The IoT in manufacturing market is expected to expand its roots at a steady CAGR of 14.7% during the forecast period. The market is likely to hold a revenue of USD 265.2 billion in 2023 while it is anticipated to cross a value of USD 948.6 billion by 2033.
The research report on the IoT in manufacturing market states that the higher penetration of IoT, AI, cloud computing, and ML in industrial spaces is garnering market growth. Furthermore, the ease and higher productivity delivered by the rapid automation of the manufacturing units are pushing competitors to adopt the recent technology.
The concept of AIoT which stands for artificial intelligence of things is likely to close the gap in data performance and utilization. Thus, the AI and IoT convergence in manufacturing is creating new opportunities for the product manufacturing landscape. The enhanced security layering has also become the backbone of increased cyber resiliency, making IoT integration safer than ever. The restoration of production and manufacturing facilities post-pandemic is backed by extended research and development programs. This has resulted in the addition of sensor technology advancements, sensing temperature, weight, state, etc. The power of cyber-physical systems and other internet technologies is projected to improve the production process and supply chain.
IoT in manufacturing market analysis explains that the dynamic of connected products eases manufacturing procedures while cutting costs of labor. The IoT in manufacturing spaces is transforming how industries utilize, communicate, and operate data. The other elements of the fifth industrial revolution and its cooperation with leading companies and SMEs are anticipated to fuel market growth.
| Attributes | Details |
|---|---|
| IoT in Manufacturing Market CAGR (2023 to 2033) | 14.7% |
| IoT in Manufacturing Market Size (2023) | USD 265.2 billion |
| IoT in Manufacturing Market Size (2033) | USD 948.6 billion |
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Short-term Growth (2023 to 2026): IoT and cyber-physical systems are the need of the hour. With highly productive systems and smooth supply chains, manufacturers look for 100% errorless proficiency. Furthermore, the new-age products and their production involving new technological additions are also flourishing the market growth. With these wide ranges of applications, the market is expected to hold USD 265.2 billion in 2023 while it is anticipated to reach USD 400.19 billion by 2026.
Mid-term Growth (2026 to 2029): The higher penetration of sustainability in manufacturing along with the integration of IoT and AI, adds value to the market trajectory. Higher production value along with the cost-cutting benefits delivered by it is fuelling the demand for IoT in manufacturing. This takes a market value from USD 400.19 billion in 2026 to a value of USD 603.89 billion in 2029.
Long-term Growth (2029 to 2033): This period is expected to witness the manufacturing units working along with AI, cloud computing, and IoT. This is anticipated to happen due to the improved network bandwidths and high-speed internet. Thus, the market is anticipated to thrive at a strong CAGR of 14.7% between 2023 and 2033.
Industrial expansion is witnessing the addition of advanced software and hardware while it becomes the center-point of transformation for other experiments. The addition of IoT in manufacturing is likely to add a new chapter to the history of production. There is a rising demand for agile production and operational efficiency along with the importance of intelligent machine applications. Alongside this, an increase in regulatory compliance around the globe is anticipated to boost the IoT in the manufacturing market. The IoT-integrated manufacturing devices accelerate predictive maintenance, track data, and deliver real-time insights.
Some key restraints for the market are lack of infrastructure, awareness, and capital. The brands that have lost their business during the pandemic period. Hence, surviving on limited capital sources is the only option that these businesses have. Furthermore, the semi-automatic alternatives with affordable pricing are also limiting the market growth. Another factor that limits the market growth is the integration of these standards in a way that Machine-to-Machine (M2M) communication. As it becomes more user-friendly and versatile.
| Region/Country | United States |
|---|---|
| Revenue Share % (2022) | 20.5% |
| Region/Country | Germany |
|---|---|
| Revenue Share % (2022) | 12.1% |
| Region/Country | Japan |
|---|---|
| Revenue Share % (2022) | 8.6% |
| Region/Country | Australia |
|---|---|
| Revenue Share % (2022) | 2.3% |
| Region/Country | North America |
|---|---|
| Revenue Share % (2022) | 38.5% |
| Region/Country | Europe |
|---|---|
| Revenue Share % (2022) | 24.3% |
Higher Industrial Automation, Availability of Infrastructure, and Increased Application of Robotics in Industrial Spaces Fuel the Regional Growth
The United States IoT in manufacturing market leads in terms of market share in the North American region. The region held a market share of 20.5% in 2022. North America has dominance in the IoT in the manufacturing market as it held a 38.5% global share in 2022. The developed economies in this region, such as the United States and Canada, are continuously investing in industrial research and development. Adding new technological layers to their manufacturing systems.
Manufacturers use IoT and analytics to operate and enhance their businesses to stay competitive. The application of smart sensors is also helping the producers in utilizing data, better communication, and enhanced productivity.
Restoration of Automotive Manufacturing, Error-less Manufacturing, and Integration of AI are garnering the Regional Growth
The German IoT in Manufacturing market held a market share of 12.1% in 2022 while the European Union held a market share of 24.3%. The growth is attributed to the existing automotive industry with large-scale parts manufacturing facilities. These firms have started automating and integrating them with advanced technology. Furthermore, these manufacturing facilities and their data processing has been made easy through the integration of IoT and artificial intelligence. The increased cross-border trade and investment are expected to improve the supply chain through the application of IoT.
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| Category | By Vertical |
|---|---|
| Leading Segment | Discrete Manufacturing |
| Market Share (2022) | 57.6% |
| Category | By Application |
|---|---|
| Leading Segment | Automation Control and Management |
| Market Share (2022) | 19.3% |
Based on vertical type, discrete manufacturing leads as it held a substantial market share of 57.6% in 2022. The growth of this segment is due to the transforming IT and OT systems. The shift towards software-defined infrastructure and machines is also making the segment successful. Lastly, data-driven innovations are expected to decrease the barriers to IoT in manufacturing.
Based on application, the automation control and management segment lead as it held a market share of 19.3% in 2022. The growth is attributed to the IoT’s integration with computer automation controls. This further helps in streamlining the industrial systems, and tracking their performance while removing errors and inefficiencies.
The key players in the market focus on delivering better integration options. The IoT hardware and software launched by vendors are updated with the ongoing functions and should be customizable. Furthermore, Industry 4.0’s other elements like artificial intelligence, and cloud computing are also being integrated with IoT deployments.
How can IoT in Manufacturing Vendors Providers Scale their Businesses in the Market?
Market players in the market are working on three key strategies.
Market Developments
The United States, Germany, and China dominate the global IoT manufacturing market.
The market is forecast to register a CAGR of 14.2% through 2033.
During 2018 to 2022, the market grew at a CAGR of 10.5%.
The increasing adoption of Industry 4.0 is disrupting the current market trends.
The global market size to reach USD 948.6 billion by 2033.
| Market Share (2023) | USD 1,421.8 million |
|---|---|
| Market Share (2033) | USD 17,094.9 million |
| CAGR (2023 to 2033) | 28.2% |
| Market Share (2023) | USD 442,934.4 million |
|---|---|
| Market Share (2033) | USD 1,392,133.7 million |
| Market CAGR (2023 to 2033) | 12.1% |
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IoT in Manufacturing Market
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