IoT in Manufacturing Market (2022-2029)

The rising demand for industrial automation in manufacturing and growing investments in Industry 4.0 are the major factors driving the growth of this market. However, data security and privacy issues in IoT can restrain market growth to a certain extent. Emerging 5G technology to help IoT adoption is expected to offer significant opportunities for the growth of this market.

The COVID-19 pandemic emerged in Wuhan, China, in December 2019. By March 2020, the virus had spread to most countries, with the WHO declaring COVID-19 a global pandemic. Governments worldwide imposed nationwide lockdowns to control the spread of the infection. The lockdown restrictions impacted manufacturing operations, with production facilities either completely shutting down or running at reduced capacities to ensure social distancing and employee safety.

COVID-19 widely influenced the manufacturing industry to reduce its dependency on manual labor and adapt to advanced technologies such as AI, machine learning, and IoT. The adoption of IoT in manufacturing helped organizations to improve their productivity and optimize the workforce required for the same role. It also facilitated remote factory monitoring at greater efficiency, irrespective of time and place constraints. However, COVID-19 has illustrated the importance of IoT, forcing organizations to increase their investments in deploying IoT technology in the manufacturing sector. IoT investment increased across most organizations, with businesses planning to invest the greatest proportion of their IT budgets on IoT projects over the next three years. The manufacturing sector is increasing its adoption of IoT technology. Despite the adverse impact on the manufacturing sector, it is expected to result in the accelerated growth of IoT adoption in the long run.

The industrial sector is concentrating on automation, machine learning, and real-time data processing to automate the manufacturing industries. Considering the significance of automated industrialization, organizations are planning and implementing Industry 4.0 to transform their traditional manufacturing industry into a smart one by adopting new and advanced technologies, including IoT, artificial intelligence, robotics, cloud technology, and analytics. The deployment of advanced technologies for better connectivity and higher output, and utilization of resources help organizations achieve higher efficiency in the manufacturing sector. This is transforming nations, production systems, and how goods & services are delivered to markets. This wave of transformation has important implications for industrial development, skills requirement, global value chains, and countries' efforts to effectively attract investment in Industry 4.0. Governments worldwide are encouraging the adoption of disruptive technologies across different sectors to promote industrial automation. For instance, in 2022, Indian manufacturers adopted the Industry 4.0 plans to increase the manufacturing sector's contribution to 25% of GDP by 2025 from the current level of 16%. Additionally, there is an increase in the importance of data gathered from machines and various processes in Industry 4.0 that will be analyzed to improve the manufacturing output of factories.