The rapid adoption of advanced technologies, such as big data, cloud computing, and machine learning along with the increasing trend of remote working are the prominent factors driving the growth of the global industrial IoT (IIoT) market.
The global industrial IoT (IIoT) market was estimated at USD 77.3 billion in 2020, and it is projected to reach USD 107.2 billion by 2027, growing at a CAGR of 7.30% during the forecast period 2021 - 2027.
The rapid adoption of 5G network along with advanced technologies such as Big Data, Artificial Intelligence (AI), cloud computing, machine learning and are the major driving factor of the growth of global industrial IoT market. With the rollout of the 5G network in industrial IoT, integration of these advanced technologies has helped many industries to improve their visualization abilities and generate usable and manageable data. These technologies, thereby have transformed the industrial landscape by assisting users in analysing, visualizing and monitoring the unprocessed data. However, this helps industries in increasing productivity and decision-making processes. Therefore, rising adoption of these advanced technologies is a primary factor driving the growth of the market.
Further, the increasing demand for industrial robots, across the globe, is projected to create a high need for low jitter and low latency communications. This will immensely result in increasing the demand for Industrial IoT solutions. The increasing affordability and improved ease in the programming of robots in several industries are the prominent factors accelerating the growth of the robot market. In addition, the rising awareness of industrial accidents and employee safety is also driving the growth of the robot market. The International Labour Organization (ILO) stated that approximately 2.3 million people across the globe succumb to work-related accidents or diseases every annual year. Therefore, many companies are rapidly adopting robots to ensure employee safety and improve their productivity and efficiency. For instance, in November 2019, Tomenson Machine Works, a manufacturer of industrial machinery adopted UR3 collaborative robots to achieve automation in its pin stamping application. This helped the company in reducing 40% in misloads and increased company’s profitability by providing ROI within 6-7 months. As IoT has wide application in robotics, the rising demand of robots is expected to majorly drive the global INDUSTRIAL IOT market.
Despite strong growth factors, the global industrial IoT industry has faced certain challenges such as high initial costs of investments and rising data security threats. A large amount of data transfer by the IoT connected systems is increasing concerns in the organizations about data collection and sharing activities. This is posing a severe threat in the growth of global industrial IoT market. However, the rapid advancement in the industrial IoT technologies such as edge computing is providing growth opportunities in the global industrial IoT industry. For instance, in Feb 2020, Premio Inc, a global solution provider announced to launch WIO-W221C IP65 rugged panel pc and RCO-6100 industrial fan less computer for next-generation industrial IoT. These innovative edge computing solutions is expected to help in operating in the remote IoT deployment and in harshest factory automation environments.
Global Industrial IoT Market by Region Outlook (Revenue, USD Billion, 2021-2027)
Based on region, the Asia-Pacific region is expected to hold the largest share in the global INDUSTRIAL IOT market during the forecast period. This is due to the favorable FDI policies along with several government schemes in the region such as Made in China 2025, Make in India, Industrial Value Chain Initiative in Japan, Smart Cities Mission in India and Industry 4.0 are intensively increasing the demand of digital technologies across various industrial sector. This is thereby, driving the demand of Industrial IoT market in the region. In addition, presence of some key INDUSTRIAL IOT market players in the region such as IBM (India), GE Digital, Cisco Systems (India), Microsoft Corporation (India)., Bosch Ltd., Huawei Telecommunications India, Schneider Electric (India), Siemens Limited, SAP India and many others are driving the industrial IoT market in this region.
Global Industrial IOT Market by Component Outlook (Revenue, USD Billion, 2021-2027)
Global Industrial IOT Market by End-Use Vertical Outlook (Revenue, USD Billion, 2021-2027)