Industrial Internet Of Things (IIoT) Market Trends

Amongst the industries, the manufacturing industry holds a significant share of investment and market share, with both discrete and process manufacturing intensely investing in IoT adoption. Furthermore, there is a strong emphasis on integrating IoT within the industry, especially with the emergence of Industry 4.0. IoT is making significant strides in discrete and process manufacturing by providing avenues for operational optimization, downtime reduction, enhanced efficiency, facilitating data-driven decision-making, and ultimately contributing to increasing profit margins while minimizing costs, thus ensuring a swift return on investment (ROI) in IoT adoption. 

For instance, according to the survey of Ubisense, a precise location, movement, and interaction of things tracker, the survey provides a clear snapshot of the 2023 manufacturing landscape, indicating that 62% of manufacturers have incorporated IoT technologies into their manufacturing or assembly processes. This significant increase in adoption highlights are growing acknowledgement of IoT's substantial potential to streamline operations and boost productivity.

In the upcoming years, utilities, discrete manufacturing, process manufacturing, and life sciences sectors will spend the most on IoT solutions. Most use cases are anticipated to continue enhancing asset tracking, asset life, and the ability to enforce physical distance through condition-based equipment tracking and maintenance.

The adoption rates from the industry are expected to be higher than any other industry due to the increased propensity of decision-makers to adopt IoT solutions. According to a study by General Electric, 58% of manufacturers mentioned IoT is required to transform industrial operations digitally.

In addition, a study by Capgemini found that industrial manufacturing held the second-highest average implementation percentage of high potential use cases by industries after telecom, which stood at 33%, focusing on production asset maintenance, manufacturing intelligence, and product quality optimization.

In addition, the adoption of industrial robots in manufacturing industries is expected to increase further over the coming years. For instance, according to IFR, the global demand for advanced robots in manufacturing is expected to grow; 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.

According to a study by Microsoft, 87% of the manufacturing industry's decision-makers favored adoption, with industrial automation, quality & compliance, production planning & scheduling, supply chain and logistics, and plant safety & security being the primary use cases.