Industrial IoT Market Size, Share, Trends & Forecast | 2031 (2024)

Global Industrial Internet of Things (IIoT) Market was valued at USD 102.48 Billion in 2022 and is expected to rise from USD 109.86 Billion in 2023 to reach a value of USD 191.6 Billion by 2031, at a CAGR of 7.2% during the forecast period (2024-2031).

The Industrial Internet of Things (IIoT) includes all the interconnected devices, sensors, machines, and systems operating within the organization. Unlike the consumer-oriented internet of things (IoT), which enhances the daily life activities of an individual, IIoT has industrial applications, aiming to improve operational efficiency, productivity, and safety within the industry. All these devices have the capability to collect, exchange, and analyse data. Hence it helps in seamless communication between various components within the industry, facilitating real-time monitoring, predictive maintenance, and it also helps in data-driven decision-making. By using IIoT for connectivity and data analytics, organizations can optimize processes, reduce downtime, and increase their revenue.

Industries across the globe are adopting IoT to improve their efficiency. Also, the COVID-19 pandemic has accelerated the adoption of IIoT solutions as industries worldwide are prioritizing remote monitoring and operational resilience. The Industrial IoT market is also experiencing exponential growth due to the increasing adoption of automation, digitalization, and Industry 4.0 initiatives across various sectors such as manufacturing, energy, transportation, and healthcare. This has increased the use of IoT devices in various industries. With the use of smart sensors, cloud computing, and edge computing technologies organizations can capture and analyse vast amounts of data generated by industrial assets, enabling proactive maintenance and predictive insights. However, there are some challenges associated with this, including cybersecurity risks, interoperability issues, and concerns over data privacy. But still the Global IIoT market is growing due to the continuous investment in technology advancement, regulatory compliances and infrastructure.

US Industrial IoT Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Industrial Internet Of Things (IIOT) Market is segmented by Component, By Technology, By Connectivity Technology, By Software, By Vertical and Region. Based on Component, the market can be segmented into Hardware, Solution, Service, Platform. Based on Technology, the market can be segmented into Sensor, Radio Frequency Identification (RFID), Industrial Robotics, Distributed Control System and Other. Based on Connectivity Technology, the market is segmented into Wired Technology and Wireless Technology. Based on Software, the market is segmented into Visualization Software, SCADA, Distribution Management System, Farm Management Systems and Other. Based on Vertical, the market is segmented in to Manufacturing, Energy, Oil & Gas, HealthCare, Retail, Transportation, Metal & Mining, Agriculture. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Industrial Internet of Things (IIoT) Market Analysis by Component

In the Industrial IoT market the hardware category is expected to hold the largest market share in 2023. The industrial sector's continuous efforts to increase their productivity, save costs, and increase their Overall Equipment Effectiveness (OEE) through better access to information from real-time solutions are some of the factors contributing to the growth of this market. However, during the projected period, the platform segment is expected to increase at the largest CAGR. The expansion of this market is being driven by the increasing adoption of industrial IoT platforms by different industry verticals to increase operational efficiency and the rising demand for better monitoring technologies.

Industrial Internet of Things (IIoT) Market Analysis by Industry Vertical

Manufacturing is expected to hold the largest market share of the Industrial IoT market in 2023 and increase at the highest CAGR throughout the projected timeframe. The development of Industry 4.0, the rise of smart factories, the increased use of autonomous robots for industrial automation, and the growing demand for centralized asset monitoring and predictive maintenance are all factors contributing to the growth of this market. Digital manufacturing innovations are being quickly adopted by the manufacturing industry, and the Internet of Things (IIoT) is essential to these cutting-edge innovations. Due to the strategic collaborations and alliances that stakeholders are building, as well as the rising demand for Industrial IoT to provide flexibility, operational efficacy, and regulatory compliance, the market is predicted to experience considerable growth over the next few years.

North America dominated the global IIoT market in 2023 with a revenue share of over 33%. North America is home to several seasoned market players. The area also embraced the IIoT early and has developed into a hub for innovation. As a consequence of federal initiatives to encourage the adoption of IIoT solutions throughout the nation, Canada has also experienced great growth.

Asia Pacific is expected to have the highest CAGR among all regional markets during the period of forecasting. The expansion of big data analytics and cloud-based services in the area is likely to be fuelled by the booming population, increased R&D spending, and increasing attention from domestic and international IT firms. The popularity of advanced factory automation systems is rising in the region, especially in China, Japan, and Taiwan. Manufacturing businesses all around the area are starting to recognize the benefits of using robot arm innovation.

Driver

Implementation of IPV6:

• With the advent of Internet Protocol version 6 (IPv6), the industrial internet of things (IIoT) business has grown because of the exponential global growth of internet-connected devices. The IP version 4 (IPv4) protocol was unable to handle the exponential increase in the number of linked items. IPv6 provides 128-bit addresses, compared to the 32-bit addresses of IPv4. This allows for the unique identification of a significantly larger number of IoT devices. Furthermore, it is predicted that the implementation of IPv6 would result in a sharp rise in global demand for the industrial internet of things technology. This protocol allows for an open architecture and is the most efficient for the internet of things (IoT).

Adoption of Smart Initiatives:

• The number of Smart city projects going worldwide is a prominent growth driver for the industrial IoT market. The smart city projects include various smart transformations within the city like providing Intelligent transport system, smart parking, smart waste management, smart water management, etc. These smart initiatives would require a lot of IoT devices hence driving the growth of IIoT market. According to government of India the smart city projects have increased the number of connect IoT devices in India from 200 million to 2.7 billion by 2020. Similar increase in the number of connect IoT devices would be seen worldwide due to the smart city projects going across the globe.

Restraint

Cost Issues:

• High cost of utilizing these IIoT devices would be a restrain. For example, M2M Communication is an important use case of IIoT devices in industries. For M2M communication industrial machinery must have built-in components. These components are necessary for collecting important information from device and transmit it to a central computer for archival and analysis. Older machineries might not have these component, therefore making it necessary to install these components in the older machines, which would increase the cost.

Data and Privacy Breach Issues:

• Data theft and security breaches are a major restraint for the IIoT market. These IoT devices, are constantly linked to the internet and they collect, store, and continuously transmit organizational data. This data is very crucial for an organization as it is used by them to formulate their internal strategy and for better decision making. Therefore, security threat becomes a major challenge. The data breach also cause huge monetary loss to the organizations. It was observed that an average data breach costs $4.45 million in 2023. Consequently, making data theft a major challenge for the IIoT market.

The Industrial Internet of Things (IIoT) industry's leading players tries to develop in this area so they can offer a similar or higher level of competence in the service sector and increase their market share. To expand their product portfolios and market reach, players in the Industrial Internet of Things (IIoT) market are concentrating on inorganic growth tactics including strategic alliances and merger & acquisition activities with tech partners. For instance, Ivanti purchased an IIoT platform from WIIO Group in August 2021. Supply chain companies will benefit from this acquisition as they develop no-code or low-code apps. With a unique IIoT platform that boosts operational effectiveness and provides application enablement, Ivanti is concentrating on adding value. The corporation is also concentrating on enhancing parcel transportation tracking, which will aid in certifying operational decision-making effectiveness.

Industrial Internet of Things (IIoT) Market Top Player’s Company Profiles

• General Electric Company
• Intel Corporation
• Cisco Systems, Inc.
• IBM Corporation
• Siemens AG
• Microsoft Corporation
• Honeywell International Inc.
• Schneider Electric SE
• ABB Ltd.
• Rockwell Automation, Inc.
• Bosch Rexroth AG
• Mitsubishi Electric Corporation
• Accenture PLC
• Huawei Technologies Co. Ltd.
• AT&T Inc.
• SAP SE
• Amazon Web Services, Inc.
• Oracle Corporation
• Fujitsu Ltd.
• Hitachi, Ltd.

Industrial Internet of Things (IIoT) Market Recent Development

• In July 2023, Honeywell and prominent company in the field of providing IIoT solutions, acquired SCADfence, a specialized company in providing cybersecurity solutions to monitor extensive operational technology or IoT networks. This strategic move of Honeywell emphasis on its digitalization, sustainability and OT cyber security SaaS solutions.
• In February 2023, Cisco launched a new cloud service within its IoT Operational dashboard. The objective of this launch was to enhance visibility into industrial assets, by offering secured management capabilities form any location. It also has the facility to seamlessly transit Industrial Internet of Things (IoT) customers towards cloud automation, specifically catering to Operational Technology (OT) teams.

• Manufacturing is one of the sectors with a significant market share and investment, with both discrete and process manufacturing investing heavily in IoT adoption. The decision-makers in the manufacturing sector supported adoption, with the main use cases being industrial automation, quality & compliance, production planning & scheduling, supply chain and logistics, and plant safety & security. With the introduction of Industry 4.0, IIoT is becoming more popular in discrete manufacturing as well as process manufacturing because it provides ways to optimize operations, decrease downtime, increase efficiency, and assist in making data-driven decisions, which increases profit margins and lowers costs with quick returns on IoT adoption. Due to the growing tendency of decision-makers to use IoT solutions, the industry adoption rates are expected to be on the higher side when compared to any other industries.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analysis, the hardware category of the Industrial IoT market is predicted to have the most market share in 2021. In 2021, the Industrial IoT market is likely to be dominated by the manufacturing sector, which is also expected to grow at the highest CAGR. In 2021, North America held a revenue share of over 33 percent, dominating the worldwide IIoT market. Among all geographic markets, Asia Pacific is predicted to have the highest CAGR during the forecasted period.