ID: MRFR/ICT/1593-CR | February 2020 | Region: Global | 100 pages
The increasing investments by various industry leaders in the industrial IOT market would galvanize the growth of the market in the future years. The increasing speed of industrialization and the emergence of automation to decrease the pressure on various production assemblies would likely offer newer industrial IOT market opportunities. According to the assumption of MRFR or Market Research Future, the industrial IOT market size would reach 751.3 Million USD at a rate of 23.88% CAGR in the course of the forecast period.
Industrial IoT Market COVID-19 Analysis:
The COVID-19 pandemic has impacted all the worldwide industries and countries. The oil, transport, gas, manufacturing, and many more industries are still bearing the brunt of its adverse effects. As a result of the lockdowns announced because of the death surge due to the pandemic, the gas and oil industry had witnessed a severe drop in daily demand. Since January 2020, oil prices have dropped by at least 50% in various countries and the US markets are experiencing a record of low demand.
In April 2020, the International Energy Agency declared that the oil demand has dropped by 29 billion barrels on a daily basis. The decrease was further projected to become 23.1 million barrels on a daily basis by the end of 2020. Therefore, these changes in the industry are likely to affect the ongoing, existing, and potential growth of industrial IOT market size as in this scenario IoT could be considered as not necessary. Moreover, it could have been canceled or delayed in the coming future.
Industrial IoT Market Dynamics:
The main three key factors that drive the growth of the global industrial IOT market are – the low operational cost of IoT, the growth in various technical advancements, the high rate of adoption of the various cloud-based models of deployment.
The connected and smart products are the necessary components in the smart manufacturing procedures and the connected supply chains. Moreover, the advantages offered by the low-cost connected devices have permitted the manufacturers to implement various industrial IOT market trends to increase the overall productivity of the industry and also to decrease the amount of resource consumption.
Also, because of low operating costs, many of the manufacturers tend to incorporate the industrial IOT market trends applications in various machines to develop the performance of the machines at a decreased cost. Also, the demand for data protection, low-cost information storage, and backup are important industrial IOT market opportunities for SME or small and medium-sized enterprises. The cloud implementations made via industrial IOT market trends help the business organizations to deliver better services of IoT to unique industry verticals.
Also, the growth in industrial IOT market size has permitted the major industry players to provide their end-users a much improved industrial IOT market opportunities. The emergence of smart sensors into various industrial machines has permitted the manufacturers to lower the operating expenses by at least 505 and it is expected to get lowered further in the course of the Industrial IOT Market Forecast period. Moreover, augmented reality and virtual reality offer end-users a complete 360 degree of any object before it’s got manufactured in real.
According to the industrial IOT market forecast, after years of anticipation, steady uptake, and hype, the IoT or internet of things is expected to emerge into mainstream business utilization. The industrial IOT market forecast also reveals that the number of industries that utilize IoT-related technologies has uplifted from 13% to 25% within 2014 to 2021. Also, by 2023, the global numbers of IoT-connected devices are presumed to uplift by at least 43 billion. Therefore, from 2018, the industrial IOT market share would experience a threefold growth.
Cumulative Growth Analysis:
The IoT is basically the networking of various physical objects with the assistance of actuators, sensors, and various other devices that are capable of collecting and transmitting data about various objects. The information collected from these devices can be analyzed in the future to enhance the operations, products, and services of industrial IOT key players. Also, the best utilization of application of these technologies lies in various areas of optimization of energy like sensors that are deployed around the grid electricity that aid the utilities to monitor the utilization of energy remotely. It also adjusts the distribution and generation of energy flow to account for both peak times and peak downtimes of industrial IOT key players.
Industrial IoT Market Segment Overview:
The global IoT market industry that faces various industrial IOT market challenges can be segmented depending on organization size, components, region, vertical, and connectivity. Despite the industrial IOT market challenges the worldwide IoT market is expected to witness a decent amount of growth in the course of the forecast period, i.e. 2017 to 2013.
By Organization Size/ Deployment:
Based on organization size, the worldwide IoT market can be divided into:
On the basis of components the IoT industry can be classified into:
Depending on the region, the IoT market can be classified into:
On the basis of vertical, the IoT market industry can be classified into:
By Connectivity/ Application:
Depending on connectivity, the global IoT market can be divided into:
Industrial IoT Market Regional Analysis:
On the basis of the latest research findings, the North American region is expected to hold the highest share of the worldwide agile IoT market in the course of the forecast period because of the presence of strongly established economies in this particular region. This feature permits them to spend hugely in the R and D. In addition with the increasing adoption of various smart connected devices and rapid digitalization throughout the verticals of the IoT industry, and also the improvement in the technological fields have further enhanced the increasing demand of IoT industry in North American region. Also, the European regions and the Asia Pacific region are assumed to experience prominent growth because of the speedy advancements of IOTs in these regions.
Industrial IoT Market Competitive Landscape:
The IoT industry’s competitive landscape offers details by the entire economic profit of the vendors and the companies, the sales and revenues generated in this industry, the IoT share in the global market, the overview of the business organization, the launch of new products, the opportunities and prices, the overview of production sites, prices of IoT, SWOT analysis, etc.
Based on the global IoT market analysis, the market is anticipated to experience a growth of at least 751.3 Million USD by 2023. Therefore, there will be at least a 23.88% rise in Compound Annual Growth Rate or CAGR in the course of the forecast period, i.e. 2017-2023. The North American region is one most the most significant players based on IOT applications of the region because of its vast industrial and manufacturing sector.
Scope of report and segmentation table:
Frequently Asked Questions (FAQ) :
The market is going to achieve a valuation of USD 751.3 million by 2023.
The market is going to achieve its growth from 2017 to 2023.
The factors driving the market are directed towards the emergence of novel technologies such as data analytics, robotics, machine learning, and artificial intelligence.
Rockwell Automation, Inc. (U.S.), General Electric Company (U.S.), Intel Corporation (U.S.) are the top 3 key players investing in the market share significantly.
IBM has been a great contributor to the market share.
Industrial Internet-of-Things Market – Summary
The global industrial internet-of-things market is expected to reach USD 751.3 billion valuation by 2023, at an astonishing CAGR of 23.88% over the forecast period (2017-2023), reports Market Research Future (MRFR). In recent times, industrial internet-of-things (IoT) have turned out to be a revelation as it simplifies business processes and enhances the overall efficiency.
The operational feasibility IoT provides to software and hardware platforms has helped the sector has garnered praises from all quarters. It has emerged as a promising guide for both large and small-scale enterprises by providing an efficient solution to ease operations and expanding their business horizon. Cloud IoT has taken this experience to the next level by making it more consumer-friendly and providing superior user-access in the e-commerce sector. Concurrently, it has curbed down the expenditure for the industries across spectrums creating a beneficial ambience for the investors.
Operational facilities are also experiencing a revamp as IoT has impacted the market in manifold ways. Machines with embedded sensors and various technological platforms help IoT generate raw real-time data that helps in better decision making. Imbibing smart technology has also proven beneficial for multiple industrial verticals as the efficiency level has increased significantly. The industry has taken a quantum leap by implementing smart technology in the manufacturing process.
However, one of the major concerns are security and privacy concerns. Devices that can be operated via the internet are more susceptible to intrusion. This can result in data theft and leakage of confidential documents. The impact can also cause a massive disruption in day to day life as most of the regular functional systems such as power and energy supply are also banking heavily on IoT.
The global industrial IoT market can be segmented by component, deployment, connectivity, and end-user.
By component, the market is segmented into hardware, software, and service. Hardware has sub-segments such as sensors & radio frequency identification (RFID), industrial robotics, camera systems, smart meters, 3D printing, flow and application control device, distributed control systems and others. The segment is dominating the market with a market valuation estimated to go up to USD 308.7 billion by 2023, at a staggering CAGR of 23.04% during the forecast period. Software is further segmented into manufacturing execution, product lifecycle management systems, SCADA systems, distributed management system, retail management software and others. Service has two sub-segments managed services and professional services. However, software is going to be the fastest growing segment with a projected market valuation USD 296.7 billion by 2023.
Deployment-wise, IoT is segmented into on-cloud, on-premise and hybrid. Easy accessible data and information, easy sharing, low expenditure, and growing application areas have made on-cloud deployment a preferred segment. The segment is expected a CAGR of 24.17% during the forecast period and can reach USD 361.7 billion valuation in the said period. Nevertheless, hybrid is going to become the fastest growing segment with a stellar CAGR of 26.26% over the assessment period.
Connectivity-based segmentation includes wireless and wired. Technologies such as Bluetooth, Wi-Fi, and ZigBee have given the wireless sector a thrust and contributed extensively to the market growth. Wireless is both the fastest and leading market segment with the estimated market value to go up to USD 350.9 billion by 2023.
Based on end-users, the market comprises IT & telecom, manufacturing, healthcare, retail, oil & gas, energy & power, automotive and others. Manufacturing has implemented IoT the most to meet customer requirements. The segment is touted to dominate in the foreseeable future with an impressive CAGR of 27.94% over the forecast period.
Geographically, the market covers North America, Europe, Asia Pacific (APAC), and Middle East and Africa.
APAC region dominates the market owing to rapid digitization and automation. The industry is also experiencing an upward growth. These aspects make the IoT market conducive in the region. China is investing heavily in the research and development of automation of industrial operations and has implemented IoT in its industries. Japan is also going in the same direction, and the combined market has generated USD 39.18 billion in 2017. China is estimated to register the fastest growth with a fantastic CAGR of 26.08% during the assessment period.
North America is the second largest market. With its tendency to adopt the latest technologies and advantageous infrastructure, the U.S. market in this region has already generated USD 43.2 billion in 2017. It is projected to record a CAGR of 22.40% during the forecast period.
The global market for industrial IoT is getting influenced by many notable players such as General Electric Company (U.S.), Cisco Systems (U.S.), Rockwell Automation, Inc. (U.S.), Accenture Plc (Ireland), Huawei Technologies Co. Ltd (China), Robert Bosch GmbH (Germany), Siemens AG (Germany), .), IBM Corporation (U.S.), and Intel Corporation (U.S.). However, IBM Corporation, Siemens AG, Cisco Systems, Inc., General Electric Company, and Intel Corporation are the top five players.
Global Industrial IOT Market: Competitive Landscape
General Electric Company is the leading company in Global Industrial . General Electric Company provides products for generation, transmission, distribution, control, and utilization of electricity. The company is strongly positioned globally with an employee strength of 295,000 employees providing various Industrial IoT solutions in North America, Asia Pacific, and European countries. GE was the first to launch the Industrial IoT ecosystem and has strong strategic relationships with more than 700 companies. The company has launched its Predix platform for Industrial IOT which provides asset connectivity, edge technologies, analytics and machine learning, and big data processing capabilities to various industry verticals. The company has many customers deploying Predix platforms in energy, oil & gas, and aviation industries. The company also invests heavily in research and development to get upgrades on the current technologies and maintain its position in the Industrial IOT market.
Cisco Systems has occupied the second place in Global Industrial IOT market. Cisco Systems designs, manufactures, and markets IP based networking products and services. The company is strongly positioned in the Industrial IOT market with an employee strength of 132,000 employees and its solutions majorly deployed in transportation and healthcare industries. Cisco’s product portfolio of Industrial IOT solutions forms the backbone of thousands of companies across Industrial Enterprise and Public sectors. Cisco’s Jasper Control Center has become the world’s largest IOT connectivity management platform. The company is focused on partnering and acquiring other strategic companies to expand its global reach and maintain its market position.
IBM Corporation has occupied the third place in Global Industrial IOT market. IBM Corporation manufactures computer hardware, software, and middleware and provides information technology consulting services. The company is one of the leaders, providing Industrial IOT solutions with large strength of skilled employees connecting IoT devices at a large scale via the IBM Cloud. IBM along with Bosch, another leader in engineering and electronics, has developed IBM Watson IOT which as an Industrial IOT solution to simplify asset management, facilities management and product development. IBM strongly focuses on innovation of products, and continuous re-invention and transformations of IOT solutions to grow its market position.
Robert Bosch has occupied the fourth place in the Global Industrial IOT market. Robert Bosch is the leading supplier of Mobility, Household, Industry, and Trade solutions and manufactures flexible IOT platforms. The company is well placed in the market with a skilled workforce to provide Industrial IOT solutions to various manufacturing industries. The company has collaborated with IBM and other leaders in the Industrial IOT, to launch its Bosch IOT Suite services on IBM’s Bluemix and Watson IoT platform to boost auto manufacturers to schedule and organize software updates to millions of vehicles and goods manufacturers to remotely send updates thousands of electronic devices. The company aims to improve its product lines through advances in technology and new product development to lead the Industrial IOT market.
AT&T Inc. has occupied the fifth place in the Global Industrial IOT market. AT&T Inc. is one of the largest telecommunication companies in the U.S., providing Industrial IOT Solutions for data storage and data visualization for industries such as healthcare, food and agriculture, energy and utilities and aviation. The company has a workforce with skilled expertise in Industrial IOT providing advanced IOT solution across devices, networks, and platforms. AT&T has collaborated with many major players such as Ericson and IBM to expand its professional IOT services and provide IoT analytics solutions. The company aims to provide world class customer experience to form a strong customer base and lead the Industrial IOT market.