned as separate domains within industrial facilities. IT managed data flow and enterprise applications, while OT focused on controlling industrial processes and machinery. However, the global Industrial IoT market is witnessing a significant convergence of these two domains. Sensor-embedded machinery generates vast amounts of data, blurring the lines between IT and OT. Powerful IIoT platforms are now capable of integrating seamlessly with existing IT infrastructure, enabling real-time data analysis and fostering data-driven decision making across the entire organization. This convergence empowers businesses to optimize not just production processes, but also overall business operations, supply chain management, and customer service. • Rise of Edge Computing and Industrial AI: The sheer volume of data generated by connected industrial devices in an IIoT ecosystem can overwhelm traditional cloud-based processing. To address this challenge, the global market is witnessing a growing trend towards edge computing. Edge computing distributes processing power to the network's periphery, closer to where the data is generated. This allows for real-time data analysis and decision making at the device level, reducing latency and bandwidth requirements. Additionally, the rise of Industrial AI is transforming how businesses utilize IIoT data. AI algorithms can be deployed on edge devices to perform predictive maintenance, identify potential equipment failures, and optimize process parameters in real-time. This integration of edge computing and AI empowers businesses to gain deeper insights from their IIoT data and unlock new avenues for operational efficiency. • Growing Focus on Cybersecurity: As industrial facilities become increasingly interconnected and reliant on IIoT solutions, cybersecurity threats are emerging as a major concern. The vast number of connected devices creates potential vulnerabilities that malicious actors can exploit to disrupt operations, steal sensitive data, or even cause physical harm. The global Industrial IoT market is witnessing a growing focus on robust cybersecurity measures to mitigate these risks. This includes implementing secure communication protocols, deploying network segmentation strategies, and prioritizing regular security audits and vulnerability assessments. Additionally, the rise of blockchain technology holds promise for enhancing data security within IIoT deployments. By providing a tamper-proof and transparent record of transactions, blockchain can bolster trust and confidence in the security of IIoT systems.

What's Inside a Actual Market Research`s industry report?

Asia-Pacific dominates the market and is the largest and fastest-growing market in the animal growth promoters industry globally

Download Sample

Hardware leads in the Industrial IOT market due to its foundational role in collecting real-time data from machinery and enabling basic automation processes. Within the global Industrial IoT (IIoT) market, hardware currently holds the leading position in terms of market share, driven by its essential role in capturing and transmitting industrial data. The global trend towards industrial automation and smart factories necessitates a robust network of sensors, actuators, and other devices that collect real-time data from machinery and physical processes. This hardware segment encompasses a wide range of components, including sensors (the eyes and ears of IIoT, gathering data on temperature, vibration, pressure, flow rates, and other critical parameters), processors and connectivity ICs (acting as the brain of the IIoT hardware, processing sensor data and facilitating communication with other devices and platforms), and network connectivity devices (industrial-grade cellular modems, Wi-Fi modules, and Ethernet switches that enable devices to connect securely to local networks and the cloud). The leading role of hardware in the global IIoT market is further amplified by the growing adoption of Industrial PCs (IPCs) and gateways. Industrial PCs are ruggedized computers specifically designed for harsh industrial environments and provide the processing power needed for complex data analysis at the edge of the network. Gateways act as intermediaries between industrial devices and cloud platforms, filtering and aggregating data before securely transmitting it for further processing and analysis. However, the hardware segment within the global IIoT market is not static. There's a continuous push for miniaturization, lower power consumption, and improved security features. Furthermore, the integration of artificial intelligence (AI) and machine learning (ML) capabilities directly into hardware is blurring the lines between traditional sensors and intelligent devices capable of performing on-device analytics. The manufacturing sector leads in the Industrial IoT market due to its inherent need for real-time data and automation. The global Industrial IoT (IIoT) market is a vast landscape, but the manufacturing sector stands out as the undisputed leader in terms of market share and projected growth. This dominance stems from the inherent compatibility between IIoT solutions and the core objectives of modern manufacturing. Manufacturing facilities worldwide are constantly seeking ways to optimize production, and IIoT offers a powerful toolkit to achieve this goal. Sensor-embedded machinery generates real-time data that IIoT solutions can harness. This data allows for proactive maintenance, identifying potential equipment failures before they disrupt production lines. This not only minimizes downtime but also extends the lifespan of valuable equipment, leading to significant cost savings for manufacturers globally. Furthermore, the global marketplace is increasingly driven by mass customization. Consumers are demanding personalized products, pushing manufacturers to adopt more flexible production models. IIoT plays a critical role here by enabling real-time adjustments to production lines based on customer demand data. This allows manufacturers to produce smaller batches of customized goods efficiently, catering to the evolving needs of a globalized market. The significance of IIoT in manufacturing extends beyond these immediate benefits. It serves as a key enabler for the concept of Industry 4.0, a vision for highly automated and interconnected factories. Here, intelligent machines communicate seamlessly, optimizing processes and facilitating real-time decision-making. This level of automation is particularly attractive in regions with rising labor costs, allowing manufacturers to maintain competitiveness while ensuring stricter quality control standards. The global nature of the manufacturing industry further amplifies the value proposition of IIoT. Modern supply chains crisscross continents, demanding smooth information flow and coordinated logistics. IIoT solutions enable real-time tracking of goods in transit, optimizing inventory management and minimizing delays. This interconnectedness fosters greater collaboration between manufacturers, suppliers, and distributors, creating a more efficient global production ecosystem. Wireless connectivity leads in the Industrial IoT market due to its inherent flexibility, scalability, and suitability for global operations. Within the global Industrial IoT (IIoT) market, wireless connectivity technology has emerged as the undisputed leader, outpacing its wired counterpart. This dominance can be attributed to several key factors that align perfectly with the demands of industrial settings. One major advantage of wireless connectivity lies in its inherent flexibility. Factories are dynamic environments, with machinery and equipment often needing to be relocated or reconfigured to meet production needs. Wired connections can become a hindrance in such scenarios, limiting the movement of equipment and hindering efficient production flow. Wireless IIoT solutions, on the other hand, eliminate these limitations. Sensors and devices can be easily deployed and repositioned without the constraints of cables, allowing for greater adaptability within the industrial space. Furthermore, wireless connectivity offers significant benefits in terms of scalability. As industrial operations grow and expand, the number of connected devices within a facility naturally increases. A wired network can become cumbersome and expensive to manage as the number of devices grows. Wireless IIoT solutions, however, can seamlessly integrate additional devices without the need for complex infrastructure upgrades. This scalability is particularly crucial for large-scale manufacturing facilities or those anticipating future growth. The global nature of the IIoT market further strengthens the case for wireless connectivity. Many industrial facilities operate in remote locations or have sprawling campuses. Setting up and maintaining a wired network across such vast areas can be a logistical and financial nightmare. Wireless solutions, on the other hand, can overcome these geographical limitations. They offer a wider range of coverage and can even leverage existing cellular networks or satellite communication for truly global connectivity. The Asia-Pacific region leads in the Industrial IoT market due to its rapid industrialization, government initiatives, and focus on automation. The Asia Pacific (APAC) region has emerged as the undisputed leader in the global Industrial IoT (IIoT) market, witnessing phenomenal growth fueled by a unique blend of economic dynamism, government initiatives, and a rapidly evolving industrial landscape. Firstly, APAC is a powerhouse of manufacturing, boasting countries like China, India, and South Korea that are undergoing rapid industrialization and automation. These nations are heavily invested in building modern factories equipped with advanced machinery and infrastructure. IIoT solutions perfectly complement this growth trajectory by enabling real-time monitoring of production lines, optimizing resource utilization, and facilitating predictive maintenance, leading to significant cost savings and improved overall productivity. Furthermore, governments across APAC are actively promoting the adoption of IIoT technologies through various initiatives. These initiatives include subsidies for IIoT deployments, tax breaks for companies investing in smart manufacturing solutions, and funding for research and development in indigenous IIoT technologies. This strong government backing fosters a supportive environment that encourages businesses to embrace IIoT and capitalize on its potential benefits. The growing adoption of Industry 4.0 principles in APAC further strengthens the region's leadership in the IIoT market. Industry 4.0 envisions a future of highly interconnected and automated factories, and IIoT serves as a key enabler for this vision. APAC nations are actively investing in creating smart factories that leverage sensor-embedded machinery, real-time data analytics, and machine-to-machine communication to achieve unprecedented levels of automation and efficiency. The vast pool of skilled labor in APAC presents another unique advantage. The region boasts a large workforce with the technical expertise necessary to develop, implement, and maintain IIoT solutions. This readily available talent pool allows companies to deploy IIoT solutions with greater ease and efficiency, further accelerating the market's growth. Finally, the increasing affordability of IIoT solutions is playing a vital role in driving adoption across APAC. Advancements in sensor technology, coupled with the commoditization of cloud computing services, have made IIoT solutions more accessible to businesses of all sizes. This affordability factor, combined with the potential for significant ROI, is enticing a growing number of APAC companies to embrace IIoT and unlock its transformative potential.

Make this report your own

We're excited to discuss your needs and our solutions. Let's schedule a call.

Ask an Expert

Kripa Shah

Senior Analyst

• July 2024: AAEON, a manufacturer of industrial computers, launched the PICO-AM62 and SRG-AM62 based on Texas Instruments' Sitara AM6232/AM6254 processors. These are single-board computers (SBC) and industrial IoT gateways designed for applications requiring a long lifespan, up to 20 years. The processors offer a choice between dual-core Arm Cortex-A53 or quad-core Cortex-A53 with a real-time Cortex-M4F core, making them suitable for various industrial tasks. • May 2024: Qualcomm Technologies and Aramco announced collaboration to accelerate the adoption of 4G/5G, non-terrestrial networks (NTN), and end-to-end IoT solutions for industrial applications in Saudi Arabia. This partnership focuses on leveraging 450MHz cellular technology alongside advanced hardware, software, and services.

Don’t pay for what you don’t need. Save 30%

Customise your report by selecting specific countries or regions

Specify Scope Now

Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Industrial IoT market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Offering • Hardware • Software • Platforms By Vertical • Manufacturing • Healthcare • Energy • Oil & Gas • Transportation • Others (Retail, Metals & Mining and Agriculture) By Connectivity Technology • Wireless • Wired The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Industrial IoT industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.