The worldwide market size for Industrial IoT (IIoT) market is estimated to be USD 114.2 billion in 2017 and is estimated to grow at a CAGR of 24.3% during the forecast period. IIoT has experienced a significant adoption across the globe owing to enhanced affordability as well as availability of sensors, processors and other related technologies thus, enabling access to real-time information. The constant requirement to improve operational efficiency along with a robust alliance among chief industry players is further anticipated to bolster the market growth. Also, with the society’s evolution towards acceptance of combined digital-human workforce, the market is expected to witness significant growth opportunities over the forecast period.
On the basis of technology & solutions, the market has been categorized into sensors, analytics, networking technology, security solutions, industrial robotics, device management, remote monitoring, data management, application management, and connectivity management. The solution providers worldwide are concentrating their efforts on the amalgamation of information systems, sensors, and devices across diverse industry verticals with an aim to modernize operations, and to create new business models. Solutions form an essential component of the overall IIoT industry, thus offering innovative insights from data based analytics from varied sources for supporting decision making and improve products and services. Furthermore, the services component is anticipated to grow with the highest CAGR during the forecast period.
By end-user industry, manufacturing industry is dominating the market for IIoT. Manufacturing industry is noticing a trend towards high adoption of wireless connectivity, software and sensors in their products for communicating across the network using IP connectivity i.e. without human interaction. Some of the major IIoT applications in the manufacturing industry includes machine automation, machine vision, production testing equipment, and factory environmental monitoring. Further applications such as data visualization, predictive maintenance, and MES are expected to widely utilize IIoT in the near future as these applications involve huge amount of data collection and analysis.
The Asia Pacific market for Industrial IoT is currently leading with the largest market share among geographies. The region comprises of several manufacturing companies particularly, China is considered as a manufacturing hub. The growing adoption of industrial IoT by these manufacturing companies are anticipated to propel the market growth. Also, Europe is anticipated to be a major contributor to the market growth. The European government is taking several initiatives to bolster the adoption of IoT in the region.
Some of the major players operating in the Industrial IoT include Corning Incorporated, ABB Ltd., Cisco Systems, Inc., General Electric Company, Siemens AG, Rockwell Automation, Inc., IBM Corporation, Microsoft Corporation, ARM Ltd., Intel Corporation, and Kuka AG among others. The industry is experiencing entry of new players as well as emerging startups. Also, huge contract manufacturers from China are indicating openness to work with these startups and making investments in them.