IIoT Market Overview
Internet of Things (IoT) platforms allow industries to reduce cost through improved process efficiency, asset utilization, and improved productivity. Industrial Internet of things (IIoT) is a concept that alludes to the bridging of all the machines or equipment. It includes big data, machine learning, and machine to machine communication, including all the automated mechanisms involved in the processes. IIoT has the potential to fill the gaps in the efficiency and performance of any industrial process, and offer better results in terms of revenue, output, and production. The IIoT market is estimated to grow at a CAGR of 24.4% during the forecast period 2018–2023. APAC is projected to be the fastest growing market in the geography segment.
IIoT Market Outlook
The Internet of Things is the concept of connecting any device to the Internet and other connected devices. This technology connects data using embedded sensors, processors, and communication hardware. IIoT has applications in various industries such as automotive, energy, healthcare, transportation, manufacturing, oil and gas, agriculture and forestry, medical industry, and others. According to IndustryARC findings, the manufacturing industry vertical is projected to hold the major share of the IIoT market in the industry vertical segment during the forecast period 2018–2023.
IIoT Market Growth Drivers
Growing support from countries around the world in the adoption of the IoT in the industrial sector to help achieve better productivity is a major growth driver for the IIoT market. Increasing adoption of IoT in the manufacturing sector can be attributed to the advantages offered by the technology in terms of reduced operational costs. Additionally, availability of wireless connectivity at lower costs is also spurring the adoption of IoT in various industry verticals.
IIoT Market Challenges
Despite strong growth factors, the market for IIoT is faced with challenges in the form of data security concerns and high initial costs of investments. Considering the large amount of data that is retrieved by the IoT connected systems, the manufacturers have concerns about data collection and sharing activities. This poses a severe threat to the growth of the IIoT market. Additionally, the high costs of investments in terms of connected devices and systems continue to pose severe challenges for the market, especially in the price sensitive markets.
IIoT Market Research Scope
The base year of the study is 2017, with forecast done up to 2023. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the IIoT market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats.
IIoT Market Report: Industry Coverage
By Component - Transmitters, Memory, Processors, Networking Components, Battery Management, Device and Equipment, Cameras Systems, RFID, Others
By Connectivity - Wired Technologies, Wireless Technologies, Fieldbus Technologies
By Service – System Integration, IoT Data Management, Network Management Services, Device Management Services, Cyber Security Services, Others
By Software - Application Specific, Middleware & APIs, Data Analytics, Data Visualization, Cloud Platforms, Security, Others
By Industry Vertical – Energy, HealthCare, Transportation, Manufacturing, Oil & Gas, Agriculture and Forestry, Chemicals, Supply Chain Visibility, Others
The IIoT market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:
- The Americas: The U.S., Brazil, Canada, Others
- Europe: The U.K., Germany, France, and others
- APAC: Japan, China, South Korea, and others
- Rest of the World: The Middle East and Africa
IIoT Market Key Players
Some of the key players mentioned in this report are Intel Corporation (U.S.), ARM (U.K.), Atmel (U.S.), Synopsys (U.S), Melexis (Belgium), and others.
IIoT Market Trends
The logistics industry is moving towards digital transformation, with IoT-based solutions used along with robotics, automation, and machine learning to transform the way goods are manufactured, stored and delivered. Thus, the companies that proactively invest in these technologies will be able to operate more securely and profitably across the supply chain.
Singapore recently saw the roll-out of the Narrowband IoT (NB-IoT) network backed by Telco's body GSMA. The project is set to be a turning point for the country’s Smart Nation initiative and digital transformation.
Key Questions Addressed in the IIoT Market Report
1. Is the market for IIoT growing? How long will it continue to grow and at what rate?
2. Is there a possibility for change in the market structure over time?
3. Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
4. Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
5. What is the current status of the IIoT Market in different countries?
6. Which are the major relevant product segments within IIoT?
7. What are the short-term, long-term, and medium-term growth drivers for the market?
8. What are the short-term, medium-term, and long-term challenges for the market?
9. What are the short-term, medium-term, and long-term opportunities for the market?
10. Who are the top players/companies of the market?
11. What are the recent innovations in the market?
12. How many patents have been filed by the leading players?
13. What are the types of patents filed by the leading players?
14. What is the futuristic scenario for the adoption of IIoT?
15. What is our Vision 2030 for the IIoT Market?
A few focus points of this Research are given below:
- Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
- Provide an overview of the product portfolio, including product planning, development, and positioning
- Discuss the role of technology companies in partnerships
- Explore the regional sales activities
- Analyze the market size and give the forecast for current and future of IIoT during the forecast period 2018–2023
- Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures
IndustryARC Research Best Practices
The IIoT market size is evaluated based on the number of products per organization type along with the varying price points pertaining to specific applications. These were identified as key informational conjectures for market estimation in 2017/2018.
The IIoT Market share is thoroughly checked against all data points that have been incorporated and rechecked against various data sources. Various C-level executives and key opinion leaders are contacted for verification of the data.
The IIoT Market forecast and growth rate are achieved by applying the time series forecasting methodology on the various factors. The market forecast and growth rate are further backed with historical trends of the market along with a regressive mathematical model that assesses the value based on factors such as capital expenditure, equipment lifespan, R&D investments, and so on.
The IIoT Market demand has been researched taking into account the prominent economies across the different geographic regions to understand their corresponding impact on the market.
The IIoT Market drivers are evaluated for short-term, medium-term, and long-term based on the different market dynamics impacting the market.
The IIoT Market challenges are evaluated for short-term, medium-term, and long-term based on the different market dynamics impacting the market.
The IIoT Market trends have been analyzed taking into consideration the micro and macro trends prevalent in various geographies.
The IIoT Market outlook provides a brief overview of the market performance and anticipated change in market dynamics.
The IIoT Market analysis also involves the identification of new companies that have entered the market scenario and their impact on the market dynamics in the future.