The Industrial IoT Market is projected to reach $331.83 billion by 2030, at a CAGR of 17.8% during the forecast period 2023–2030. Major factors driving this market's growth 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 the high capital and OpEx requirements restrain the growth of the IIoT market.
The increasing 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 are 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.
Rising Investments in Industry 4.0 Technologies Expected to Drive Global Industrial Internet of Things Market Growth
Industry 4.0 technologies offer enhanced productivity, efficiency, knowledge sharing & collaborative working, flexibility, and agility, reducing production costs. These benefits have encouraged both public and private sector players to invest heavily in transforming their manufacturing facilities. Industry 4.0 has increased the adoption of digital technologies, such as automation, data analytics, and IIoT, transforming economies, production systems, and the delivery of goods and services. This transformation has important implications in terms of industrial development, skill requirements, and global value chains.
In March 2022, the World Economic Forum announced adding 13 new sites to its Global Lighthouse Network, a community of 103 world-leading manufacturing facilities and value chains using Fourth Industrial Revolution technologies to increase operational performance and environmental sustainability. In this global network, 66% of lighthouse companies, including Janssen (Italy), Sanofi (France), BOE Technology Group (China), Schneider Electric (India), and Unilever (India), made sustainability improvements by reducing consumption, resource waste, and carbon emissions, and increased productivity by 82%.
From 2021 to 2027, the European Commission (EU) announced plans to invest USD 10.8 billion (EUR 9.2 billion) to shape and support the digital transformation of Europe’s society and economy. In 2021, India’s manufacturing sector invested approximately USD 6.5 billion in its Industry 4.0 transformation. In September 2020, the U.S. allocated more than USD 1 billion for establishing 12 new research & development hubs for AI and quantum information science (QIS) throughout the country. Similarly, in February 2021, Singapore announced plans to provide USD 18.1 billion over the next three years to help local businesses innovate and build the capabilities needed to take them through the next transformation phase with the adoption of emerging technologies, including 5G, artificial intelligence (AI), and cybersecurity. Such investments are expected to drive the growth of the global IIoT market during the forecast period.
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Key Findings in the Industrial IoT Market Study:
In 2023, the Platforms Segment is Expected to Dominate the Global Industrial IoT Market
Based on component, the global industrial IoT market is segmented into hardware, platforms, services, and connectivity. In 2023, the hardware segment is expected to account for the largest share of the global industrial IoT market. The large market share of this segment is attributed to several factors, including the continuous efforts of organizations in the industrial sector to enhance efficiency, reduce costs, and improve Overall Equipment Effectiveness (OEE) through improved access to real-time information. Moreover, the increasing focus of key players on product development and rising investments in the digital transformation of industries are expected to drive the demand for IIoT hardware.
Some of the recent developments in the market are as follows:
- In September 2023, Intel Corporation (U.S.) launched industrial IoT processors and software packages for various industries.
- In June 2022, Moxa (Taiwan) launched the new AIG-300 Series of Industrial IoT gateways, optimized for seamless integration with the Microsoft Azure IoT Edge computing platform.
- In January 2021, Microsoft Switzerland (Switzerland) partnered with Swiss Smart Factory (Switzerland) to accelerate digital transformation in the manufacturing industry in Switzerland.
The Manufacturing Segment is Expected to Dominate the Global Industrial IoT Market in 2023
Based on industry vertical, the global industrial IoT market is segmented into agriculture, manufacturing, retail, energy & utilities, oil & gas, aerospace, transportation & logistics, telecom, and other industry verticals. In 2023, the manufacturing segment is expected to account for the largest share of the global industrial IoT market. The large market share of the 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.
Some of the recent developments in the market are as follows:
- In June 2023, 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 global industrial IoT market is segmented into five major geographies, namely, North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, Asia-Pacific is expected to account for the largest share of the global industrial IoT market. The growth of this regional market is attributed to factors such as the rising demand for automation across various sectors in the region, the increasing adoption of industrial robots, the advent of Industry 4.0, the growing adoption of cloud-based industrial solutions, and the presence of prominent market players in the region.
Some of the initiatives taken by major market players in this region are as follows:
- In June 2021, ABB Ltd. (Switzerland) partnered with dtac TriNet Co., Ltd. (Thailand) to develop robotics and machine automation solutions and accelerate Industry 4.0 in Thailand.
- In July 2020, the Standard and Industrial Research Institute of Malaysia (SIRIM) (Malaysia) launched the smart manufacturing experience center. This center aims to advance Industry 4.0 strategies.
Key Players:
The key players operating in the global 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. (U.S.)
Scope of the Report:
Industrial IoT Market Assessment, by Component
- Hardware
- Network Components
- Sensors & Actuators
- Other IIoT Hardware
- Platforms
- Services
- Professional Services
- Managed Services
- Connectivity
Industrial IoT Market Assessment, by Industry Vertical
- Agriculture
- Precision Farming
- Livestock Monitoring
- Smart Greenhouse
- Fish Farming
- Smart Irrigation
- Manufacturing
- Surveillance & Safety
- Quality Management
- Resource Optimization
- Inventory & Warehouse Management
- Machine Inspection & Maintenance
- Production Planning
- Energy Management
- Smart Robotics
- Retail
- Operations Management
- Asset Management
- Customer Experience Management
- Energy & Utility
- Predictive Maintenance
- Remote Monitoring
- Worker Safety & Security
- Distribution Management
- Asset Management
- Oil & Gas
- Predictive Maintenance
- Remote Monitoring
- Worker Safety & Security
- Distribution Management
- Asset Management
- Aerospace/Airline
- Performance Management
- Energy Management
- Predictive Maintenance
- Passenger Experience Management
- Transportation & Logistics
- Smart Ticketing & Toll
- Parking Management
- Traffic Management
- Passenger Information
- Freight Information
- Telematics
- Other Applications
- Telecom
- Asset Management
- Remote Monitoring
- Other Applications
- Other Industry Verticals
Industrial IoT Market Assessment, by Geography
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Poland
- Netherlands
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- South Korea
- Australia & New Zealand
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- UAE
- Israel
- Rest of Middle East & Africa
Key questions answered in the report: