The Internet of Things' ability to reduce costs has led to increasing adoption in the industrial sector, growing at a CAGR of 28%.
The global industrial Internet of Things (IoT) market is predicted to reach $933.62 billion by 2025--up from $109 billion in 2016, according to a report from Grand View Research, released Monday.
Adoption of industrial IoT models has grown worldwide, stemming from the technology's ability to reduce costs and increase productivity, process automation, and time-to-market, the report noted. The affordability and availability of processors, sensors, and other technologies that can facilitate access to real-time information is also key for IoT adoption. Manufacturers are now leveraging the benefits of industrial IoT solutions to consolidate their control rooms, to track assets, and to improve their analytics functionalities through predictive maintenance, according to the report.
General Electric, IBM, Cisco, Siemens, and Intel dominated the global market share in 2016, the report found.
"The ever growing need to enhance operational efficiency coupled with a strong alliance between the key industry players is expected to drive the market," the report stated. "With the evolution of the society toward an integrated digital-human workforce, the industrial internet is presumed to incorporate significant opportunities for growth over the next eight years."
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The managed industrial IoT services segment is also predicted to grow over the next eight years, as implementation of IoT technology requires integration of these managed industrial IoT services throughout the ecosystem, the report noted.
"IIoT is helping businesses across the world to improve worker safety, reduce operating costs, and enhance productivity," The report stated. "Companies are increasingly establishing new product and service hybrids globally in order to disrupt their own markets and generate fresh revenue streams by shifting from selling products to delivering measurable outcomes."
While North America accounted for the largest industrial IoT market share in 2016, the Asia Pacific region, led by China, is expected to surpass it by the end of 2025.
However, several barriers may limit the growth of industrial IoT, the report stated, including a lack of a defined protocol or standardization, and the use of legacy equipment. Security concerns, especially those associated with big data, are also expected to limit market growth, according to the report.
The 3 big takeaways for TechRepublic readers
1. The global industrial Internet of Things (IoT) market is predicted to rise from $109 billion in 2016 to $934 billion by 2025, according to a new report from Grand View Research.
2. Industrial IoT can reduce costs and increase productivity, process automation, and time-to-market for manufacturers, the report noted.
3. Barriers to industrial IoT adoption include cybersecurity issues, lack of standardization, and legacy equipment, the report found.
- IoT, encryption, and AI lead top security trends for 2017 (TechRepublic)
- Researchers create new ransomware to target industrial systems (ZDNet)
- 40% of industrial computers were hacked in 2016, here are 5 ways to protect your business (TechRepublic)
- IoT devices can be hacked in minutes, warn researchers (ZDNet)
- Network Security Policy Template (Tech Pro Research)