Asia-Pacific Industrial IoT Market by Component (Hardware, Platform, Services, Connectivity), Industry (Agriculture, Manufacturing, Energy & Utilities, Oil & Gas, Aerospace, Retail, Transportation & Logistics, Others), and Geography - Forecast to 2030

The Asia-Pacific Industrial IoT Market is projected to reach $134.71 billion by 2030, at a CAGR of 18.8% during the forecast period 2024–2030.

Some of the major factors driving the growth of this market are rising investments in Industry 4.0 technologies, government initiatives to promote industrial automation, and the growing need to improve productivity and efficiency. However, the lack of standardization and high capital & OpEx requirements restrain the growth of the IIoT market.

The use of Industrial IoT for predictive maintenance and the proliferation of data centers are expected to create market growth opportunities. However, vulnerability issues with IoT devices and the lack of skilled professionals pose major challenges for market growth. Additionally, the rising popularity of IIoT digital twins, the emergence of edge computing, and the rising adoption of smart manufacturing-as-a-service are some of the major trends in this market.

Government Initiatives to Promote Industrial Automation are Expected to Drive the Asia-Pacific Industrial IoT Market Growth

Major economies across the region are implementing Industry 4.0 technologies, including IoT, artificial intelligence, robotics, cloud, and analytics, to transition to smart manufacturing. Incorporating industrial IoT technology improves connectivity, output, and resource utilization, resulting in higher efficiency. Therefore, governments across the region are encouraging the adoption of disruptive technologies to promote industrial automation. Initiatives such as tax benefits, R&D investments, and the organization of promotional ventures & platforms are some of the several steps taken by governments to promote industrial IoT technology.

Considering the potential of IoT, governments are increasingly adopting the technology for various applications. For instance, the Indian government has undertaken numerous initiatives, such as Digital India, Make in India, and smart city projects, stimulating the adoption of emerging technologies, including the IoT. These initiatives have encouraged several organizations to develop innovative and advanced-technology-enabled IoT solutions for commercial and industrial applications, driving the growth of the IIoT market.

Government projects, such as the Badious Navigation Satellite System (BDS), the Gaofen faraway sensing satellites, and 5G networks, have enabled the development of precision agriculture technologies in China. Also, the Japanese Central Government has made policy modifications to facilitate research & product development through private organizations and researchers. Such developments indicate increasing government support for adopting modern technologies in the industrial sector to enhance industrial output.

Apart from policy charting, governments worldwide have also announced investments in Industry 4.0. For instance, in October 2021, the Thailand Board of Investment (BOI) approved incentives to encourage companies to speed up their Industry 4.0 transformation. Such government initiatives are expected to propel the growth of this market.

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Key Findings in the Asia-Pacific Industrial IoT Market Study:

In 2024, the Hardware Segment is Expected to Dominate the Asia-Pacific Industrial IoT Market

Based on component, the Asia-Pacific industrial IoT market is segmented into hardware, platforms, services, and connectivity. In 2024, the hardware segment is expected to account for the largest share of the Asia-Pacific industrial IoT market. The large market share of this segment is attributed to factors such as the consistent engagement of the industrial sector in improving efficiency, reducing costs, and increasing the overall equipment effectiveness (OEE) through better access to information from real-time solutions. In addition, the rising focus of key players on product development and enhancement is expected to drive segment growth. For instance, in September 2020, Intel Corporation (U.S.) launched industrial IoT processors and software packages for various industries.

However, the platform segment is slated to record the highest CAGR during the forecast period. The rising adoption of industrial IoT platforms by different industry verticals to improve operational efficiency, along with the increasing need for superior monitoring technologies, is driving the growth of this segment. In addition, the rising focus of key players on product development and enhancement is expected to drive segment growth. For instance , in November 2021, Panasonic Corporation (Japan) launched the Miraie Profactory platform, an Industrial IoT/Smart Factory solution developed indigenously at the company’s India Innovation Centre. Similarly, in June 2021, Fujitsu (Japan) deployed an industrial IoT platform for the Ricoh (Japan) chemical plant in Japan.

The Manufacturing Segment is Expected to Dominate the Asia-Pacific Industrial IoT Market

Based on end-use industry, the Asia-Pacific industrial IoT market is segmented into agriculture, manufacturing, retail, energy & utilities, oil & gas, aerospace, transportation & logistics, telecom, and other end-use industries. In 2024, the manufacturing segment is expected to account for the largest share of the Asia-Pacific industrial IoT market. The large market share of this segment is attributed to the growing need for centralized monitoring and predictive maintenance of assets, the increasing number of smart factories, the advent of Industry 4.0, and the increasing adoption of autonomous robots for industrial automation. Moreover, the manufacturing segment is also expected to record the highest CAGR during the forecast period. Following are some of the recent developments in this market space:

• In June 2024, ABB Ltd. (Switzerland) and China Telecom, the world's largest and leading communication service operator, unveiled a joint digitalization and industrial IoT laboratory in Hangzhou, China.
• In 2020, TGW Logistics Group (Austria) announced its plans to build a high-performance automatic mini-load warehouse and commissioner lifting beam system for Tianjin Zhongjing Semiconductor Materials Co., Ltd. (China) near Shanghai.

Based on geography, the Asia-Pacific industrial IoT market is segmented into Japan, China, India, South Korea, Singapore, Malaysia, Indonesia, Australia & New Zealand, and the Rest of Asia-Pacific. In 2024, China is expected to account for the largest share of the Asia-Pacific industrial IoT market. China has been investing heavily in the IIoT to increase productivity and drive efficiencies by modernizing and automating manufacturing processes through high internet connectivity and data-driven approaches. For instance, in December 2022, ABB Ltd. (Switzerland) officially opened its state-of-the-art, fully automated, and flexible robotics factory in Kangqiao, Shanghai, China. This 67,000 m² production and research facility represents a USD 150 million (1.1 billion RMB) investment by ABB and will deploy the company’s digital and automation technologies to manufacture next-generation robots.

In addition, the government of China has been leading in promoting automation through several initiatives, such as "Made in China 2025." Therefore, the large share of the country is attributed to factors such as growing investments in AI technology, increasing demand for industrial automation, the rise in the robotics revolution, and strong government initiatives. The country is also expected to record the highest CAGR during the forecast period.

Key Players:

The key players operating in the Asia-Pacific industrial IoT market are ABB Ltd. (Switzerland), General Electric Company (U.S.), Emerson Electric Co. (U.S.), Intel Corporation (U.S.), Cisco Systems, Inc. (U.S.), SAP SE (Germany), IBM Corporation (U.S.), Honeywell International Inc. (U.S.), Amazon Web Services, Inc. (U.S.), Siemens AG (Germany), Huawei Technologies Co, Ltd. (China), Rockwell Automation, Inc. (U.S.), PTC, Inc. (U.S.), Dassault Systemes (France), Robert Bosch GmbH (Germany), KUKA AG (Germany), Microsoft Corporation (U.S.), Schneider Electric SE (France), Advantech Co., Ltd. (Taiwan), and C3.ai, Inc.

Report Summary:

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