Industrial Internet of Things Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

The Industrial Internet of Things Market Size accounted for USD 329 Billion in 2022 and is projected to achieve a market size of USD 2,493 Billion by 2032 growing at a CAGR of 22.7% from 2023 to 2032.

Industrial Internet of Things Market Key Highlights

• Global industrial internet of things market revenue is expected to increase by USD 2,493 Billion by 2032, with a 22.7% CAGR from 2023 to 2032
• North America region led with more than 33% of industrial internet of things market share in 2022
• Asia-Pacific industrial internet of things market growth will record a CAGR of more than 23.9% from 2023 to 2032
• By component, the solution segment contributed over 48% of revenue share in 2022
• By end-use, the manufacturing segment captured more than 19% of revenue share in 2022
• Increasing demand for automation and operational efficiency, drives the industrial internet of things market value

The Industrial Internet of Things (IIoT) refers to the use of interconnected sensors, instruments, and other devices within industrial environments to collect and exchange data. Unlike consumer-oriented IoT, which often focuses on smart homes or wearable devices, IIoT aims to optimize industrial processes, enhance efficiency, and facilitate predictive maintenance in sectors such as manufacturing, energy, agriculture, healthcare, and transportation.

The market for IIoT has experienced significant growth in recent years, driven by factors such as increasing demand for automation, advancements in sensor technology, and the proliferation of data analytics tools. With IIoT solutions, industries can monitor equipment health in real-time, optimize supply chains, improve asset utilization, and minimize downtime through predictive maintenance. According to various market research reports, the global IIoT market is projected to continue its robust growth trajectory, with estimates suggesting a compound annual growth rate (CAGR) of around 20% over the next few years. Factors such as ongoing technological innovations, the integration of artificial intelligence and machine learning, and the adoption of 5G connectivity are expected to further fuel the expansion of the IIoT market. 

Global Industrial Internet of Things Market Trends

Market Drivers

• Increasing demand for automation and operational efficiency
• Advancements in sensor technology and data analytics tools
• Growing emphasis on predictive maintenance to minimize downtime
• Integration of artificial intelligence and machine learning
• Adoption of 5G connectivity for enhanced communication and data transfer

Market Restraints

• Concerns regarding data security and privacy
• Challenges related to interoperability among devices and systems

Market Opportunities

• Expansion of IIoT applications into new industrial sectors
• Emergence of edge computing for real-time data processing

Industrial Internet of Things Market Report Coverage

The Industrial Internet of Things (IIoT) represents the convergence of traditional industrial sectors with the power of modern digital technologies. It involves connecting various industrial devices, sensors, and equipment to the internet to enable data collection, analysis, and automation. By harnessing IIoT solutions, industries can optimize operations, enhance productivity, and drive innovation across sectors such as manufacturing, energy, transportation, agriculture, and healthcare. In practical terms, IIoT applications span a wide range of use cases. In manufacturing, for instance, IIoT facilitates predictive maintenance by monitoring machine health in real-time, reducing downtime and optimizing production schedules. In energy and utilities, smart grid systems utilize IIoT sensors to monitor energy consumption, detect faults, and improve overall efficiency. In agriculture, IIoT enables precision farming techniques through the monitoring of soil moisture levels, weather conditions, and crop health, leading to more sustainable and higher-yield farming practices.

The Industrial Internet of Things (IIoT) market has been experiencing significant growth, fueled by the increasing adoption of connected devices and data analytics in industrial settings. Companies across various sectors, including manufacturing, energy, healthcare, and transportation, are leveraging IIoT solutions to enhance operational efficiency, optimize processes, and enable predictive maintenance. This adoption is driven by the promise of cost savings, improved productivity, and better decision-making capabilities through real-time data insights. Factors such as advancements in sensor technology, the integration of artificial intelligence and machine learning, and the proliferation of 5G connectivity are expected to further propel this growth. Additionally, the COVID-19 pandemic has accelerated the adoption of IIoT solutions as companies seek remote monitoring and automation to maintain operations amidst disruptions. As industries increasingly recognize the value proposition of IIoT in driving digital transformation and competitiveness, the market is poised for continued expansion in the coming years.

Industrial Internet of Things Market Segmentation

The global industrial internet of things market segmentation is based on component, software, connectivity technology, device and technology, end-use, and geography.

Industrial Internet of Things Market By Component

According to industrial Internet of things industry analysis, the solution segment held the largest market share in 2022. These solutions typically include hardware components such as sensors, actuators, and gateways, as well as software platforms for data analytics, connectivity, and visualization. As industries increasingly embrace digital transformation and seek to optimize their operations, the demand for IIoT solutions is witnessing robust growth across various sectors. One significant driver of growth in the solution segment is the rising adoption of predictive maintenance solutions. By leveraging IIoT sensors and analytics platforms, companies can monitor the health and performance of equipment in real-time, enabling them to preemptively detect and address issues before they escalate into costly downtime. Predictive maintenance solutions not only help to optimize asset utilization and extend equipment lifespan but also contribute to operational efficiency and cost savings.

Industrial Internet of Things Market By Software

In terms of software, the product lifecycle management (PLM) segment is dominate the market in 2022. PLM solutions integrated with IIoT capabilities offer end-to-end visibility and management of product development, manufacturing, distribution, and maintenance processes. This integration enables companies to streamline workflows, improve collaboration, and make data-driven decisions at every stage of the product lifecycle. One of the primary drivers of growth in the PLM segment is the demand for enhanced product innovation and customization. IIoT-enabled PLM solutions empower companies to gather real-time data from connected devices and sensors embedded in their products, allowing for continuous feedback on performance, usage patterns, and customer preferences. By leveraging this data, companies can iterate on product designs more rapidly, optimize features to meet evolving market demands, and ultimately deliver more innovative and personalized offerings to customers.

Industrial Internet of Things Market By Connectivity Technology

According to the industrial internet of things market forecast, the wireless technology segment is expected to witness significant growth in the coming years. This growth is driven by the increasing need for flexible and scalable connectivity solutions in industrial environments. As industries digitize their operations and deploy a growing number of sensors and devices, wireless technologies offer a convenient and cost-effective means of transmitting data across various industrial settings. This segment encompasses a wide range of wireless technologies, including Wi-Fi, Bluetooth, Zigbee, LoRaWAN, and cellular networks like 5G, each suited to different use cases based on factors such as range, bandwidth, and power consumption. One significant driver of growth in the wireless technology segment is the advent of 5G networks, which promise to revolutionize connectivity in industrial environments.

Industrial Internet of Things Market By Device and Technology

Based on the device and technology, the industrial robotics segment is expected to witness significant growth in the coming years. This growth is driven by the convergence of automation, connectivity, and data analytics technologies. Industrial robots equipped with IIoT capabilities are revolutionizing manufacturing and production processes by offering increased flexibility, efficiency, and scalability. These robots are integrated with sensors and connected to IIoT platforms, enabling real-time monitoring, predictive maintenance, and adaptive control, thereby optimizing performance and minimizing downtime. One significant driver of growth in the industrial robotics segment is the demand for operational efficiency and productivity enhancements in manufacturing.

Industrial Internet of Things Market By End-Use

In terms of end-use, the manufacturing segment has been experiencing significant growth in recent years. IIoT solutions are revolutionizing manufacturing processes by connecting machines, sensors, and systems to enable real-time data monitoring, analysis, and optimization. This connectivity allows manufacturers to achieve greater visibility and control over their operations, leading to improved asset utilization, reduced downtime, and enhanced overall equipment effectiveness (OEE). One significant driver of growth in the manufacturing segment is the increasing adoption of smart factories and Industry 4.0 initiatives. IIoT technologies enable the transformation of traditional manufacturing facilities into intelligent, interconnected environments where machines communicate with each other autonomously and adaptively. By integrating IIoT solutions into their operations, manufacturers can implement predictive maintenance strategies, optimize production scheduling, and enable remote monitoring and control, thus streamlining processes and driving operational excellence.

Industrial Internet of Things Market Regional Outlook

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Industrial Internet of Things Market Regional Analysis