Introduction
The industrial internet of things (IoT) is the convergence of advanced technologies to connect and control machines that aids in the collection, exchange, and analysis of data between them in order to enhance automation and operational efficiency. Also known as the Industrial IoT (IIoT), it is distinct from the consumer IoT (CIoT) because the IIoT devices are more specialized, are more reliable and secure, and have longer lifespans. IIoT is made possible by a wide variety of digital technologies such as wireless communication technologies, artificial intelligence (AI), cloud computing, data analytics and predictive algorithms, edge computing, and cyber-physical systems, which are widely used in all types of industrial sectors.
Market Overview
The IIoT market is expected to grow considerably over the next five years, from an estimated USD 78.2 billion in 2023 to USD 300.7 billion in 2028. This represents a compound annual rate of 28.4% for the forecast period 2023 – 2028. The rapid penetration of industrial automation, along with automation-as-a-service (AaaS) and sophisticated analytics and platforms, are some of the major factors that are expected to drive growth in the IIoT market. Furthermore, industries such as manufacturing, healthcare, oil & gas, energy & utilities and others are rapidly integrating IIoT applications with artificial intelligence (AI) and other advanced technologies, creating demand for Artificial Intelligence of Things (AIoT) solutions.
Market Drivers
The IIoT market is driven by a number of factors, both external and internal. On the external side, the growth of the market is driven by technological advances in IIoT devices, augmented analytics, and sophisticated platforms. On the internal side, the increasing demand for predictive maintenance, the need to improve operational efficiency, and the growing demand for automation-as-a-service are some of the factors that are driving market growth.
Market Restraints
Despite its strong growth prospects, the IIoT market is facing a number of restraints, including security and privacy concerns, high initial costs of implementation, and lack of skilled labour. Security issues refer to the vulnerability of IIoT devices to cyber attacks, data breaches, and other malicious activities. Privacy concerns are a key factor that limits the rate of adoption of IIoT solutions, as stakeholders are reluctant to share their data in the public domain. Moreover, the lack of skilled labour and the high initial cost of implementation also pose a set of challenges for the IIoT market.
Market Segmentation
The IIoT market can be segmented by components including hardware, software, and services, and by sectors such as manufacturing and healthcare. The hardware can be further segmented into sensors and actuators, processing units, and communication technology. The software can be further categorized into middleware, controller software, and network management software, while services can be further segmented into deployment & integration, maintenance & support, and consultation.
Conclusion
The global IIoT market is projected to grow substantially over the next five years, driven by factors such as the rapid penetration of industrial automation, the need for predictive maintenance, and the demand for automation-as-a-service. Moreover, industries such as manufacturing and healthcare are rapidly integrating AI with IIoT for AIoT market solutions, boosting the growth of the IIoT market. However, security concerns, high initial costs of implementation, and lack of skilled labour remain the major challenges for the market.