The global internet of things (IoT) in manufacturing market stood at USD 27.76 Billion in 2018 and is projected to reach USD 136.83 billion by 2026, exhibiting a CAGR of 22.1% during the forecast period.
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The IoT in manufacturing comprises mechanical and electrical parts, advanced sensors, network connectivity architecture, controls, software applications, and smart devices that work together to collect and share real-time information between machines and humans. The internet of things in manufacturing industry is gaining robust growth due to the rising adoption of AI (Artificial Intelligence) and other connected devices based on machine learning (M2M, M2P).
Implementation of IoT technology in manufacturing industry is providing several organizations with new opportunities including digital transformations techniques and is enabling them to upgrade the current running operations by creating and tracking new business models. Furthermore, IoT solutions help in providing manufacturers a comprehensive vision to monitor complexities keep on arising at every intermediate point in the manufacturing process and assist in developing real-time adjustments.
Major players in this market are developing strategies and guidelines by completing deliberate mergers and partnerships to develop advanced IoT solutions for the manufacturing industry. Small and medium enterprises are immensely adopting IoT solutions in their manufacturing units to maintain cost efficiency, productivity, and operation advancement in their businesses.
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Also, the rising adoption of cloud-based IoT and analytics solutions is acting as the key driver for the growth of the internet of things software and solution in manufacturing market during the forecast period. Key manufacturers in the automotive space and heavy power plants are implementing IoT models to develop automated and unified transactions.
IoT models in the manufacturing industry include-
Products – Advanced sensors, connecting architecture, controls, and software application solutions are operated simultaneously to interchange the information between machines and devices. These automated products help to enable machines and devices to obtain and share information and further take autonomous action.
People – Skilled professionals help to convert relevant information in real-time and provides intelligent design, operations, intellectual controls, and maintenance.
Processes – Informed processes help in sharing bidirectional information across the manufacturing value chain from the supplier to the customer. The processes also help to generate and store relevant information in a bulk that further helps the automated products to take autonomous action.
Infrastructure – Infrastructure components help to create interface and connectivity between machines, devices, products, and people. Infrastructure helps to monitor and manage complexities and enable more efficient manufacturing of goods.MARKET DRIVERS
“Rising Demand for IoT-enabled Smart Devices”
The increasing implementation of technologies, namely, industrial 4.0, artificial intelligence (AI) based smart robots, and others in the manufacturing industry, help to reduce the overall manufacturing cost and offer enhanced quality and reliability. These drivers are very crucial for the manufacturing companies to withstand a leading position in the competitive market. Key manufacturing companies are focused on strategic mergers and collaboration to discover new opportunities by adopting IoT technology-based models. For instance, in April 2019, BMW Group partnered up with Microsoft Corporation to enhance open industrial IoT development and build Industry 4.0 solutions. This partnership was completed to develop ‘Open Manufacturing Platform (OMP)’ based on the Microsoft Azure Industrial IoT cloud platform. An open manufacturing platform provides a connectivity architecture with open source components based on the open industry standards and an open data model.
“Emergence of Industry 4.0 in Manufacturing Industry Will Boost the Market Growth”
Ongoing developments in the field of Industry 4.0 also aid in driving progress in the automation industry and creating opportunities for disruptive industry models. Major countries are investing enormously in the development and deployment of smart manufacturing. For instance, during 2016 – 2018, the Austria government invested around USD 300 Million for the development of IoT projects associated with Industry 4.0. It also launched the ‘SemI40’ (power semiconductor and electronics manufacturing 4.0) project. The project focuses on the development of intelligent production and cyber-physical production systems. Other drivers boosting internet of things (IoT) software and services in manufacturing market include advancement in industrial internet of things (IIoT), big data, upcoming industrial 5G model, and others.SEGMENTATIONBy Platform Analysis
“Companies are adopting IoT solutions in their manufacturing units because of the rising popularity of Platform-as-a-service”
Under the scope of the study, the platform segment is divided into device management, application management, and network management. The device management segment is expected to grow with a decent CAGR during the forecast period. This growth is owing to the increasing demand for integrated monitoring and predictive analytical solutions in manufacturing infrastructure and the rising adoption of advanced communication technologies. Device management is the process of designing, authenticating, monitoring, and maintaining the IoT device hardware and software that provides functional capabilities. Furthermore, the rising adoption of automated platform-as-a-service solutions helps organizations to monitor and control their overall manufacturing process and offer superior quality products.
Application management segment would have high demand in the market due to the increasing demand for AI-based solutions in various manufacturing applications, including pick and place, designing, packaging, semiconductor manufacturing, part transfer, and others.By Software & Services Analysis
“Rising adoption of Cloud platform”
Based on software & services, the market is segmented into software solutions and services. Services are expected to hold the maximum part in the IoT in manufacturing market share during the forecast period. Under the software solution, we have included data management, streaming analytics, smart surveillance, remote monitoring, and network band management. Smart surveillance holds a major share in terms of revenue and is expected to grow with an exceptional CAGR during the forthcoming period.
This growth is mainly due to the rising demand for cloud computing and open-source software based on IoT solutions. The growing demand for the internet of things (IoT) software in manufacturing products would be mostly driven from automotive, heavy manufacturing, and electronics industry to ease the manufacturing process. Major software providers are focused on developing and deploying ‘software-as-a-service’ models for the manufacturing industry, based on IoT capabilities.By Application Analysis
“Advancement in machine-learning (ML) and big data models”
Based on application, the market is segmented into predictive maintenance, asset tracking and management, real-time workforce, emergency and incident management, and others (business process optimization, business communication, and others). Predictive maintenance is expected to hold the maximum share and is forecasted to grow with a staggering CAGR during the forecast period. Predictive maintenance depends on the valuable insights and information that are gained with the help of persistent equipment condition monitoring solutions.
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Software engineers use specified algorithm and data patterns to create predictive models. Predictive maintenance based on machine-learning (ML) and big data models are programmed, tested, and are further used to detect and identify any occurrences of initial problems, predict the errors related to the machines, and detect operating conditions and machine usage patterns.REGIONAL ANALYSIS
Under the scope of the study, the regional segment is divided into five major regions including North America, Asia Pacific, Europe, Middle East & Africa, and Latin America.