The global industrial internet of things (IIoT) market, which was valued at approximately $145.81 billion in 2017, is expected to touch around $232.15 billion by 2023, according to a report by Zion Market Research.
This would translate to a compound annual growth rate (CAGR) of around 8.06% between 2018 and 2023.
The report showed that the Asia-Pacific region is expected to see the highest CAGR in the global industrial internet of things (IIoT) market during the forecast period.
“This is primarily due to large-scale industrialization in Asian countries such as China, India, and Japan. With enhanced geographic zones and a high client base, the Asia Pacific region is expected to exhibit a strong growth in the industrial internet of things (IIoT) market,” it said.
The US-based market research firm explained that industrial internet of things (IIoT) ought to be considered a subset of the more extensive IoT, where connections exist to create physical goods for the commercial centre and additionally to maintain the physical assets of production.
“The industrial internet of things (IIoT) applies the possibility of the idea of broad-spectrum internet connectivity to specific business objectives and processes that make physical products for business sectors,” the report stated.
It added that the growth of IIoT was largely dependent on the ability to reduce manufacturing costs.
“The industry thrives on energy and the cost of power plays a major role in manufacturing and distribution costs. Through smart technology and sensors, the IIoT can cut back the overall cost of manufacturing as well as distribution cost,” stated the report.
Another reason for the growth of the technology is the need to integrate cloud computing, big data analytics, robotics, and automation in various industry sectors. Increasing emergence of real-time supply chain information in the transportation and logistics industries drives the new tech, it said.
The IIoT market is segmented based on component, software, vertical, and region. The component segments included are sensors, industrial robotics, a distributed control system (DCS), condition monitoring, camera systems, smart meters, among others.
The software segment includes product lifecycle management (PLM) systems, manufacturing execution system (MES), distribution management systems, and others. The vertical segment includes manufacturing, utilities, oil & gas, metals & mining, retail, healthcare, transportation & logistics, among others.
In terms of market share by region, Zion Market Research says that North America is expected to have the largest market share for the forecast period.
“This can be attributed to the presence of many IIoT companies, such as Cisco Systems, Inc., General Electric, Intel Corporation, in North America,” it said, adding that the region was witnessing several research and development exercises in robotics.
The development in this region is further driven by the presence of numerous manufacturing units that are progressively grasping the adoption of advanced technologies, such as cloud robotics, it added.
Europe is expected to witness moderate growth in IIoT during the forecast period.