April 16, 2024
IoT in Manufacturing Market

IoT in Manufacturing is Estimated to Witness High Growth Owing to Growing Connectivity in the Industry

The IoT in manufacturing market refers to the integration of internet of things (IoT) technologies, solutions and services in manufacturing industry to monitor, control, automate and optimize manufacturing processes and equipment performance. IoT solutions help collect real-time data from connected devices and assets to gain insights for improving operations, minimizing downtime and reducing costs. Growing focus on predictive maintenance, remote monitoring and enhanced visibility across supply chains are fueling adoption of IoT in manufacturing. The Global IoT in Manufacturing Market Size is estimated to be valued at US$ 271.16 Bn in 2024 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the IoT in manufacturing are EnableX.io (VCLOUDX PTE. LTD), Twilio Inc., Infobip Ltd., Vonage Holdings Corp, M800 Limited, MessageBird BV, Iotum Inc., Plivo Inc., Voxbone SA, Snich AB, Telestax, Voximplant (Zingaya Inc.), Mitel Networks Corporation, 8×8 Inc., AT&T Inc., Voxvalley Technologies, Avaya Inc., Bandwidth Inc. (Bandwidth.com), Wazo Communication Inc., and IntelePeer Cloud Communications.

The key opportunities in the market include growing demand for predictive maintenance, optimize production and quality control, reduce operational cost and downtime. IoT also facilitates remote equipment monitoring, predictive maintenance and spare parts management.

Technological advancements such as commercialization of 5G networks, advancement of Low power wide area networks (LPWAN), integration of AI and machine learning with IoT platforms will further accelerate adoption of IoT solutions in manufacturing.

Market drivers

Rising demand for mass customization is driving manufacturers to adopt IoT solutions to achieve flexibility and agility in production. IoT enables real-time visibility and control across distributed operations. This helps manufacturing companies optimize processes, reduce costs and enhance productivity. Growing emphasis on predictive analytics and data-driven decision making is another key factor fueling investments in IoT infrastructure and solutions in manufacturing sector

Current challenges in IoT in Manufacturing Market:

The IoT in manufacturing market is currently facing challenges related to data security, integration of legacy systems, lack of common standards and high initial investments. As manufacturing organizations are collecting and storing huge amounts of sensitive operational and product data on cloud platforms, securing this data from cyber threats is a top priority. Integrating legacy manufacturing machines and systems which were not designed for connectivity is also proving to be difficult task. Absence of common networking protocols and data formats poses interoperability challenges. High costs associated with deployment of sensors, gateways, cloud platforms and other infrastructure is also restricting wider adoption of IoT solutions especially among small and medium enterprises.

SWOT Analysis

Strength: IoT enables real-time visibility and remote monitoring of manufacturing operations. It helps improve efficiency, reduce downtime and aid data-driven decision making.
Weakness: Lack of in-house IoT skills and experts is a major weakness for smooth implementation of projects. Integrating legacy systems with new IoT platforms is technically challenging.
Opportunity: IoT can help optimize resource utilization, implement predictive maintenance, customize products as per customer needs and enable new revenue streams through data monetization. Emerging technologies like edge computing, 5G, AI/ML also provide growth opportunities.
Threats: Concerns around data privacy and security threats from cyber attacks are major threats. Heavy dependence on technology providers and cloud platforms can also become a dependency risk.

Geographical regions of high market concentration:

North America currently accounts for the largest share of around 30% of global IoT in manufacturing market in terms of value. Presence of several global IoT vendors and early technology adoption among manufacturing firms in U.S. and Canada has boosted the regional market. Europe is another major region with manufacturing giants based in Germany, U.K., France and Italy contributing significantly to regional revenues.

Fastest growing region:

Asia Pacific region is poised to be the fastest growing market for IoT in manufacturing during the forecast period. This is attributed to ongoing industrialization and ‘Made in China 2025’ initiative which is aimed at transforming the country’s domestic manufacturing through digital technologies. Governments in other Asian countries like India, Indonesia, Vietnam are also aggressively promoting adoption of Industry 4.0 practices to boost productivity and competitiveness of their manufacturing sectors.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it