The Internet of Things (IoT) refers to the network of physical objects or "things" embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data. In the context of manufacturing, IoT allows knowledge of the physical world to be connected and exchanged by interoperable smart devices and systems. IoT systems allow machinery, work cells, assembly lines, vehicles, warehouse systems and other equipment to be monitored and controlled remotely across all facilities and functions. Using various sensors, these systems can capture data from various manufacturing processes which helps in predicting failures and enables condition-based and predictive maintenance.
The global IoT in Manufacturing Market is estimated to be valued at US$ 271.16 Bn in 2023 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increased adoption of IoT in manufacturing is mainly driven by its ability to provide increased operational efficiency. IoT helps connect all systems and machines involved in manufacturing processes and supply chains in an organization. This enables real-time data collection from these assets about performance metrics, downtimes etc. Manufacturers can leverage this data for predictive maintenance and optimize production processes. It also enables monitoring manufacturing operations remotely for improvement in productivity, reduction in downtime and waste. Another key driver is improved supply chain management with IoT. Technologies like RFID tags help provide real-time visibility of inventory levels and product movement. This allows manufacturers to reduce stockouts and overstocks while maintaining optimal inventory. The connectivity provided by IoT also enables machinery and equipment from different providers to interoperate seamlessly in a manufacturing plant. Overall, IoT driven innovations help manufacturing organizations enhance operational efficiency while reducing costs.
SWOT Analysis
Strength: IoT in manufacturing enables greater visibility across supply chains and factories through sensors and connectivity. This allows for real-time monitoring of processes and equipment which can help optimize operations and reduce downtime through predictive maintenance. Gathering data from connected devices also enables advanced analytics for gaining insights. Having network connectivity throughout factories provides opportunities for remote assistance and over-the-air software updates.
Weakness: Implementing IoT involves a significant upfront investment in devices, sensors, network infrastructure and integration with existing systems. Legacy equipment may also need to be retrofitted with connectivity which increases costs. Dependence on network connectivity can expose manufacturing operations to cybersecurity risks if proper controls and protocols aren't in place. Lack of common standards and interoperability between IoT platforms from different vendors also poses integration challenges.
Opportunity: IoT helps improve productivity, quality and flexibility of manufacturing processes. Sensor data and analytics can optimize resource usage, minimize waste and reduce the need for manual monitoring. Connected devices also enable new revenue streams through usage-based models, remote monitoring services and digital threading of product lifecycles. Emerging technologies like edge computing, 5G and low-power wide-area networks will further drive IoT adoption across global manufacturing supply chains.
Threats: Stiff competition exists from low-cost Asian and European rivals focusing on IoT innovations. Implementation challenges, technology risks and limited skills could compromise projected ROI for IoT projects. Stringent regulations around data privacy and security pose ongoing compliance requirements. Dependence on cloud providers and network operators introduces uncertainties around service availability and pricing changes over time.
Key Takeaways
Global IoT In Manufacturing Market Demand is expected to witness high growth over the forecast period with increasing digitization across factories.
The Asia Pacific region currently dominates the market due to a large manufacturing base and growing number of smart factories in countries like China, Japan, India and South Korea. Factories in these regions are among the early adopters of Industry 4.0 technologies like IoT, AI, robotics and 3D printing to automate processes and gain competitive advantages in global supply chains. Key players are focusing on Southeast Asian markets with rising labor costs driving the need for digital transformation.
Key players operating in the IoT in Manufacturing market are EnableX.io (VCLOUDX PTE. LTD), Twilio Inc., Infobip Ltd., Vonage Holdings Corp, M800 Limited, MessageBird BV, Iotum Inc., Plivo Inc., Voxbone SA, Snich AB, Telestax, Voximplant
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