Industrial IoT Market by share, size, Trend and Forecast
Industrial IoT Market Report provides an in-depth summary of IoT Market Status as well as Product Specification, Technology Development, and Key Manufacturers. The IIoT market is expected to grow from USD 76.7 billion in 2021 to USD 106.1 billion by 2026, at a CAGR of 6.7% during the forecast period. The growth of the IIoT industry is driven by factors such as technological advancements in semiconductor and electronic devices, increased use of cloud computing platforms, standardization of IPv6, and support from governments of different countries for R&D activities related to IIoT.
The COVID-19 pandemic has significantly impacted the industrial IoT market. With the pandemic persisting in North America and developing Asian countries, the manufacturing sector is facing tremendous challenges. The US automotive industry, one of the biggest in the world, has stagnated since the third quarter of 2020. Various automotive companies have downsized their manufacturing activities across the region, rendering technologies such as IoT, AI, and Blockchain employed in their manufacturing units useless. Mexico is a big beneficiary of the automotive industry in North America. However, the significantly reduced production of automobiles has resulted in tremendous losses for the Mexican automotive sector.
Market Dynamics of IIOT Market
Drivers : Rapid adoption of artificial intelligence (AI) and Internet of Things (IoT) in the manufacturing sector
Since the inception of Industry 4.0, the penetration of AI and IoT technologies in the manufacturing sector has been increasing rapidly. AI- and IoT-integrated systems allow optimization of manufacturing processes, send early alerts, contribute to quality control, and forecast equipment failure in machinery. By gathering precise data, manufacturers can develop innovative AI applications to differentiate themselves from their competitors. The outbreak of the COVID-19 pandemic in 2020 resulted in a testing time for the manufacturing sector. Restrictions on movement, stringent lockdowns, and unavailability of workforce forced manufacturers to improvise their production processes. This resulted in an accelerated use of AI and IoT in manufacturing processes. Activities such as condition monitoring and equipment maintenance were carried out with the help of AI and machine learning (ML) algorithms in the absence of a regular workforce in manufacturing units.
The development of Internet Protocol version 6 (IPv6) has contributed to the growth of the IIoT market, as the number of things connected to the Internet is growing exponentially across the world. The IP version 4 (IPv4) was unable to effectively support this exponential growth in the number of connected things. According to Google, only 4% of the devices in the world use IPv6 protocol at present, while 96% of the devices still use IPv4 protocol. With the standardization of IPv6, the global demand for IIoT technology is expected to grow significantly. This protocol supports an open architecture and is proving to be the most suitable protocol for IoT. IPv6 offers features such as advanced security and high reliability, thereby providing an appropriate foundation and platform for innovations in the IIoT landscape.
Machines used in the industrial sector require built-in components to facilitate M2M communication. These components are either connected to a wired network or a wireless network, such as Wi-Fi or RFID module. The connected components collect relevant data from equipment and transmit it to a central computer for storage and analysis. Machinery in old industrial units might not be equipped with these data transmission components, requiring them to be externally fitted. Some legacy equipment may also require alterations to retrofit these components in them, thereby resulting in increased expenditure. This acts as a major hindrance for organizations using old machinery. The impact of this restraint is expected to reduce gradually in the next few years, as most of the industries have begun to realize the benefits of M2M communication. A few organizations have already started developing solutions to integrate their legacy equipment with communication networks. For instance, General Electric (US) has developed field agents or gateways that can be attached directly to industrial equipment to facilitate network connectivity.
AI and IoT technologies have been rapidly penetrating into the medical industry over the last five years. Medical wearables have started using AI and IoT technologies, resulting in an integrated hospital ecosystem. For instance, through continuous glucose monitoring, a wearable device paired with intelligent algorithms can monitor glucose levels and automatically deliver the correct dosage of insulin to diabetes patients. The onset of the COVID-19 pandemic resulted in a sudden increase in the demand for technologies such as mobile personal emergency response system (mPERS) to facilitate remote patient monitoring. These systems help keep an eye on patient condition 24/7 without the physical involvement of hospital staff, thereby mitigating the risk of infection. As a result of the fear of contracting COVID-19, people are avoiding emergency rooms and doctors’ offices for non-COVID-19 health concerns. This is one of the main drivers for the growth of the remote patient monitoring (PM) market. With COVID-19 surging across the world, healthcare institutions are increasingly deploying.
IoT technologies are an integral part of smart manufacturing systems. The interconnectivity of devices across an industrial manufacturing facility creates security holes throughout the facility, which could result in potentially compromised operations. This is because from a security perspective, it cannot be determined where the data is coming from or where it is going. Hence, data visibility is the biggest cybersecurity challenge for smart manufacturing on a factory floor. For instance, Visser Precision, a manufacturer of space and defense equipment, experienced an attack involving DoppelPaymer ransomware at its Colorado manufacturing facility. The hackers exploited vulnerabilities in the system, which resulted in the leakage of sensitive documents and nondisclosure agreements. The company suffered an estimated loss of USD 50 million.
Networking technologies accounted for the largest market share in 2021. Networking technologies, especially wireless technology, are the backbone of IIoT. Numerous machines and sensor nodes are connected to the Internet using these technologies to facilitate machine-to-machine communication. These technologies also enable the collection of large volumes of data for improved decision-making. An extensive range of wireless communication technologies are available based on connectivity range, power requirements, and data transfer rates. The industrial sector is relying increasingly on cellular technologies for machine-to-machine communication.
The leading players in the industrial IoT market are Huawei (China), Cisco (US), GE (US), Intel (US), Rockwell Automation (US), ABB (Switzerland), Texas Instruments (US), Honeywell (US), IBM (US), KUKA AG(Germany), NEC Corporation (Japan), Bosch.IO (Germany), Siemens AG (Germany), and SAP (Germany).
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