Industrial Internet of Things Market Size, Share & Trends Analysis Report By Component (Solution, Services, Platform), By End-use (Manufacturing, Logistics & Transport), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global Industrial Internet of Things Market size was valued at USD 321.81 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 23.2% from 2023 to 2030. The increasing availability of affordable processors and sensors that can provide real-time access to information along with advancements in technology are expected to drive the growth. Moreover, the growing need to improve operational competence along with considerable collaboration between the key players is further fueling the market’s growth. Several techniques are also being developed to create a united digital-human workforce, which is projected to provide significant growth opportunities.

Additionally, the significant advantages associated with the industrial internet of things such as automated quality assurance monitoring, large-scale profit margins through improvement in power efficiency, productivity improvement, and efficiency of the manufacturing industry, among others are anticipated to drive the market growth further.

Moreover, IIoT has the potential and capabilities to support industries in reducing operating costs, assuring worker safety, and increasing throughput. By offering measurable outcomes apart from selling solutions, companies are progressively building new product and service hybrids to strengthen their position and generate new revenue streams. This, in turn, is anticipated to boost market growth over the forecast period.

The IIoT market is witnessing a constant rise in the adoption of IoT, owing to the presence of numerous factors such as technological advancements in wireless network technologies, and strong penetration of Wi-Fi connectivity for machine sensors in factories. Furthermore, growth in the development of smart cities along with smart transportation leads to increased adoption of IoT, which is expected to propel the growth of the industrial internet of things industry in the coming years.

Moreover, the technology is aiding organizations to use sophisticated analytics and methodologies like Machine Learning (ML) and Artificial Intelligence (AI) to deliver prescriptive and predictive analytical solutions, paving the way for the sector to take advantage of new opportunities. The continuous learning process associated with ML and AI without any interruptions and downtime make it a more demanding tool in the IIoT market, which in turn is driving the market growth over the forecast period.

The industrial IoT is increasingly adopting edge computing due to its next-generation capabilities, such as its ability to offer IoT devices independence for analysis and data management. The architecture of edge computing enables instant response time as data processing occurs with reduced latency, which helps in noticing immediate and sudden changes in power flows that helps engineers engage in better decision-making. This architecture of edge computing is projected to create huge demand during the forecast period and is expected to drive the market growth further.

Component Insights

The solution segment accounted for the largest revenue share of over 52% in 2022 and is likely to dominate the market over the forecast period. Solution providers are putting a strong emphasis on the launch of innovative information systems for various sectors and industrial verticals as part of their efforts to grow their market share.

For instance, in February 2022, Ericsson AB, a multinational networking and telecommunications company, introduced IoT Accelerator Connect, to offer easier connectivity in IoT with plug-and-play access to cellular IoT connectivity. It will help in instant onboarding and connecting devices to simplify and increase the successful application of enterprise IoT projects, which is expected to drive the segment growth.

The service segment is projected to grow at the highest CAGR of over 24% from 2023 to 2030. The growth is attributed to a significant rise in the number of connected devices, which produce an enormous amount of data. In addition, IIoT applications rely on centralized cloud services to manage data flow and overall processes associated with the industry. Edge computing is also anticipated to change the industry by providing real-time analytical solutions and mechanisms for decentralizing storage and transactions across the network.

End-use Insights

The manufacturing segment accounted for the largest market share of over 18% in 2022 and is predicted to lead the market over the forecast period. With the introduction of Industry 4.0, IIoT is gaining popularity in discrete manufacturing as well as process manufacturing as it offers several possibilities to optimize operations, decrease downtime, increase efficiency, and aid in making data-driven decisions, which increases profit margins and lowers costs with fast returns on IoT adoption. Additionally, manufacturing industries are leveraging digital manufacturing technologies quickly and the implementation of IoT plays a significant role in these advanced technologies, which is expected to boost the market growth.

The logistics & transport segment is anticipated to grow at the highest CAGR of over 26% over the forecast period. This growth is attributed to the significant emphasis logistics placed by transportation companies on enhancing asset management. As a result, it leads to the implementation of smart transportation.

Modern alternatives like Bluetooth Low Energy (BLE) tags are also gaining popularity. These types of technologies possibly help in tracking data in more confined, smaller regions along with enhancing operational management, which is expected to fuel the market growth further.

Regional Insights

North America accounted for the largest market share of over 32% in 2022 and is expected to retain its dominance during the forecast period. This is attributed to the early adoption and implementation of industrial IoT technology across the region. Moreover, strong government support for promoting digitalization across the industrial sector, an increase in the usage of industrial IoT devices, and increasing adoption of cutting-edge technologies like cloud computing and AI is expected to drive the market growth during the forecast period.

The Asia Pacific region is expected to grow at the fastest CAGR of over 26% during the forecast period. The popularity of advanced factory automation systems is rising across the region, especially in China and Japan. Manufacturing industries in the region are starting to recognize the benefits of using robot arm technology. Prominent countries in the region are also investing heavily in industry 4.0 as they want to be independent in terms of production and manufacturing. This, in turn, is expected to fuel the Industrial Internet of Things Market growth across the region.

Key Companies and Market Share Insights

Key players in the industrial internet of things industry are offering and expanding their portfolios by investing in product research & development and delivering competitive solutions, which increases market rivalry. The key participants focus on collaboration with other companies to have a competitive edge over others in the market.

For instance, in February 2021, Cisco Systems, Inc., a networking solutions company, partnered with Newark, an Avnet Company, to leverage their industrial internet of things network solutions across an entire infrastructure, including industrial assets and devices. The competition in this market is high, although technological advancements are allowing companies to save time and cost while increasing their efficiency and effectiveness.

Constant research and development are leading to the industry becoming more common and standard even if it requires some investment. Due to globalization, the industrial internet of things trend is present in global markets over conventional boundaries. Some prominent players in the global Industrial Internet of Things Market include:

• ABB

• ARM Holding Plc

• Atmel Corporation

• Cisco Systems, Inc.

• General Electric Company (GE)

• International Business Machines Corporation (IBM)

• Intel Corporation

• Rockwell Automation, Inc.

• Siemens AG

• Microsoft Corporation

Industrial Internet of Things Market Report Scope

Global Industrial Internet of Things Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global Industrial Internet of Things Market report based on component, end-use, and region:

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Solution

    • Remote Monitoring

    • Data Management

    • Analytics

    • Security Solutions

    • Others

  • Services

    • Professional

    • Managed

  • Platform

    • Connectivity Management

    • Application management

    • Device Management

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Metal & Mining

  • Chemical

  • Manufacturing

  • Energy & Power

  • Oil & Gas

  • Healthcare

  • Logistics & Transport

  • Agriculture

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • Benelux

    • Nordic Countries

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Mexico

    • Brazil

    • Chile

    • Peru

  • Middle East and Africa