IoT in Manufacturing Market Growth Analysis | 2023-2029

Market Insights

The IoT in manufacturing market was estimated at USD 52.24 billion in 2022 and is likely to grow at a CAGR of 11.4% during 2023-2029 to reach USD 111.21 billion in 2029.

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Market Dynamics

Introduction

IoT in manufacturing refers to integrating Internet of Things (IoT) technologies into the production processes of manufacturing industries. It involves connecting physical devices, machines, and sensors to a network, allowing them to communicate and share data. In manufacturing, IoT enables the creation of "smart factories" where interconnected devices and systems enhance efficiency, productivity, and automation.

IoT devices collect real-time data on machinery performance, production processes, and supply chain logistics, providing insights for optimization and predictive maintenance. This connectivity streamlines operations, reduces downtime, and improves overall decision-making. IoT transforms traditional manufacturing into a more agile, interconnected, and responsive ecosystem by facilitating data-driven insights and automation.

Market Drivers

Increasing demand for automation in the manufacturing industry

In recent years, the manufacturing sector has experienced substantial growth in industrial automation. Due to intense market competition and customer demands, manufacturers are focused on producing high volumes of high-quality products. This has led them to concentrate on key areas such as production processes, asset monitoring, and asset maintenance.

Automation helps reduce labor costs, increase productivity, improve process consistency, and guarantee product quality. It uses control systems like computers or robots to oversee and operate processes and machinery. The Internet of Things (IoT) is crucial in advancing industrial automation in the manufacturing industry. It facilitates seamless communication and interaction between manufacturing inputs, outputs, actuators, robotics, and analyzers to enhance flexibility and improve production.

Restraint: Lack of standardization in IoT protocol

With the growing number of companies in the IoT space, standardization across data standards, wireless protocols, and technologies are becoming increasingly fragmented to simplify and lower costs. This is due to the proliferation of newly developed connected devices that operate on various platforms and technologies. IoT permeates nearly every aspect of our lives, and the challenge is to harmonize these standards to make M2M communication more accessible and adaptable for users.

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Opportunity: Growing number of data centers

IoT is transforming manufacturing processes using intelligent sensors and actuators. To fully leverage IoT's potential, companies must develop solutions capable of processing vast amounts of unstructured data. Data centers are equipped to handle this data, collecting and analyzing information transmitted by IoT devices to provide insights that inform better decision-making in manufacturing operations.

Challenge: Shortage of skilled personnel to operate IoT technology

Adequately trained personnel with the necessary skill sets are essential for operating advanced manufacturing equipment and software systems incorporating IoT technologies. Despite the willingness of the manufacturing industry to adopt new technologies, there is a shortage of highly skilled and competent workers. Emerging economies also face difficulties in effectively implementing IoT in manufacturing operations and advancing industrialization due to the absence of a skilled workforce.

Segment Analysis

By Component Type

“The services segment to witness a higher growth rate over the forecast period.”

The services segment of the IoT in manufacturing market is expected to experience higher growth during the forecast period. Services are a crucial component of the IoT in manufacturing market, as they allow manufacturers to establish digitized and connected production processes with mass customization and self-configured, automated production lines. Services are deemed a vital component of the IoT in manufacturing market, as their primary objective is to streamline business operations and reduce manufacturing costs.

Regional Insights

"North America leads the IoT in the manufacturing market."

This region boasts developed economies, including the United States and Canada, that invest heavily in R&D related to the market, driving the development of new technologies. With the early adoption of cutting-edge technologies, such as mobility and Big Data, manufacturers are eager to incorporate IoT technologies into their processes.

The Asia Pacific region is expected to exhibit the highest CAGR during the forecast period. The IoT manufacturing market in Asia-Pacific is poised for robust growth in the coming years due to the region's sustained economic expansion, rising young workforce, and growing use of smartphones and tablets for business purposes. This will drive the adoption of enterprise mobility solutions to secure and protect vital data. The primary driver of this growth in Asia-Pacific is the region's growing digitization and increasing automation in industries, coupled with government efforts to promote technology uptake across the region.

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Key Players

The market is highly populated with the presence of several local, regional, and global players. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc.  

The following are the key players of IoT in manufacturing market (arranged alphabetically).

• Atos
• Cisco
• GE
• HCL
• Huawei
• IBM
• Impinj
• Intel
• Microsoft
• Oracle
• PTC
• Qualcomm
• Samsara
• SAP
• Schneider Electric
• Sciencesoft
• Siemens
• Software AG
• Telit
• Wind River
• Zebra Technologies

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s IoT in manufacturing market realities and future market possibilities for the forecast period of 2023 to 2029. After a continuous interest in our IoT in manufacturing market report from the industry stakeholders, we have tried to further accentuate our research scope to the IoT in manufacturing market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The IoT in manufacturing market is segmented into the following categories:

By Component Type

• Solutions
• Services

By Deployment Type

• On-Premises
• Cloud

By Organization Size Type

• Large Enterprises
• Small and Medium-Sized Enterprises

By Application Type

• Predictive Maintenance
• Business Process Optimization
• Asset Tracking, and Management
• Logistics, and Supply Chain Management
• Real-Time Workforce Tracking and Management
• Automation Control and Management
• Emergency and Incident Management
• Business Communication

By Vertical Type

• Process Manufacturing (Energy and Utilities, Chemicals and Materials, Food and Beverage, Water and Waste Management)
• Discrete Manufacturing (Automotive, Machine Manufacturing, Semiconductor and Electronics, Medical Devices, Logistics, and Transportation)

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com.

Recent Developments

• In December 2022, Qualcomm unveiled the Lowest Power IoT-Optimized LTE Modem with integrated positioning support for better connectivity, location tracking, and computation features both on the device and at the edge.
• In June 2022, Siemens launched new IoT-enabled products and solutions that strengthen its fire safety portfolio.
• In June 2022, Microsoft collaborated with STMicroelectronics to develop a comprehensive microcontroller-based device security platform.
• In May 2022, SAP and HCL Technologies partnered to accelerate Industry 4.0-drive smart IoT technologies.
• In January 2022, Intel introduced 12th Gen Intel Core processors to accelerate Internet of Things (IoT) application innovation. The new processors offer manufacturing, healthcare, retail, and digital safety customers increased core counts and advanced graphics, media, display, and AI capabilities, with a wide range of price, performance, and power.
• In October 2021, Siemens acquired French startup Wattsense, which helped Siemens enhance its building automation offering for small and mid-size buildings.