IoT Connectivity: Manufacturing Sector
To identify the rate of increase in connectivity in manufacturing, rate of increase of connected devices, key changes in considerations and job requirements for IT professionals.
Global IoT Market
- According to a report by EY, the global IoT connections market is expected to grow from $7 billion in 2017 to $25 billion in 2025 at a CAGR of 17%. The global IoT market overall is expected to reach $1.1 trillion by 2025.
- Based on the forecasted share of the global IoT revenue in 2025, the market can be broken down into Platforms, applications
, and services (68%), IoT professional
services (27%), and connectivity (5%). It is predicted that the market's value will shift from connectivity to platforms, applications
, and services by 2025.
- EMEA is the fastest growing region in the IoT connections market. It is forecasted to grow at a CAGR of 15.7% between 2017-2025. By 2025, the Asian Pacific market is expected to be in the lead with a market size of $10.9 billion, followed by North America ($5.8 billion), and EMEA: Europe and MENA ($6 billion).
- In terms of industries, the manufacturing sector is forecasted to spend the most on IoT in 2019 ($197 billion), followed by consumer IoT, transportation, and utilities. Most of the spending by manufacturers on IoT will be focused on solutions that support manufacturing operations and
production asset management.
IoT in the Manufacturing Sector
- According to a Mordo Intelligence report summary, the IoT market in manufacturing is expected to grow from $187.33 billion in 2018 to $487.30 billion by 2024 at a CAGR of 18.07%.
- The report further states that "with the number of networked sensors increasing across production, supply chain, and products, manufacturers are entering into new generation of systems that enable automatic and real-time interactions among machines, systems, assets, and thing." There are various applications of connected devices seen across multiple segments of the manufacturing and supply chain.
- Investments in IoT within the manufacturing sector has sky-rocketed during the past few decades. One of the reasons for this is that IoT has the ability to "facilitate the production flow in a plant, as IoT devices automatically monitor development cycles, and manage warehouses and inventories".
- IoT in manufacturing, logistics, and transportation is expected to reach $40 billion by 2020.
North American Market: IoT in Manufacturing
- The market for IoT in manufacturing is dominated by North America with the US and Canada which are heavily investing in R&D activities, and the early adoption of trending technologies such as mobility and big Data to integrate IoT into their processes.
- In the US, about 35% of manufacturers "collect and use data generated from smart sensors, to enhance manufacturing processes". In addition, study findings show that 34% of the manufacturers feel that it is "extremely necessary" that US manufacturers adopt IoT in operations.
- By 2025, the number of connected devices in the automation market is expected to increase by 50 times. "For manufacturers, IoT has become an ecosystem where software, cloud computing, and analytics tools are combined, to turn raw data from different sources into meaningful predictions and present them in easy-to-use interfaces."
- While exact statistics were not provided in the summary, from on the graphical presentation of the regional growth rates in the IoT market in the manufacturing sector during 2019-2024, it can be seen that the Asian Pacific market shows a high growth rate while Europe and North America has a medium growth rate. The growth in the Middle East and Africa appears to be low in comparison.
- The key players in the market that support IoT within the manufacturing industry include Cisco Systems Inc., General Electric, Intel Corporation, IBM Corporation, AT&T Inc., Qualcomm, and Siemens AG. According to Mordor Intelligence, the IoT market in manufacturing is neither too consolidated nor too fragmented.
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