- APAC is expected to grow at a higher CAGR during the forecast period
- Based on component, the solutions segment leads the Iot in manufacturing market during the forecast period
The IoT in manufacturing market size is projected to grow from $ 33.2 billion in 2020 to $53.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 10.1 per cent as per a report by Reportlinker. It said that the major factors driving the growth of the Iot in manufacturing market include growing demand for industrial automation in manufacturing industry, rising need for centralised monitoring and predictive maintenance of assets, rise in the number of cost-effective and intelligent connected devices and sensors. It is also due to increasing need for reliable, secure, and high-speed network connectivity, and increased adoption of cloud computing platforms.
Based on component, the solutions segment leads the Iot in manufacturing market during the forecast period. It added that with the increased number of networked sensors growing across the production sector, logistics and supply chain manufacturers are getting into a new generation of systems that enable various solutions. These include data management, device management, application management, network management, and smart surveillance.The ubiquity of these solutions and connected devices is finding applicability across multiple segments of the manufacturing and supply chain industry throughout the value chain.
Maximise the RoI
The report added, “Organisations across the manufacturing industry are adopting IoT solutions and services, as it enables them to monitor their assets and increase operational efficiency.Maintenance, repair, and operations of assets are of the utmost importance in any asset-intensive industry.”
“The key objective is to maximise the RoI of the current asset base as well as to reduce the cost.IoT in manufacturing solutions enable organizations to track assets and receive notifications when the maintenance of assets is due.”
System designing and integration services
Based on professional services, system designing and integration service segment is estimated to grow at a higher CAGR during the forecast period. System designing and integration services offer a wide range of designs for IoT ecosystems and the integration of IoT solutions, which support the operational systems and business activities. System design service providers draw the complete IoT system to reduce business complexities and enhance profitability.
The report also said that service providers also design customised services based on clients’ needs and budgets to manage workflows and provide ease to their customers and employees.The customised services include IoT solutions and connectivity design, wireless network design, and IoT infrastructure design. Integration services include the installation of IoT software and solutions into organisations’ IoT ecosystem.
Based on deployment mode, cloud segment is estimated to grow at a higher CAGR during the forecast period. Cloud-based deployment offers several benefits to organizations, such as scalability, flexibility in capacity, enhanced collaboration, cost-efficiency, reduced physical infrastructure, less maintenance cost, and 24/7 data accessibility of assets from anytime, anywhere.
It added that asset -intensive organisations prefer cloud-deployed solutions, as it offers scalability and agility in organisations and provides more functions than on-premises solutions at an affordable cost. With rapid advancements in cloud technology, organizations are inclined toward implementing cost-effective cloud-based solutions.
Based on verticals, discrete manufacturing segment is expected to lead the market during the forecast period. The discrete industry is concerned with the manufacturing and production of distinct units, like automobiles, furniture, toys, smartphones, and airplanes.The discrete industry comprises a variety of verticals, such as automotive, machine manufacturing, semiconductor and electronics, medical devices, and logistics and transportation.
APAC to lead
The growth of IoT is leading to improvements in discrete manufacturing. For discrete manufacturers, IoT-enabled smart connected products provide a way to increase product functionality and generate additional value for customers.
APAC is expected to grow at a higher CAGR during the forecast period. APAC is seeing dynamic changes in the adoption of new technologies and expected to record the highest CAGR during the forecast period.With the presence of emerging countries, such as China, Japan, and India, the region is expected to witness high growth in the IoT in manufacturing market.
The report added, “As the manufacturing industry in Asia is in its developing phase, the adoption capability is more as compared to North America and Europe.With a lower level of entrenched processes than their American or European counterparts, Asian manufacturing businesses have a greater ability to alter their operations.”