Industrial IoT Market Size, Share & Industry Report

Updated on : Oct 22, 2024

The global industrial IoT market size is valued at USD 194.4 billion in 2024 and is projected to reach USD 286.3 billion by 2029, growing at a CAGR of 8.1% during the forecast period from 2024 to 2029.

Rise in demand for IoT-enabled digital transformation in businesses across verticals, and predictive maintenance of machinery create lucrative opportunities whereas lack of standardization in IoT protocols is a major restraint for the growth of the industrial iot industry market.

Industrial IoT Market Forecast to 2029

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Industrial IoT Market Trends:

Driver: Rise in demand for automation in industries

Over the past few years, industrial automation has witnessed significant growth in the manufacturing sector. Owing to high market competition and end user demand, manufacturers are more concerned with producing higher volume and better-quality products.

These efforts have led to an increased focus on core areas, such as the production process, asset monitoring, and maintenance and support of assets in the factory. The use of automation will enable manufacturers to reduce human labor costs and expenses, increase productivity, enhance the consistency of processes or products, and deliver quality products.

Industrial automation processes use control systems, such as computers or robots, to monitor and handle processes and machines. Industrial IoT platforms play an important role in enhancing the process of industrial automation. Industrial IoT platforms help generate cooperative communication and interaction from manufacturing control systems like actuators, robotics, and analyzers. These platforms help to improve flexibility and deliver enhanced manufacturing.

Restraint: Lack of standardization in IoT protocols

To increase economies of scale, more technical standardization is required for reducing the industrial IoT platform market’s entry barriers. Hence, there is a need for a global governing body. The standards are to be carefully designed to enable innovations in the industrial IoT market.

Often, service providers help drive large parts of the market toward an acceptable IoT communications protocol. While some preliminary protocols are visible to the market, formally available protocols remain to be seen. The International Telecommunication Union (ITU) has created an Internet of Things Global Standard Initiative (IoT-GSI) for developing a standard for IoT on a global scale.

The European Commission has created many European standard bodies for IoT-specific standards, such as European Telecommunications Standards Institute (ETSI), European Committee for Standardization (CEN), and European Committee for Electro-Technical Standardization (CENELEC). These bodies develop policies referring to European standard regulations and directives.

Opportunity: Predictive maintenance of machinery

The need for predictive maintenance of assets is one of the key opportunities for the growth of the industrial IoT market globally. Predictive maintenance helps lower operating and capital costs by facilitating proactive servicing and repair of assets while allowing highly efficient use of repair resources, both human labor and replacement parts. It enables companies to accurately diagnose and prevent failures in real time, which is vital for critical infrastructure.

The failure of high-tech machinery and equipment can prove to be highly expensive, in terms of repair costs, in addition to the production losses resulting from the downtime. Typically, technicians are sent to conduct routine diagnostic inspections and preventive maintenance of machinery depending on fixed schedules.

However, several companies are now opting for industrial IoT-enabled predictive maintenance measures. For instance, Volvo Group Trucks invested in a new predictive analytics platform using IBM SPSS for vehicle information due to the growing business need for predictive maintenance to fulfill uptime commitments.

It transformed its use of vehicle data from reactive to predictive analysis. By monitoring the truck usage and the current status of the various key components of vehicles, the company is able to tailor maintenance to individual truck-level PdM and predict component failure while the truck is on the road or in the shop.

Challenges: Maintenance and updates of IIoT systems

Industrial IoT systems require regular maintenance and updates to keep up with changing business requirements. As new components are added to these systems, their software also require upgrading. These upgraded systems need to be integrated with the existing equipment, as well as with the additional systems.

The addition of new components to industrial IoT systems results in increased maintenance activities. Companies find it challenging to maintain and upgrade industrial IoT systems even while ensuring uninterrupted services.

Industrial IoT Market Map:

Industrial IoT Market Segmentation

The hardware segment accounts for the largest market share of the IIoT market during forecast period.

The hardware segment currently holds the largest market share and is expected to maintain its position during the forecast period. Industrial automation and sensor technology have been established for decades, resulting in a wide range of existing hardware solutions readily available for IIoT deployments. 

Diverse industrial applications require a variety of specialized hardware components such as sensors, processors, and connectivity ICs, contributing to a larger market size compared to software and platforms that cater to a broader range of functionalities.

Healthcare sector accounts for the largest market share of the IIoT market in North America during the forecast period.

The healthcare sector has the largest market share in the North American IIoT market. There are compelling reasons for significant industrial IoT adoption and growth in the healthcare sector in North America.

An aging population is driving the demand for remote patient monitoring, telehealth solutions, and connected medical devices. Industrial IoT improves healthcare delivery by optimizing workflows, tracking equipment, and facilitating data-driven decision-making. Advancements in wearables, remote monitoring devices, and data analytics are creating new opportunities for industrial IoT in healthcare.

IIoT Industry Regional Analysis

Asia Pacific holds the largest market share in IIoT market during the forecast period

Asia Pacific is a global manufacturing hub; it is also emerging as an important hub for the metals & mining vertical. Infrastructural and industrial developments in emerging economies such as China, India, and Singapore are contributing to the development of the market in Asia Pacific.

The region is expected to be the leading market for industrial IoT solutions during the forecast period. The market in North America is flourishing owing to various initiatives undertaken by governments of different countries and leading companies to encourage the development and adoption of industrial IoT.

Industrial IoT Market by Region

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Top Industrial IoT Companies - Key Market Players

• Huawei Technologies Co., Ltd. (China),
• Cisco Systems, Inc. (US),
• ABB (Switzerland),
• Siemens (Germany),
• Intel Corporation (US),
• General Electric (US),
• Emerson Electric Co. (US),
• SAP SE (Germany),
• Honeywell International Inc. (US),
• Rockwell Automation (US), among others, are some key players operating in the Industrial IoT companies.

Industrial IoT Market Report Scope

Industrial IoT Market Highlights

This research report categorizes the IIoT market based on Offering, Connectivity Technology, Deployment, Vertical, and Region

Recent Developments in Industrial IoT Industry

• In April 2023, Rockwell Automation (US) recently introduced a new human-machine interface (HMI) platform called FactoryTalk Optix. This cloud-enabled platform allows users in the Asia Pacific region to design, test, and deploy their applications directly from a web browser. FactoryTalk Optix is one of the five core solutions in FactoryTalk Design Hub, which aims to help industrial organizations simplify and enhance their automation design capabilities, making their work processes more productive.
• In July 2023, ABB (Switzerland) has partnered with Microsoft Corporation (US) to integrate Azure OpenAI Service into their ABB Ability Genix Industrial Analytics and AI suite. The collaboration aims to help industrial customers uncover insights hidden in operational data by implementing generative AI technology. ABB will integrate generative AI, such as large language models (LLMs) like GPT-4, through Azure OpenAI Service into the Genix platform and applications. This will enable functionality like code, image, and text generation. The new application, Genix Copilot, will be launched soon. It will offer intuitive functionality and streamline the flow of contextualized data across processes and operations, enhancing the user experience.
• In July 2022, Emerson Electric Co. (US) and Nozomi Networks (US), one of the leaders in cybersecurity for operational technology (OT) and Internet of Things (IoT), partnered to meet the increasing demand for OT cybersecurity solutions across their respective industries. As part of the agreement, Emerson will offer Nozomi Networks' advanced solutions to enhance industrial control system cyber resiliency and provide real-time operational visibility to customers worldwide. By combining Nozomi Networks' expertise in OT and IoT security with Emerson's DeltaV distributed control system (DCS), consulting, and professional services, the companies aim to provide comprehensive solutions to strengthen cybersecurity and reduce the risk of downtime caused by cyberattacks or process anomalies.

Critical questions answered by this report:

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