Introduction to Industrial IoT
Industrial internet of things (IoT) is referred to all those interconnected devices, for instance, sensors, instruments and others, networked together with the industrial applications in a computer, which also includes manufacturing and energy management. The resulting action allows data collection, exchange, and analysis from these sensors, and further facilitates improvements in productivity and efficiency, as well as other economic benefits. Industrial IoT is a key element of the Industry 4.0 revolution, which focuses on industrial automation by fusing cloud computing, AI and IoT with industrial applications and processes.
Market Size and Forecast
The global industrial IoT market is thriving on the back of growing need of industry owners to visualize and process the contextually rich data into real-time streams generated by the IoT networks and sensors by using machine learning and artificial intelligence (AI), for instance, AI in food and beverages, AI in healthcare, and others. Additionally, growing concern for decreasing labour productivity and utilization along with increasing unit labour costs is raising the demand for automation of industrial processes, which is anticipated to promote significantly towards the growth of the global industrial IoT market. According to the statistics by Organisation for Economic Co-operation and Development (OECD),labour productivity and utilization in the European Union decreased significantly from 3.06% in the year 2010 in the year 2018. Another statistics by the Federal Statistical Office of Germany stated that unit labour costs in Germany increased from (-)1.60% in the year 2014 to 2.40% in the year 2018. CLICK TO DOWNLOAD SAMPLE REPORT
The market is anticipated to record a CAGR of around 15.12% throughout the forecast period, i.e. 2019-2027. The global industrial IoT market is segmented by vertical into manufacturing, utilities, oil and gas, metals and mining, retail, healthcare, transportation and agriculture, out of which, manufacturing segment is anticipated to hold the largest market share on the back of growing deployment of industrial robots in the manufacturing industry for automation of processes and increasing investments for automation of manufacturing processes. According to International Federation of Robotics (IFR), robot installations in the world increased by 6% to 422, 271 units with a value worth USD 16.5 billion in the year 2018. Furthermore, automotive industry remained the largest customer for the year 2018 with a share of 30% of total robot installations.
Growing Momentum Amongst Industries For the Adoption of Industrial Automation
Various strategic initiatives taken by the governments of various nations, for instance, Plattform Industrie 4.0 (Germany), Made in China 2025 (China), Make in India (India), and others, coupled with the numerous consortia held by industry giants to address the growing need for industry collaboration and automation, for instance, Industrial Internet Consortium (IIC), AllSeen Alliance, Open Interconnect Consortium (OIC), IoT World Forum (hosted by Cisco) and others, all of these actions define the growing need for the adoption of industrial internet. Industry giants are focused on investing heavily on automation of technologies by developing various framework models followed by the acquisition of industrial internet startups. All of these factors define the momentum of progress towards industrial automation, which is anticipated to act as a key driving factor for the global industrial IoT market.
Rapid Technological Advancements in Semiconductor and Electronics Devices
On the back of research and developments in semiconductors and electronic devices, and upgradations in polymers and composites that provide good conductance, autonomous analytical devices have implied numerous physical, chemical and biological sensors. Moreover, the sensors have also grown smaller, cheaper and faster in their performances, and also consume less power and have less overhead impact on the equipment being sensed. Modern era sensors have implied functionalities and thereby find numerous applications across devices. It is anticipated that with the rapid developments in these semiconductors, it will find implied applications across industrial devices, and will have enhanced data processing capabilities. Owing to such a factor, data processing will be easier and beneficial for the industrial application, which is anticipated to contribute significantly towards the growth of the global industrial IoT market.
Concern for Data Security and Lack of Standardization
A major concerning factor lying with the automation of data processes in industries is the security of the data. The data generated by the sensors are used for in-house applications in industries and prove to be a vital source of information for the growth of an organization. Lack of security infrastructure for industrial IoT systems can create significant harm to the data privacy of the organization. Additionally, lack of common protocol and communication standards for the smart inter-connected devices doesn’t seem to provide a promising architectural solution to solve the interoperability issue of easy exchange of information among connected devices, which is anticipated to act as a barrier to the growth of the global industrial IoT market.
Our in-depth analysis of the global industrial IoT market includes the following segments:
By Technology and Devices
On the basis of regional analysis, the global industrial IoT market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Asia Pacific is expected to hold significant market share on the back of several policies of the governments of the region for promoting the manufacturing industry, for instance, Make in India (India), and Made in China 2025 (China), and others, coupled with the region being a major manufacturing hub. Furthermore, the region is also known to be an important hub for metals and mining, low cost of labor, along with various other infrastructural and industrial developments in nations across the region, which is anticipated to promote the growth of the market in the region.
Europe is expected to grow significantly on the back of supporting government policies, such as Plattform Industrie 4.0, which promotes industry automation. Moreover, various stringent norms for the environment in the region indirectly promotes omission of traditional processes, and thereby make a transitional shift to industrial automation processes, which is anticipated to contribute significantly towards the growth of the industrial IoT market in the region.
The global industrial IoT market is further classified on the basis of region as follows:
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