The increasing adoption of industrial automation and strong focus on improved inventory management are the major drivers for the global internet of things (IoT) in manufacturing market. Due to the aforesaid factors, the industry is expected to generate $200.3 billion revenue in 2030, advancing at a CAGR of 13.9% during 2021–2030.
Due to the COVID-19 pandemic, the IoT in manufacturing market affected negatively in 2020 because of the closure of manufacturing units. In addition, due to the changing demands of customers and disrupted supply of raw materials, workforce, and assets, many aspects of manufacturing have changed. This slowed down the adoption of IoT solutions in manufacturing as industries managed operations with the existing technologies and resources because of the lockdowns and economic crisis.
The market is categorized into solution and service, on the basis of component. Of these, the solution category dominated the market during the historical period (2015–2021), and it is expected to maintain its supremacy during the forecast period (2022–2030), because solutions include software, which is generally more expensive than associated services. With industrialists targeting Industry 4.0 practices, they are implementing IoT-driven device, data, network, and application management and smart surveillance solutions.
Moreover, the IoT in manufacturing market is categorized into cloud and on-premises, on the basis of deployment. Out of these, the cloud is expected to witness the faster growth during the forecast period because such solutions can be deployed quickly with a lower investment.
In 2021, North America was the largest revenue contributor to the market. This is mainly attributed to the developed IT infrastructure, high technology investments, and surging penetration of the 5G technology, which are driving IoT adoption in the region. Moreover, the ongoing developments in the field of Industry 4.0 also aid in driving the automation of industries in North America as most of the manufacturing plants are implementing IoT to optimize their production.
Players in the market have been involved in acquisitions and partnerships to remain competitive. For instance,
In April 2019, PTC Inc. acquired one of its systems integrator partners, Factora, to boost its Industry 4.0 expertise, as smart manufacturing deals increasingly fuel the company's fast-growing IoT business.
In May 2018, Siemens acquired J2 Innovations (J2), a leading software framework provider for building automation and IoT. The company has been a successful player in the IoT software business for 10 years, building a strong reputation in the U.S. and internationally with its fluid integration framework technology.
The major players in the global IoT in manufacturing market are General Electric Company, Cisco Systems, Inc., International Business Machines Corporation, Microsoft Corporation, PTC Inc., Siemens AG, Robert Bosch GmbH, Huawei Technology Co. Ltd., Atos SE, HCL Technology Ltd. and Oracle Corporation.