Market Size of Industrial Internet Of Things (IIoT) Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 114.68 Billion |
Market Size (2029) | USD 503.07 Billion |
CAGR (2024 - 2029) | 34.41 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Asia-Pacific |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Industrial Internet of Things (IIoT) Market Analysis
The Industrial Internet Of Things Market size is estimated at USD 114.68 billion in 2024, and is expected to reach USD 503.07 billion by 2029, growing at a CAGR of 34.41% during the forecast period (2024-2029).
- Technologies, such as big data and machine learning (ML), are being used increasingly to harness the data generated from connected devices to improve machine-to-machine (M2M) communication and streamline workflow. Also, declining manufacturing and sensor costs in producing IoTs further drive the demand.
- Significant advantages, such as large-scale profit margins through improvements in power efficiency, attract companies to invest in the market aggressively. According to a study by Microsoft, IoT is increasingly becoming indispensable to the manufacturing industry. 87% of IoT decision-makers in the industry have adopted IoT, and the vast majority say IoT is critical to the success of their company and that they are satisfied with the technology.
- Furthermore, the utilization and demand for edge computing in Industrial IoT are rapidly increasing due to its next-generation capabilities. For instance, in the current year, SECO, an Italian high-tech company, has announced a strategic partnership with Qualcomm Technologies International, Ltd—the goal of introducing innovative edge computing products and solutions tailored for the industrial Internet of Things (IIoT). Under the agreement, SECO is appointed Qualcomm Technologies IIoT design center partner, responsible for creating specific reference designs for readily available hardware solutions, primarily targeting OEM customers.
- Market incumbents like Google, Amazon Web Services, and Microsoft aim to establish more collaborative partnerships with edge-computing companies to provide one-stop solutions to industrial users. Further, the growing number of industrial robot installations globally is expected to create considerable demand for low latency and jitter communications, significantly improving the need for IIoT solutions.
- AWS IoT TwinMeker introduces three new entity modeling features to streamline the creation, deployment, and scalability of digital twins for real-world systems: Firstly, customers can now perform metadata bulk operations, including import, export, and update, facilitating the seamless migration of equipment models and metadata for external sources or different AWS accounts. This simplifies the creation of entity models at scale. Secondly, AWS IoT TwinMaker service quotas have been increased to support digital twins with higher entity and component counts. Third, introducing composite component types enhances flexibility and efficiency in constructing complex components.
- Moreover, metadata bulk operations and composite components are accessible in AWS IoT SiteWise, ensuring a consistent modeling experience for industrial customers across all regions where AWS IoT TwinMaker is generally available, except for metadata bulk operations, which are inaccessible in AWS GovCloud. Such developments were expected to influence future and current ongoing IIoT projects as they might be deemed non-essential and either postponed or canceled for the foreseeable future.
Industrial Internet of Things (IIoT) Industry Segmentation
IoT is a network of internet-connected objects. These objects collect and exchange data using sensors embedded within them. IoT systems connect specialized devices designed for specific purposes with limited programmability and customizability. Moreover, IoT systems also store and process data in a distributed manner.
The Industrial Internet of Things (IIoT) Market is segmented By Type (Hardware, Software, Services, and Connectivity), By End-user vertical (Manufacturing, Transportation, Oil, and Gas), and By Geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
Type | |
Hardware | |
Software | |
Services & Connectivity |
End-user Vertical | |
Manufacturing | |
Transportation | |
Oil and Gas | |
Utility | |
Other End-user Verticals |
Geography | |
North America | |
Europe | |
Asia Pacific | |
Rest of the World |
Industrial Internet Of Things (IIoT) Market Size Summary
The Industrial Internet of Things (IIoT) market is poised for significant growth, driven by advancements in technologies such as big data and machine learning, which enhance machine-to-machine communication and optimize workflows. The decreasing costs of manufacturing and sensors further bolster the demand for IoT solutions. Companies are increasingly investing in IIoT due to its potential to improve power efficiency and profit margins. The manufacturing sector, in particular, is a major contributor to this market expansion, with a strong focus on integrating IoT technologies to support Industry 4.0 initiatives. This integration facilitates operational optimization, reduces downtime, and enhances efficiency, leading to improved profit margins and swift returns on investment. The adoption of industrial robots and the growing need for low latency communications are also expected to drive the demand for IIoT solutions.
The market landscape is characterized by a high level of competition and fragmentation, with key players like Google, Amazon Web Services, and Microsoft forming strategic partnerships to offer comprehensive solutions. The increasing importance of edge computing and digital twin technologies is shaping the future of IIoT, as seen in recent developments by companies such as SECO and AWS. Government initiatives in regions like India are further propelling the adoption of IIoT, emphasizing smart manufacturing and digital transformation. The market's competitive nature is underscored by significant acquisitions and product launches, such as Honeywell's acquisition of SCADAfence and Siemens' introduction of the Xcelerator platform. These developments highlight the ongoing efforts to enhance cybersecurity, streamline digital transformation, and provide robust IoT solutions across various industrial sectors.
Industrial Internet Of Things (IIoT) Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Intensity of Competitive Rivalry
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1.2.5 Threat of Substitutes
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1.3 Industry Value Chain Analysis
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1.4 COVID-19 Impact on the IIoT market
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1.5 Regulatory Framework
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1.6 Market Drivers
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1.6.1 Proliferation of digitization and adoption of sensors in plants
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1.6.2 Growing demand for automated and efficient process
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1.7 Market Restraints
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1.7.1 Issues Related to Security and Privacy of Data and Connectivity of Devices and Interoperability
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Hardware
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2.1.2 Software
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2.1.3 Services & Connectivity
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2.2 End-user Vertical
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2.2.1 Manufacturing
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2.2.2 Transportation
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2.2.3 Oil and Gas
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2.2.4 Utility
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2.2.5 Other End-user Verticals
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2.3 Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia Pacific
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2.3.4 Rest of the World
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Industrial Internet Of Things (IIoT) Market Size FAQs
How big is the Industrial Internet Of Things Market?
The Industrial Internet Of Things Market size is expected to reach USD 114.68 billion in 2024 and grow at a CAGR of 34.41% to reach USD 503.07 billion by 2029.
What is the current Industrial Internet Of Things Market size?
In 2024, the Industrial Internet Of Things Market size is expected to reach USD 114.68 billion.