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 Industrial Internet of Things (IIoT) systems are majorly incorporated by industries to improve their operational efficiency in manufacturing and industrial processes. The rapid adoption of advanced technologies, such as big data, cloud computing and machine learning is majorly driving the demand of global industrial IoT market. These advanced technologies emphasize machine-to-machine (M2M) communication and help in streamlining the workflow. As, these technologies heavily depend on IoT to function, they are rapidly increasing the demand of global IIoT market. Also, the declining sensor and manufacturing costs involved in the production of IoTs are further driving the industrial IoT market demand.
Industrial IoT deployment is gaining traction in application areas, such as remote servicing, asset management, operational intelligence, remote monitoring and predictive maintenance. In addition, industrial IoT is enabling organizations to increase the profit margins by improved power efficiency. Therefore, several industries such as manufacturing, healthcare, retail, and many more are aggressively investing in the global industrial IoT industry. According to IoT Signal, a new annual report published by Microsoft in June 2019, states that IoT adoption is on the rise to open profit doors for business transformation in several industries. The study incorporated in the report showed that 85% of the decision-makers surveyed by Microsoft are in IoT adoption and 88% of decision-makers see IoT as critical to business success.
Further, with the advent of Industry 4.0, industrial IoT is gaining traction in both process manufacturing and discrete manufacturing. The industrial IoT is offering several means to optimize operations, increase efficiency, help to make data-driven decisions and to reduce the downtime. This is thereby, increasing the profit margin and reducing the cost by providing short ROIs on the IoT adoption. In addition, growing support from countries around the world in the adoption of Industry 4.0 is also majorly impacting the demand of the global IIoT market. For instance, in India, NASSCOM Centre of Excellence IoT & AI, successfully organized a Manufacturing Innovation Challenge 2020 (MIC2020) to build an ecosystem for manufacturing organizations to work with innovative start-ups and technology enterprises. This initiative is enabling in increasing the adoption of Industry 4.0 solutions by manufacturing enterprises. Therefore, the rising adoption of industry 4.0 to improve the automation of traditional manufacturing and industrial processes using Industrial IoT technologies is prominently driving the demand of global IIoT market.
Impact of COVID-19 in the Global Industrial IoT Market
The outbreak of the Covid-19 pandemic has impacted the economies on a global level. Many industries such as manufacturing, retail, oil & gas and many more have faced a major hit due to the lockdown in major economies. Therefore, enterprises are now reassessing their business models to improve their efficiency in the post covid period. Many industries are on the verge to improve business continuity and ensuring the safety of its employees. Moreover, the leading organizations have adopted a remote working culture. This is thereby, positively impacting the demand of global industrial IoT across the globe. In addition, due to the COVID-19 pandemic, there has been an effective increase in the demand of industrial IoT in healthcare segment. The healthcare industry has shown a rapid adoption of industrial IoT due to the increasing need to manage patient data and provide remote monitoring to the patients.
The Global Industrial IoT Market Segmentation:
Based on components, the solution segment held the dominant share in the global industrial IoT market and is expected to hold the same position during the forecast period.
Based on components, the industrial IoT market is divided into solutions, services and platform. Among these, the solution segment held the dominant share in the global industrial IoT market and is expected to hold consistent growth during the forecast period. This is due to the increasing need of remote monitoring, data management, analytics and security solutions by various industry verticals. Organizations have realized the importance of these solution and shifting their focus on integrating sensors and other systems into the crucial equipment to track real-time information and improve operational efficiency. The deployment of these solutions is expected to help manufacturing industries in automating their complex manufacturing processes and ensuring efficient monitoring. This is thereby, driving the demand of the industrial IoT market across the globe.
Based on the End-Use Vertical, the manufacturing segment has dominated the global industrial IOT Market and is expected to hold a large share during the forecast period.
Based on the end-use vertical, the global industrial IOT market is segmented as logistics & transportation, manufacturing, energy & power, healthcare, agriculture, retail, oil and gas and other end-use verticals. Among these, the manufacturing segment has shown the most lucrative growth in the industrial IOT industry in 2020, and is expected to exhibit similar trends during the forecast period. This is mainly due to the adoption of new technologies and approaches, such as cyber-physical systems, intelligent robotics and smart factories. These approaches highly rely on IoT technology to increase productivity and efficiency in the manufacturing industries. Moreover, IoT technology has enabled the manufactures to perform several functions such as track several work-in-progress tools; ensure quality creation, shipping and storage for temperature-sensitive goods. In addition, with the help IoT, manufacturing industries have increased productivity which is leading to simplified and reliable management processes. Owing to these advantages, manufacturing industries are rapidly adopting IoT technology to perform their day-to-day operations which is leading to global IIOT market growth.
Based on region, Asia-Pacific dominated the Global Industrial IOT Market in 2020 and is expected to show similar trends in forecast period.
Based on the region, the global industrial IoT market is segmented as North America, Asia Pacific, Latin America, Europe and Middle East & Africa. Among these, the Asia-Pacific region is expected to hold the largest share in the global IIOT market during the forecast period. This is because, APAC region is the largest manufacturing hub across the globe. Industrial and infrastructural developments in emerging economies such as China, India, Taiwan and many others are contributing to the growth of the industrial IoT market in this region. Moreover, several government initiatives are driving the growth of industrial IoT market in the region. For instance, IoT has majorly benefited Make in India campaign for providing effective and innovative ways to achieve sustainable development in manufacturing industries.
Additionally, the SAMARTH Udyog Bharat 4.0 initiative, IoT is helping in improving awareness regarding manufacturing 4.0 within the Indian manufacturing industry. Furthermore, increasing IoT patent filing in the region is also driving the IIOT market. According to NASSCOM, approximately 6,000 IoT patents were filed in India during 2009-2019, out of which more than 5,000 IoT patents were registered in the last five years. Among these patents, more than 80% were filed related to applications pertaining to Industry 4.0. All these factors are majorly driving the growth of IIOT market in this region.
The report also provides an in-depth analysis of the Global Industrial IoT Market dynamics such as drivers, restraints opportunities and challenges
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