GVR Report cover Industrial Internet Of Things Market Size, Share & Trends Report

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, 2021 - 2028

  • Published Date: Jun, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-1-68038-803-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 140

Report Overview

The global industrial internet of things market size was valued at USD 216.13 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 22.8% from 2021 to 2028. The aggressive rate of IIoT adoption in line with the advances in technology and the easing availability of affordable sensors and processors, which can facilitate real-time access to information, is expected to drive the growth of the industrial internet of things (IIoT) market over the forecast period. The ever-increasing need to augment operational competence tied with solid cooperation among the key market players to deliver the same is anticipated to drive the market expansion. Also, the strategies being drafted to establish a unified digital-human workforce are expected to open substantial growth opportunities.

North America industrial internet of things market size, by component, 2016 - 2028 (USD Billion)

Industrial IoT can potentially help companies in ensuring the safety of their workforce, reducing operating expenses, and increasing throughput. Companies are gradually establishing new product and service hybrids to strengthen their position and create fresh income streams by shifting from selling solutions to delivering assessable outcomes. IoT is particularly playing a vital role in ensuring easy access to machines and devices. Favorable initiatives pursued by various governments and aggressive efforts being undertaken by companies, such as General Electric; Cisco Systems Inc.; and Huawei Technologies Co. Ltd. for IIoT deployment are anticipated to fuel industry growth over the forecast period.

The increasing number of connected gadgets is anticipated to create fresh opportunities for new businesses possessing expertise in progressive Artificial Intelligence (AI) algorithms to develop state-of-the-art solutions that can potentially address the issues associated with the technology. IIoT deployment is typically gaining traction in application areas, such as asset management, remote servicing, operational intelligence, predictive maintenance, and remote monitoring. Further, the technology is helping the companies use advanced analytics and techniques like AI and Machine Learning (ML), to support predictive and prescriptive analytical solutions, thereby paving opportunistic ways for the industry.

Remote working policies being adopted in the wake of the outbreak of the COVID-19 pandemic have triggered the demand for transparency in operations. At this juncture, smart connected solutions are expected to play a crucial role in gaining operational visibility at an organizational level. Along with businesses are adapting to remote working and automating their processes accordingly, the businesses are also looking forward to building resilience to ensure growth in the post-COVID era. Hence, they are focusing on IIoT adoption to entice customers, enhance customer experience, and strengthen brand awareness. All such initiatives bode well for the growth of the industrial IoT market over the forecast period.

Component Insights

The solution segment dominated the market in 2020 and accounted for over 50% of the total revenue share. The segment is expected to continue leading over the forecast period. Solution providers are putting a strong emphasis on the introduction of innovative information systems for various industries and industry verticals are part of the efforts to increase their market share. They are also focusing on integrating sensors and other systems into the crucial equipment to track real-time information and enhance operational efficiency. The deployment of such solutions is expected to allow manufacturing entities to automate their complex manufacturing processes while ensuring efficient monitoring.

The services segment is expected to exhibit the highest CAGR of more than 23.0% from 2021 to 2028. The growth can be attributed to a substantial rise in the number of connected devices, which are generating large volumes of data. At present, IIoT applications utilize centralized cloud systems that are responsible for controlling the overall processes and the flow of information. Edge computing is also set to transform the industry by offering real-time analytical mechanisms and solutions to decentralize transactions and storage across the network.

End-use Insights

The report provides an in-depth analysis of the industrial internet of things market by further segmenting the market based on end-use into manufacturing, energy and power, oil and gas, healthcare, logistics and transport, agriculture, and others. The manufacturing segment is expected to dominate the market over the forecast period, and account for nearly 30% of the revenue share by 2028. Manufacturing entities are aggressively adopting digital manufacturing technologies and IIoT plays a vital role in such advanced technologies. The market is poised for substantial growth in the near future in line with the strategic partnerships and alliances stakeholders are striking and the need for a connected supply chain to ensure flexibility, operational efficacy, and regulatory compliance, which is rising continuously.

Global industrial internet of things market share, by end use, 2020 (%)

The logistics and transport segment is projected to register the highest CAGR of more than 26% from 2021 to 2028. The growth can primarily be attributed to the strong emphasis logistics and transportation companies are putting on enhancing asset management and subsequently on the adoption of smart transportation. Conventionally, the logistics industry has been using RFID tags, which are now being replaced by internet-connected trackers, which can potentially support a wide range of functionalities. The adoption of contemporary solutions, such as Bluetooth tags and beacons, is also increasing noticeably. Such solutions offer data tracking in smaller and confined areas but can contribute significantly to enhancing operational management.

Regional Insights

North America dominated the global IIoT market in 2020 with a revenue share of more than 30%. North America is home to several established market players. The region has also been an early adopter of IIoT and has gradually emerged as a hub of innovation. Canada has also been experiencing significant growth, primarily due to the initiatives being pursued by the government to encourage the adoption of IIoT solutions in the country.

Asia Pacific is anticipated to emerge as the fastest-growing regional market and register a CAGR of more than 26% from 2021 to 2028. The region is increasingly witnessing a strong adoption of advanced factory automation solutions, typically in Japan, China, and Taiwan. Manufacturing organizations across the region are gradually realizing the benefits associated with the implementation of robot arm technology. China is poised to emerge as the precision manufacturing hub by 2027 owing to the policies, such as “Made in China 2025”, drafted by the government to prioritize the adoption of advanced automation technologies in the region. At the same time, many venture capitalists across the region are backing IIoT-based firms to encourage technological developments in industrial IoT. For instance, in June 2019, SwitchOn, an AI-powered IIoT platform developed by The Abee Research Labs Pvt. Ltd. of India, secured USD 1 million from venture capitalist pi Ventures.

Key Companies & Market Share Insights

The key market participants are expected to focus on cost reduction, thereby making it challenging for new entrants to make a foray into the market. However, venture capital funding is expected to help IIoT startups in making inroads into the market. Both private and public sector companies are expected to start focusing on innovation, productivity, and value as they gradually realize that IIoT would be imperative for delivering integrated and sustainable products and services demanded by tech-savvy businesses. Leading market players are putting a strong emphasis on making industrial IoT more accessible and secure. For instance, in November 2018, General Electric Company (GE) launched a new offering, Predix Edge, which is aimed at streamlining edge-to-cloud computing and helping businesses in moving efficiently and securely from trial to production. Some of the prominent participants operating in the global industrial internet of things market are:

  • ABB

  • General Electric Company (GE)

  • IBM Corporation

  • Intel Corporation

  • Rockwell Automation, Inc.

  • Siemens AG

  • Microsoft Corporation

Industrial Internet Of Things Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 263.52 billion

Revenue forecast in 2028

USD 1.11 trillion

Growth Rate

CAGR of 22.8% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD Billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, end use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; Germany; U.K.; France; China; Japan; India; South Korea; Mexico; Brazil

Key companies profiled

ABB; General Electric Company (GE); IBM Corporation; Intel Corporation; Rockwell Automation, Inc.; Siemens AG

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. 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, 2016 - 2028)

    • 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, 2016 - 2028)

    • Manufacturing

    • Energy & Power

    • Oil & Gas

    • Healthcare

    • Logistics &Transport

    • Agriculture

    • Others

  • Regional Outlook (Revenue, USD Billion, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

    • Latin America

      • Mexico

      • Brazil

    • Middle East and Africa (MEA)

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