Market Research Report
Global Industrial IOT Market Research Report - Forecast to 2023
|Published by||Market Research Future||Product code||750716|
|Published||Content info||124 Pages
Delivery time: 1-2 business days
|Global Industrial IOT Market Research Report - Forecast to 2023|
|Published: July 13, 2018||Content info: 124 Pages||
The global industrial IoT market has been witnessing a huge growth over the last few years. The factors responsible for the growth of industrial IoT include increasing adoption of cloud computing in the industrial sector, growth in IoT and heavy automation and industrialization. However, security & privacy issues and data management are restraining the market for industrial IoT on a global scale.
The global industrial IoT market is expected to reach approximately USD 751.3 billion by 2023, growing at a CAGR of 23.88% from 2017 to 2023.
The market is divided into various segments based on component, deployment, connectivity, and end-user.
By component the global industrial IoT market is segmented into hardware, software and service. Software is expected to be the fastest growing segment during the forecast period with a CAGR of 25.65%. Software plays a major role in the development of industrial IoT systems. Every component which is integrated or deployed in the organization for various applications needs to relate to an information grid to exchange information. The software deployed at various levels of the information grid does the work of collecting, analyzing, and interpreting the raw data provided by different components of the system. Software is a necessary and irreplaceable element of every industrial IoT system. The hardware segment is expected to have the highest market share by component during the forecast period. Internet of things is a web of software and hardware devices in a connected environment where the exchange of information takes place to achieve the highest level of accuracy. Increasing number of connected devices, increasing capabilities of hardware components, and maximum utilization of available resources are some of the major factors fueling the hardware market segment
The hardware segment is further segmented into sensors and RFID, industrial robotics, smart meters, camera systems, 3D printing, flow and application control devices, distributed control systems, and others. Industrial robotics sub-segment is expected to be the fastest growing segment under hardware during the forecast period with a CAGR of 26.2%. Robots play a crucial role in any manufacturing process. These machines are vital to the manufacturing processes of complex equipment and devices such as semiconductors, automotive, and healthcare equipment. Such processes require high degrees of efficiency with negligible product defects. Sensors and RFID are expected to have the largest market share in the hardware segment during the forecast period. Sensors & RFID are the key constituents of Industrial Internet of Things. Many companies have already started deploying IoT enabled sensors in their organizations. These sensors help to distribute accurate and reliable data which plays major role in automation, monitoring systems, and effective operation.
The software segment is further segmented into manufacturing execution system (MES), product lifecycle management (PLM) systems, SCADA systems, distribution management system, retail management software, and others. MES segment holds the largest market share and is expected to grow with a CAGR of 29.08% during the forecast period. Industrialization and integration of connectivity in the manufacturing industry are some of the key drivers for the market.
By deployment, the global industrial IoT market is segmented into on-cloud, on-premise, and hybrid. A hybrid subsegment is expected to grow at the fastest rate with a CAGR of 26.26% during the forecast period. Some companies which require an extra level of security or deal with sensitive data, are reluctant to upload data on cloud and prefer on-premise solutions where it can customize the security and other aspects based on consumer requirements. On-cloud segment accounts for the highest market share by deployment during the forecast period. Easy accessibility to the data and information, easy sharing, low cost, and growing application scope are some of the major driving factors supporting the market growth. The rise in implementation of connected devices and the Internet of Things has facilitated cloud computing.
By connectivity, the global industrial IoT market is segmented into wired and wireless. Wired segment is expected to have the highest market share by connectivity during the forecast period. The growth of cloud computing and integration of new products and services have affected the demand for wired connectivity systems, but these are still in demand among end-users. The demand for wired connectivity is majorly driven by the need for reliable, fast, and secure connections. Wired connectivity is also important whenever the company deals with large-scale operation centers. Wireless segment is expected to grow at the fastest rate during the forecast period at a CAGR of 26.12%. In the last couple of years, wireless connectivity market has seen a rapid increase in demand. A wide application area and some advantages over wired connectivity including flexibility and portability of connected devices are some of the major factors driving the growth of wireless connectivity.
By end-user the global industrial IoT market is segmented into IT & telecommunication, manufacturing, healthcare, retail, oil & gas, energy & power, automotive, and others. Manufacturing segment is expected to have both the highest and the fastest growing market segment by end-user at a CAGR of 27.94% during the forecast period. Growing population has led to an increase demand for products, which in turn has saturated the manufacturing industry. To meet the growing demand, the need of efficient manufacturing system has become mandatory which can only be achieved by integration of latest technologies including the Internet of Things with the manufacturing process.
The key players of industrial IoT market include General Electric Company (US), Siemens AG (Germany), Cisco Systems (US), IBM Corporation (US), Rockwell Automation, Inc. (US), AT &T Inc. (US), Accenture Plc. (Ireland), Huawei Technologies Co. Ltd. (China), Robert Bosch GmbH (Germany), and Intel Corporation (US).
Geographically, Asia-Pacific is dominating the industrial IoT market due to large-scale industrialization in countries including China, India, and Japan. Asia-Pacific is also the fastest growing region, accounting for a 40.05% share of the overall market where major contribution is witnessed from countries like China and Japan, due to increasing adoption of advanced IoT technologies like cloud robotics in various industries and improvement in network infrastructure.