What’s fuelling the growth in adoption of industrial IoT platforms? Eleanor Hecks, Managing Director of Designerly Magazine investigates
The Internet of Things (IoT) is most recognisable in consumer smart devices. While these electronics account for much of the technology’s growth, industrial sectors have become increasingly interested in IoT connectivity, too. While the industrial Internet of Things (IIoT) is taking longer to achieve mainstream popularity, it may ultimately be more disruptive.
Industrial IoT demand is skyrocketing
In 2023, the global IIoT platform market was worth an estimated $9.8 billion — roughly £7.8 billion. By 2032, it could grow to a staggering $30.33 billion, or around £24 billion.
Such a surge in spending comes as 65% of industrial businesses are already deploying the IIoT to reduce costs and drive performance. The ability to optimise processes like maintenance and production monitoring is in particularly high demand. These use cases account for roughly 59% of all IIoT revenue.
As the IIoT grows, it’s also evolving. Interoperability between endpoints is working past long-standing barriers, and plug-and-play functionality for fast, accessible implementation is becoming increasingly common. IoT devices now appear in a wider range of companies and workflows than ever.
What’s behind the rise in IIoT platform adoption?
The spike in IIoT platform adoption is not merely out of excitement around new technologies. Rather, it comes as organisations have recognised how IIoT solutions can drive several needed improvements.
Uptime demands
A need for higher productivity and equipment uptime is a significant driver of IIoT adoption. Today’s market demands short lead times and high output, but maintaining such standards is difficult amid frequent breakdowns and other disruptions. Unplanned maintenance alone leads to 15 lost hours per week at UK manufacturing plants.
IIoT platforms help in several ways. Predictive maintenance lets IoT endpoints warn workers of emerging repair concerns before they’re outwardly noticeable, enabling proactive fixes to avoid breakdowns. Process monitoring can give manufacturers the data they need to identify bottlenecks and adjust their workflows to become more productive.
Cost concerns
Relatedly, modern industrial workplaces face rising financial worries. Global trade tensions have led to high material prices, but inflationary pressures have made affordability on the customer end a larger concern.
Companies can mitigate such issues through IIoT adoption. Some machine operators derive up to 40% of their revenue from service and support, highlighting the high costs of repairs. Predictive maintenance lowers these expenditures. Alternatively, facilities can use IoT control systems to maximise productivity while minimising energy consumption to keep expenses low.
Supply chain transparency
IIoT solutions also improve supply chain visibility. These technologies enable real-time insights into incoming shipments, supplier operations and global market trends. Armed with so much information, organisations can respond early to emerging disruptions to avoid lengthy delays.
This application has become all the more valuable as global supply chains have faced continued challenges. Geopolitical tension, extreme weather events and competition for scarce resources demand proactive responses, and the IIoT provides the necessary transparency.
The future of IIoT platforms
Despite these advantages, current IIoT platforms face several adoption roadblocks. The future of this technology’s growth and success hinges on its ability to address those concerns.
Cybersecurity is a substantial obstacle. IoT solutions are somewhat notorious for having minimal built-in protections while making industrial facilities more vulnerable to cyberattacks. Thankfully, this is changing. Endpoint operating systems like Ubuntu feature automatic scanning functions and other defences, and measures like encryption and multifactor authentication are becoming increasingly standard in IIoT devices.
Ease of implementation is another barrier that may erode in the future. Many current platforms face interoperability challenges or require technical knowledge to deploy fully, which some manufacturers lack. However, the industry has caught on to these needs. Low-code and no-code options are growing, and IoT developers are moving toward broader, more widely accepted communications and control protocols.
Modern heavy industry needs the IoT
Heavy industries like manufacturing and supply chain management require more insight and adaptability than ever. The IIoT is the best way to achieve this goal, and companies are waking up to that reality.
As IoT developers work past current adoption barriers, more industrial customers will embrace the technology, leading to sector-wide improvements.
Eleanor Hecks is the Managing Editor at Designerly Magazine, where she’s passionate about covering IoT news and insights for businesses. She’s also a mobile app designer with a focus on UI.
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