The global industrial IoT market size is anticipated to attain immense growth from 2023 to 2033. According to the research report published by FMI, the global market is predicted to surpass a valuation of USD 442,934.4 million in 2023. It is expected to reach a valuation of USD 1,392,133.7 million by 2033. The market is foreseen to capture a staggering CAGR of 12.1% from 2023 to 2033.
The adoption of IoT and artificial intelligence, along with government assistance, is boosting the growth of the industrial IoT industry.
The growth of the Industrial IoT market is driven by factors such as technological advancements in semiconductors and electronic devices. Moreover, increased use of cloud computing platforms, and standardization of IPv6.
| Attribute | Details |
|---|---|
| Industrial IoT Market Share (2022) | USD 400,845.6 million |
| Industrial IoT Market Share (2023) | USD 442,934.4 million |
| Industrial IoT Market Share (2033) | USD 1,392,133.7 million |
| Industrial IoT Market Share (2023 to 2033) | 12.1% |
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The global industrial IoT industry size expanded at a striking CAGR of 10.0% from 2018 to 2022. In 2018, the global market size stood at USD 273,286.8 million. In the following years, the market witnessed monumental growth, accounting for USD 400,845.6 million in 2022.
Industrial IoT captures enormous volumes of data from connected systems, equipment, and gadgets. By analyzing this data, businesses gain insightful knowledge that is used to improve performance, spot trends, and find abnormalities. Businesses use these insights to make better decisions, run more efficiently, and discover new business prospects. The industrial IoT sector has grown significantly as a result of the development of key technologies including cloud computing, big data analytics, artificial intelligence (AI), and machine learning (ML). These technologies offer the tools and infrastructure required to manage and evaluate the copious amounts of data produced by IIoT devices. To derive actionable insights, and ultimately bolster industrial IoT demand and sales.
The adoption of AI and IoT technologies in the manufacturing industry has accelerated since the start of Industry 4.0. Production process optimization, early warnings, quality control, and machine failure prediction are all possible with AI and IoT-integrated systems.
Manufacturers may separate themselves from their competitors by acquiring precise data and developing unique AI applications, enhancing the demand for Industrial IoT. Since the market has grown in size, leading industry players have been able to provide their end users with considerably better industrial IoT features.
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These data transmission components may not be built into machinery in older industrial units, necessitating their external installation. Some legacy equipment may also require modifications to retrofit these components, resulting in additional costs, and hampering the sales of Industrial IoT. One of the significant limitations to the growth of the global market is the ease with which alternative substitutes are available. In addition, the Internet of Things in developing countries may be viewed as one of the critical industrial IoT industry problems facing global agile IoT vendors.
Over the last five years, AI and IoT technologies have swiftly penetrated the medical sector. Medical wearables have begun to include AI and Internet of Things (IoT) technology, resulting in a more connected hospital ecosystem. According to the industrial IoT sales forecast, the Internet of Things (IoT) is predicted to enter mainstream industry use after years of expectation.
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The interconnectedness of equipment throughout an industrial manufacturing complex creates security weaknesses, which could lead to operations being compromised. This is because it is impossible to tell where the data is coming from or going from a security standpoint. As a result, the most significant cybersecurity challenge for smart manufacturing on the factory floor is data visibility. For that reason, efficient demand for Industrial IoT should be met.
The global market is divided into three categories based on components, end-use, and region. Despite obstacles, the global IoT industry is predicted to develop at a reasonable rate from 2023 to 2033.
The global market is divided into three categories based on the components: services, software, and hardware. Hardware has the dominant market share and is expected to record a CAGR of 12.3% over the forecast period. In 2022, the hardware segment by components accounted for 53.6% shares in the global market. The backbone of the industrial IoT is networking technology, particularly wireless technology. By linking several machines and sensor nodes to the Internet, these technologies enable machine-to-machine communication. These technologies also allow for the collection of large volumes of data to improve decision-making.
The global market is divided into three categories based on the end-use: Aviation, transportation, oil & gas, power generation & utility, manufacturing, healthcare, and others. Manufacturing holds the dominant share in the market with a CAGR of 11.1% during the forecast period. In 2022, the manufacturing segment by end-use captured 34.6% shares in the global market. Manufacturing companies are rapidly adopting digital manufacturing technologies, and the Internet of Things (IIoT) plays a critical role in these cutting-edge technologies. The market is expected to develop significantly in the near future, owing to the strategic partnerships and alliances that stakeholders are forming. As well as the growing demand for Industrial IoT to provide flexibility, operational efficacy, and regulatory compliance.
Due to the existence of well-established economies in this region, the North American region is predicted to hold the dominant share of USD 302.4 billion in the global market. This allows them to invest much in research and development. The growing acceptance of various smart connected devices and rapid digitalization throughout the IoT industry's verticals, and advancements in technological sectors have boosted the IoT industry's growing demand in the North American region. In 2022, North America captured 27.4% shares in the global market. The United States garnered 16.3% shares in the global market.
The United Kingdom has the second-prominent market size of USD 142.7 billion in the market. In 2022, the United Kingdom captured 13.2% shares in the global market. Owing to the rapid developments of IOTs in these regions, the European and Asia Pacific regions are expected to see significant growth. The region's growing population, rising research and development investments, and international and domestic IT businesses increased focus on the growth of big data analytics and cloud-based services may boost the market's growth.
| Country | CAGR Share in Global Market (2022) |
|---|---|
| United States | 16.3% |
| United Kingdom | 13.2% |
| China | 12.8% |
| Japan | 7.3% |
| India | 14.3% |
The competitive landscape of the IoT industry provides details on the total economic profit of vendors and companies. The sales and revenues generated in this industry, the IoT share of the worldwide market, the business organization overview, the launch of new products, and the opportunities of the market.
Recent Developments Observed by FMI:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; The Middle East & Africa (MEA) |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, Nordic, Russia, BENELUX, Poland, France, Spain, Italy, Czech Republic, Hungary, Rest of EMEAI, Brazil, Peru, Argentina, Mexico, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, ASEAN, Thailand, Malaysia, Indonesia, Australia, New Zealand, Others |
| Key Segments Covered | Components, End Use, Region |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
Trends include edge computing, AI-driven analytics, and convergence of IT and operational technology systems.
It enables predictive maintenance, real-time monitoring, and automation, leading to reduced downtime and optimized production.
Data security is critical due to vulnerabilities in connected systems; robust cybersecurity measures are essential to prevent breaches.
Industries like manufacturing, energy, healthcare, logistics, and agriculture are integrating IIoT solutions to enhance operational efficiency.
IIoT technologies improve supply chain visibility, tracking, and optimization, enabling better inventory management and reducing inefficiencies.
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Industrial IoT Market
