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IoT in Manufacturing Market Overview
The global internet of things (IoT) in manufacturing market is estimated to attain notable growth during the forecast period (2020–2030). The increasing requirement for predictive maintenance and centralized monitoring of manufacturing facilities; technological advancements, including smart sensors, and augmented and virtual reality; rising government initiatives; and growing demand for traceability and transparency in business processes are some of the factors boosting the growth of the market, globally. IoT helps digitally transform the manufacturing sector, as it integrates a network of sensors to collect valuable production data and implements cloud software to generate informative insights from this data about the efficiency of the manufacturing operations.
The IoT in manufacturing market on the basis of component is categorized into solutions and services. Between the two, the services category is projected to attain faster growth during the forecast period. The service category is further classified into managed services and professional services. Among these, the managed services category is expected to witness subsequent growth, owing to rapid adoption in developed countries, including the U.S. and Canada.
In order to create an IoT-based solution in the manufacturing industry by using a combination of IoT components provided from several vendors, managed service providers offer the necessary skills to acquire, evaluate, deploy and integrate IoT-based solutions. Managed service providers offer services at each level of the IoT network, which may include the device management, analytics, connectivity, and IoT professionals, to integrate IoT solutions successfully. Such factors are boosting the growth of the IoT in manufacturing market under the managed services category.
Geographically, North America is estimated to generate largest revenue in the IoT in manufacturing market during the forecast period. Developed countries in the region, such as the U.S. and Canada, are heavily investing in research and development activities to integrate the manufacturing industry, thus contributing to expansion of new technologies. Furthermore, higher adoption of core technologies, including big data, machine learning, information technology operations, and upcoming 5G networks, is boosting the growth of the market in the region.
IoT in Manufacturing Market Dynamics
The increasing requirement for predictive maintenance and centralized monitoring of manufacturing facilities is driving the growth of the IoT in manufacturing market. For instance, in the automotive industry, centralized monitoring of the manufacturing processes is employed using indoor location systems. In the system, manufacturing equipment, process operators, and other related parts are integrated with the help of radio communication systems. On the basis of the radio triangulation method, the location of all the parts and resources that are involved in the process of manufacturing is determined. The IoT devices using switches, routers, and other supporting networking devices generate data for the execution of predictive maintenance, which plays a substantial role in management of the high-valued equipment in a factory. Hereby, increasing requirement of predictive maintenance and centralized monitoring drives the market.
One of the major restraints for the IoT in manufacturing market is its high implementation cost. The manufacturing sector is highly sensitive to cost, and most of the players operate all of their manufacturing processes with older machines having no warranty and advanced connectivity, in-house modified machines, and other affordable solutions. In such situations, manufacturers are unable to completely rip and replace their equipment and machines that would involve a massive capital expenditure. The high cost of integration of IoT solutions further adds to this problem. Therefore, all these factors hinder the growth of the market across the world.
IoT in Manufacturing Market Competitive Landscape
Some of the major players operating in the global IoT in manufacturing market are Bosch.IO GmbH, ABB Ltd., Dell Inc., Cisco Systems Inc., Hewlett Packard Enterprise Company, General Electric Company, Honeywell International Inc., Hitachi Ltd., IBM Corporation, Huawei Technologies Co. Ltd., Microsoft Corporation, Intel Corporation, NXP Semiconductors N.V., NEC Corporation, SAP SE, PTC Inc., Zebra Technologies Corp., Siemens AG, Wind River Systems Inc., and Telit Communications PLC.
Several companies are involved in partnerships in order to integrate the IoT technology in the manufacturing industry, and remain competitive in the IoT in manufacturing market. For instance, in April 2019, Microsoft Corporation and BMW AG announced that the two companies teamed up to launch the Open Manufacturing Platform (OMP). This initiative aims to support the growth of smart factory solutions that will be shared by OMP participants of the automotive and other broader manufacturing industries. The platform is expected to substantially accelerate future industrial IoT developments, and drive production efficiencies while tackling usual industrial challenges.
The report covers country-wise analysis of the IoT in manufacturing market. The major countries covered in the report are the U.S., Canada, the U.K., Germany, France, Russia, Italy, Spain, China, India, Japan, South Korea, Australia, Singapore, Brazil, Mexico, South Africa, Saudi Arabia, and the U.A.E.
Market Size Breakdown by Segment
Based on Component
Based on Platform
Based on Application
Based on Vertical