IoT in manufacturing market to reach $87.9 billion by 2026
The global IoT in manufacturing market is forecast to grow from $50 billion in 2021 to $87.9 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 11.9% during the forecast period, according to ResearchAndMarkets.
The presence of various key players in the ecosystem has led to competitive and diverse market. IoT in manufacturing is a technique of digital transformation that the manufacturing companies adopt for their efficient working of machines and their employees. This employs a network of sensors to collect critical production data and cloud and analytics software are used to convert these data collected to useful information for effective decision-making about the manufacturing operations.
This adoption of IoT enables manufacturing units to automate their processes and are used for reducing cost, shorter time to market, mass customization, and improve safety. Connected sensors and actuators enable companies to pick up on inefficiencies and problems sooner and save time and money, while supporting BI efforts.
IoT in manufacturing market services to record a higher growth rate
In the IoT in manufacturing market by component, the services is expected to record a higher growth rate during the forecast period. Services play a vital role in the IoT in manufacturing market, as they enable manufacturing enterprises to establish digitized and connected manufacturing processes with mass customization and a self-configuring, automated manufacturing floor.
The services segment is considered an important component of the IoT in manufacturing market, as it majorly focuses on improving the business operations and reducing unnecessary expenses and overheads of the manufacturing enterprises.
Large enterprises are expected to hold a larger IoT in manufacturing market size
By organization size, large enterprises are expected to hold the largest market size in the present market. The high adoption is due to the affordability and high economies of scale of large enterprises that enable organizations to leverage IoT in manufacturing solutions and services.
In today’s highly competitive world, large enterprises particularly leave no stone unturned to capture a larger market share. Hence, large enterprises spend significant amounts on becoming technologically proficient.
Cloud deployment is expected to have a higher growth rate
By deployment mode, cloud is expected to have a higher growth rate. The implementation of the cloud-based IoT in manufacturing software facilitates SMEs and large enterprises to focus on their core competencies rather than IT processes. With the help of cloud-based IoT in manufacturing solutions, organizations can avoid costs related to software, storage, and technical staff.
The cloud-based IoT in manufacturing solutions offer a centralized way to integrate the system and its components with web and mobile applications and helps organizations in asset management, asset maintenance, and asset productivity in the manufacturing industry.
Asset control and management is expected to have a higher growth rate
By application, asset control and management is expected to have a higher growth rate. Asset tracking and management streamlines operations, reduces costs and increases productivity. By tracking non-fixed assets in a factory environment, organizations automatically keep on top of available assets. Knowing where assets are located and what condition they are in helps minimize asset downtime, optimize asset productivity and maintenance of resources and control inventory costs.
Most manufacturing companies that have their valuable assets distributed across a large geographical area have to contend with a host of problems that affect their operational efficiencies, productivity, costs, staffing, and ultimately their bottom line, among other things.
APAC to have a higher growth rate during
APAC is expected to grow at the highest CAGR during the forecast period. The IoT in manufacturing market in APAC is expected to experience strong growth in the coming years, due to the constant economic growth, increasing the young workforce, and the usage of tablets and smartphones for business purposes will lead toward the adaptation of enterprise mobility solutions to meet the growing demand for securing and protecting critical data. The major reason for this high growth in APAC is the increasing digitalization among people and the rising infusion of automation at industries and government initiatives to promote technology adoption across the region.