|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
130.27 Billion
|
|
CAGR
(2023-2028)
|
7.02%
|
|
Fastest
Growing Segment
|
Manufacturing
|
|
Largest
Market
|
North
America
|
Market Overview
Global Industrial Internet of Things (IoT) Market
was valued at USD 130.27 Billion in 2022 and is anticipated to project robust
growth in the forecast period with a CAGR of 7.02% through 2028. IoT is the base of digital transformation
worldwide, helping to transform many consumer, industrial, government, and
defense applications. Even though IT spending fell in 2022, it is expected to
grow in 2023. IoT will drive this IT expenditure with approximately 19% growth
in 2023, as mentioned in a report by IoT Analytics. IoT deployment helps
overcome labor shortages and could speed up digital transformation initiatives.
Integrating 5G and IoT can promote many
sustainability use cases in various industries. 83% of organizations have
improved their efficiency by introducing IoT technology. For instance, with IoT
applications in Water Industry, the utility company can recognize, monitor,
manage, and monetize water distribution effectively in regions impacted by
water scarcity. Smart Water solutions.
Key Market Drivers
Increased Connectivity
Increased connectivity is a pivotal driver
propelling the Global Industrial Internet of Things (IoT) market into a new era
of innovation and adoption. This surge in connectivity is reshaping the way
Industrials interact with their surroundings, creating a world where everyday
objects and devices are interconnected, intelligent, and responsive to our
needs. The ubiquity of high-speed internet, coupled with the widespread
availability of Wi-Fi and cellular networks, has set the stage for the
explosive growth of Industrial IoT. This connectivity provides the essential
backbone for IoT devices to communicate with each other and with users,
enabling seamless data exchange and real-time control.
Smart homes, in particular, have benefited
immensely from this increased connectivity. Industrials are drawn to the idea
of homes that are not just places of shelter but intelligent ecosystems that
adapt to their preferences. From thermostats and lighting to security cameras
and voice assistants, IoT devices offer enhanced convenience and efficiency,
and they rely on robust connectivity to deliver on these promises. Moreover,
the proliferation of smartphones and mobile apps plays a pivotal role in driving
Industrial IoT. These devices serve as the command centers for IoT ecosystems,
allowing users to remotely monitor and control their smart devices. This level
of accessibility has transformed the way we manage our homes, adding a new
layer of convenience to our lives.
Increased connectivity also fuels the growth of the
Industrial IoT market by enabling innovative applications in various sectors.
Health and wellness devices, wearable technology, and remote monitoring
solutions leverage connectivity to keep users informed about their well-being.
Additionally, Industrials are embracing IoT devices that promote energy
efficiency, helping them reduce their environmental footprint and lower utility
costs. In conclusion, the rise of increased connectivity is a fundamental catalyst
for the Global Industrial Internet of Things market. It not only facilitates
the interconnection of devices but also enhances user experience, convenience,
and the potential for further innovation. As connectivity technologies continue
to advance, the Industrial IoT market is expected to thrive, opening up new
horizons for a smarter, more interconnected world.
Security and Privacy Concerns
Security and privacy concerns are emerging as
powerful drivers of the Global Industrial Internet of Things (IoT) market,
shaping Industrial preferences and industry standards. As the IoT ecosystem
expands and becomes an integral part of everyday life, individuals and
organizations are increasingly aware of the vulnerabilities and risks
associated with interconnected devices and data, prompting a heightened focus
on safeguarding personal information. The escalating number of IoT devices in
our homes, offices, and even our bodies has raised red flags about data
breaches, unauthorized access, and the potential misuse of personal
information. This growing awareness of security and privacy issues is driving
demand for IoT solutions that prioritize user protection and data integrity.
Industrials are seeking assurance that their
connected devices are resistant to cyber threats. This need for security drives
the development of robust encryption protocols, secure authentication methods,
and regular software updates to patch vulnerabilities. In response, IoT
manufacturers are placing a greater emphasis on building security measures
directly into their products, a shift that is reshaping the industry. Privacy
concerns are equally significant. Industrials are wary of how their data is collected,
shared, and utilized by IoT devices and service providers. They demand
transparent privacy policies and consent mechanisms, as well as greater control
over their personal information. This push for privacy protection is pushing
companies to implement stringent data protection measures and invest in
technologies that anonymize or pseudonymize user data.
Legislation and regulations, such as the European
Union's General Data Protection Regulation (GDPR) and California's Industrial
Privacy Act (CCPA), are also influencing the IoT landscape. These regulations
impose strict requirements on data handling, notification of breaches, and user
consent, which impact IoT manufacturers and service providers operating in
these regions and beyond. Security and privacy concerns are catalyzing the
development of secure IoT ecosystems, fostering collaboration among stakeholders
to establish industry standards and best practices. This proactive approach is
essential for ensuring that Industrials can fully embrace the potential of IoT
without compromising their personal safety and privacy.
In conclusion, security and privacy concerns are
powerful drivers of the Global Industrial Internet of Things (IoT) market. They
not only inform Industrial choices but also encourage industry stakeholders to
raise the bar in terms of security and privacy protections. As the IoT market
matures, addressing these concerns will be vital in building trust and
sustaining growth in this interconnected world.
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Key Market Challenges
Privacy Issues
Privacy issues loom as a formidable challenge that
has the potential to impede the growth and adoption of the Global Industrial
Internet of Things (IoT) market. As the IoT ecosystem expands, the collection,
storage, and utilization of vast amounts of personal data raise significant
concerns about individual privacy, data security, and user consent, which can
undermine user trust and limit the market's potential. One of the primary
concerns is the extensive data generated by IoT devices. These devices can monitor
and collect data on a wide range of user behaviors, from home activities to
personal health information. The sheer volume and granularity of this data
create a risk of misuse, unauthorized access, and potential breaches, making
Industrials apprehensive about the privacy of their personal information.
Additionally, data sharing is often a core
component of IoT services. To provide functionality, IoT devices and platforms
may need to share data with manufacturers, third-party service providers, or
even government entities. This sharing can raise concerns about the control and
transparency of data usage, leaving Industrials uncertain about who has access
to their information and for what purposes. Furthermore, the issue of user
consent is crucial. Industrials need to be aware of what data is being
collected and for what purposes, and they should have the option to opt in or
out of data collection and sharing. However, many IoT devices and services may
not provide clear and easily understandable consent mechanisms, leaving users
in the dark about their data's usage and privacy implications.
The implementation of strong security measures is
essential to protect the personal data generated and stored by IoT devices.
Inadequate security can lead to data breaches, identity theft, and other
privacy violations, further eroding Industrial trust. To address privacy issues
and bolster the Industrial IoT market, it's vital for manufacturers and service
providers to prioritize robust data protection mechanisms. This includes
encryption, secure authentication, regular security updates, and anonymization
or pseudonymization of data to prevent the identification of individuals. Clear
and transparent privacy policies and consent processes must be established,
making it easy for users to control their data and understand how it is used.
Moreover, governments and regulatory bodies play a
crucial role in establishing legal frameworks and guidelines that safeguard
Industrial privacy in the IoT space. Initiatives such as the General Data
Protection Regulation (GDPR) in Europe and the California Industrial Privacy
Act (CCPA) in the United States are steps in the right direction. In
conclusion, addressing privacy issues is paramount for the Industrial IoT
market to flourish. Building trust by respecting user privacy rights and
securing their data is not only a moral imperative but also a key factor in
ensuring the long-term success and growth of the Global Industrial Internet of
Things market. By proactively addressing privacy concerns, stakeholders can
create an environment where Industrials feel secure and comfortable embracing
the benefits of IoT technology.
Complexity and User Experience
Complexity and user experience are significant
challenges that have the potential to hinder the growth of the Global
Industrial Internet of Things (IoT) market. The increasing complexity of IoT
ecosystems, coupled with challenges in delivering a seamless user experience,
can create barriers to widespread adoption. One of the central issues is the
inherent complexity of IoT systems. As the number of connected devices and
services in a typical Industrial IoT setup continues to grow, managing and
configuring these devices can become overwhelming for users. Setting up,
troubleshooting, and maintaining IoT devices often require technical expertise,
which may alienate less tech-savvy Industrials. This complexity can deter
potential users who may be hesitant to invest in IoT solutions due to concerns
about the steep learning curve and the perceived difficulty of managing these
devices.
The lack of standardized user interfaces across
different IoT devices also contributes to complexity. Each manufacturer may
develop its own app or interface, leading to a fragmented user experience.
Industrials have to navigate various apps and interfaces to control different
devices, which can be confusing and inconvenient. Furthermore, the user
experience can be compromised by issues like connectivity problems, device
compatibility, and frequent software updates. Users may encounter frustrating
situations where devices fail to communicate effectively, leading to unreliable
or inconsistent performance. This, in turn, can erode trust and confidence in
IoT technology.
In many cases, user data and privacy concerns also
add to the complexity. Industrials worry about how their data is collected,
used, and shared by IoT devices and the associated services. Understanding and
controlling the data-sharing settings for each device can be a cumbersome
process. Simplifying the user experience is crucial for the broader adoption of
IoT. Manufacturers and developers should prioritize user-friendly design,
intuitive interfaces, and seamless device integration. Standardization efforts
in user interfaces can help create a more consistent experience, making it
easier for Industrials to manage and interact with IoT devices from various
manufacturers.
To address the complexity challenge, there's also a
need for better user education and support. Manufacturers should invest in
clear and comprehensive user guides and customer support systems to assist
users in setting up and maintaining their IoT ecosystems. In conclusion,
addressing the complexity and user experience issues in the Industrial IoT
market is vital to unlock its full potential. A user-friendly, intuitive, and
standardized approach to IoT device management and operation will not only
improve Industrial satisfaction but also drive broader adoption and growth in
the Global Industrial Internet of Things market. By addressing these
challenges, the IoT industry can create a more accessible, reliable, and
user-centric ecosystem.
Interoperability
Interoperability stands out as a significant
challenge that has the potential to hamper the growth and adoption of the
Global Industrial Internet of Things (IoT) market. It is a critical issue
because it pertains to the ability of IoT devices and systems to work
seamlessly together, regardless of their manufacturer or communication
protocols. The lack of interoperability can lead to a fragmented and
frustrating user experience, inhibiting the realization of the full potential
of IoT. One of the primary issues with interoperability is the diversity of
devices and standards in the IoT landscape. Various manufacturers produce IoT
devices with their proprietary communication protocols, creating siloed
ecosystems. This means that Industrials who invest in one brand of IoT products
may find it challenging to integrate devices from other manufacturers into
their existing setup.
Moreover, the absence of universally accepted
industry standards further compounds the problem. Different regions and
industries often adopt their own IoT standards, which can hinder
cross-compatibility. This lack of standardization makes it difficult for
developers to create IoT solutions that are universally compatible, adding
complexity and cost to the development process. Interoperability challenges can
impact not only the Industrial experience but also the scalability and
efficiency of IoT deployments. When devices cannot communicate effectively, it
limits the scope of potential applications. For instance, in a smart home
environment, devices such as thermostats, lighting, and security systems may
not be able to collaborate seamlessly, reducing the overall convenience and
efficiency that IoT promises.
The significance of interoperability becomes even
more pronounced in larger-scale deployments, such as smart cities or industrial
IoT applications, where multiple devices and systems need to work cohesively
for effective operation. Without interoperability, achieving the full potential
of IoT in improving urban infrastructure, transportation, healthcare, and more
becomes a daunting task. To address this challenge and unlock the true
potential of the Industrial IoT market, stakeholders including IoT device manufacturers,
industry standards organizations, and policymakers must prioritize the
development and adoption of open, widely accepted standards. Creating a more
interconnected and interoperable IoT ecosystem is crucial not only for user
convenience but also for the continued growth and expansion of the Global
Industrial Internet of Things market. It will enable a more holistic and
integrated IoT experience that offers enhanced value to Industrials and society
as a whole.
Key Market Trends
Smart Home Ecosystems
Smart home ecosystems are emerging as a powerful
driver behind the growth of the Global Industrial Internet of Things (IoT)
market. These ecosystems encompass a range of interconnected devices, from
smart thermostats and lighting to security cameras and voice assistants, all
designed to enhance convenience, energy efficiency, and security within the
home.
The allure of smart homes lies in their ability to
transform traditional living spaces into technologically advanced, responsive
environments. Industrials are increasingly embracing these ecosystems as they
offer a seamless and interconnected way to manage and monitor various aspects
of daily life. Smart thermostats, for instance, optimize energy consumption,
reducing utility costs while ensuring comfort. Smart lighting systems provide
convenience and energy efficiency, allowing users to control lighting remotely
and set schedules. Security cameras and smart locks enhance home security,
granting homeowners peace of mind.
Voice assistants, integrated into these ecosystems,
further simplify user interactions. Users can control and coordinate various
smart devices using natural language, making the smart home experience more
intuitive and user-friendly. The global smart home market continues to expand
as manufacturers innovate and develop new devices, and as Industrials recognize
the value of these solutions. The growth of smart home ecosystems not only
benefits Industrials by providing greater convenience and efficiency but also
contributes to the broader Industrial IoT market's expansion. As more
Industrials embrace these technologies, they become increasingly interconnected
in their daily lives, fostering the continued growth of the IoT ecosystem as a
whole.
Wearable Technology
Wearable technology is poised to be a driving force
behind the growth of the Global Industrial Internet of Things (IoT) market.
Wearable devices, such as smartwatches, fitness trackers, and health monitoring
wearables, have gained immense popularity due to their ability to seamlessly
integrate technology into daily life.
Health and wellness monitoring are at the forefront
of this trend, as Industrials increasingly prioritize their well-being.
Wearables provide real-time data on aspects like heart rate, activity levels,
sleep patterns, and even stress levels, empowering individuals to take charge
of their health. This has led to a surge in the adoption of wearables for
fitness tracking and health management. Moreover, wearable technology has
expanded beyond health, offering convenience and connectivity. Smartwatches,
for example, enable users to receive notifications, control smart home devices,
and access information on the go. They serve as personal assistants that can
enhance productivity and simplify daily tasks.
The integration of voice assistants into wearables
further extends their functionality, enabling users to interact with other IoT
devices using voice commands. Wearables are becoming central hubs for
controlling and monitoring various IoT devices, making them indispensable in
the connected world. As technology continues to advance and wearables become
more sophisticated, their role in the Industrial IoT market is only expected to
grow. Their appeal lies in their ability to seamlessly merge technology with daily
life, making Industrials more connected, informed, and in control, which in
turn will contribute significantly to the expansion of the Global Industrial
IoT market.
Segmental Insights
Application Insights
Manufacturing will dominate
the market, Amongst the industries, the manufacturing industry holds a major
share of investment and market share, with both discrete and process
manufacturing intensely investing in IoT adoption. In addition to this,
management in the industry is keen on the adoption of IoT; With the advent of
Industry 4.0, IIoT is gaining traction in both discrete manufacturing and
process manufacturing as IIoT is offering means of optimizing operations,
reducing downtime, increasing efficiency, and help make data-driven decisions
is increasing the profit margin and reduce cost with short ROIs on the IoT
adoption.
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.
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Regional Insights
North America is expected to dominate the market
during the forecast period. North America is a pioneer in adopting most
technological innovations and advancements, and the adoption of IoT is
reshaping various industrial and Industrial sectors throughout the region. The
5G adoption in the region is high, and a total of 108 million 5G connections
have been laid by Q3 2022. The autonomous 5G deployments that are underway will
drive the market for IoT as a whole.
February 2023 - Canadian-based IoT company, Eleven-x,
will help North America municipal parking with the smart parking system that
will monitor parking spots and provide real-time data on availability. This
will reduce congestion in the area and optimize parking enforcement, further
improving urban mobility.
August 2022 - North America’s biggest IOT Pay
platform was acquired by GrubMarket. This acquisition will help GrubMarket to
use IOT Pay’s technology and payments infrastructure to streamline the food
supply chain industry. IOT Pay is also looking forward to rolling out a digital
banking solution for small and medium-sized businesses (SMBs).
Recent Developments
- In February 2023, Taoglas and Westbase.io, the IoT
distributor, collaborated to provide innovative 4G/5G and IoT solutions to its
customers in European Region. The partnership will offer clients reliable and
high-performance solutions across construction, logistics, emergency services,
smart cities, connected health, and other demanding applications. The highly
sophisticated antennas from Taoglas will deliver the most advanced RF and
antenna technologies to the industrial clients with Westbase's network.
- In November 2022, Switzerland-based IoT company,
Loriot, signed a contract with Disrupt-X, a UAE-based IoT platform, to promote
IoT dissemination in Europe and other geographies. The companies will invest in
developing smart solutions that deliver innovative IoT products and services
designed for the industrial, commercial, and residential sectors. They also
plan to offer local Network Servers for their clients in the European region.
Further, Disrupt-X will introduce a dashboard to access LORIOT Network Servers
directly from its IoT Platform.
Key Market Players
- AT&T Inc.
- Microsoft
Corporation
- Sony
Corporation
- Apple
Inc.
- LG
Electronics
- Alphabet
Inc.
- Hewlett
Packard Enterprise (HPE)
- Honeywell
International Inc.
- Cisco
Systems Inc.
- Intel
Corporation
|
By Type
|
By Application
|
By Region
|
|
|
|
- Manufacturing
- Transportation
- Oil and Gas
|
- North America
- Europe
- South
America
- Middle East & Africa
- Asia Pacific
|
|
Report Scope:
In this report, the Global Industrial Internet of
Things (IoT) Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Global Industrial Internet of Things (IoT)
Market, By
Type:
o
Hardware
o
Software
o
Services
- Global
Industrial Internet of Things (IoT) Market, By
Application:
o
Manufacturing
o
Transportation
o
Oil and
Gas
- Global Industrial Internet of Things (IoT)
Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Asia-Pacific
§ China
§ India
§ Japan
§ South Korea
§ Indonesia
o Europe
§ Germany
§ United Kingdom
§ France
§ Russia
§ Spain
o South America
§ Brazil
§ Argentina
o Middle East & Africa
§ Saudi Arabia
§ South Africa
§ Egypt
§ UAE
§ Israel
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the Global
Industrial Internet of Things (IoT) Market.
Available Customizations:
Global Industrial Internet of Things (IoT) Market
report with the given market data, Tech Sci Research offers customizations
according to a company's specific needs. The following customization options
are available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Global Industrial Internet of Things (IoT) Market
is an upcoming report to be released soon. If you wish an early delivery of
this report or want to confirm the date of release, please contact us at [email protected]