Industrial IoT Market Outlook, 2029

In the era of digital transformation, Industrial Internet of Things (IIoT) is emerging as a pivotal technology driving the evolution of manufacturing and industrial processes. By integrating advanced sensors, connectivity, and data analytics, IIoT is revolutionizing industries, enhancing efficiency, and fostering innovation. Industrial IoT refers to the use of IoT technology in industrial settings. It involves embedding sensors, software, and other technologies into machinery and equipment to collect and exchange data.

This connectivity allows for real-time monitoring, analysis, and control of industrial processes, leading to improved decision-making, increased operational efficiency, and enhanced safety. The Industrial Internet of Things (IIoT), a subset of the broader Internet of Things (IoT), is revolutionizing the way industries operate, paving the path for a new era of connectivity, efficiency, and productivity. By integrating cutting-edge technologies such as machine learning, big data, and automation, IIoT is transforming traditional industrial processes into smart, interconnected systems.

IIoT refers to the network of interconnected devices, machines, and systems embedded with sensors, software, and network connectivity, enabling them to collect, exchange, and analyze data in real-time. This industrial application of IoT technology is designed to enhance manufacturing and industrial processes, making them more efficient, reliable, and intelligent. IIoT offers numerous benefits, including improved operational efficiency, enhanced productivity, cost savings, and better decision-making capabilities. By leveraging real-time data, industries can gain valuable insights into their operations, identify inefficiencies, and implement corrective measures promptly. Moreover, IIoT can enhance worker safety by automating hazardous tasks and monitoring workplace conditions.

According to the research report, “Global Industrial Internet of Things (IIoT) Market Outlook, 2029” the market is anticipated to cross USD 630 Billion by 2029, increasing from USD 320.56 Billion in 2023. The market is expected to grow with 12.24% CAGR by 2024-29. IIoT provides real-time visibility into operations, allowing for better resource management, reduced downtime, and streamlined processes. Predictive maintenance, driven by data analytics, helps prevent equipment failures before they occur, minimizing costly disruptions. By automating repetitive tasks and optimizing workflows, IIoT enhances productivity.

Smart machines can self-adjust and improve performance based on real-time data, leading to higher output and reduced manual intervention. IIoT enhances workplace safety by monitoring equipment and environmental conditions. For example, sensors can detect hazardous conditions and trigger alarms or shut down equipment to prevent accidents. Efficient use of resources, reduced maintenance costs, and minimized downtime contribute to significant cost savings. IIoT also enables better inventory management and supply chain optimization, further reducing operational expenses. Access to real-time data and insights allows companies to make informed decisions.

This agility in decision-making can lead to faster innovation, improved quality, and a competitive edge in the market. The future of IIoT holds immense potential, with advancements in technologies such as 5G, edge computing, and artificial intelligence set to further enhance its capabilities. The integration of these technologies can enable faster data processing, improved automation, and more intelligent decision-making. Moreover, the convergence of IIoT with Industry 4.0 can lead to the creation of smart factories, where machines can communicate, learn, and adapt autonomously, leading to unprecedented levels of efficiency and productivity.

Market Drivers

• Increased Demand for Operational Efficiency: Companies are continually seeking ways to enhance efficiency and productivity in their operations. IIoT enables real-time monitoring and analysis of industrial processes, which helps in identifying bottlenecks, optimizing resource use, and reducing downtime. By leveraging data collected from connected devices, businesses can implement predictive maintenance, streamline workflows, and automate routine tasks, leading to significant improvements in operational efficiency and cost savings.
• Advancements in Connectivity and Computing Technologies: The proliferation of advanced connectivity solutions like 5G, along with improvements in cloud and edge computing, has made it feasible to deploy IIoT on a large scale. These technologies provide the bandwidth and computational power necessary for real-time data processing and communication. Enhanced connectivity and computing capabilities enable seamless integration of IIoT devices, faster data transmission, and efficient processing of large volumes of data, which are crucial for the successful implementation of IIoT solutions.

Market Challenges

• Data Security and Privacy: With the increased connectivity and data exchange in IIoT systems, there is a heightened risk of cyber-attacks and data breaches. Securing sensitive industrial data and protecting against unauthorized access is a significant concern. Organizations must invest in robust cybersecurity measures, including encryption, access controls, and regular security assessments, to safeguard their IIoT infrastructure and maintain data integrity.
• Integration with Legacy Systems: Many industrial environments still rely on legacy systems and equipment that were not designed with IIoT compatibility in mind. Integrating these older systems with modern IIoT technologies can be complex and costly. Successful integration requires careful planning, customized solutions, and potentially significant upgrades or modifications to existing infrastructure, which can pose logistical and financial challenges.

Market Trends

• Artificial Intelligence and Machine Learning Integration: The incorporation of AI and machine learning algorithms into IIoT systems is enhancing predictive analytics, automation, and decision-making capabilities. These technologies enable more accurate forecasts, anomaly detection, and optimization of industrial processes. AI-driven insights and automation lead to improved efficiency, reduced downtime, and the ability to quickly adapt to changing conditions, driving innovation and competitiveness in the industrial sector.
• Growth of Digital Twins: Digital twins, which are virtual replicas of physical assets or processes, are becoming increasingly popular. They allow for real-time simulation, monitoring, and analysis of industrial operations, providing valuable insights into performance and potential issues. The use of digital twins facilitates better planning, testing, and optimization of industrial processes, helping organizations to improve operational efficiency, reduce costs, and accelerate innovation.

Hardware is leading in the Industrial Internet of Things (IIoT) market due to its essential role in establishing the physical infrastructure for data collection, connectivity, and real-time operational control.

In the IIoT landscape, hardware forms the cornerstone of the technology stack by providing the fundamental tools and components required for effective data capture, communication, and process management. At the heart of IIoT systems are sensors, which are critical for gathering data from various industrial processes and machinery. These sensors measure parameters such as temperature, humidity, pressure, vibration, and more, providing real-time insights into the operational status of equipment. Actuators, another crucial hardware component, respond to commands based on sensor data, adjusting machinery settings or triggering actions to optimize performance and maintain safety standards.

Connectivity hardware, including communication modules and gateways, facilitates the seamless transmission of data between sensors, devices, and centralized systems. This connectivity is essential for enabling real-time data exchange and integration with cloud-based platforms or edge computing systems. The robustness and efficiency of these communication technologies, such as 5G, Wi-Fi, and LPWAN (Low Power Wide Area Network), directly impact the effectiveness of IIoT implementations. Furthermore, advancements in hardware technology have significantly enhanced the capabilities of IIoT systems.

Modern sensors are becoming more precise, durable, and capable of operating in challenging environments, such as extreme temperatures or corrosive atmospheres. Innovations in edge computing devices also allow for more localized data processing, reducing latency and improving response times. The rapid evolution of hardware technology is addressing the growing demand for sophisticated IIoT solutions that offer enhanced monitoring, predictive maintenance, and automation.

For instance, the development of ruggedized sensors and communication modules that can withstand harsh industrial conditions ensures reliable performance and data integrity. As industries increasingly recognize the value of real-time insights and automated processes, the reliance on advanced hardware solutions becomes more pronounced.

Manufacturing is leading in the Industrial Internet of Things (IIoT) market due to its substantial need for efficiency, automation, and real-time monitoring to enhance production processes and competitiveness.

The manufacturing sector is at the forefront of the IIoT market largely because it encompasses some of the most complex and data-intensive operations, where the integration of IIoT technologies can yield significant improvements in efficiency, productivity, and quality. In manufacturing, the application of IIoT is transformative as it addresses critical needs for optimizing production processes, minimizing downtime, and improving overall operational efficiency. By embedding sensors and connectivity into machinery and production lines, manufacturers gain real-time visibility into the performance and condition of equipment, allowing for precise monitoring and control.

This capability is essential for implementing predictive maintenance strategies, which can foresee potential failures before they disrupt operations, thereby reducing unplanned downtime and maintenance costs. Moreover, IIoT enables automation and enhanced process control, which are crucial for meeting the increasing demands for high-quality, consistent production outputs. Through automated systems and smart robotics, manufacturing processes can be streamlined and optimized, leading to higher production rates, reduced human error, and greater flexibility in adapting to changes in production requirements.

The data collected from IIoT devices also supports advanced analytics and insights, which facilitate better decision-making, process optimization, and resource management. The competitive nature of the manufacturing industry further drives the adoption of IIoT technologies. Manufacturers are continuously seeking ways to differentiate themselves by improving operational efficiency, reducing costs, and accelerating time-to-market.

IIoT provides the tools necessary for these advancements, such as real-time data analytics, process optimization, and automated adjustments, which are vital for maintaining a competitive edge in a rapidly evolving market. Additionally, the scalability and adaptability of IIoT solutions align well with the diverse needs of the manufacturing sector. Whether it’s a small batch production facility or a large-scale industrial plant, IIoT technologies can be tailored to fit various operational requirements, making them a valuable asset across different manufacturing environments.

Wireless technology is leading in the Industrial Internet of Things (IIoT) market due to its ability to provide flexible, scalable, and cost-effective connectivity solutions that enhance real-time data transmission and integration across diverse industrial environments.

Wireless technology plays a pivotal role in the IIoT market because it offers unparalleled flexibility and scalability in connecting a wide range of devices and systems without the constraints of physical cabling. In industrial settings, where traditional wired connections can be cumbersome and expensive to deploy, wireless solutions provide a more adaptable and cost-effective alternative. Wireless technologies such as Wi-Fi, Bluetooth, Zigbee, and Low Power Wide Area Networks (LPWAN) facilitate seamless communication between sensors, actuators, and central control systems, allowing for real-time data collection and analysis.

The flexibility of wireless connectivity is particularly valuable in dynamic and expansive industrial environments. It supports the easy deployment of sensors and devices in locations where wiring would be impractical or cost-prohibitive, such as on moving machinery or in remote areas of a facility. This flexibility extends to scaling operations; as the number of IoT devices grows, wireless networks can be expanded with minimal disruption to existing infrastructure. Additionally, advancements in wireless technology, including the rollout of 5G, provide higher data transmission speeds, lower latency, and improved reliability, which are crucial for real-time monitoring and control in industrial applications. The cost-effectiveness of wireless solutions further contributes to their dominance in the IIoT market. Implementing wireless networks reduces the need for extensive cabling and associated installation labor, which can significantly lower overall deployment costs. This cost advantage makes wireless technology an attractive option for both new installations and retrofitting existing systems. Furthermore, wireless connectivity supports greater mobility and flexibility in industrial operations. Devices and equipment connected via wireless networks can be easily repositioned or reconfigured without the need for rewiring, enhancing operational agility and enabling more responsive adjustments to changing production needs.

Asia-Pacific is leading in the Industrial Internet of Things (IIoT) market due to its rapid industrialization, significant investments in smart manufacturing, and a growing emphasis on digital transformation across diverse industrial sectors.

The Asia-Pacific region is at the forefront of the IIoT market largely due to its dynamic industrial landscape and robust economic growth. This region, encompassing major manufacturing hubs such as China, Japan, South Korea, and India, has seen accelerated industrialization and a substantial expansion of its manufacturing capabilities over the past few decades. As these countries continue to develop their industrial infrastructure, there is a heightened demand for advanced technologies that can enhance operational efficiency, productivity, and competitiveness.

IIoT technologies are perfectly suited to meet these needs, driving widespread adoption and investment. Significant investments in smart manufacturing and digital transformation initiatives across Asia-Pacific further bolster the region's leadership in the IIoT market. Governments and private enterprises in the region are heavily investing in modernizing their manufacturing processes through automation, robotics, and data analytics. These investments are supported by national strategies and policies aimed at fostering innovation and technological advancement.

For instance, China's "Made in China 2025" initiative and Japan's "Society 5.0" strategy emphasize the integration of advanced technologies like IIoT to boost industrial capabilities and global competitiveness. Additionally, the rapid adoption of IIoT in Asia-Pacific is driven by the region's diverse industrial sectors, including automotive, electronics, and consumer goods, which are increasingly leveraging IIoT solutions to optimize production processes and supply chain management.

The region's emphasis on improving manufacturing efficiency, reducing costs, and enhancing product quality aligns closely with the benefits offered by IIoT technologies, such as real-time monitoring, predictive maintenance, and automation. The Asia-Pacific market is also characterized by a strong technological infrastructure and a growing pool of skilled professionals, which supports the deployment and integration of IIoT solutions. The proliferation of connectivity solutions, including advancements in 5G and low-power wide-area networks (LPWAN), further facilitates the widespread adoption of IIoT technologies.

• In July 2023, Honeywell and prominent company in the field of providing IIoT solutions, acquired SCADfence, a specialized company in providing cybersecurity solutions to monitor extensive operational technology or IoT networks. This strategic move of Honeywell emphasis on its digitalization, sustainability and OT cyber security SaaS solutions.
• In February 2023, Cisco launched a new cloud service within its IoT Operational dashboard. The objective of this launch was to enhance visibility into industrial assets; by offering secured management capabilities form any location. It also has the facility to seamlessly transit Industrial Internet of Things (IoT) customers towards cloud automation, specifically catering to Operational Technology (OT) teams.
• In April 2023, Rockwell Automation (US) recently introduced a new human-machine interface (HMI) platform called FactoryTalk Optix. This cloud-enabled platform allows users in the Asia Pacific region to design, test, and deploy their applications directly from a web browser. FactoryTalk Optix is one of the five core solutions in FactoryTalk Design Hub, which aims to help industrial organizations simplify and enhance their automation design capabilities, making their work processes more productive.
• In July 2023, ABB (Switzerland) has partnered with Microsoft Corporation (US) to integrate Azure OpenAI Service into their ABB Ability Genix Industrial Analytics and AI suite. The collaboration aims to help industrial customers uncover insights hidden in operational data by implementing generative AI technology. ABB will integrate generative AI, such as large language models (LLMs) like GPT-4, through Azure OpenAI Service into the Genix platform and applications. This will enable functionality like code, image, and text generation. The new application, Genix Copilot, will be launched soon. It will offer intuitive functionality and streamline the flow of contextualized data across processes and operations, enhancing the user experience.
• In July 2022, Emerson Electric Co. (US) and Nozomi Networks (US), one of the leaders in cybersecurity for operational technology (OT) and Internet of Things (IoT), partnered to meet the increasing demand for OT cybersecurity solutions across their respective industries. As part of the agreement, Emerson will offer Nozomi Networks' advanced solutions to enhance industrial control system cyber resiliency and provide real-time operational visibility to customers worldwide. By combining Nozomi Networks' expertise in OT and IoT security with Emerson's DeltaV distributed control system (DCS), consulting, and professional services, the companies aim to provide comprehensive solutions to strengthen cybersecurity and reduce the risk of downtime caused by cyberattacks or process anomalies.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Industrial IoT market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offering

• Hardware
• Software
• Platforms

By Vertical

• Manufacturing
• Healthcare
• Energy
• Oil & Gas
• Transportation
• Others (Retail, Metals & Mining and Agriculture)

By Connectivity Technology

• Wireless
• Wired

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Industrial IoT industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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