June 13, 2024
IoT in Manufacturing Market

IoT in Manufacturing Market is Paving the Way for Smart Factories

IoT in manufacturing enables the integration of sensors, devices, systems, and people with advanced connectivity and analytics capabilities. It allows manufacturers to connect physical assets and operational systems within various industrial control systems and across the extended supply chain through wired and wireless technologies. IoT helps collect and analyze data from industrial machines and physical assets to improve operational efficiency, reduce maintenance costs, enhance productivity and optimize production processes. This enhances asset utilization, minimizes downtime and waste, and improves decision making. The ability of IoT to deliver a digital thread of data related to assets, products, and processes across the manufacturing lifecycle is driving its adoption.

The Global IoT in Manufacturing Market is estimated to be valued at US$ 271.16 Bn in 2024 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the IoT in Manufacturing are EnableX.io (VCLOUDX PTE. LTD), Twilio Inc., Infobip Ltd., Vonage Holdings Corp, M800 Limited, MessageBird BV, Iotum Inc., Plivo Inc., Voxbone SA, Snich AB, Telestax, Voximplant (Zingaya Inc.), Mitel Networks Corporation, 8×8 Inc., AT&T Inc., Voxvalley Technologies, Avaya Inc., Bandwidth Inc. (Bandwidth.com), Wazo Communication Inc., and IntelePeer Cloud Communications.

The growing demand for automation, remote equipment monitoring, and increased operational efficiency across manufacturing facilities is fueling the adoption of IoT solutions. Manufacturers are increasingly leveraging IoT technologies to drive real-time decision making, predictive maintenance, and supply chain optimization. This is supporting continued revenue growth for IoT solution providers in the manufacturing industry.

Geographically, the IoT In Manufacturing Market Demand is witnessing high growth in Asia Pacific and North America regions due to rapid industrialization and the presence of major manufacturing hubs. Several manufacturers are also shifting their operations to countries with higher production incentives, acting as an opportunity for IoT vendors to expand globally.

Market Key Trends

Predictive maintenance using IoT sensors and cloud analytics is emerging as a key trend in the manufacturing sector. IoT-enabled sensors attached to industrial equipment can monitor vibrations, noise levels, temperature and other parameters to detect equipment performance anomalies. The collected data is analyzed using machine learning algorithms on the cloud to predict potential equipment failures and recommend maintenance actions. This helps plan maintenance activities proactively and avoid unexpected downtime, reducing maintenance costs significantly for manufacturers.

Porter’s Analysis

Threat of new entrants: The IoT in Manufacturing Market has moderate threat of new entrants due to existing players having strong brand names and technological expertise. However, new startups can disrupt the market with innovative solutions.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiated needs of buyers. However, switching costs for established solutions keeps buyers’ power in check.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power as there are many component and technology suppliers in this market.

Threat of new substitutes: Threat of substitutes is low to medium as IoT solutions in manufacturing provide operational efficiencies that are not easily substitutable. However, alternate technologies pose a medium threat.

Competitive rivalry: The market has high competitive rivalry due to presence of many global and regional players offering differentiated solutions.

Geographical Regions:

North America is currently dominating the IoT in Manufacturing market in terms of value due to robust adoption across automotive, electronics, food and beverages and other industries in US and Canada.

Asia Pacific region is poised to be the fastest growing geographical market for IoT in Manufacturing between 2024 to 2031 driven by growth in industries and government initiatives in countries like China, Japan and India to enhance manufacturing competitiveness through industrial IoT

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it