APAC IIoT is a dynamic industry and is expected to propel 24.3% CAGR and reach US$ 225 billion by 2023. This is primarily due to large-scale industrialization in countries such as China, India, and Japan. Due to the implementations of IIoT, as an enabler of operational efficiency, for industries like automotive and manufacturing, the future looks promising.
- Definition / Scope
- Market Overview
- Market Risks
- Top Market Opportunities
- Market Drivers
- Industry Challenges
- Technology Trends
- Regulatory Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Distribution Chain Analysis
- Competitive Landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
The Internet of Things (IoT) has brought everything connected through internet. This connected network offers new opportunities to enhance operations across manufacturing, energy, agriculture, transportation and other infrastructure sectors of the economy.
The industrial Internet of Things (IIoT) is a part of the large IoT network that is linked to intelligent devices, computers, and objects, which helps collect and share enormous amount of data. IIoT aids to greatly improve the efficiency, connectivity, scalability, cost, and time savings.
IIoT brings together two separate technologies:
- Enterprise IT for resource planning and decision support systems
- Operations technology that controls machines/equipment, manufacturing and the related processes
Leveraging this will also require equipping the workforce with adequate skills, and this requires preparation .
The APAC industrial internet of things (IIoT) market was valued at USD 76 billion in 2018 and is expected to reach USD 225 billion by 2023, witnessing a CAGR of 24.3% during the forecast period, 2019 to 2023 due to the growing adoption of advanced manufacturing techniques.
Asia-Pacific is expected to account for the largest share in the overall industrial internet of things market.
The huge market in this region is mainly due to the adoption of IoT across various industries, like manufacturing, healthcare, etc. There is a huge demand for IIoT in countries, like China, Japan, India, and South Korea, where this demand is attributed to the significant growth of the end users.
The increased commercialization of the applications related to the internet of things in these developing countries is booming the market for IIoT.
Despite these growth factors, major concerns related to IIoT over data loss or privacy is hampering its adoption and likely to restrain the growth of the global industrial Internet of Things (IIoT) market. Additionally, the lack of skilled workers and standardization in procedures are restraining growth of the industrial Internet of Things market. Nonetheless, the development of advanced and wide-ranging system solution for maintenance is expected to offer lucrative opportunities for growth.
IIoT has the primary objective to improve operational efficiency and automate processes in industries. Furthermore, industries are adopting advanced analyzing tools to understand growth opportunities in various sectors.
In the coming years, companies would deploy IIoT software and services to capture new growth opportunity by increasing production and creating new hybrid business models. The IIoT market has been segmented on the basis of component which includes hardware, software, and services.
End-user segments in the IIoT market are aviation, oil & gas, transportation, power generation & utility, manufacturing, healthcare (medical devices) and others. Manufacturing is expected to account for market share close to 35% of the global industrial Internet of things (IIoT) market due to larger adoption of IIoT in the manufacturing industry sector.
Healthcare segment is expected to expand at the highest CAGR during the forecast period due to many advantages such as improved healthcare facilities and diagnostics.
IIoT is changing the competitive landscape of industries, as companies are investing in advanced technologies for automation. Further, companies such as General Electric Company, IBM Corporation etc. have been able to establish themselves as leaders.
Some of the major players are currently focusing on providing IIoT solutions with advanced and innovative technologies. As part of this strategy, the companies are engaging in various acquisitions, strategic partnerships, and focusing on expanding their business through new service additions and geographical presence.
Although the Industrial IoT is growing rapidly, it continues to face a number of obstacles, such as security and privacy concerns, interoperability issues and skill shortages .
- The Lag in the Adoption of IIoT Security: A major concern that surrounds IIoT is the security and privacy of the data; this concern leads to loss of physical systems and data security. Maintaining high levels of security is a significant challenge for IIoT. The number of IoT connections will increase at a CAGR of 16% from 6 billion in 2015 to 27 billion by 2025. The main APAC countries competing to capture global IoT market share, by 2025 will be China (19%) and Japan at 6%. Despite IIoT having a significant opportunity to scale and gain mass market adoption, the lack of network security capabilities could hamper momentum. As the number of IoT devices and sensors increase, the importance of data and network security increases too.
- Adaptability & Interoperability: Interoperability is a core enabler of IoT technology. All IoT devices and platforms need to be highly adaptable and ‘open’ to cater for the widest possible range of applications. For example, if an IoT solution is being implemented in a warehouse to track products, measure inventory and map disparate delivery locations, the biggest challenge will be in making the platform interoperable so that the logistics and warehouse management systems can talk to each other. While progress is being made at standard bodies such as IEEE, Industrial Internet Consortium (IIC) and Open Internet Consortium (OIC), companies in the industrial space are reluctant to bear the cost and business risk associated with replacing existing equipment to accommodate an interoperable IoT world.
- Fragmentation of IoT platforms: The sheer number and variety of IoT platforms in the market place are creating confusion, as well as choice. In China, Telecoms operators, such as China Mobile, China Unicom and China Telecom; ICT firms, such as Alibaba and Huawei; software firms, such as SAP and PTC; and manufacturing firms, such as Foxconn and Haier, have collectively introduced dozens of platforms. Although these firms say that their platforms can cover multiple layers of the IoT stack, many still struggle to differentiate their capabilities and foster broader ecosystem collaboration, the big manufacturing firms also find it challenging to build and market IoT platforms.
Top Market Opportunities
The development of advanced and wide-ranging system solution for maintenance is expected to offer productive opportunities for the growth of the market. Increasing development of smart transportation, smart utilities & energy, healthcare and smart cities has resulted in increasing adoption of IoT in industrial and various other applications.
Some of the key growth opportunities include:
- Low Operational Cost: Smart and connected products are critical components in the connected supply chain and smart manufacturing processes. Integration of smart sensors into industrial machines encouraged the manufacturers to reduce the operational cost by 50% and is expected to decrease further during the forecast period. Further, the advent of low cost connected devices has enabled manufacturers to adopt IoT technologies to lower resource consumption and increase overall productivity. Moreover, due to low operational cost, several manufacturers prefer to implement IoT applications in machines to maximize efficiency with reduced cost.
- Manufacturing: The primary opportunities for IIOT technology in manufacturing industries include predictive maintenance of machinery based on the sensor data collected and production line monitoring with sensors to optimize equipment utilization. IOT implementation would also help manufacturers increase business profitability and productivity of both humans and machines, by streamlining production processes and automating plant machinery with RFID chips that store product configuration data, work instructions & work history. The copious amounts of data collected can also be fed into a predictive analytics engine to make future manufacturing plants more autonomous in terms of predicting and fixing potential disruptive issues. For example, Machine Metrics offers a machine monitoring solution for manufacturing plants to collect and visualize data from machines to improve production performance.
- Growth in Adoption of Cloud-based Deployment Model: Demand of low-cost data storage, backup, and data protection are major opportunities for small & medium enterprises (SMEs). Implementation of cloud helps enterprises to provide better IoT services to various industry verticals. The widespread adoption of IIoT technology will necessitate investments that help to create an IIoT support ecosystem and complimentary infrastructure capabilities to bolster IoT related business models for device management app creators, cloud-based solution providers, equipment manufacturers, network providers and MRO (maintenance, repair and operations) outfits. Such intense and diverse growth will certainly lead to increased venture capital investment from investors with a long-term vision.
- Increasing use of cloud computing platform: Rising usage of a cloud-computing platform in order to ensure the development of the industrial Internet of Things (IIoT) devices, this is expected to propel the growth of the global industrial Internet of Things (IIoT) market. Additionally, a growing number of data centres are supporting the growth of the industrial Internet of Things (IIoT) market. Data analytics would help them guide the optimal resource allocation and utilization, thereby improving operational efficiency.
- Initiation of industry-specific platforms: While every industrial firm has it’s own unique environment, protecting the organization from IoT related cyber threats is gaining even more significance than ever. These IoT devices and applications can leak out sensitive information that can have a major impact on the organization. As with unprotected IoT applications, the embedded programs can be analysed and stolen, an organization should only think of protecting them and ensure cyber security for their environment.
- Support from governments pertaining to the adoption of IIoT solutions: Governments in countries such as China and India have taken several initiatives for encouraging manufacturers to increase their investments for the adoption of IIoT solutions. The manufacturing vertical is expected to hold the largest share of the IIoT market in 2018. The Indian government, for instance, has been pursuing it’s ‘Digital India’ initiative over the past two years with a massive push towards IoT. This includes the establishment of smart cities, IoT-specific ‘Centres of Excellence’, the creation of IoT innovation hubs in places like Andhra Pradesh and Gujarat, and partnerships with companies like Juniper Networks and Cisco. These initiatives will allow India to set up the necessary digital infrastructure. As a result, India is expected to capture 20 per cent of the global market share of IoT by 2020. In China, the ‘Internet Plus’ policy aims to create a new economic model that will drive economic and social innovation over the next decade. As part of this policy, the Chinese government aims to push forward with the integration of the internet with traditional manufacturing industries. China also aims to replicate its success with Zhongguancun (the country’s own Silicon Valley) in the creation of similar pilot zones centred on IoT .
Some of the challenges faced by the organic sector today are:
- High Implementation Costs: The adoption of IoT in the business-to-business environment is impacted by the high cost of implementation associated with IoT products and solutions. For instance, a manufacturing company with multiple plants, workflows and varying equipment types, seeking to modernise its operational infrastructure, using IoT, will have to consider upgrading legacy infrastructure and systems to achieve a truly standardised and interoperable IoT environment. Policy makers, such as Industrial associations and governments have a significant role to play in addressing this issue by drafting key regulations and standards that reduce costs and drive market adoption.
- Inadequate IT Infrastructure: Poor internet architecture and lack of skilled labors majorly limit the growth of the IIoT in manufacturing market. Many of the developing countries lack basic IT infrastructure, which is pre-requisite for reliable connectivity. Further, power supply systems have to be stable and reliable to ensure high quality exchange of data between sensors and control systems. Therefore, poor internet connectivity in developing countries is expected to hinder the market growth in the coming years.
- Implementation of Big Data Solution: The major challenges in implementing a big data solution primarily dependent on IoT devices are the storage of the colossal amounts of data being produced, running of analytical queries from such huge amount of data stored using highly complex storage technologies, and to perform advanced data analysis involving data mining and machine learning technologies to gain insights.
- Lack of Skilled Workers Limit Growth of the Market: Despite these growth factors, major concerns related to IIoT over data loss or privacy is hampering its adoption and likely to restrain the growth of the industrial Internet of Things (IIoT) market. Additionally, the lack of skilled workers and standardization in procedures are restraining growth of the industrial Internet of Things market. Given the variety of Industrial IoT applications and circumstances, new data sources, changes in system architecture data, as well as multi-structured data, today’s manufacturing companies do not have adequate analytical capabilities. Data-driven companies are already using IoT generated data, feeding them into their existing analytical pipeline and improving operational management and efficiencies, as well as reducing costs. Through 2020, a lack of data science specialists will inhibit 75% of organizations from achieving the full potential of IoT.
The technology and innovation report captures noteworthy technologies that are transforming factories into a smarter environment through the whole platform of connectivity.
Examples of such technologies include smart sensors, wireless sensor network, cognitive computing, Big Data, artificial intelligence (AI), 3D printing, inspection drones, and cybersecurity .
The ability of IIoT to provide real-time data, as well as perform monitoring and tracking functionalities will lead to smart factories of the future that are fully connected, eco-friendly, and drives on improved productivity and efficiency. IIoT establishes strong connectivity between the operational and digital platforms.
Increasing demand for automation technologies in the retail vertical to enable faster checkout and enhance overall customer experience is driving the growth of the market for smart beacons.
As more and more industrial firms adopt IIoT, smart technology and automation, their chances of witnessing a security incident rises. Today, as these industrial firms look at optimizing business operations, reduce operating costs, increase control over distributed operations and face an increasing compliance requirement with regulations, they cannot stay away from adopting IIoT.
Governments and enterprises in the Asia-Pacific region, barring Japan, are investing heavily in Internet of Things (IoT) to enhance productivity and efficiency, and build smart city infrastructures. The region is expected to become the global leader for IoT spending, with almost 37 per cent of the worldwide spend, followed by the US and Western Europe, with over 26 per cent of the worldwide share.
According to the International Data Corporation’s (IDC’s) latest Worldwide Semiannual Internet of Things Spending Guide, which forecasts IoT spending for 14 technologies across 20 vertical industries in nine regions and 53 countries through 100 use cases, China was the top spender in the Asia Pacific (APAC) region last year, with a bill of US$ 159.1 billion, followed by South Korea and India with a spending of $22.6 billion and US $19.6 billion, respectively. By 2022, the expected spending on APAC is expected to reach US$ 381.8 billion .
The countries like India are investing in is with smart cities. Under the first phase of ‘Digital India,’ the government plans to connect a hundred cities with smart management of infrastructure, including transportation, water and energy management.
This includes digitising the infrastructure and monitoring resource consumption in real-time. This project is expected to bring in a lot of IoT investments as is already seen from the likes of Cisco and Juniper .
Other Key Market Trends
IIoT applications are primarily used in manufacturing, transportation and retail. For emerging economies like India and China, some of the major areas of IoT innovation are expected in manufacturing. With the rising cost of living in the manufacturing centres of China, the country is no longer the most attractive option for new manufacturing plants.
With IIoT, it is possible to set up predictive maintenance schedules (real-time analysis of energy use pattern to provide proactive information to decision makers), supply chain connectivity, asset monitoring, workplace safety management, and energy management. IIoT in these areas is likely to make production a lot more optimised than it presently is and will help to achieve lower manufacturing costs .
Market Size and Forecast
The Asia-Pacific IIoT market is valued to be a US$ 76 billion market in 2018. With enhanced geographic zones and a high client base, the Asia Pacific region is expected to exhibit strong growth in the industrial internet of things (IIoT) market. Asia-Pacific is expected to account for the largest share in the overall industrial internet of things market.
The huge market in this region is mainly due to the adoption of IoT across various industries, like manufacturing, healthcare, etc. The market is anticipated to swell with a CAGR of 24.30% over the forecast period from 2019 and 2023 .
Alongside the large-scale industrialization in Asian countries such as China, India, and Japan, the presence of numerous manufacturing units that are progressively grasping the adoption of advanced technologies are the reasons for the upsurge of the estimated market size of approximately US $225 billion by 2023 .
ASIA-PACIFIC IIoT MARKET KEY SEGMENTS
The Asia-Pacific Industrial-Internet-of-Things (IIoT) market is segmented by Type (Hardware, Software, Service), Industry Vertical (Transportation, Manufacturing, Healthcare, Utilities), and Geography.
Manufacturing is a major segment of the Industrial Internet of Things market. The service component and manufacturing application segments are expected to account for the highest share in the target market segments and expected to continue their dominance over the forecast period. .
Geographically, the market is segmented into China, India, South-Korea, Japan and others. There is a huge demand for IIoT in countries, like China, Japan, India, and South Korea, where this demand is attributed to the significant growth of the end users.
The increased commercialization of the applications related to the internet of things in these developing countries is booming the market for IIoT.
ASIA-PACIFIC IIoT MARKET By Industry Vertical:
- Manufacturing: Manufacturing is anticipated to account for market share close to 35% of the IIoT market primarily due to larger adoption of IIoT in the manufacturing industry segment . This number will grow to 53%, by 2023. The manufacturing industry is experiencing a significant impact on the industry adoption rate has risen to 30% in 2017 from 11% in 2013. The market was worth US $26.6 billion in 2018 and will reach $64.27 billion in 2023, growing at an accelerated pace of 19.3%. The major factors driving the growth of the IoT in manufacturing market are the growing need for centralized monitoring and predictive maintenance of manufacturing infrastructure, the advent of the latest communication technologies, and the need for agile production and operational efficiency.
- Transportation and Logistics: By 2020, the automobile and transport sectors, will witness over 220 million connected cars on the road and 90% of all new cars by 2040 are expected to be connected through IoT. The market was valued at US $22.8 billion in 2018 and will reach $67.6 billion in 2023, growing at a CAGR of 24.3%. The systems of remote monitoring plays crucial role where the extent of different types of ways exceeds 1.6 million km, and the number of cargo transport (automobile, railway and other)–7 million units. The three areas driving growth in automotive IoT are in-vehicle communication (route information, traveling times, incident reports), infotainment, and vehicle-to-vehicle communication .
- Utilities: Utilities is expected to grow at CAGR of 19.7% in the forecast period specifically due to the growth of the energy industry. The market is estimated to grow from over $11.4 billion in 2018 to over US$ 27.63 billion in 2024. Digital optimisation led by the IIoT can boost the profitability of the utilities and energy industry by approximately 20-30% providing digital productivity tools for employees, and through the automation of back-office processes.
- Healthcare: The highest growth rate of the industry is the healthcare or medical devices IIoT segment which is expected to grow at a CAGR of 24.8 percent. The segment was valued at US $15.2 billion in 2018 and will reach $66 billion in 2023. Telemedicine was the biggest component of healthcare IoT in 2018, but the greatest growth is expected from systems and software, which include remote device management, network bandwidth management, data analytics, applications security, and network security solutions .
ASIA-PACIFIC IIoT MARKET BY TYPES
An IIoT market analysis in terms of where actual value comes from shows a slight dominance of hardware, which is projected to have a market value of 35%. Services will account for 27%, Software infrastructure and applications together will account for 38% of overall IIoT.
Most enterprise IoT projects focus on cost reduction. Only 35% of IoT projects are used to increase revenue (e.g., by offering new IoT-connected products and services). 24% of projects also increase overall safety (e.g., by offering enhanced monitoring systems with real-time alerts and notifications) .
- Services: IIoT services are presumed to witness the highest growth over the next five years, following an estimated CAGR of 29.1% from 2019 to 2023. With $20.52 billion going toward traditional IT and installation services as well as non-traditional device and operational services. The market is expected to reach US$ 74.03 billion by 2023. Growth in this segment can be attributed to the developing cloud computing market, increasing government initiatives for supporting sustainable smart factories growth, and rising number of connected devices that generate a large amount of data .
- Software: The software is the rapidly growing category. IIoT software spending total $28.8 billion in 2018 and will see the fast growth over the five-year forecast period (2019-23) with a CAGR of 25.8 per cent. The APAC software infrastructure and applications market is expected to grow from over $28.88 billion in 2018 to over US$ 88.9 billion in 2023.
- Hardware: The Asia Pacific IIoT hardware market includes sensors, modules, infrastructure and security. The market as a whole was worth US $26.6 billion in 2018 and will reach $62.6 billion in 2023, growing at 18.4%, an accelerated pace compared to global IIOT market’s 14.4% growth .
ASIA-PACIFIC IIoT MARKET BY GEOGRAPHY
China accounted for the highest share of the market in 2018, followed by Japan. In addition, this region is expected to emerge as the area with maximum growth potential due to the focus of key players in the emerging economies and improvement in the IIoT infrastructure.
- China: China is a leading producer of all kinds of goods, including much of the world’s electronics. In fact, China makes most of the sensors, microchips, and other components that are the fabric of the IoT. By 2020, there will be 200 billion IoT connected components and devices globally, of which 95 per cent will be manufactured in China. China’s IIoT market reached US $47 billion in 2018 growing at CAGR of 24.6%. And by 2023, China’s IIoT market is targeted to reach US$ 140.9 billion. Many of the IoT components and services developed in China are deployed locally. China’s manufacturing sector is a major customer for IoT solutions. The IIoT promises to enable China’s millions of factories and production plants to greatly increase their efficiency, lower costs and better manage their infrastructure .
- Japan: In 2018, the IoT market revenue amounted to 24 billion U.S. dollars in Japan. This figure is expected to grow to almost 41.3 billion US dollars by 2023. In that year the number of connected devices (Internet of Things) is predicted to reach 20.35 billion US dollars. By 2025 there could be over 75 billion IoT connected devices. The market is expected to grow at CAGR of 11.5% by 2023 when the boomer generation reaches the age of 75 or older .
- India: The IIoT in India accounted for US$ 2.16 billion in 2018, is expected to reach US$ 3.74 billion by 2023. The market is growing at CAGR of 11.67% due to increased penetration of affordable devices, combined with cloud computing, analytics and rising consumer expectations. Despite the rapid pace of IoT growth, there are roadblocks like lack of interoperability among devices, consumer perception and security, and a lack of compelling business cases .
- South Korea: South Korea, the world’s most digitally connected country, is also one of the top five spenders on the Internet of Things (IoT) technologies with the spending on the industry is forecast to reach US $3.2 billion in 2019. The market is expected to reach US$ 6.36 billion by 2024, growing at a CAGR of 19% over the forecast period of 2019-2023 .
Asia Pacific’s overall IIoT spending is projected to surge to US$ 225 billion by 2023 from US$ 76 billion in 2018, driven by higher healthcare costs, the rising incidence of chronic diseases, a burgeoning middle class and an overall shift in the age demographic
The hottest application areas for IoT in manufacturing include Industrial Asset Management, Inventory and Warehouse Management and Supply Chain Management. In high tech manufacturing, Smart Products, and Industrial Asset Management are the hottest application areas.
Manufacturers most relied on the Industrial Internet of Things (IIoT) in 2018 to help better understand machine health (32%) on the shop floor, leading to more accurate Overall Equipment Effectiveness (OEE) measurements.
Changing how plant maintenance personnel will work and interact with all levels of operation (29.5%) and helping to better prevent and predict shutdowns (27.1%) are the top three use cases of IIoT according to Plant Engineering and Statista. .
According to IDC, investments in Operational Sensing through IoT and situational awareness via analytics will deliver 30% improvement in Critical Process Cycle Times. IDC also predicts by 2019, at Least 40% of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge of, the network. By 2023, more than 50% of IoT spending will be driven by discrete manufacturing, transportation, and logistics, and utilities IoT will have the most transformative effect on industries that aren’t technology-based today.
The most critical success factor all these use cases depend on secure, scalable and reliable end-to-end integration solutions that encompass on-premise, legacy and cloud systems, and platforms.
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. IIoT solutions are growing rapidly, presenting an entirely new era of technological innovation in manufacturing, called Industry 4.0.
Also known as the fourth industrial revolution, Industry 4.0 refers to the new ways connected IoT, robotics, machine learning, artificial intelligence (AI), quantum computing, and more can be integrated into business and society .
In Asia-Pacific, a growing number of biopharma companies are using AI to streamline the drug discovery process, but its applications can also be found in other areas such as diagnostics.
In Singapore, the government has launched several key technology initiatives with direct impacts on the medical manufacturing sector. These include programmes on 3D printing, robotics, and industrial applications of the Internet of Things (IoT), to name a few. Rising cost pressures and a decrease in numbers in new drug pipelines have resulted in pharmaceutical companies adopting digital solutions to gain efficiency in their research operations.
Technologies such as big data, artificial intelligence (AI), Internet of Things (IoT) devices and mHealth platforms will drive 20% growth in the clinical trials market. Japanese surgeons and diabetologists are using big data to shape the understanding of best practice .
Distribution Chain Analysis
The IoT Platforms are expected to become a high point in the development of the IoT industry. Leaders across the industrial chain have accelerated their planning in various ways IoT platforms will overturn the development modes of traditional industries and deeply change the future international industrial divisions of labours and the competition layout of international trade.
In general, transfer of the industrial value to services based on software and data. The maturity of cloud computing and big data grants the IoT platform with characteristics of small investment, short development time, and easy deployment as well as advantages in the data processing.
The key players that dominated the global market share in 2018 include General Electric Company (GE), International Business Machines Corporation (IBM), Cisco Systems, Inc., Siemens AG, and Intel Corporation.
Other players in the industry include Microsoft Corporation, Rockwell Automation, Inc., ABB, Atmel Corporation, and ARM Holding plc., Schneider Electric SE, Intel Corporation, ABB Ltd., Tech Mahindra Ltd., and Accenture PLC.
The APAC IIoT market is highly competitive. The industry has seen many mergers and acquisitions over recent years. The presence of global players operating across the globe makes this market appears highly competitive. The industrial internet of things market is fragmented due to the majority of the manufacturing companies across the globe are using IoT after current evolution of industry 4.0. This makes the market highly competitive and allows companies to provide services in IoT.
The industrial Internet of Things market has a highly fragmented vendor landscape. April 2019 – SAP SE and Uber Freight announced a partnership to modernize the freight industry through intelligent process automation and better access to a network of connected and reliable drivers.
The integration of Uber Freight into SAP logistics business network will let customers access transportation rates from Uber’s digitally activated carrier network and gain real-time quotes and guaranteed freight capacity, greatly simplifying load management and execution.
In order to fight the growing problem of counterfeit drugs in India, NITI Aayog, Government of India’s premier policy institute, has teamed with global cloud leader Oracle, India’s premier super speciality hospital Apollo Hospitals, and global pharmaceutical manufacturer Strides Pharma Sciences, to pilot a real drug supply chain using blockchain decentralized ledger and IIoT software .
The key players are increasingly introducing advanced products, which are leading to drive the growth of the industrial Internet of Things (IIoT) market. These players are entering into collaborations or strategic partnerships for business expansion, which is increasing the level of consolidation.
IoT advocates or early adopters say location intelligence, streaming data analysis, and cognitive BI to deliver the greatest business benefit. Conversely, IoT early adopters aren’t expecting to see as significant benefits from data warehousing as they are from other technologies.
Consistent with previous studies, both the broader respondent base and IoT early adopters place a high priority on reporting and dashboards. IoT early adopters also see the greater importance of visualization and end-user self-service.
Improving customer experiences (70%) and safety (56%) are the two areas enterprises are using data generated from IoT solutions most often today. Gaining cost efficiencies, improving organizational capabilities, and gaining supply chain visibility (all 53%) is the third most popular uses of data generated from IoT solutions today
IoT early adopters are relying on growing revenue and increasing competitive advantage as the two main goals to drive IoT initiatives’ success. The most successful IoT advocates or early adopters evangelize the many benefits of IoT initiatives from a revenue growth position first.
IoT early adopters are more likely to see and promote the value of better decision-making, improved operational efficiencies, increased competitive advantage, growth in revenues, and enhanced customer service when BI adoption excels, setting the foundation for IoT initiatives to succeed.
Various companies are focusing on organic growth strategies such as product launches, product approvals and others such as patents and events. Inorganic growth strategies activities witnessed in the market were acquisitions, and partnership & collaborations.
These activities have paved the way for the expansion of business and customer base of market players. The market payers from the industrial internet of things edge market are anticipated to lucrative growth opportunities in the future with the rising demand for the industrial internet of things edge in the global market.
Key Market Players
The IIoT market ecosystem comprises players such as IBM Corporation, Intel Corporation, Schneider Electric SE, Huawei Technologies, Accenture PLC, Tech Mahindra Ltd., Sasken Technologies Ltd., ZIH Corp., Siemens AG, and NEC Corporation .
- IBM Corporation: International Business Machines Corporation operates as an integrated technology and services company worldwide. Its Cognitive Solutions segment offers a portfolio of enterprise artificial intelligence platforms, such as analytics and data management platforms, cloud data services, talent management, and industry solutions primarily under the Watson Platform, Watson Health, and Watson Internet of Things names. This segment also offers transaction processing software for use in banking, airlines, and retail industries. The company’s Global Business Services segment offers business consulting services; delivers system integration, application management, maintenance, and support services .
- Intel Corporation: Intel Corporation offers computing, networking, data storage, and communication solutions worldwide. It operates through Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other segments. The company offers microprocessors, and system-on-chip and multichip packaging products. It also provides NAND flash memory products primarily used in solid-state drives; and programmable semiconductors and related products for communicacentre data center, industrial, and military markets .
- Huawei Technologies: Huawei Technologies USA, Inc. develops and manufactures various wireless network, fixed network, carrier software, and core network products, as well as services and solutions to telecommunications operators. It offers mobile phones, tablets, wearables, mobile broadband, smart home products, and accessories for consumer markets; and telecom wireless network products, telecom fixed network products, core network products, carrier software, network energy products, IT products, enterprise wireless products, and enterprise network products for business markets .
- Accenture PLC: Accenture plc provides consulting, technology, and outsourcing services in Ireland and internationally. Its Communications, Media & Technology segment provides professional services for clients to accelerate and deliver digital transformation, develop industry-specific solutions, and enhance efficiencies and business results for communications, media, high tech, software, and platform companies .
- Tech Mahindra Ltd.: Tech Mahindra Limited provides information technology (IT) services and solutions in the Americas, Europe, India, and internationally. It offers IT outsourcing, consulting, next generation, application outsourcing, network, infrastructure management, integrated engineering, business process outsourcing, platform, and mobile value added services. The company provides consulting-led integrated portfolio services to telecom equipment manufacturers and telecom service providers; IT infrastructure services; business process outsourcing services; and enterprise solutions services of IT and IT-enabled services. It also offers IT services, such as IT enabled services, application development .
- Sasken Technologies Ltd.: It provides product engineering and digital transformation services worldwide. Its services include test automation, consultancy, test specifications, product testing, and application testing; and enterprise mobility, data discovery and analytics, cloud, and physical to digital solutions. The company offers IC Design, multi-layer analog/RF/high speed digital, mixed signal and high power PCBs boards, post-diagnostics, boot code, board support packages, device drivers, and verification and pre/post validation services for semiconductor industry; hardware design and development, middleware development, bearers/protocol stack porting and optimization .
- Siemens AG: Siemens AG offers power and energy solutions to companies in the energy and electricity industry. The company develops and builds fossil fuel power plants and power-generating components, as well as offers gas turbines, steam turbines, generators, gas turbine packages, steam turbine packages, compressors, fans, instrumentation and controls, electrical systems, wind turbines, fuel cells, fuel gasifies, turbochargers, and environmental systems. It also provides Camstar Electronics Suite software, a manufacturing execution system (MES) for electronics. It serves power, oil and gas, air separation, building complexes, ceramics, chemicals, food and beverage, manufacturing .
- NEC Corporation: NEC Corporation integrates computing and network technologies in Japan and internationally. The company operates in four segments: Public, Enterprise, Telecom Carrier, and System Platform. It provides systems integration services, such as systems implementation and consulting; maintenance and support services; outsourcing/cloud services; and system equipment. The company also provides network infrastructure products, including core network products, mobile phone base stations, optical transmission systems, routers/switches, and mobile backhaul products .
Asia Pacific is expected to witness the highest CAGR in the global industrial internet of things (IIoT) market during the forecast period. With enhanced geographic zones and a high client base, the Asia Pacific region is expected to exhibit strong growth in the industrial internet of things (IIoT) market.
The Asia-Pacific led by China and Japan is anticipated to witness significant growth for the internet of things market in the forecast period owing to increasing spending in network infrastructure by organizations to enhance their productivity. The rising manufacturing sector in the region will further support IIOT growth.
The manufacturing sector is one of the largest end users of II0T technologies. Increasing demand to track and manage inventories will supplement the rising internet of things market size. In emerging countries mainly India, government initiative to develop strong IOT infrastructure will propel the internet of things industry size.
Initiatives from the government sectors are leading to huge encouragement among consumers to adopt this technology. The growing population and disposable incomes of consumers in this region, coupled with urbanization and large-scale industrialization, are factors accelerating the growth of the industrial internet of things market in the APAC region.
List of abbreviations
- CAGR Compound Annual Growth Rate
- IIoT Industrial Internet of things
- APAC Asia Pacific Region
- US$ United States Dollar
GLOSSARY OF TERMS
- Computing infrastructure – Composite hardware, software and network resources required for the operation and management of an enterprise IT environment
- Data-led decision making – Making decisions based on the analysis of data
- End-customer – Consumers buying the product / services
- IFTTT – If ‘This’ Then ‘That’ – Rule based operation of devices / applications
- Interoperability – The ability of systems to exchange and make use of information