The global industrial internet of things market was surpassed at USD 263.6 billion in 2021 and is expected to hit around USD 1.77 trillion by 2030, growing at a CAGR of 23.56% from 2022 to 2030.
A strong emphasis on automation, predictive maintenance, and effective supply chain management across several industrial verticals such as manufacturing is driving the industry’s growth.
Several organizations have recognized the benefits of adopting IIoT to improve operational efficiencies and have implemented a variety of advanced IIoT solutions based on compatible hardware such as sensors, and actuators combined with software, contributing to the growth of the industrial IoT market.
Machine-to-machine (M2M) communication is on the verge of causing a paradigm shift in the management of numerous industrial processes. The rapid use of M2M communication for applications like smart grids, as well as across other industries and industry verticals like automotive, healthcare, and security, is projected to propel industrial IoT growth.
The number of connected devices and sensors put in industrial areas to collect data from the local environment and upload it to the cloud is expected to increase over the next several years. The data generated by IoT systems and M2M communication can be used by the newest operational and informational technologies to acquire new insights and improve decision-making processes.
Following the outbreak of the COVID-19 pandemic, several firms throughout the world are facing supply chain management issues. Vendors are placing several orders but the companies are unable to deliver which eventually has resulted in financial difficulties. It's also proving to be a difficult task to keep track of the orders that have been placed and those that have been shipped.
Cognitive industrial IoT can assist organizations in precisely assessing orders issued and total yield while tracking products in transit. As a result, cognitive industrial IoT solutions are projected to be used by organizations as part of their efforts to reform their strategies and operations.
Scope of The Report
|Market Size in 2021|
|Revenue Forecast by 2030||USD|
|Growth rate from 2022 to 2030||CAGR of%|
|Forecast Period||2022 to 2030|
|Segmentation||Component, end-use, region
In 2021, the solution segment accounted for more than half of the total revenue share. Over the forecast period, the category is expected to maintain its leading position. As part of their efforts to grow their market share, solution providers are putting a heavy emphasis on the launch of innovative information systems for various sectors and industrial verticals.
They're also concentrating on integrating sensors and other systems into critical equipment in order to track real-time data and improve operating efficiency. Manufacturing companies should be able to automate their complicated manufacturing processes while maintaining effective monitoring with the use of such solutions.
From 2022 to 2030, the services segment is predicted to grow at the fastest rate, with a CAGR of more than 24.3%. The increase is due to a significant increase in the number of connected gadgets that generate massive amounts of data.
At the moment, IIoT applications rely on centralized cloud services to manage overall processes and data flow. Edge computing will also change the industry by providing real-time analytical mechanisms and solutions for decentralizing transactions and storage across the network.
The report examines the industrial internet of things market in depth, segmenting it into manufacturing, energy and power, oil and gas, healthcare, logistics and transportation, agricultural, and others based on end-use. Over the projected period, the manufacturing category is expected to lead the market, accounting for approximately 28.56% of total revenue by 2030.
Manufacturing companies are rapidly adopting digital manufacturing technologies, and the Internet of Things (IoT) plays a critical role in these cutting-edge technologies. The market is expected to develop significantly in the near future, owing to the strategic partnerships and alliances that stakeholders are forming, as well as the growing demand for a linked supply chain to provide flexibility, operational efficacy, and regulatory compliance.
From 2022 to 2030, the logistics and transportation segment is expected to grow at a CAGR of more than 26.5%. The considerable emphasis that logistics and transportation businesses are placing on improving asset management and, as a result, on the implementation of smart transportation, can be linked to the rise.
Traditionally, the logistics industry has relied on RFID tags, which are being phased out in favor of internet-connected trackers that can support a wide range of functions. Modern options, such as Bluetooth tags and beacons, are also becoming more widely adopted. These types of solutions allow data to be tracked in smaller, more constrained regions, but they can also help to improve operational management.
With a revenue share of more than 33.6% in 2021, North America dominated the worldwide IIoT market. Several well-established market players may be found in North America. The region was also an early adopter of IIoT and has evolved into an innovation hotspot. Canada has also seen tremendous development, owing to government attempts to stimulate the adoption of IIoT solutions in the country.
During the forecast period, Asia Pacific is expected to be the fastest-growing regional market, with a CAGR of more than 26.89%. Advanced factory automation systems are becoming increasingly popular in the region, particularly in China, Japan, and Taiwan. Manufacturing companies all around the region are gradually seeing the advantages of implementing robot arm technology. China is on track to become a precise manufacturing hub by 2027, thanks to government policies like "Made in China 2025," which prioritize the development of advanced automation technology in the region.
Simultaneously, numerous venture capitalists around the region are supporting IIoT-based companies in order to promote technological advancements in industrial IoT. For example, in June 2019, pi Ventures invested USD 1 million in SwitchOn, an AI-powered IIoT platform built by India's The Abee Research Labs Pvt. Ltd.