Global Industrial Internet of Things Market - Segmented by Technology (Wireless, Wired), Component (Memory, Processor, RFID, Networking), Type (Smart Mobility, Smart Buildings, Smart Homes, Smart Lighting), Industry Type (Transportation, Manufacturing, Retail, Finance, Healthcare) and Region - Growth, Trends and Forecasts (2018 - 2023)
The global Industrial Internet of Things (IIoT) market was valued at USD 312.79 billion in 2017 and is expected to reach USD 700.38 billion by 2023, witnessing a CAGR of 14.36% during the forecast period, 2018 to 2023. The scope of the study includes IoT spending by various industries on hardware, software, connectivity, and services.
Industrial Internet of Things (IIoT) is a digital revolution, which is changing the way we live and work. Many companies have already started exploiting the opportunities it unfolds by extracting maximum value required for a big data approach. It is expected that the number of internet-connected devices will multiply to tens of billions in the near future. One reason for this growth is the combination of IIoT and big data analytics, which promises to further drive operational efficiencies, along with more innovation and, ultimately, new sources of revenue. The market for IIoT is set for tremendous growth in 2018 as more businesses realize its potential uses and the impact it can have on the global economy.
Data-driven companies are already using IoT generated data, feeding them into their existing analytical pipeline and improving operational management and efficiencies, as well as reducing costs. The major challenges in implementing a big data solution primarily dependent on IoT devices are the storage of the colossal amounts of data being produced, running of analytical queries from such huge amount of data stored using highly complex storage technologies, and to perform advanced data analysis involving data mining and machine learning technologies to gain insights.
Proliferation of Smart Devices and Sensors in Plants is Driving the Market
There has been an increase in the number of smart devices used in plants. These devices enable managers and supervisors to review the performance of machines and employees, irrespective of their locations. It helps them see all production and inventory information, quality data, specifications, and more. In addition, access to ERP information on the mobile device allows the manager to put the data into context. Any issue in production can be addressed with the coordination of sales and customer service. This helps in efficient customer service, right from the plant floor where the activities take place.
The advent of IoT analytics resulted in multiplying the number of data scientist openings in the corporate world. Fog computing, which supports emerging IoT applications that demand real-time/predictable latency, creates a platform that provides compute, storage, and networking services between end devices and cloud computing data centers. Enhanced data visualization techniques and analytical techniques are enabling companies to perform real-time data correlation and quickly react to irregularities in supply chain components. New algorithms and rapid increases in the power and data storage in cloud service computing enable the aggregation, correlation, and analysis of large and dynamic datasets; thus, providing new opportunities for extracting information.
Transportation Industry to Accelerate the Market Landscape
Long-term drivers of the growth of technologically advanced transportation infrastructure are linked to demographic and economic growth in developing economies. However, in developed economies, it is related to the up gradation and renewal of existing infrastructures, along with environmental and sustainability awareness. Despite the recent global economic downturn with slower growth and governments' mounting deficits, the market for Industrial Internet in the transportation industry remains positive, as investments in rail, road, and urban transport projects are poised to stay stable over the forecast period
Industrial fleet management services market is expected to experience significant traction during the forecast period. The value can be created by large amount of data available in the space and by outlining comprehensive information that can help the reduction of fuel cost to a significant extent. Considering the amount of vehicles on the road and the data coming out of those every single moment - the route, on the driver and the vehicle itself - Industrial Internet in this segment is expected to unlock huge potential during the forecast period.
Asia-Pacific is Expected to Dominate the Market
Asia-Pacific is expected to account for the largest share in the overall Industrial Internet of Things market. The huge market in this region is mainly due to the adoption of IoT across various industries, like manufacturing, healthcare, etc. There is a huge demand for IIoT in countries, like China, Japan, India, and South Korea, where this demand is attributed to the significant growth of the end users. The increased commercialization of the applications related to Internet of Things in these developing countries is booming the market for IIoT. Initiatives from the government sectors are leading to huge encouragement among consumers to adopt this technology. The growing population and disposable incomes of consumers in this region, coupled with urbanization and large-scale industrialization, are factors accelerating the growth of Industrial Internet of Things market in the APAC region.
Key Developments in the market