It was estimated that manufacturers investment in IOT will increase in double-digit after 5 years. During the forecast period, global IoT in manufacturing is expected to grow from 12.67 billion USD to 45.30 USD by 2022.
List of drives of IoT into the manufacturing market:
1.Predictive maintenance of manufacturing infrastructure.
With the advent of demand driven supply chain, the latest communication technologies and connected logistics will further aid in manufacturing market growth. The growth of IoT into manufacturing industry is being restricted by growing concerns over data security, lack of standards for interoperability and inter connectivity and privacy.
Every gadget we are using is getting smarter day by day. There is a lot of changes in the living of people due to inter connectivity between the smart devices. Hence we started to introduce IoT into manufacturing industry. Major enterprises are spending billions of dollars for the introduction of IoT.
According to the market research, it was estimated that the manufacturing firms achieved the highest revenue with the introduction of IoT in 2014. The world average IoT expenditure per company in 2015 in the manufacturing industry is USD 110.35 million, which is 0.45% of the average income earned by companies in the manufacturing industry.
Manufacturing firms will have the pressure to find innovative business models for reaching their customers, reducing cost, creating smart products which are mounting day by day. As the companies are giving importance for the first mover, the market is growing rapidly for IOT.
During the forecast period APAC is projected for highest growth:
APAC market is growing at a fast pace in IoT of manufacturing market.APAC has witnessed the adoption of advanced and dynamic new technologies and has always been a profitable market. Governments in the APAC region continue to invest in IoT R & D in manufacturing solutions and services. Expanding the IT landscape enhances market growth in this region.
In addition, increased mandates for regulatory compliance and the emergence of data analytics, and intelligent machine processing and applications are some of the drivers of IoT growth in the manufacturing market.
The utilities and energy are holding larger market share in IoT manufacturing:
Energy companies can achieve benefits, such as improvised supply chains, enhanced asset monitoring and maintenance, and potential returns on IoT investments that implement IoT in all organizational processes. This solution is primarily intended to achieve machine convergence and smart data to increase operational efficiency targets set by energy companies. vertical energy and utilities are expected to grow at the highest CAGR.
IoT in energy and utilities is used to implement IoT-based technology solutions and related services in the oil & gas and mining sectors. The implementation of IoT in manufacturing provides global factory automation, process optimization, supply chain optimization, enhanced security, integrated business processes and corporate social responsibility.
The managed services are being rapidly adopted by developed countries, such as the US and Canada. Managed services play a large role in the deployment of IoT in manufacturing solutions according to client requirements.
Managed services cover all customer requests and needs before and after placement. This service can include planning, designing, testing, integration, maintenance, and support.
These services are mainly left to outsiders for timely delivery, and reduction of capital and operating expenses. Managed service vendors connect people in all business functions and regions, and provide them with relevant information related to smart design, operation and maintenance, and higher service quality and safety
With the increase in data generated it is increasing at a rate of 40% annually, it was estimated that 35 zettabytes will be generated by 2020. This study hopes that by 2020, there will be a shift in focus from capital expenditure to operational costs. The potential for untapped big data, which is currently booming in data analysis, will be released in 2020 and IoT will have a major role in collecting data from various sides of the value chain.
IoT technology enables companies to build loyal customer relationships, increase customer value for life, maintain quality standards throughout the product lifecycle, and notify customers of future designs. Our observations show that in the APAC region, the percentage of manufacturing companies investing in IoT technology is the highest in 2015. Surprisingly, North America ranks last on this list.
Chain monitoring is expected to grow to a maximum (4%) over the next five years. This research hopes that by 2018, nearly 36% of 100 large companies will implement IoT in manufacturing and will depend on products that are connected with IoT. With IoT, the predictive diagnosis and performance prognosis will soon become a common feature in the giant industrial manufacturing supply chain.
At present North America is the lead in the adoption of IoT which digitize their processes with the adoption of new technologies like augmented and virtual reality.Mid-sized North American producers are adopting IoT at an accelerated rate, greatly affecting the adoption of their larger corporate partners.