The industrial IoT market deals with integration of IoT technology in various manufacturing processes and machines to optimize operations and enhance productivity. Industrial IoT solutions help connect physical assets through sensors and transmit data for analysis. This facilitates remote monitoring of industrial assets and equipment in real-time. Industrial IoT improves operational efficiency, reduces downtime and unplanned maintenance costs through predictive maintenance capabilities.
The global industrial IoT market is estimated to be valued at US$ 140.84 billion in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2031.
The market is driven by growing need for cost optimization, remote asset management and increasing automation across industries. Industrial IoT assists manufacturers in streamlining production processes and supply chains with real-time visibility. It creates avenues for predictive maintenance of critical assets through condition monitoring.
Key Takeaways
Key players operating in the industrial IoT market are Aviation Industry Corporation of China, Clearpath Robotics, General Atomics Aeronautical Systems, Hi-Tech Robotic Systemz, Softbank Robotics, SMP Robotics, and Aethon. Growing demand from manufacturing, energy & utilities, automotive and other sectors is a major factor propelling the industrial IoT market growth. Technological advancements including 5G connectivity, edge computing, AI/ML and low-power wide-area networks are expanding the scope of industrial IoT applications.
Market Trends
The increased adoption of 5G networks will accelerate Industrial IoT Market Size. 5G enables ultra-reliable, low latency communication between devices supporting real-time analytics and controls. Many industrial processes require high bandwidths and low latencies which 5G satiates better than previous technologies. Manufacturers are also increasingly leveraging edge computing and cloud platforms to glean useful insights from IoT data streams.
Market Opportunities
Integration of advanced technologies such as 3D printing, collaborative robots, predictive maintenance with industrial IoT presents lucrative opportunities. Manufacturers can optimize supply chain, production planning and asset performance through integrated solutions. Growing focus on Industry 4.0 standards and concepts across industries will create more demand for industrial IoT infrastructure and services globally.
Impact of COVID-19 on Industrial IoT Market Growth
The COVID-19 pandemic had a major impact on the growth of the industrial IoT market. During the initial lockdown phases in 2020, production facilities and manufacturing units were shut down globally to contain the spread of the virus. This led to disrupted supply chains and falling orders across industries. The industrial IoT market witnessed a decline as capital expenditures and digital transformation projects were postponed. However, as operations resumed with new safety protocols and work-from-home became the new norm, the need for remote asset monitoring and management using industrial IoT solutions increased. Manufacturers implemented industrial IoT to optimize resource utilization and minimize risks of virus spread through remote operations. This boosted demand for industrial IoT platforms, sensors, networking solutions etc. Going forward, industrial IoT deployments are expected to focus more on issues like predictive maintenance, energy management, supply chain visibility and workforce safety to build resilience against future disruptions.
Geographical Regions with High Concentration of Industrial IoT Market
North America holds the largest share of the global industrial IoT market in terms of value. This can be attributed to early adoption of latest technologies and digital transformation initiatives across sectors like oil & gas, manufacturing, utilities etc in countries like the US and Canada. The presence of leading industrial IoT vendors and integration of technologies like artificial intelligence, cloud computing, 3D printing further drive the market in the region. Asia Pacific is projected to be the fastest growing regional market during the forecast period. Rapid industrialization, government support for Industry 4.0 and increasing connectivity in countries like China, India, Japan and South Korea are influencing the demand for industrial IoT platforms and services in the Asia Pacific region.
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