by Industrial IoT (IIoT) refers to industrial machines and equipment that are connected to wired and wireless networks which allow them to communicate and share data with other devices. IIoT enables real-time data collection from various industrial machines to help improve quality, increase productivity and reduce operational costs. Connected machines transmit important operational metrics using sensors which aid predictive maintenance and reduce equipment downtime. IIoT also helps improve overall operational efficiency through remote asset monitoring and process optimization.
The global Industrial IoT Market is estimated to be valued at US$ 122.25 billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Increased machine connectivity: Growing adoption of sensors, connectivity modules and embedded devices that enable industrial equipment to connect to various wired and wireless networks is expected to drive the industrial IoT market growth. Connected equipment provides real-time operational data which helps monitor performance, detect anomalies and improve efficiency.
Operational efficiency: IIoT implementations help optimize processes and reduce equipment downtime through predictive maintenance capabilities. Data analytics aids decision making for efficient resource utilization across manufacturing plants and industrial facilities. Remote asset monitoring through IoT solutions enhances overall equipment effectiveness. This opportunity for operational efficiency gains is expected to boost the adoption of industrial IoT solutions over the forecast period.
Segment Analysis
The global Industrial IoT market is dominated by three major segments which are connectivity, sensors, and services. Within connectivity, wireless protocol segment accounted for over 30% share in 2020. Growing need for machine-to-machine communication without human intervention is driving adoption of wireless technology in industries. Sensors segment is the fastest growing segment, projected to expand at a CAGR of 12% during the forecast period. Rising demand for remote asset monitoring and data collection across industries such as manufacturing, oil & gas, healthcare is fuelling growth of various types of sensors including temperature, pressure, level and flow sensors etc. Services segment captured around 20% share in 2020. Increasing requirement of managed and professional services for deployment, integration, consulting and maintenance of IIoT solutions is supporting growth of this segment.
PEST Analysis
Political: Governments across countries are promoting adoption of Industrial IoT through initiatives such as ‘Industry 4.0’ in Germany and ‘Made in China 2025’ which focus on digitization of manufacturing sector. Favorable regulations regarding use of wireless networks and IIoT technologies are positively impacting the market.
Economic: Growing infrastructure development and increasing investments in digital transformation of industries is driving IIoT adoption. Rapid industrialization and need to optimize industrial operations is fueling demand. Low cost of connectivity and sensors is encouraging SMEs to incorporate IIoT solutions.
Social: Rising awareness about benefits of IIoT including improved productivity, reduced costs, enhanced safety and remote access is influencing end users from various industries to incorporate these technologies. Growing customer inclination towards smart products is another factor.
Technological: Advancements in technologies such as cloud computing, analytics, artificial intelligence, 5G, blockchain etc. are supporting integration of IIoT in industries. In addition, miniaturization of sensors and low power wireless protocols are positively impacting the market.
Key Takeaways
Global Industrial Iot Market Size is expected to witness high growth at a CAGR of 10% during the forecast period of 2023 to 2030. The market size is projected to reach US$ 322 Bn by 2030 from US$ 122.25 Bn in 2023.
Regional analysis:
North America captured over 30% share in 2020 owing to large presence of manufacturing industries and early adoption of advanced technologies in the region. Asia Pacific is projected to be the fastest growing region during the forecast period expanding at a CAGR of 12%. Rapid industrialization in countries such as China, India is driving IIoT implementation across industries.
Key players:
Key players operating in the Industrial IoT market are Honeywell International Inc., Aker Solutions, Exxon Mobil Corporation, Baker Hughes, Air Liquide, Fluor Corporation, General Electric and Halliburton. Honeywell is one of the leading players with strong portfolio of IIoT solutions. Baker Hughes and General Electric are also prominent suppliers with strong presence across industries including oil & gas and manufacturing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
