Industrial Internet Of Things Market Analysis And Forecast To 2032: By Component (Hardware, Software, Services, Connectivity, Solution), By End-user (Manufacturing, Energy & Power, Oil & Gas, Healthcare, Transportation & Logistics, Others), And Region

Industrial Internet Of Things Market Analysis And Forecast To 2032: By Component (Hardware, Software, Services, Connectivity, Solution), By End-user (Manufacturing, Energy & Power, Oil & Gas, Healthcare, Transportation & Logistics, Others), And Region

The global industrial internet of things market was valued at USD 263.5 Billion in 2022 and it is anticipated to grow up to USD 1,154.9 Billion by 2032, at a CAGR of 15.9% during the forecast period.

The Industrial Internet of Things (IIoT) is the network of physical devices, machines, and other assets that are connected to the internet, which enables them to collect and exchange data. The IIoT is a key component of Industry 4.0, the fourth industrial revolution. The IIoT has the potential to revolutionize manufacturing and other industrial sectors by increasing efficiency, reducing downtime, and improving safety. For example, IIoT-enabled machines can be monitored in real time to identify potential problems before they occur. Additionally, IIoT data can be used to optimize production processes and supply chains.

Global Industrial Internet Of Things Market Scope and Report Structure

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Market Trends and Drivers

The growing number of connected devices is expected to open up new chances for new enterprises with experience in advanced Artificial Intelligence (AI) algorithms to build cutting-edge solutions that can potentially alleviate the technology's challenges. Remote monitoring, Asset management, remote monitoring, predictive maintenance, remote servicing, and operational intelligence are some of the application areas where IIoT is gaining pace. Technology is assisting companies in using sophisticated analytics and approaches like AI and Machine Learning (ML) to provide predictive and prescriptive analytical solutions, paving the way for the industry to take advantage of new opportunities. The adoption of remote working practices in the aftermath of the COVID-19 pandemic has sparked a desire for operational openness. At this point, smart connected solutions are expected to play a critical role in acquiring organizational operational visibility. Businesses are looking forward to establishing resilience to ensure growth in the post-COVID age, as well as adjusting to remote working and automating their processes accordingly. As a result, they're concentrating on IIoT adoption to entice customers, improve customer experience, and raise brand awareness. All of these activities promise well for the industrial IoT market growth.

Market Restraints and Challenges

The key restraints and challenges in Industrial Internet Of Things market are:

Lack of standardization: The IIoT ecosystem is still in its early stages of development and there is no standardization in terms of technology, protocols, and data formats. This makes it difficult for different IIoT devices and systems to interoperate with each other. Security concerns: IIoT devices and systems are often connected to critical industrial infrastructure and have access to sensitive data. This makes them vulnerable to cyber-attacks which could lead to disruptions in operations. High Cost: The deployment of IIoT solutions can be costly, especially for small and medium-sized enterprises. Complexity: The IIoT ecosystem is complex, with a large number of stakeholders involved in different aspects of the ecosystem. This can make it difficult to manage and coordinate IIoT projects.

Global Industrial Internet Of Things Market Segmental Overview

The report analyses the global Industrial Internet Of Things market based on component, end-user, and region

Global Industrial Internet Of Things Market by Component

Based on Component, the market is segmented as hardware, software, services, solution, and connectivity. The solution segment accounted for majority market share in 2022 and is anticipated to register a significant CAGR from 2022-2032. In 2022, the solution segment accounted for more than half of the total revenue share. Over the forecast period, the category is expected to maintain its leading position. As part of their efforts to grow their market share, solution providers are putting a heavy emphasis on the launch of innovative information systems for various sectors and industrial verticals. They're also concentrating on integrating sensors and other systems into critical equipment in order to track real-time data and improve operating efficiency. Manufacturing companies should be able to automate their complicated manufacturing processes while maintaining effective monitoring with the use of such solutions.

From 2022 to 2030, the services segment is predicted to grow at the fastest rate, with a CAGR of more than 24.1%. The increase is due to a significant increase in the number of connected gadgets that generate massive amounts of data. At the moment, IIoT applications rely on centralized cloud services to manage overall processes and data flow. Edge computing will also change the industry by providing real-time analytical mechanisms and solutions for decentralizing transactions and storage across the network.

Global Industrial Internet Of Things Market by End-user

Based on end-use, the market is segmented as Manufacturing, Energy & Power, Oil & Gas, Healthcare, Transportation & Logistics, and Others. The manufacturing category segment held substantial market share in 2021 and is anticipated to witness notable growth to reach highest market share and CAGR by 2031. Manufacturing companies are rapidly adopting digital manufacturing technologies, and the Internet of Things (IoT) plays a critical role in these cutting-edge technologies. The market is expected to develop significantly in the near future, owing to the strategic partnerships and alliances that stakeholders are forming, as well as the growing demand for a linked supply chain to provide flexibility, operational efficacy, and regulatory compliance.

From 2022 to 2032, the logistics and transportation segment is expected to grow at a CAGR of more than 26.5%. The considerable emphasis that logistics and transportation businesses are placing on improving asset management and, as a result, on the implementation of smart transportation, can be linked to the rise. Traditionally, the logistics industry has relied on RFID tags, which are being phased out in favor of internet-connected trackers that can support a wide range of functions. Modern options, such as Bluetooth tags and beacons, are also becoming more widely adopted. These types of solutions allow data to be tracked in smaller, more constrained regions, but they can also help to improve operational management.

Geographical Analysis of Global Industrial Internet Of Things Market

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. In 2021, North America held more than 55.0% of the market. Several well-established market players may be found in North America. The region was also an early adopter of IIoT and has evolved into an innovation hotspot. Canada has also seen tremendous development, owing to government attempts to stimulate the adoption of IIoT solutions in the country. During the forecast period, Asia Pacific is expected to be the fastest-growing regional market, with a CAGR of more than 26%. Advanced factory automation systems are becoming increasingly popular in the region, particularly in China, Japan, and Taiwan. Manufacturing companies all around the region are gradually seeing the advantages of implementing robot arm technology. China is on track to become a precise manufacturing hub by 2027, thanks to government policies like Made in China 2025, which prioritize the development of advanced automation technology in the region.

Major Players in the Global Industrial Internet Of Things Market

The key players in the market ARM Holding, Cisco, Intel, Rockwell Automation, ABB, Texas Instruments, Dassault Systèmes, Honeywell, Huawei Technologies, and IBM , among others.

COVID-19 Impact

The effects of Covid-19 on business and society are yet unprecedented. All over the world healthcare authorities, governments, and business leaders are more focused on protecting live. During the pandemic, various supply and demand have suddenly reduced production volumes and closed operations. Additionally, major key players are also not Investment in research and the development of IoT is continuously declining as well as Manufacturers and industries have faced numerous difficulties as a result of Covid-19. As the pandemic continues to expand across North America and developing Asian nations, the demand for industrial IoT is facing significant difficulties. Although, industrial IoT has advanced technological devices that increase the productivity and quality of work. The industrial IoT market after post-pandemic gradually increases to overcome with the help of a trending 3D printing for additive manufacturing to sensors and semiconductors and hardware varying from assistive industrial robots. This supports the coordination of factory processes. Furthermore, Industry 4.0, helps startup companies and major companies to proceed on this journey to overcome the pandemic situation. Industrial leaders have needed to improve and maintain their operations.

IIoT support during this crisis to improve business, enhance liquidity, and reduce short-term costs, executed in a plug-and-play mode can be involved in confirming business continuity, reducing economic damage by confirming employee safety and security. Industrial IoT applies various tactics to increase the power of IIoT in challenging times with the help of strong connectivity and cybersecurity. This help in better visibility within the supply chain as well as industries to respond more rapidly to troubles. While during the pandemic, the government did the shutdown all over the world, the challenges related to the pandemic that result in 84% of the respondents in the survey accelerated to increase in the adoption of the internet of things.

Recent Developments

In December 2021, Silicon Labs launched Custom Part Manufacturing Service. This helps makers to customize their Silicon Labs hardware at the factory. The Silicon Labs hardware portfolio includes wireless SoCs, modules, and MCUs. This type of function can help customers have a footmark and they can be tracked throughout the entire chips journey.

In October 2020, Cognizant acquired Bright Wolf, for connection to resolve the foundation for a new Cognizant IoT innovation lab. Bright Wolf is a technology service provider specializing in custom IoT. Bright Wolf has an experience in the production-class industrial internet of things deployments with Cognizants expertise in the foundational industrial internet of things technologies has increased the companys, operational efficiency, competitive advantage, and clients resiliency.

In Sep 2020, Nvidia acquired Arm to build an extraordinary company that contributes to every technology market on the globe. Nvidia did the acquisition of UK-based chip designer arms in September for $ 40 billion in a Grouping of stock and cash deal. Nvidia AI computing capacity with the huge ecosystem of arm CPU can provide advanced computing from the cloud, increasing AI computing to every corner worldwide, including smartphones, robotics, and self-driving cars.

In June 2019, pi Ventures invested USD 1 million in SwitchOn, an AI-powered IIoT platform built by India's The Abee Research Labs Pvt. Ltd.

In November 2018, General Electric Company (GE) released Predix Edge, a new service targeted at optimizing edge-to-cloud computing and assisting organizations in moving from trial to production in a timely and secure manner.

Frequently Asked Questions

Q1. How big is the Industrial Internet Of Things Market?

Ans. The global industrial internet of things market was valued at USD 263.5 Billion in 2022 and it is anticipated to grow up to USD 1,154.9 Billion by 2032, at a CAGR of 15.9% during the forecast period.

Q2. What is the Industrial Internet Of Things Market growth rate?

Ans. The growth rate of the Industrial Internet Of Things Market is 15.9%

Q3. Which region holds a major market share for the market?

Ans. North America holds a major market share of the Industrial Internet Of Things Market in 2021.

Q4. Which segment accounted for the largest Industrial Internet Of Things Market share?

Ans. By end-use, the Manufacturing segment accounted for the largest Industrial Internet Of Things Market share.

Q5. Who are the key players in the Industrial Internet Of Things Market?

Ans. The global Industrial Internet Of Things Market report includes players such as ARM Holding, Cisco, Intel, Rockwell Automation, ABB, Texas Instruments, Dassault Systèmes, Honeywell, Huawei Technologies, and IBM. among others.

Q6. What are the factors driving the Industrial Internet Of Things Market growth?

Ans. The major factors driving the growth of the market are growing requirement to improve operational competence and excellent collaboration among major market participants to achieve the same.

Q7. What are the key growth strategies of Industrial Internet Of Things Market players?

Ans. The key growth strategies of Industrial Internet Of Things Market players are product launch and product approval.

Q8. Which region will provide more business opportunities for the Industrial Internet Of Things Market during the forecast period?

Ans. The Asia-Pacific region will provide more business opportunities for the Industrial Internet Of Things Market during the forecast period.