The Industrial IoT Market is estimated to be valued at US$ 122.25 Bn in 2023 and is expected to exhibit a CAGR of 20.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Industrial IoT, also known as Industrial Internet of Things (IIoT), refers to the integration of physical machines and hardware devices with industrial sensors and software. This allows organizations to collect, analyze and act on data from industrial operations. Key applications of IIoT include predictive maintenance, asset tracking, remote monitoring, supply chain management, and other applications. IIoT solutions help optimize productivity, reduce operational costs, enhance safety and asset utilization in various industries like manufacturing, oil & gas, healthcare, energy & utilities and others.
Market Dynamics:
The increasing demand for real-time data analysis of industrial operations to enhance operational efficiency and reduce downtime is expected to drive the growth of Industrial IoT market. IIoT solutions provide real-time performance monitoring and predictive maintenance capabilities to industrial equipment. This helps identify performance issues beforehand and plan corrective actions to avoid unexpected downtime. Secondly, rapidly reducing costs of industrial internet technologies such as sensors, wireless networking devices and cloud computing is making IIoT implementation more affordable for industrial facilities. This wider adoption is further expected to boost the market growth over the forecast period. However, data security concerns related to cyber threats on operational technology systems and lack of common standards are some of the challenges restraining the market growth.
Segment Analysis
The global industrial IoT market can be segmented based on component, end-use industry, and region. Based on component, the market can be classified into hardware, software, and services. Among these, the hardware segment dominates the market as it forms the core of industrial IoT solutions. It consists of sensors, RFID tags, gateways, and other devices that are used for connecting industrial equipment.
PEST Analysis
Political: Governments across the world are supporting the adoption of industrial IoT through favorable regulations and initiatives. For instance, Made in China 2025 aims to transform China into a manufacturing powerhouse through industrial internet integration.
Economic: Cost optimization and productivity gains achieved through industrial IoT deployment is encouraging companies to invest more in this field. Monitoring and analytics capabilities help improve efficiency.
Social: Industrial IoT offers various benefits like enhanced safety, remote monitoring, and improved working conditions. This is positively impacting its social acceptance.
Technological: Advancements in technologies like AI, ML, cloud computing, and 5G are enabling scalable IIoT solutions. Edge and fog computing allow real-time analytics closer to data sources.
Key Takeaways
The Global Industrial Iot Market Growth is expected to witness high, exhibiting CAGR of 20% over the forecast period, due to increasing need for optimized resource utilization across factories and growing focus on industrial automation. The market size for 2023 is estimated to be US$ 122.25 Bn.
Regional analysis: Asia Pacific dominates the global market and is estimated to grow at the fastest rate during the forecast period. This can be attributed to increasing manufacturing activity and government efforts to develop smart cities/factories in China, India, Japan, and Southeast Asian countries.
Key players: ABB Ltd., GE Digital, PTC Inc., Robert Bosch GmbH, and Siemens AG are some of the prominent players operating in the industrial IoT market. These companies offer comprehensive solutions involving devices, platforms, security, analytics, and services to cater to various industrial needs. They are focusing on developing innovative products and solutions through organic and inorganic strategies to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
