Industrial Internet of Things (IIoT) Market Report

Industrial Internet of Things (IIoT) Market Analysis By Component (Solution, Services, Platform), By End-Use (Manufacturing, Energy & Power, Oil & Gas, Healthcare, Logistics & Transport, Agriculture), And Segment Forecasts, 2018 - 2025

  • Published Date: Apr, 2017
  • Base Year for Estimate: 2016
  • Report ID: GVR-1-68038-803-9
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 161

Industry Insights

The global Industrial Internet of Thing (IIoT) market size was valued at USD 109.28 billion in 2016. IIoT has witnessed a high rate of adoption across the world, which has stemmed from improved affordability and availability of processors, sensors, and other technologies, thereby facilitating access to real-time information.

The ever growing need to enhance operational efficiency coupled with a strong alliance between the key industry players is expected to drive the market. With the evolution of the society toward an integrated digital-human workforce, the industrial internet is presumed to incorporate significant opportunities for growth over the next eight years.

Germany industrial IoT market, by component, 2014 - 2025 (USD Billion)

Germany industrial IoT market

IIoT is helping businesses across the world to improve worker safety, reduce operating costs, and enhance productivity. Companies are increasingly establishing new product and service hybrids globally in order to disrupt their own markets and generate fresh revenue streams by shifting from selling products to delivering measurable outcomes.

The role of the Internet of Things (IoT) is increasingly becoming more prominent in enabling easy access to devices and machines. Government-sponsored initiatives and innovative efforts made by key companies, such as Huawei, GE, and Cisco, are anticipated to enhance the adoption of IIoT worldwide over the forecast period.

In Europe, the German government has initiated and is sponsoring “Industrie 4.0”, a multi-year strategic initiative, that unites the key participants from private and public sectors as well as from academia to create an action plan and a comprehensive vision for applying digital technologies to the German industrial sector. Moreover, China has also proposed its “Made in China 2025” strategy to promote and enhance the integration of industrialization and digital technologies.

The evolution of industrial internet is expected to allow the IT sector to further penetrate digitized systems and connect the facility to a completely new range of applications that run around production. Industrial IoT applications are increasingly using the available data, business analytics, cloud services, and enterprise mobility to enhance industrial processes.

Component Insights

The three primary components analyzed in the report include solution, services, and platform. The solution segment has further been segregated into remote monitoring, data management, analytics, security solutions, and others. The services segment has been categorized as professional and managed services, whereas the platform segment has been categorized on a granular level into connectivity management, application management, and device management.

Industrial IoT solutions accounted for the largest market share of 55% in 2016 and is expected to witness substantial growth over the forecast period. Solution providers across the world are increasingly focusing their efforts on the integration of information systems, devices, and sensors across different industry verticals and businesses in order to renovate operations and enable the creation of new business models. IIoT solutions form an integral part of the overall industry, thereby providing innovative insights from analytics based on data from diverse sources to support decision making and enhance products and services.

IIoT services are presumed to witness the highest growth over the next eight years, following an estimated CAGR of slightly over 29% from 2017 to 2025. Growth in this segment can be attributed to the developing cloud computing market, increasing government initiatives for supporting sustainable smart factories growth, and rising number of connected devices that generate a large amount of data.

Among the two types of services analyzed in the study, managed services are presumed to experience the highest growth over the forecast period. Managed services are on the rise for various reasons, the most important ones being lack of available resources, the evolving and increasingly complex threat landscape, and the emerging trend among businesses to focus on managed services.

End-use Insights

Various end-use verticals analyzed in the report include manufacturing, energy & power, oil & gas, healthcare, logistics & transport, agriculture, and others. The manufacturing segment is presumed to emerge as the predominant end-use segment over the next eight years. Manufacturers worldwide are increasingly adding wireless connectivity, sensors, and software to their products to communicate across the network without human interaction using IP connectivity.

Presently, the primary application areas of IIoT in manufacturing include machine automation, factory environmental monitoring, production testing equipment, and machine vision. Nevertheless, predictive maintenance, data visualization, and MES/production profile are expected to extensively utilize IIoT in the coming years as these application areas require a high level of data collection and analysis.


Global industrial IoT market, by end-use, 2016 (%)

Global industrial IoT market

The application of IIoT in oil & gas is expected to witness considerable growth over the forecast period. As oil & gas industries are facing challenges of lower oil process, weaker demand, and oversupply, organizations are now seeking innovative solutions to maintain the overall profitability. The rise of industrial IoT is allowing oil & gas companies to substantially increase their operational efficiencies while reducing environmental and safety risks. The key solutions used in this segment include automated workflow, location intelligence, pipeline monitoring, and predictive maintenance.

IIoT in logistics & transport is anticipated to grow at a substantial rate over the forecast period, owing to the increasing penetration of connected logistics and transportation systems. The primary use of IIoT in this segment is freight monitoring and connectivity. Businesses across the world are increasingly focusing on speeding up their digital transportation efforts in order to make inroads in the digital supply chain and connected logistics.

Regional Insights

North America accounted for the largest market share in the IIoT industry in 2016. Majority of the players are based in North America and the region has been increasingly witnessing higher awareness regarding the benefits of using IIoT. The growth can be attributed to the increasing awareness pertaining to technological advancements and early adoption of IoT across the regional industrial sector.

The European industrial Internet of Things market was valued at over USD 35 billion in 2016 and is poised for significant growth over the next eight years. The European Commission (EC) has adopted a set of supporting policy actions to accelerate the adoption of IoT across the region. In March 2015, EC launched the Alliance for Internet of Things Innovation (AIOTI) to support the creation of an industry driven and innovative European IoT ecosystem.

The German government has launched “Industrie 4.0” in order to replace the traditional hierarchical automation structures with decentralized, partly self-organized networks, which enable mass customization. The platform is a transformation of manufacturing through the adoption of smart connected operations, connected, and smart products. However, while the platform is primarily associated with manufacturing, adjacent verticals including healthcare, oil & gas, smart cities, and utilities have also begun embracing “Industrie 4.0” technologies and principles.

Asia Pacific is anticipated to emerge as the fastest growing region over the forecast period. The region is increasingly witnessing a substantial adoption of advanced factory automation in the Far East, typically in Japan, China, and Taiwan. Manufacturing organizations across the countries are realizing the benefits associated with the implementation of robot arm technology on the production line. China is poised to emerge as the precision manufacturing hub by 2025, owing to the adoption of “Made in China 2025” to prioritize the adoption of advanced automation technologies in the region.

Competitive Insights

Industrial IoT is a dynamic industry and is poised to witness significant growth in the near future with predictions of reaching billions of connected devices over the next few years. The industry is witnessing the entrance of new companies and young startups scaling across the boards. Large Chinese contract manufacturers are demonstrating openness to work with startups and in few cases, invest in them.

The key players that dominated the global market share in 2016 include General Electric Company (GE), International Business Machines Corporation (IBM), Cisco Systems, Inc., Siemens AG, and Intel Corporation. Other players in the industry include Microsoft Corporation, Rockwell Automation, Inc., ABB, Atmel Corporation, and ARM Holding plc.

Report Scope



Base year for estimation


Actual estimates/Historical data


Forecast period


Market representation

Revenue in USD Billion and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, the Middle East & Africa (MEA)

Country scope

U.S., Canada, Germany, UK, France, China, Japan, India, South Korea, Mexico, and Brazil

Report coverage

Revenue forecasts, company market share, competitive landscape, growth factors, and trends

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global industrial IoT market on the basis of component, end-use, and region:

  • Component Outlook (USD Billion, 2014 - 2025)

    • Solution

      • Remote monitoring

      • Data management

      • Analytics

      • Security solutions

      • Others

    • Services

      • Professional

      • Managed

    • Platform

      • Connectivity management

      • Application management

      • Device management

  • End-Use Outlook (USD Billion, 2014 - 2025)

    • Manufacturing

    • Energy & power

    • Oil & gas

    • Healthcare

    • Logistics & transport

    • Agriculture

    • Others

  • Regional Outlook (USD Billion, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • UK

      • France

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

    • Latin America

      • Mexico

      • Brazil

    • The Middle East & Africa

Key questions answered by the report
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