Industrial IoT 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 IIoT market growth will record a CAGR of more than 23.9% from 2023 to 2032
• By component, the solution segment contributed over 48% IIoT market share in 2022
• By end-use, the manufacturing segment captured USD 62.9 billion revenue share in 2022
• Increasing demand for automation and operational efficiency is one popular industry IoT market trend that fuels the demand

The industrial internet of things (IIoT) is a network of networked devices, sensors, equipment, and systems in industrial contexts that allows for data gathering, analysis, and automation to improve efficiency, production, and safety. IIoT combines old industrial machinery with current technologies such as cloud computing, big data analytics, and machine learning, enabling real-time monitoring, predictive maintenance, and process optimization. IIoT applications may be found in a variety of industries, including manufacturing, energy, transportation, healthcare, and agriculture, and they are transforming operations by giving actionable insights, reducing downtime, and improving overall performance. For instance, Honeywell bought SCADAfence in July 2023, a firm that specializes in cybersecurity solutions for monitoring large operational technology (OT) and Internet of Things (IoT) networks. This factor focuses on digitalization, sustainability, and OT cybersecurity SaaS solutions.

Industrial IoT Market Dynamics

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 IoT Market Report Coverage

Market	Industrial IoT Market
Industrial IoT Market Size 2022	USD 329 Billion
Industrial IoT Market Forecast 2032	USD 2,493 Billion
Industrial IoT Market CAGR During 2023 - 2032	22.7%
Industrial IoT Market Analysis Period	2020 - 2032
Industrial IoT Market Base Year	2022
Industrial IoT Market Forecast Data	2023 - 2032
Segments Covered	By Component, By Software, By Connectivity Technology, By Device and Technology, By End-Use, And By Geography
Regional Scope	North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
Key Companies Profiled	ARM Holding Plc, ABB Ltd., Atmel Corporation, General Electric Company (GE), Cisco Systems, Inc., Siemens AG, Ericsson AB, Honeywell International Inc., International Business Machines (IBM) Corporation, Intel Corporation, Microsoft Corporation, Schneider Electric SE, and Rockwell Automation, Inc.
Report Coverage	Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis

Industrial IoT Market Insights

Industrial internet of things (IIoT) market is experiencing rapid growth due to increasing demand for automation and operational efficiency across industries. For instance, according to the International Federation of Robotics (IFR), U.S. manufacturers are progressively adopting automation. As per IFR statistics released on April 30, 2023, total industrial robot installations increased by 12% to 44,303 units in 2023, as US firms extensively invested in increased automation. IIoT technology integrates sensors, software, and connectivity to enable machines, devices, and systems to communicate and exchange data. By leveraging IIoT solutions, businesses can optimize processes, enhance productivity, reduce downtime, and make data-driven decisions. This trend towards automation and efficiency not only improves operational performance but also drives innovation and competitiveness in the industrial sector. Additionally, adoption of 5G connectivity for enhanced communication and data transfer further drives growth of IIoT market. For instance, North America was the leading region for 5G uptake last year, with the technology accounting for 29% of all North American connections by the end of 2023. According to the research, the region's 5G connections increased by 64% year on year, with 77 million new connections added to its network. This adoption of 5G technology will help to grow industrial IoT market.

The growth of the industrial internet of things (IIoT) market is hindered by concerns surrounding data security and privacy. As industries increasingly integrate IoT devices into their operations, there's a heightened risk of cyber threats and unauthorized access to sensitive data. For instance, in July 2022, Chinese ride-hailing company Didi got hit with a $1.2 billion fine by regulators for not properly protecting user data. Then, in December, China's Ministry of State Security cautioned that foreign mapping software was gathering important information, like military data, in China. This raises concerns among businesses about the safety and integrity of their information. Addressing these security and privacy concerns with data protection regulations is crucial for developing trust of IIoT technologies.

The expansion of industrial internet of things applications into new industrial sectors presents a significant opportunity for market growth. As IIoT technologies become more accessible, industries beyond manufacturing, such as healthcare, agriculture, and transportation, is increasingly integrating IoT devices into their operations. For instance, IIoT in healthcare encompasses a diverse range of healthcare applications and devices. Devices with IIoT capabilities and applications include glucose monitors, heart health monitors, EKG monitors, as well as tools that enable users to collect data, administer drugs, and assist doctors in health and illness research. These devices enable real-time data collection, analysis, and automation, leading to improved efficiency, and productivity across diverse sectors. It leads to benefits such as reduced costs, and enhancement of overall performance. Moreover, ongoing developments by industrial IoT players are anticipated to create lucrative opportunities throughout the forecast timeframe. For example, Ericsson AB launched IoT Accelerator Connect in February 2022, aimed at simplifying connectivity in IoT by offering plug-and-play access to cellular IoT connectivity. These advancements by key manufacturers present further opportunities for industrial internet of things market in the forecast year.

Industrial IoT Market Segmentation

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

• Hardware
• Solution
• Services
• Platform

According to industrial Internet of things industry analysis, the solution segment dominated market in 2022. IIoT solutions include a wide array of technologies and services modified to optimize operations, enhance efficiency, and drive innovation across various industries. From advanced analytics and predictive maintenance to real-time monitoring and connectivity solutions, the broad offerings within this segment allow businesses to connect the full potential of interconnected systems and devices which further boosts this segments dominance in forthcoming years.

• Product Lifecycle Management
• SCADA
• Manufacturing Execution Systems
• Outage Management Systems
• Remote Patent Monitoring
• Distribution Management Systems
• Farm Management Systems
• Retail Management Software
• Transit Management Systems
• Visualization Software

In terms of software, the product lifecycle management (PLM) segment gathered notable share in the market. PLM solutions allow businesses to efficiently handle product design, development, manufacturing, and maintenance processes. By integrating IIoT capabilities, such as sensors and connectivity, into PLM systems, companies can gather real-time data from machines and equipment, enabling better decision-making, predictive maintenance, and optimization of production processes. This convergence of PLM and IIoT empowers industries to enhance efficiency, quality, and innovation across the entire product lifecycle, thus driving the dominance of PLM in the IIoT market.

• Wired Technology
• Wireless 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 due to increasing demand for seamless connectivity, mobility, and real-time data transmission in industrial settings. Wireless technologies offer flexibility, scalability, and cost-effectiveness, enabling efficient monitoring, control, and optimization of industrial processes. From Wi-Fi and Bluetooth to emerging standards like 5G and LPWAN, wireless solutions empower industries to enhance productivity, and reduce downtime. For instance, according to Wireless Infrastructure Association, the market-changing success of 5G-powered fixed wireless access (FWA), spearheaded by Verizon and T-Mobile, was possibly the most significant development in 2023. This growing adoption of wireless technology maintain this segment’s dominance into coming years.

• Sensors
• Industrial Robotics
• Radio Frequency Identification (RFID)
• Electronic Shelf Labels
• Smart Beacons
• Cameras
• Distributed Control Systems
• Smart Meters
• Condition Monitoring
• GPS/GNSS
• Networking Technology
• Flow & Application Control Devices
• Interface Boards
• Guidance & Steering
• Yield Monitors

Based on the device and technology, the industrial robotics segment is expected to witness significant growth in the coming years due to technological advancements and increasing adoption. China has been the leading industrial robot market since 2013, accounting for 52% of all new installations by 2022. China's robot density rate (number of industrial robots per 10,000 workers), a measure of automation, has risen from 97 in 2017 to 392 by 2023. As IIoT facilitates connectivity and data exchange between machines, industrial robots are becoming smarter, more efficient, and capable of autonomous decision-making. This convergence of robotics and IIoT enables enhanced automation, predictive maintenance, and real-time monitoring, driving productivity and cost savings for industries across sectors. With ongoing innovations and investments in both robotics and IIoT technologies, this segment is expected to fuel significant growth for industrial internet of things market in the coming years.

• Aviation
• Chemical
• Metal & Mining
• Manufacturing
• Smart Grids
• Energy & Power
• Retail
• Oil & Gas
• Logistics & Transport
• Healthcare
• Agriculture
• Others

In terms of end-use, the manufacturing segment has been experiencing significant growth in recent years. This surge is primarily attributed to the adoption of IIoT solutions aimed at enhancing operational efficiency, productivity, and safety in manufacturing processes. For instance, according to a PwC report, 90% of manufacturers believe that incorporating IoT into their production processes will provide long-term benefits, 35% collect and use data from smart sensors to improve the manufacturing process, and 58% believe that IoT will transform all industrial operations for the better. With the applications such as cost savings, improved asset utilization, and better decision-making capabilities, IIoT has become integral part in manufacturing industries worldwide.

Industrial IoT Market Regional Outlook

North America

Industrial IoT Market Regional Analysis