Industrial IoT (IIoT) Market Assessment, Value, Size, Share, Growth, Trends, Competition, Industry Analysis, Actionable Insights Report; By Component, By Application, By End-User, By Region, and By Country; Outlook and Forecast, 2023 - 2030

Report Summary

IIoT stands for Industrial Internet of Things, which refers to a network of interconnected physical devices, machines, sensors, and other equipment in an industrial setting. The IIoT system utilizes data analytics and machine learning to monitor, control, and optimize industrial processes, allowing for greater efficiency and productivity.

The Industrial Internet of Things (IIoT) is an expanded application of the Internet of Things (IoT), specifically tailored for the industrial sector. The IIoT is a subset of the broader IoT (Internet of Things) concept, but it is specifically designed for industrial applications, such as manufacturing, energy, transportation, and healthcare among other industries. Big data, machine learning, and machine-to-machine (M2M) communication are all critically important for the IIoT ecosystem. The Internet of Things helps industries and businesses improve the dependability and efficiency of their operations.

IIoT links machines and devices across a variety of industries, including manufacturing, logistics and transportation, oil and gas, ports, power and energy, and mining among others. The IIoT system through its network collaborate to gather, monitor, and analyze data from industrial activities. The analysis of such data improves visibility as well as troubleshooting and maintenance skills. It may also improve safety and security while increasing efficiency and lowering expenses.

With the shift from selling solutions to providing measurable outcomes, many companies have been gradually building new product and service hybrids in order to reinforce their position and generate new revenue streams. Also, the Internet of Things is especially important for ensuring quick access to machines and devices over the forecast period.

What is Industrial IoT Market Size and Growth?

As per the analysis carried out by our consultants, the Global Industrial IoT (IIoT) Market is projected to grow annually at a CAGR of around 24% over the forecast period (2023 – 2030).

In terms of revenue, the Industrial IoT (IIoT) Market size was valued at more than USD 300 billion in 2022 (representing total IIoT spending) and is projected to reach cross about USD 1,700 Billion in 2030. Numerous driving factors and rationales are projected to propel the market at significant growth rates.

The advancements in technology as well as the rising availability of affordable sensors and processors that provides real-time access to information have driven the market growth. This is also because of the rising requirement to improve operational competence and excellent collaboration among major market participants to achieve the same over the forecast period.

Survey Findings of Industrial IoT End-users

As per the surveys conducted among IIoT end-users, the findings highlighted the most common benefits of IIoT, which include improved operational efficiency, increased productivity, and reduced operational costs.

Remarkably, the findings indicated that an impressive 80% of end-users expressed satisfaction (ranging from very satisfied to somewhat satisfied) with the outcomes they have achieved through IIoT implementation. Notably, these outcomes were related to predictive maintenance, real-time monitoring, and optimization of supply chain management.

The surveys also identified several crucial factors that end-users consider when selecting IIoT solutions. These factors include data security, data management solutions, integration with existing systems, scalability and flexibility, pricing, and continuous technical support.

According to the survey findings, the most common challenges associated with IIoT implementation are cybersecurity concerns, ensuring data privacy and effective data management, seamless integration with existing systems, and the initial high costs involved in deploying IIoT systems.

What are the Major Growth Drivers, Restraints, and Opportunities in the Industrial IoT (IIoT) Market?

The Rising Number of Connected Devices Boosting the Industrial IoT Market Growth

Every market has its growth determinants and challenges. One of the major factors that have boosted the market growth over the forecast period is the rising number of connected devices. This is because it will open up new chances for new enterprises with experience in advanced Artificial Intelligence (AI) algorithms in order to build cutting-edge solutions that can potentially alleviate the technology's challenges. Also, remote monitoring, asset management, predictive maintenance, remote servicing, as well as operational intelligence are some of the application areas where IIoT has gained pace and advanced the market growth over the forecast period.

Networking Technology has Fueled the IIoT Market Growth

Another major factor that has fuelled the market growth over the forecast period is the networking technology. This is because numerous machines and sensor nodes have been connected to the internet that uses these technologies in order to facilitate machine-to-machine technologies. This has enhanced the market growth over the forecast period.

Other important factors that drive the adoption of IIoT include the imperative for businesses to enhance their operational efficiency and productivity, as well as the goal of improving workplace safety and security while minimizing costs. IIoT provides businesses with benefits such as better visibility/tracking, troubleshooting, and maintenance skills, which translate into revenue growth by increasing efficiency, lowering expenses, and generating new revenue streams via the creation of new product and service hybrids.

Additionally, IIoT enables businesses to transition from selling solutions to providing measurable outcomes, which reinforces their position in the market and generates new revenue streams.

Moreover, IIoT growth is driven by the rise of Industry 4.0, which aims to improve manufacturing processes using automation and data exchange. As businesses strive to remain competitive and meet changing consumer demands, adopting IIoT is becoming increasingly necessary.

While IIoT offers numerous benefits, there are also several challenges and limitations, including cyber security risks associated with connecting industrial devices to the internet. These risks include cyber-attacks, data breaches, and malware infections, which can compromise sensitive industrial data, disrupt operations, and lead to financial losses. Additionally, there are concerns about data privacy and ownership, interoperability issues, and the high costs of implementing IIoT solutions.

What are the Industrial IoT (IIoT) Market Segmentations and Bifurcations?

Industrial IoT (IIoT) Market Segmentation based on Component Type

• Hardware
  • Network & Connectivity Devices
  • Sensors & Actuators
  • RFID
  • Robots
  • Others (cameras, storage devices, etc.)
• Software & Platforms
  • Application Management
  • Connectivity Management
  • Device Management
• Services
  • Professional
  • Managed
• Connectivity
  • Wired
  • Wireless

The software & platforms (solution) segment has dominated the demand in global IIoT market. The reason behind the dominance of the software and platform (solution) segment in the global IIoT market can be attributed to the emphasis laid by solution providers on the implementation of cutting-edge information systems that cater to diverse sectors and industrial verticals. The providers have further directed their efforts towards the integration of sensors and other essential systems into crucial equipment to monitor real-time data and augment operational efficiency. Furthermore, the surge in demand for analytics software, the rapid expansion of cloud-based platforms, wider adoption of predictive maintenance, and escalating need for connectivity management have all contributed to the increased demand for this particular segment.

Hardware segment has also closely followed and generated demand in the global IIoT market. There is high demand for sensors and actuators due to their capability to collect and transmit real-time data, which is crucial for continuous monitoring and adjustments in industrial processes. Along with this, there is a rising demand for gateways that help connect sensors and devices to the cloud, which allows for more efficient data analysis and processing. Industrial robots are also becoming increasingly popular, especially for assembly, packaging, and material handling tasks.

Services segment is projected to grow at leading CAGR during the forecast period. This is because the adoption of IIoT solutions requires various services such as consulting, integration, and maintenance to ensure proper functioning and optimization of the system. As IIoT solutions become more complex, the demand for specialized services is expected to increase, leading to the growth of the services segment. Additionally, the managed services sub-segment is expected to grow at an even higher CAGR due to the increasing trend of outsourcing IIoT system management to third-party providers.

Industrial IoT (IIoT) Market Segmentation based on Application

• Asset Tracking and Management
• Energy Management
• Environmental Monitoring
• Predictive Maintenance
• Process Optimization
• Quality Management
• Remote Monitoring & Control
• Safety and Security Monitoring
• Supply Chain Optimization
• Others

The predictive maintenance application held the leading market share in the global IIoT market. The demand for predictive maintenance solutions has increased as a result of the growing requirement to decrease machine downtime, optimize maintenance costs, and lengthen the lifespan of the equipment. The adoption of IIoT systems for predictive maintenance has also been accelerated by their capacity to deliver real-time data insights and predictive analytics.

Industrial IoT (IIoT) Market Segmentation based on End-User

• Aerospace & Defense
• Agriculture
• Energy & Power
• Healthcare
• Logistics & Transportation
• Manufacturing
• Metals & Mining
• Oil & Gas
• Retail
• Others

Manufacturing segment has dominated the market growth over the forecast period. This is because of manufacturing companies that are rapidly adopting digital manufacturing technologies, and the Internet of Things (IoT) has played a critical role in these cutting-edge technologies. IIoT in manufacturing helps to improve operational efficiency, reduce downtime, and enhance product quality. The market will develop significantly because of the strategic partnerships and alliances that stakeholders are forming over the forecast period.

According to our survey panel of manufacturing sector end-users, IIoT solutions that can optimize production processes, reduce costs, and improve quality control are in high demand. Predictive maintenance, real-time monitoring, and supply chain optimization are critical features for IIoT solutions in the manufacturing sector. IIoT solutions that provide strong cybersecurity features and can integrate with existing systems are also highly desirable.

Some of the notable end-users of IIoT include major companies such as Ford Motor, Airbus, Nestle, P&G, BMW, and Rolls-Royce among numerous others.

What are the Regional and Country Trends in the Industrial IoT (IIoT) Market?

Industrial IoT Market: Regional Segmentation Analysis

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

North America stood as the world's leading market at more than 30% share for Industrial IoT (IIoT), owing to several factors driving the demand for IIoT solutions in this region. The existence of multiple major IIoT providers in the region and its early adoption of modern technology has provided a conducive environment for the region's IIoT expansion. The government's encouraging steps to foster IIoT implementation, together with the availability of contemporary IT infrastructure, have led to the region's leadership in the IIoT market.

Additionally, the region is home to a number of large-scale manufacturing industries, including automotive, aerospace, and electronics industries. All these industries along with other existing industries have a high demand for IIoT solutions to increase operational effectiveness and productivity. Adoption of IIoT solutions is also being fueled by the region's increased focus on manufacturing processes that are sustainable, economical, efficient in terms of energy use.

How is the Competition Scenario in the Industrial IoT (IIoT) Market?

Industrial IoT Industry: Competitive Landscape

The global Industrial IoT (IIoT) market is characterized by the presence of numerous small, medium, and large players offering a diverse range of IIoT solutions and services, making it quite fragmented. Intense competition prevails in the market, and players are employing various strategies such as partnerships, collaborations, mergers and acquisitions, and innovative product launches to stay competitive in the market. Some of the frontrunners in the global Industrial IoT (IIoT) market include ABB, Accenture, Advantech, ARM, AWS (Amazon Web Services), C3.ai, Cisco Systems, Dassault Systems, Digi, Emerson Electric, FANUC, General Electric, Hitachi, Honeywell, Huawei, IBM, Intel, Kuka, Microsoft, Mitsubishi Electric, NEC Corporation, NXP Semiconductors, Omron, Oracle, PTC, Robert Bosch, Rockwell Automation, SAP, Sasken Technologies, Schneider Electric, Siemens, Software AG, Tech Mahindra, Texas Instruments, and ZIH Corp among others.

Leading players in the market are heavily investing in research and development activities to introduce innovative and advanced IIoT solutions. Meanwhile, small and medium-sized players are also entering the market with their innovative solutions, creating significant competition for established players. Some players in the global Industrial IoT (IIoT) market such as Schneider Electric, Siemens, IBM, and GE among others are also focusing on developing comprehensive end-to-end solutions that cater to specific industry verticals. These solutions often integrate hardware, software, and analytics capabilities to provide complete IIoT solutions to customers.

• In February 2023, Cisco expanded its range of cloud tools by introducing new products aimed at enhancing network visibility and control. These cloud management tools are specifically tailored for industrial IoT (IIoT) applications, with the goal of streamlining IT and OT operations dashboards and offering adaptable network intelligence for industrial assets. These additional features will be accessible through Cisco's IoT Operations Dashboard, providing users with greater ease and efficiency in managing their IIoT infrastructure.

Some market players in the Industrial IoT (IIoT) market are also collaborating with other technology companies or startups to complement their offerings with additional technologies or to leverage complementary expertise. Another key aspect of competition in the global IIoT market is the ability to provide reliable and secure IIoT solutions to end-user industries.

• In 2021, Cisco Systems, Inc., a leading provider of networking solutions, forged a strategic partnership with Newark, an Avnet Company, to harness their collective expertise in Industrial Internet of Things (IIoT) network solutions. This collaboration aimed to optimize the connectivity and management of industrial assets and devices throughout the entire infrastructure. Despite intense competition in this market, the continuous advancements in technology enable companies to achieve significant time and cost savings, while simultaneously enhancing their operational efficiency and effectiveness.

Overall, the global Industrial IoT (IIoT) market is highly competitive, with competitors striving for a significant share of the market through continual innovation and the development of cutting-edge and comprehensive solutions to fulfill customers' expanding requirements. However, due to the market's high growth potential and rising demand for IIoT solutions, it presents numerous opportunities for both existing players and new entrants.