The global industrial IoT market was valued at USD 313. 27 billion in 2019, and it is expected to reach a value of USD 607. 73 billion by 2025, registering a CAGR of 12. 3% over the forecast period 2020 - 2025.
New York, Aug. 27, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Industrial Internet of Things (IIoT) Market - Growth, Trends, Forecasts (2020 - 2025)" - https://www.reportlinker.com/p05954256/?utm_source=GNW
The Industrial Internet of Things (IIoT) systems are primarily incorporated to enhance the operational efficiency of industrial and manufacturing processes, wherein machines are connected. Technologies, such as big data and machine learning, are being used increasingly to harness the data generated from connected devices, to improve machine-to-machine (M2M) communication and streamline workflow. Also, declining manufacturing and sensor costs involved in the production of IoTs is further driving the demand.
- Significant advantages, such as large-scale profit margins through improvements in power efficiency, are attracting companies to invest in the market aggressively. According to a study by Microsoft in 2019, IoT is increasingly becoming indispensable to the manufacturing industry. 87% of IoT decision-makers in the industry have adopted IoT, and the vast majority say IoT is critical to the success of their company and that they are satisfied with the technology.
- Furthermore, the utilization and demand for edge computing in Industrial IoT are rapidly increasing due to its next-generation capabilities. For instance, in February 2020, Premio Inc announced its newest RCO-6100 industrial fanless computer and WIO-W221C IP65 rugged panel pc for next-gen industrial IoT.
- Market incumbents, such as Google, Amazon Web Services, and Microsoft, among others, will have to establish more collaborative partnerships with edge-computing companies, to provide one-stop solutions to industrial users. Further, the growing number of industrial robot installations, globally, is expected to create considerable demand for low latency and low jitter communications, greatly improving the need for IIoT solutions. In addition, in June 2020, Amazon Web Services, Inc. (AWS) announced AWS Snowcone, a new small, ultra-portable, rugged, and secure edge computing and data transfer device which weighs at under five pounds and capable of fitting in a standard mailbox. This enables customers to collect data, process it locally, and move it to AWS either offline or online.
- COVID-19 pandemic has affected almost all the countries and industries across the world, with industries such as manufacturing, oil & gas, and transportation industries facing the blunt of the effects. For instance, due to the pandemic and lockdowns, Oil & gas industry observed a slump in demand; for instance, Oil prices decreased by 50% since January 2020, with US markets observing record low. The International Energy Agency reported that oil demand decreased by 29 million barrels per day during the month of April 2020, and expected to decrease by 23.1 million barrels per day by Q2 2020. Such developments are expected to influence future and current ongoing IIoT projects as they may be deemed non-essential and either postponed or cancelled for the foreseeable future.
Key Market Trends
Manufacturing to Hold Major Market Share
- Amongst the industries, a prominent share of investment and market share is held by the manufacturing industry, with both discrete and process manufacturing intensely investing in IoT adoption. In addition to this, management in the industry are keen on adoption of IoT; according to a study by Microsoft in 2019, 87% of the manufacturing industry’s decision-makers were in favor of adoption with industrial automation, quality & compliance, production planning & scheduling, supply chain and logistics, and plant safety & security being the primary use cases.
- With the advent of Industry 4.0, IIoT is gaining traction in both discrete manufacturing and process manufacturing as IIoT are offering means of optimizing operations, reduce downtime, increase efficiency, and help make data-driven decisions is increasing the profit margin and reduce cost with short ROIs on the IoT adoption.
- The adoption rates from the industry are expected to be on the higher side compared to any other industries due to the increased propensity of decision-makers adopting IoT solutions. According to a study by GE, 58% of manufacturers mentioned IoT is required to digitally transform industrial operations.
- In addition to this, a study by Capgemini found that industrial manufacturing held second-highest average implementation percentage of high potential use cases by industries after telecom, which stood at 33% with the focus being production asset maintenance, manufacturing intelligence, and product quality optimization.
- In addition to this, the adoption of industrial robots in manufacturing industries is expected to further increase over the coming years. For instance, according to IFR, the global demand for advanced robots in manufacturing is expected to reach USD 3.7 billion by 2020; owing to such developments various other aspects of the manufacturing industry such as in-house logistics, inventory and warehouse management, etc., are also expected to be automated over the coming years.
Asia Pacific To Hold Maximum Market Share
- As per IT Industry body NASSCOM, About 6,000 Internet of Things (IoT) patents were filed in India over the duration 2009-2019, of which over 5,000 were filed in the last five years. Manufacturers of electronics and electrical equipment, semiconductor devices, and computer and telecom equipment, together accounted for over 60% of the IoT patents filed in India by business entities over 2009-2019.
- NASSCOM also stated that the IoT market in India is expected to grow up to USD 15 billion by 2020 and manufacturing and automotive industries will drive the highest adoption numbers in the next few years. As per the Internet and Mobile Association of India, IoT can present an opportunity of up to USD 12 billion, and Industrial IoT is expected to represent a larger share of the market than consumer IoT.
- Due to the straining US-China relationship, China is turning to Japanese IoT expertise to reduce dependency on the US. Thus, China has invited IVC member representatives to a series of Chinese symposiums addressing the IoT topic. China has also asked the IVC to help out with forming an international organization that focuses on researching and implementing better IIoT technology in the workplace.
- Furthermore, government plays a major role in implementing the use cases of IIot in the region. Government initiatives like Digital India and Make in India are adding impetus to the Indian manufacturing industry. Make in India campaign is immensely benefited by IoT for providing innovative ways to the sustainable development of manufacturing organizations.
- The Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Udyog Bharat 4.0 initiative aims at enhancing awareness about manufacturing 4.0 within the Indian manufacturing industry and help stakeholders address the challenges related to smart manufacturing.
The industrial internet of things market is fragmented as the majority of manufacturing companies across the world are using IoT after the current evolution of industry 4.0. This makes the market highly competitive and allows companies to provide services in IoT. Some of the key developments in the market are:
- In July 2020, GE Digital is providing the Corporación Dominicana de Empresas Eléctricas Estatales (CDEEE) with a combined software and services package at the Central Termoeléctrica Punta Catalina (CTPC) power plant. The agreement includes that GE will provide maintenance and repair services for the plant’s existing steam turbine generators, combined with GE software that will help CDEEE operate the plant reliably and achieve optimal performance.
- In July 2020, Cypress announced the production availability of its PSoC 64 Standard Secure Amazon Web Services microcontroller (MCU). This new MCU includes pre-validated security firmware that helps designers considerably reduce design risks and R&D costs and accelerate time-to-market.
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