Global Statistics Representing Industrial IoT Market Scenario
A considerable degree of intelligent automation, reducing operational cost, and the growing implementation of 5G powered infrastructure for industrial IoT are the two-pronged drivers boosting the market growth. On September 26, 2018, the Federal Communications Commission (FCC) proclaimed to accelerate the deployment of cell sites necessary for 5G wireless networks in the U.S. However, inadequate IT Infrastructure might impede the market growth. Many developing countries lack the A considerable infrastructure. For instance, poor internet connectivity in countries such as Africa, Malaysia, Chile, and Brazil is foreseen to dramatically thwart market growth. It is projected that over 120 billion IoT devices will be online by 2030. Considering the present infrastructure, it is a challenging task to quench the estimated vision.
The global Industrial IoT market is expected to grow at a CAGR of 27.9% during the forecast period, 2019–2026.
The global Industrial IoT market is bifurcated by type and application.
The software & services segment, among other type segments, held the largest market share of 45.10% in the year 2018. The hardware segment, on the other hand, is expected to grow at a CAGR of 28.77% during the forecast period (2019–2026.) IoT hardware ranges from low-power boards (single-board processors such as Arduino Uno) to specific function-oriented hardware (GPS, light and heat sensors, or interactive displays). Some of the IoT hardware development platforms are Particle.io, Espressif ESP8266 Boards, Intel IoT Development Boards, Arduino IoT Product Line, and The Raspberry Pi.
The logistics & transport segment, among other industry vertical segments, held the largest market share of 22.45% in the year 2018. The agriculture segment is expected to grow at the highest CAGR of 29.52% during the forecast period, 2019–2026. The fourth industrial revolution, also known as industry 4.0, is foreseen as a transforming force that will deeply impact the agriculture industry. For instance, according to the machinery industry in Europe, 70%–80% of technologically advanced farming equipment were sold in 2018. Industrial IoT has brought in an array of operational benefits such as efficient use of water, optimization of inputs, monitoring the field in real-time, climate changes, environmental effect, and many more. As the Industrial IoT market is still pullulating, there exists a broad scope for the key vendors to develop agriculture-oriented IoT products and garner substantial profit.
Geographically, the global Industrial IoT market is studied across North America, Europe, Asia-Pacific, and Latin America and the Middle East and Africa.
North America spearheads the market as the region is readily implementing the IoT in various industrial sectors including oil & gas, utilities, transportation, chemical, agriculture, and pharmaceutical. In the U.S., many manufacturers are early adopters of Internet of things to facilitate efficacy in asset management, manufacturing plants, warehouses, extended supply chains, etc.
In the European region, many potential users of the Industrial IoT are still at the early stages of investment. For instance, the U.K. government-backed innovation body Digital Catapult is working with two manufacturers – Dyer Engineering and Special Metals Wiggin, to create a 'Connected Factory Demonstrator' and is looking for IoT and LPWAN powered startups willing to deploy their asset tracking solutions in a live manufacturing operational environment.
Asia-Pacific has wide and diverse set of organizations involved in IoT as compared to other regions. The magnitude and potential of the markets and local activities are drawing the attention of international organizations to contemplate on the IoT initiatives in the region. China is already viewed as a leader of the Industrial IoT arena in the Asia-Pacific region.
In LAMEA, the industries that are expected to spend the most on IoT solutions in 2018 are manufacturing, cross industries, utilities, and consumer. Middle Eastern companies, relying on the Industry 4.0 hype, are investing substantially resulting in large-scale digitization and integration. As a consequence of that, many IoT vendors are expanding their presence in the Middle East.
Some of the key players of industrial IoT are Atmel, ABB Group, ARM Holding plc., Cisco Systems, Inc., Dassault Systems, General Electric, Honeywell International Inc., Huawei Technology Co., Ltd., IBM Corporation, Intel Corporation, Microsoft Corporation, Rockwell Automation, Inc., Siemens AG, and Texas Instruments Inc.
Industrial IoT Market Segmentation