The industrial Internet of Things (IIoT) is projected to become a large-scale, high-growth market that will have a transformative impact on a broad range of industry sectors, from healthcare and retail to automotive and transport.
Here is a brief overview of the key factors to know about this important market, based on expert insights from the report Industrial Internet of Things Market Outlook and Forecasts 2021-2028 by Mind Commerce, a specialized market research firm focused on digital technologies and the telecommunications industry.
1. What Is industrial IoT?
IIoT is considered the fourth industry revolution, with the power to radically change industrial operational processes from start to finish. Other revolutions included mechanical (1784), moving assembly lines (1923), and computerization and the foundation of the Internet (1969).
“Just as industrial production was transformed by steam power in the nineteenth century and electricity in the early twentieth century, so will industry be profoundly transformed by IIoT and related initiatives such as Industry 4.0 (the so called fourth wave of technological advancement in industry) in the early part of this century,” according to Mind Commerce.
Industrial IoT offers a vision of the future based on intelligent manufacturing. Today machines are designed to operate in sync with each other in a production line. In the future, machines will communicate and coordinate with each other within smart factories, drawing on the Internet, interconnected sensors, and other cutting-edge technologies to enhance production and take industrial automation to the next level.
2. Industrial IoT Market Growth
The global industrial IoT market is expected to near $1,119.4 billion by 2028, increasing at a 17.0% compound annual growth rate (CAGR) from 2021 to 2028.
Software is the largest market segment, accounting for 44% of the total market in 2021. Europe is the largest region, with 41% of the total market in 2021.
3. IIoT Technologies
Industrial IoT will rely on a powerful blend of interrelated technologies such as artificial intelligence, augmented reality, data analytics, machines-as-a-service, robotics, self-driving vehicles, self-organizing production, sensor-driven computing, and virtual reality.
4. Industrial IoT Market Drivers
IIoT will help manufacturers optimize their operations by providing real-time monitoring and the ability to conduct predictive maintenance. Companies that leverage IIoT effectively will have the tools and systems to track asset performance, predict failures, increase efficiencies, and reduce unplanned downtime.
“Successful companies will be those that understand how and where IoT technologies and solutions will drive opportunities for operational improvements, new and enhanced products and services, as well as completely new business models,” according to Mind Commerce.
5. IIoT Market Challenges
While industrial IoT holds great promise, challenges remain. Industrial IoT lacks standardization — some manufacturers rely on a small set of proprietary, incompatible technologies.
Data security and privacy breaches is another serious concern. Because IoT devices carry out physical tasks, a data breach could have grave consequences.
6. IIoT Industry Verticals
IIoT solutions are poised to transform a variety of industry verticals including automotive and transportation, cargo and logistics, healthcare, manufacturing, oil and gas, smart cities, and utilities.
7. Top Market Players
Key IIoT companies include ABB, Accenture, AGT International, ARM Holdings, ATOS, B+B SmartWorx, Bosch, C3, Inc., Cisco System Inc. Digi International, Echelon Corporation, Elecsys Corporation, General Electric, Hitachi, IBM, Oracle, PTC, Real Time Innovation, Rockwell Automation, SAP, Sensata Technologies, Siemens, Wind River, Worldsensing, and Wovyn LLC.
More lndustrial IoT Market Research
Need more in-depth information? Industrial Internet of Things Market Outlook and Forecasts 2021-2028 by Mind Commerce provides a comprehensive overview of the market and detailed information about IIoT technologies and industry verticals, market analysis and forecasts, company analysis, and case studies.