Global Market for IoT in Manufacturing Estimated to Grow to $23 Billion by 2031
Market barriers include costs of upgrading machinery, investment decisions and cybersecurity concerns
A new report from Guidehouse Insights discusses how Internet of Things (IoT) is being deployed in the manufacturing sector and provides analyses for the expected investment in IoT in manufacturing by global region through 2031.
Manufacturing is the quintessential use case for the Industrial Internet of Things (IIoT). Production lines and industrial machines can see large jumps in productivity by adding internet connectivity and sensors to monitor production conditions, including temperature, humidity, noise, or vibrations. According to a new report from Guidehouse Insights, the global market for IoT in manufacturing is expected to increase by a compound annual growth rate (CAGR) of 15.0%, reaching a total of $23.1 billion in investments by 2031.
“The insights generated by these sensors can be used to improve industrial processes, saving manufacturers money and increasing productivity,” says Francesco Radicati, senior research analyst with Guidehouse Insights. “IoT technology can also lead to new business models and ways of working, such as hardware as a service, in which a factory leases machinery from the manufacturer, which is responsible for maintenance and repairs.”
Key drivers for IoT adoption in manufacturing include the need to cut costs, including via energy efficiency, worker safety, and maintaining productivity levels by avoiding machine breakdowns and downtime. However, some stakeholders remain resistant to deploying IoT in manufacturing due to cost concerns of replacing machinery, disagreements between IT and OT teams over the best way to invest in equipment or plant upgrades, and cybersecurity concerns, according to the report.
The report, IoT in Manufacturing, discusses how IoT is being deployed in the manufacturing sector, focusing on uses for wide and local area networks for connectivity, sensors to capture and communicate conditions on the factory floor, and analytics to determine the optimal running of machines and when breakdowns are likely to occur. It provides analyses for the expected investment in IoT in manufacturing by global region through 2031. An executive summary of the report is available for free download on the Guidehouse Insights website.
*The information contained in this press release concerning the report, IoT in Manufacturing, summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.