by The Industrial Internet of Things (IIoT) refers to interconnected devices and equipment found commonly in industrial settings that leverage internet connectivity and data analytics to drive efficiency and optimize processes. Devices such as sensors, actuators, and other industrial control systems are integrated via wired or wireless networks to collect and exchange data that can provide predictive maintenance and quality control advantages. 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 from 2024 to 2030.
Key Takeaways
Key players operating in the Industrial IoT are Aviation Industry Corporation of China, Clearpath Robotics, General Atomics Aeronautical Systems, Hi-Tech Robotic Systemz, Softbank Robotics, SMP Robotics, Aethon. These companies are leveraging technologies such as machine learning, predictive analytics, and automation to develop IIoT solutions for various industries.
Growing demand for IIoT solutions across industries such as manufacturing, energy & utilities, healthcare, and automotive is expected to drive market growth over the forecast period. IIoT enables real-time process monitoring, predictive maintenance, optimized operations, and data-driven decision making which enhances productivity, reduces downtime and operational costs for industries.
Manufacturers are also expanding their IIoT offerings globally with countries worldwide embracing industrial digitalization. For instance, Clearpath Robotics recently expanded into European and Asian markets. Similarly, General Atomics is marketing its IIoT drone solutions internationally. This global expansion of key players is anticipated to boost the industrial IoT market growth value.
Market key trends
The increasing focus on automation and connectivity in industries is a key trend driving the adoption of IIoT technologies. Automation enabled by IIoT devices makes operations highly efficient by minimizing human errors and intervention. Furthermore, connectivity allows real-time data collection, analysis and monitoring across distributed industrial assets. The growing use cases leveraging technologies such as artificial intelligence, cloud computing, edge computing and 5G networks are also boosting the IIoT market potential over the forecast period.
Porter’s Analysis
Threat of new entrants: New IoT device manufacturers face significant entry barriers including high R&D and capital investment requirements to develop and produce cutting edge connected devices.
Bargaining power of buyers: Large industrial companies have significant bargaining power over IoT solution providers due to their potential for a high volume of purchases. However, switching costs are reduced due to many alternatives.
Bargaining power of suppliers: Suppliers of IoT components and technologies like sensors, networking equipment have moderate bargaining power due to differentiated products where customers have few alternatives.
Threat of new substitutes: New technological breakthroughs in fields like artificial intelligence, edge computing can potentially substitute traditional IoT over time but significant capital requirements limit this threat currently.
Competitive rivalry: The industrial IoT market features many large technology firms competing intensely on price and innovation resulting in commoditization of generic products while differentiated solutions commanding premiums.
Geographical regions with major market concentration:
North America accounts for the largest share currently due to high technology adoption rates and large manufacturing sector in the US and Canada. China also represents a major geographical market due to its position as the world’s largest manufacturing nation.
Fastest growing region: Asia Pacific region excluding Japan and China is projected to experience the fastest growth during the forecast period due to rising industrialization, manufacturing activity and infrastructure development projects across developing economies in the region like India, Indonesia and Vietnam.
