Analysis of the global manufacturing IoT market from 2017 to 2024

According to relevant data, the global manufacturing Internet of Things market size was valued at more than US$20 billion in 2016, and the average annual compound growth rate from 2017 to 2024 is expected to exceed 20%.

The growing demand for improved operational efficiency and cost optimization is expected to drive the growth of the IoT market in the manufacturing industry. The growing industrial sector in the Asia Pacific region has provided great growth impetus to the industry, which is mainly attributed to the surge in demand from various industries to control operations and supply chains and improve efficiency.

Privacy and security issues related to the large amount of data generated by network devices are likely to limit the growth of the IoT market during the forecast period. The increasing number of cybersecurity breaches across industries around the world has also posed a number of challenges to the industry. In addition, factors such as the lack of standards related to device connectivity will also inhibit the growth of the industry.

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Manufacturing IoT Market: Platforms

Device management platforms are expected to witness rapid growth due to their importance in managing multiple devices that generate a large amount of data. Application management platforms are expected to witness significant growth due to the ease of management across different industries. The benefits of application management platforms include cost optimization and management of various software and network industries and enable analysis of data generated by a range of connected devices in the network.

Manufacturing IoT Market: Technologies

The increasing adoption of technological solutions such as sensors and connectivity technologies is also expected to drive the growth of the manufacturing IoT market. Sensors are widely used technologies that measure physical variables and convert them into electrical signals. The current situation of large-scale implementation of sensor technology in various industries for generating data and monitoring facilities will provide huge growth opportunities for the manufacturing IoT market. The connectivity technology sector will also accelerate growth owing to the increasing pace of implementation of this technology in manufacturing applications such as automobiles and machinery.

Manufacturing IoT Market: Components

The software segment is expected to witness significant growth in the future owing to the increasing implementation of various software solutions such as remote management and data management. The growing need for remote monitoring of industries located in inaccessible areas is expected to boost the demand for such software solutions. To remain competitive in the market, various manufacturing companies are investing heavily in the development of software solutions.

Manufacturing IoT Market: Services

Professional services dominate the market with a large market share. This is mainly attributed to the growing demand for professional technical services in the manufacturing industry. The managed services segment will achieve significant growth due to the increasing trend of enterprises paying attention to such services. The lack of resources caused by the complexity of the Internet of Things is expected to drive further demand for managed services in the market.

Rising demand for predictive maintenance of factory infrastructure and real-time visibility of industrial and other process-related data is expected to drive the market growth.

Manufacturing IoT Market: Applications

The automotive manufacturing industry will see significant adoption owing to the advantages of technology implementation such as predicting and preventing equipment failures by improving the performance and efficiency of assets and equipment through immediate reduction of maintenance costs. In addition, the growing trend of connected cars and autonomous vehicles will also drive the growth of the market.

Manufacturing IoT Market: Regions

Asia Pacific will witness significant growth due to widespread adoption in industrial hubs such as China, India, and Japan. The growing demand for advanced technology in manufacturing equipment will lead to an escalation in demand across the industry in the Asia Pacific region. Favorable government initiatives such as “Made in China” and “Make in India” by the Chinese and Indian governments offer immense potential for the industry.

North America is expected to witness substantial growth during the forecast period. This is primarily attributed to the presence of a large number of manufacturing facilities coupled with early adoption of technology in the region. Rising awareness among operators in the region regarding the benefits of implementing IoT is also expected to drive the market growth.

Market competition

The main players in the field of Internet of Things in manufacturing include IBM, Intel, Microsoft, Cisco, Siemens, Huawei and Rockwell Automation; other well-known companies in the industry include Schneider Electric, PTC, Bosch and Zebra Technologies.

Currently, many new companies are entering the industry and launching many advanced and innovative products. The major companies in the industry are also investing heavily in development and upgrading of technical solutions in order to achieve outstanding performance.

The manufacturing industry dominates the IoT industry because it helps companies in production asset management, security, operation and maintenance, helping manufacturers improve operational efficiency and competitive advantage across the entire value chain. The industry is expected to see significant growth and bring huge opportunities to hardware component manufacturers, software service providers, network and application management providers, and platform providers.