The Global industrial IoT market was valued at USD 76.8 billion in 2022 and is projected to reach USD 110.6 billion by 2030, at a CAGR of 7.6% during the forecast period.

The global industrial Internet of Things (IoT) market refers to the use of connected devices and sensors in industrial settings to gather data, automate processes, and improve efficiency. The market includes hardware, software, and services related to industrial IoT applications.

The market is being driven by factors such as the increasing adoption of cloud computing and big data analytics, the growing demand for smart manufacturing and Industry 4.0 technologies, and the need for real-time monitoring and predictive maintenance. Additionally, the rise of 5G networks and edge computing is expected to further accelerate the growth of the industrial IoT market.

Regionally, North America is expected to dominate the industrial IoT market due to the high adoption of advanced technologies in the manufacturing sector, while Asia Pacific is expected to see the fastest growth due to the increasing industrialization and modernization of manufacturing processes in countries such as China and India.

Market Dynamics

Driving Factors

The industrial IoT market is being driven by several factors, including:

Automation and Efficiency: The use of connected devices and sensors in industrial settings helps automate processes, improve efficiency, and reduce costs.

Real-time Monitoring and Predictive Maintenance: The ability to monitor equipment and processes in real-time and predict potential failures allows companies to perform maintenance before issues occur, reducing downtime and improving overall efficiency.

Cost Savings: The industrial IoT can help companies save costs by reducing downtime, improving maintenance processes, and optimizing energy consumption.

Improved Safety: Connected devices and sensors can improve worker safety by monitoring environmental conditions and identifying potential hazards.

Rise of 5G Networks and Edge Computing: The rise of 5G networks and edge computing is expected to further accelerate the growth of the industrial IoT market by enabling faster and more reliable data transfer and processing, as well as improved device management and security.

Restraining Factors

While the industrial IoT market is growing, there are also several factors that are restraining its growth, including:

Integration Challenges: Integrating industrial IoT devices and systems with existing equipment and software can be complex and time-consuming, requiring significant investment in both time and resources.

Cost: The cost of implementing and maintaining an industrial IoT system can be a barrier for smaller companies or those with limited budgets.

Skills Gap: The shortage of skilled workers in the field of industrial IoT can make it difficult for companies to implement and maintain these systems, limiting their adoption.

Regulatory and Compliance Issues: The use of industrial IoT devices and systems may be subject to regulations and compliance requirements, which can be a barrier to adoption for some companies.

Lack of Standardization: The lack of standardization in the industrial IoT market can make it difficult for companies to compare and evaluate different devices and systems, leading to uncertainty and hesitation in investment decisions.

Challenges Factors

The industrial IoT market faces several challenges, including:

Integration Complexity: Integrating industrial IoT devices and systems with existing equipment and software can be complex and time-consuming, requiring significant investment in both time and resources.

Scalability: As industrial IoT systems grow and more devices are added, it can become difficult to scale these systems efficiently, leading to issues such as performance degradation and increased costs.

Maintenance and Support: Industrial IoT systems require ongoing maintenance and support, which can be challenging for companies without the necessary expertise or resources.

Cost: The cost of implementing and maintaining an industrial IoT system can be a significant challenge, especially for smaller companies or those with limited budgets.

Regulation and Compliance: The use of industrial IoT devices and systems may be subject to regulations and compliance requirements, which can be a challenge for companies looking to adopt these systems.

Workforce Development: The shortage of skilled workers in the field of industrial IoT can make it difficult for companies to implement and maintain these systems, limiting their adoption.

Environmental Concerns: The increased use of connected devices and sensors in industrial settings can have environmental implications, such as increased energy consumption and e-waste generation.

Opportunity Factors

The industrial IoT market presents several opportunities for companies, including:

Data Analytics: The data generated by industrial IoT devices can provide valuable insights into operations and performance, allowing companies to make more informed decisions and improve processes.

Improved Safety: Connected devices and sensors can help improve worker safety by monitoring environmental conditions and identifying potential hazards.

New Revenue Streams: Industrial IoT devices and systems can create new revenue streams by enabling companies to offer value-added services such as remote monitoring, predictive maintenance, and data analytics.

Competitive Advantage: Companies that adopt industrial IoT devices and systems can gain a competitive advantage by improving efficiency, reducing costs, and offering new services to customers.

Improved Customer Satisfaction: By using industrial IoT devices and systems to improve efficiency and reduce downtime, companies can improve customer satisfaction by delivering products and services more quickly and reliably.

Emerging Technologies: The industrial IoT market is constantly evolving, with new technologies such as edge computing and 5G networks offering new opportunities for companies to innovate and improve their operations.

Sustainability: The industrial IoT can help companies reduce their environmental impact by optimizing energy consumption and reducing waste. This can help companies meet sustainability goals and improve their reputation.

Segmentation Analysis

Component Outlook

Hardware segment includes devices such as sensors, gateways, and embedded systems that enable communication and data exchange between machines and systems.

The software segment includes platforms, applications, and analytics tools that enable companies to manage, analyze, and act on the data generated by industrial IoT devices. Services segment includes consulting, implementation, and maintenance services provided by third-party vendors to help companies deploy and manage industrial IoT solutions.

The AI segment includes the use of machine learning algorithms and predictive analytics to derive insights from the data generated by industrial IoT devices and optimize operations. Other component segments may include power sources, actuators, and other specialized devices or technologies that enable specific industrial IoT applications.

End Use Outlook

The manufacturing industry is a significant user of industrial IoT devices and systems, with applications ranging from predictive maintenance and quality control to supply chain management and logistics.

The healthcare industry is increasingly adopting industrial IoT devices to enable remote patient monitoring, improve patient outcomes, and enhance operational efficiency. The energy and utilities industry is using industrial IoT devices to optimize energy consumption, reduce waste, and improve the reliability and safety of energy infrastructure.

The transportation industry is using industrial IoT devices to improve vehicle performance, optimize routes and logistics, and enhance passenger safety and experience. The agriculture industry is using industrial IoT devices to optimize crop management, improve soil quality, and increase yield.

Regional Analysis

The North American industrial IoT market is driven by the presence of several leading technology companies, the availability of advanced communication infrastructure, and increasing adoption of automation technologies in various end-use industries.

The European industrial IoT market is driven by initiatives such as Industry 4.0 and increasing focus on smart manufacturing, as well as strong government support for innovation and technology adoption.

The Asia Pacific industrial IoT market is expected to grow rapidly due to increasing adoption of automation technologies in various end-use industries, as well as a large and growing population of tech-savvy consumers.

Scope Of Report:

The Global Industrial IoT Market has been segmented into:

By Component

Solution

• Remote Monitoring
• Data Management
• Analytics
• Security Solutions
• Others

Services

• Professional
• Managed

Platform

• Connectivity Management
• Application management
• Device Management

By End-use

• Metal & Mining
• Chemical
• Manufacturing
• Energy & Power
• Oil & Gas
• Healthcare
• Logistics & Transport
• Agriculture
• Others

By Region

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Nordic Countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Market Players 

The global Industrial IoT market is highly competitive and fragmented, with numerous players vying for market share. Some of the key companies in the market are:

• 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

Siemens AG: A German company that offers a range of industrial IoT products and services, including automation systems, software platforms, and data analytics tools.

General Electric Company: A US-based company that offers a range of industrial IoT solutions, including sensors, automation systems, and analytics platforms.

IBM Corporation: A US-based company that offers a range of industrial IoT solutions, including software platforms, analytics tools, and consulting services.

Cisco Systems, Inc.: A US-based company that offers a range of industrial IoT solutions, including networking infrastructure, security solutions, and analytics platforms.

Bosch GmbH: A German company that offers a range of industrial IoT solutions, including sensors, software platforms, and analytics tools.

Honeywell International Inc.: A US-based company that offers a range of industrial IoT solutions, including sensors, automation systems, and data analytics tools.

Microsoft Corporation: A US-based company that offers a range of industrial IoT solutions, including software platforms, analytics tools, and cloud-based services.

Strategic Developments

In January 2022, Siemens AG announced the acquisition of Sqills, a Dutch provider of software solutions for the rail and bus industry, to expand its portfolio of digital solutions for the transportation sector.

In August 2021, Honeywell International Inc. announced an investment in InertialSense, a US-based provider of microelectromechanical systems (MEMS) technology for use in industrial IoT applications.

In May 2021, Cisco Systems, Inc. announced the acquisition of Kenna Security, a US-based provider of cybersecurity solutions for the industrial IoT market, to enhance its security offerings for customers.

In March 2021, Schneider Electric SE announced the acquisition of ETAP Automation, a US-based provider of electrical engineering software solutions for the industrial IoT market, to enhance its capabilities in power management and electrical systems.

In December 2020, Microsoft Corporation announced the acquisition of CyberX, an Israeli provider of cybersecurity solutions for the industrial IoT market, to enhance its security offerings for customers.