IoT in Manufacturing Market Research Report: By Component (Solution, Service), Deployment (On-Premises, Cloud), Application (Predictive Maintenance, Business Process Optimization, Asset Tracking and Management, Logistics and Supply Chain Marketing, Real-Time Workforce Tracking and Management, Automation Control and Management, Emergency and Incident Management), End-User (Automotive, Chemical and Material Equipment, Medical Device, Electronics and Communication Equipment, Food and Agriculture Equipment, Industrial Equipment) – Latest Trends and Demand Forecast to 2030

Market Overview

The global IoT in manufacturing market is estimated to generate $62.1 billion revenue in 2021, and it is expected to grow at a CAGR of 13.9% during 2021–2030. This is attributed to the rapid industrial automation, improving inventory management technologies, and increasing need for higher production efficiency.

During the COVID-19 pandemic, there was a negative impact on the IoT in manufacturing market in 2021 owing to the closure of manufacturing units, which reduced the demand for IoT solutions. However, the demand for IoT solutions from the manufacturing industry is likely to get affected to a minimal extent. Furthermore, companies that have incorporated IoT solutions in the severely affected regions are expected to explore the proactive deployment of automation technologies to decrease worker density throughout their operations.

Solution and Predictive Maintenance Categories Held Major Shares

The solution category held the larger share in 2021 in the market, based on component. This was primarily because most manufacturing companies are deploying IoT solutions to improve their manufacturing processes and increase their business outputs. Moreover, IoT solutions for manufacturing offer a multitude of benefits, such as reduced operational and infrastructure costs and control over the supply chain.

The predictive maintenance category held the largest share in 2021 in the market, based on application. This was primarily because predictive maintenance enables companies to anticipate and address possible safety risks and predict potential issues before they impact workers. Additionally, IoT-based predictive maintenance enables companies to monitor, maintain, and optimize assets for better availability, utilization, and performance.

Cloud and Medical Device Categories To Witness Rapid Growth

The cloud category is expected to witness the faster growth in the market during the forecast period (2021–2030), based on deployment. This will primarily be due to the quick implementation of the cloud and less investment required by it. Moreover, cloud-based IoT platforms and services offer more flexibility to limit the storage requirements or scale down the number of IoT-enabled devices.

The medical device category is expected to witness the fastest growth in the IoT in manufacturing market during the forecast period, based on end user. This will be due to the increasing demand for IoT-enabled medical devices, such as respiratory care devices, vital sign monitors, ventilators, fetal & maternal monitors, imaging systems, and patient monitors.

North America To Be Largest Market

North America is expected to hold the largest share during the forecast period due to the rapid implementation of IoT solutions by small, medium, and large enterprises in their manufacturing plants. Further, the region is technologically developed, and the larger players here are focusing on collaborating with factories to develop smart machines equipped with IoT platforms.

Asia-Pacific (APAC) is expected to witness the fastest growth during the forecast period due to the increasing demand for IoT solutions for smart automation in the manufacturing industry. Manufacturing is one of the most-significant contributors to the APAC economy, and it is undergoing rapid transformation with the usage of IoT solutions.

Adoption of Artificial Intelligence (AI) is Key Market Trend

The growing adoption of AI is one of the key trends being observed in the IoT in manufacturing market. Manufacturing companies have started using AI in their industrial IoT solutions to make real-time decisions, by capturing a large amount of data from multiple sources. Realizing the future and full potential of IoT devices will require a heavy investment in new technologies. The merging of AI and IoT is redefining the way industries, businesses, and economies function. AI-enabled IoT creates intelligent machines that simulate smart behavior and support in decision making with little or no human interference.

Rapid Industrial Automation and Rising Focus on Improved Inventory Management Boosting Market Growth

One of the major factors driving the growth of the IoT in manufacturing market is the rapid industrial automation. Because IoT plays a vital role in industrial automation, industries have started to explore and implement IoT concepts and technologies. IoT helps streamline, and create system architectures that are effective, affordable, and responsive. IoT helps create new technologies to solve problems, enhance operations, and increase productivity. The technology can be explained as a connection of inimitably identifiable electronic devices using internet ‘data plumbing’, including internet protocol (IP), cloud computing, and web services.

Moreover, IoT-driven inventory management solutions help manufacturers automate inventory tracking and reporting and ensure constant visibility of the time between an inventory order and its delivery. Due to these new enhancements, smart inventory management solutions are saving inventory costs.

Explore more about this report - Request free sample pages

Market Players Involved in Product Launches to Gain Significant Position

The IoT in manufacturing market is consolidated in nature with the presence of several key players. In recent years, many have been involved in product launches and mergers and acquisitions in order to attain a significant position. For instance,

• In May 2021, Robert Bosch Engineering and Business Solutions Pvt. Ltd. (RBEI) unveiled the new Phantom Edge – an AIoT platform that combines AI and IoT to provide a real-time view of electrical energy consumption, operating usage, electrical parameters, and appliance-level information.
• In May 2020, General Electric Company announced its plans to launch a new, independent company focused on building a comprehensive industrial internet of things (IIoT) software portfolio. With an initial $1.2 billion in annual software revenue and an existing global industrial customer base, the company intends to be a GE-wholly owned, independently run business with a new brand and identity, its own equity structure, and its own board of directors.

Key Players in IoT in Manufacturing Market Include:

• General Electric Company
• Cisco Systems Inc.
• International Business Machines (IBM) Corporation
• Microsoft Corporation
• PTC Inc.
• Siemens AG
• Robert Bosch GmbH
• Huawei Technology Co. Ltd.
• Atos SE
• HCL Technology Ltd.

Market Size Breakdown by Segments

The global IoT in manufacturing market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Market Segmentation by Component

• By Solution
  • Network management
  • Data management
  • Device management
  • Application management
  • Smart surveillance
• By Service
  • Managed service
  • Professional service

Market Segmentation by Deployment

• On-Premises
• Cloud

Market Segmentation by Application

• Predictive Maintenance
• Business Process Optimization
• Asset Tracking and Management
• Logistics and Supply Chain Marketing
• Real-Time Workforce Tracking and Management
• Automation Control and Management
• Emergency and Incident Management

Market Segmentation by End User

• Automotive
• Chemical and Material Equipment
• Medical Device
• Electronics and Communication Equipment
• Food and Agriculture Equipment
• Industrial Equipment

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • Japan
  • China
  • India
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa