One of the primary factors favourably affecting the market is the rapid industrialisation, urbanisation, and demand for connected devices due to the expanding world population. Furthermore, a good market outlook is being produced by quick automation and the growing use of IoT across numerous industrial verticals, including infrastructure, oil and gas, retail, and transportation. Manufacturing companies are benefiting financially from the deployment of AI and IoT technology for quality control, early warnings, production process optimisation, and failure prediction. In addition to this, the development of several cutting-edge technologies for the production of semiconductors and electrical appliances is fostering market expansion.
The recession will have a substantial impact on the market for industrial internet of things (IoT). Despite the fact that price inflation is anticipated to decline in 2023, an increase in interest rates will undoubtedly cause the rate of economic expansion to sharply slow down. Global inflation is expected to decline from 8.8% in 2022 to 6.5% in 2019, according to the IMF. Even a reduction in inflation of 8.1% in 2023 would be less comforting for developing economies. Raw materials and power will be pricey for a long. Other factors that affect inflation include the partial reversal of globalisation, labour shortages in many Western countries that raise the cost of manufacturing, and the transition to a shared economy in response to the greatest threat to our species.
Industrial IoT for Predictive Maintenance is Expected to Provide Substantial Market Growth Opportunities
Organisations may increase their productivity and contribute to the development of entire countries by using the industrial IoT for better connectivity, more output, and optimal resource utilisation. The adoption of disruptive technologies by various enterprises is being encouraged by the governments of several nations in order to advance industrial automation. A few of the initiatives implemented by governments around the world to encourage industrial IoT include incentive programmes including tax incentives, R&D investments, and the development of promotional enterprises and platforms. While billions of physical objects are anticipated to join the global network by 2025, the IoT has significant ramifications for governmental organisations. More than USD 55 billion was spent on R&D in all fields of science and technology under the 7th Framework Plan for Research and Technological Development (FP7) of the European Union, whereas USD 145 million was allocated to ongoing IoT initiatives. The industrialists in the European Union (EU) were pushed by this change to include IoT technology into their corporate operations. All of the aforementioned examples show the support that governments all over the world are giving to improve the use of contemporary technology in R&D for the industrial sector, which will increase industrial output and favourably impact the development of the industrial IoT market.
Issues with Data Security are Impeding Market Expansion
The adoption of a strong security infrastructure has become necessary because, according to an FBI report, financial losses brought on by internet crime totaled US$ 4.2 billion in the US. The most frequent cybercrimes were phishing, non-payment/non-delivery scams, and extortion, with 28,500 complaints related to COVID-19 fraud. Industrial Internet of Things (IIoT) use by businesses raises security and privacy concerns. To prevent data breaches and cyberattacks, businesses retain sensitive and secret data that needs to be protected. The adoption is being hampered by the alarming increase in cyberattacks, data leaks, and fraudulent data injection in numerous industry verticals. But, with considerable expenditures in cyber security, this problem will be overcome and healthy growth will be encouraged in the later stages.
Based on end use, the industrial internet of things (IoT) market is segmented into metal & mining, chemical, manufacturing, energy & power, oil & gas, healthcare, logistics & transport, agriculture and others. The manufacturing category dominated the market in 2022. With the advent of Industry 4.0, IIoT is becoming more and more popular in discrete as well as process manufacturing because it provides a number of opportunities to optimise operations, reduce downtime, increase efficiency, and support the use of data-driven decisions, all of which increase profit margins and lower costs with quick returns on IoT adoption. Additionally, the adoption of IoT in these advanced technologies is crucial, which is expected to accelerate market growth. Manufacturing industries are quickly leveraging digital manufacturing technologies.
Based on component, the industrial internet of things (IoT) market is segmented into solution (remote monitoring, data management, analytics, security solutions and others), services (professional and managed), platform (connectivity management, application management and device management). The solution category dominated the market in 2022. To increase their market share, solution providers are focusing heavily on the introduction of cutting-edge information systems for numerous industries and industry verticals. For instance, the IoT Accelerator Connect plug-and-play access to cellular IoT connectivity was announced by Ericsson AB, a multinational networking and telecommunications firm, in February 2022 to provide easier connectivity in IoT. Instant onboarding and device connectivity will facilitate and improve the effective implementation of enterprise IoT initiatives, which is anticipated to fuel the segment's growth.
North America is projected to hold the largest share of the industrial internet of things (IoT) market over the forecast period. The region's early acceptance and use of industrial IoT technologies is responsible for this. Additionally, during the forecast period, the market is anticipated to grow as a result of strong government support for promoting digitalization across the industrial sector, an increase in the use of industrial IoT devices, and growing adoption of cutting-edge technologies like cloud computing and AI. On the other hand, the Asia Pacific industrial internet of things (IoT) market is anticipated to grow significantly. A growing number of countries in the area, especially China and Japan, are embracing innovative factory automation technology. The benefits of adopting robot arm technology are beginning to be understood by the region's manufacturing sectors. Because they wish to be independent in terms of production and manufacturing, prominent nations in the region are also making significant investments in industry 4.0.
LIST OF KEY COMPANIES PROFILED:
- ARM Holding Plc
- Atmel Corporation
- Cisco Systems, Inc.
- General Electric Company (GE)
- International Business Machines Corporation (IBM)
- Intel Corporation
- Rockwell Automation, Inc.
- Siemens AG
- Microsoft Corporation
In August 2020, Semtech and Helium strengthened their partnership to deliver wireless wide area network infrastructure for Internet of Things (IoT) devices based on LoRa technology. Across North America and Europe, the network expands to more than 1,000 cities and provides connectivity for potentially hundreds of millions of LoRa-based devices.
REPORT SCOPE AND SEGMENTATION
|Market Size in 2022
|USD 315.8 Billion
|Market Forecast in 2030
|USD 1514.3 Billion
|Compound Annual Growth Rate
|Revenue (USD Million) and Volume (Kilo Tons)
|By Component, By End-Use and By Geography