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.
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.
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.
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.
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.
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.
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
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. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
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)
b. The global IIoT market size was valued at USD 216.13 billion in 2020 and is expected to reach USD 263.52 billion in 2021.
b. The global IIoT market is expected to grow at a compound annual growth rate of 22.8% from 2021 to 2028 to reach USD 1.11 trillion by 2028.
b. North America dominated the global IIoT market in 2020 with a revenue share of more than 30%.
b. Some key players operating in the IIoT market include International Business Machines Corporation (IBM); General Electric Company (GE); Intel Corporation; Siemens AG; and Cisco Systems, Inc. Other players include Rockwell Automation, Inc.; Microsoft Corporation; Atmel Corporation; ABB; and ARM Holding plc.
b. Key factors that are driving the IIoT market growth include collaboration among industry stakeholders and rising demand for a connected supply chain, which enables operational efficacy, flexibility, and conformance to regulations.
b. The solution segment dominated the IIoT market in 2020 and accounted for over 50% of the total revenue share.
b. The manufacturing segment is expected to dominate the IIoT market over the forecast period, and account for nearly 30% of the revenue share by 2028.
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Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.
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