IIoT

Internet of Things Consortium

IIoT: September 2020

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COMMENTARY: SEPTEMBER 2020
3 Key Takeaways
1. According to the latest research the industrial IoT
market is expected to grow at a CAGR of 16.7% from
2019 to 2027 to reach $263.4 billion by 2027.
2. IoT is increasingly becoming indispensable to the
manufacturing industry, with a Microsoft survey
indicating that 87% of decision-makers have adopted
IoT, while the vast majority say IoT is critical to the
success of their company.
3. The adoption of IoT is becoming more prominent in
enabling asset monitoring, manufacturing operational
intelligence, remote servicing, remote monitoring, and
predictive maintenance. Government-sponsored
initiatives and innovative efforts made by key
companies are expected to augment the adoption of
IIoT worldwide over the next six years.
In the last decade, technology significantly changed
nearly every aspect of life, from how we live to how we
work. Particularly as the Internet of Things (IoT) ushered in a
new era for consumers with connected vehicles, voice
assistants, wearables and fitness trackers, it is easy to
overlook the fact that IoT is also serving as the foundation
for Industrial IoT (IIoT), as well as a way to move forward in
the NOW normal, where COVID-19 has disrupted every
industry, from retail to manufacturing. Suddenly,
automotive companies are being called on to help
produce personal protective equipment (PPE). Brands that
supply hand sanitizers and wipes are challenged to keep
pace with demand, and retail is being upended as new
distribution centers are popping up to meet online
ordering and curbside pick-up. Even fleet management is
taking on new meaning as supply chains are being
disrupted.
Rapidly adopting connected technologies, organizations
are utilizing robotics, drones, artificial intelligence, machine
learning and data analytics to optimize productivity and
harmonize workflows. By harnessing the value of data
collected through distributed sensors and assets, they are
also incrementally improving outcomes for risk
management, operational safety, maintenance,
performance optimization and operational excellence.
Some of today’s most advanced IIoT applications are
helping to collapse cost and complexity, with seamless
connectivity, data management and control, cloud
storage and workflow, reporting and alert functions
informing a wide range of enterprise activity. In retail, for
example, smart shelves, contactless pay terminals and
sensors help monitor everything from inventory to
customer browse time. That’s important technology for
grocery stores and big box retailers enforcing social
distancing and keeping track of stock. Shoppers
ordering online, in particular, are finding shortages with
certain items, like desks and dumbbells, due to remote
work and school as well as gyms still shuttered. Any
insight into inventory will help keep consumers informed
and coming back.
Smart sensors are also helping facilities management
companies and real estate developers monitor
residential and commercial properties from the build
phase and beyond, with data analytics providing
insights into potential hazards, energy efficiency,
accessibility and occupancy. In the now normal, office
vacancies are at an all-time high as millions of
employees work from home. Being able to monitor
building activity is critical for property managers
concerned about keeping facilities secure while
capacity is significantly reduced. When employees and
occupants do return, there are a range of technologies
that provide touchless access to office spaces,
elevators, building entryways and other areas, which
will be helpful in ensuring peace of mind as people
return to physical shared spaces.
Access to IIoT technologies and shared information not
only help businesses expand into new territories but also
support remote employees, create new experiences for
customers and evolve entire industries. By now, we
have clearly seen if not personally experienced the
impact from the events of 2020 so far. On one hand,
people may be waiting it out and hoping the world
returns to normal. On the other hand, innovators are
moving forward, working to bring to light truly
remarkable solutions that are bound to change our
lives in ways we would have otherwise never imagined.
As technology progresses, IIoT will continue to benefit
the industrial sector and beyond, ensuring that
operations around the globe become safer, more
collaborative and more efficient, while at the same
serving as a catalyst for new discoveries that will lead us
to a healthier, more connected future.
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MARKET STATISTICS AND FORECASTS
 MarketandMarkets - According to the new market
research report, Industrial IoT (IIoT) Market size is
expected to grow from USD 77.3 billion in 2020 to USD
110.6 billion by 2025, at a CAGR of 7.4% during the
forecast period.
o The growth of the IIoT market is driven by
factors such as technological advancements
in semiconductor and electronic devices,
increased use of cloud computing platforms,
standardization of IPv6, and support from
governments of different countries for R&D
activities related to IIoT.
o Manufacturing vertical to hold the largest
share of the IIoT market in 2020
o Over the past few years, there has been an
introduction of new approaches and
technologies, such as smart factories, cyber-
physical systems, and intelligent robotics.
Governments in countries such as Germany,
the UK, France, the US, China, and India have
taken several initiatives for encouraging
manufacturers to increase their investments for
the adoption of IIoT solutions. The
manufacturing vertical is expected to hold the
largest share of the IIoT industry in 2020.
However, the demand for agriculture vertical
is expected to grow at the highest CAGR
during the forecast period.
 Grandview Research:
o The implementation of IIoT helps save energy
costs, maintenance costs, and waste and
improve workforce productivity and service.
IoT technology has varied application
spanning from workshops and cities to
automobiles and home automation.
o The adoption of IIoT is becoming more prominent in
enabling asset monitoring, manufacturing
operational intelligence, remote servicing, remote
monitoring, and predictive maintenance.
Government-sponsored initiatives and innovative
efforts made by key companies are expected to
augment the adoption of IIoT worldwide over the
next six years.
 ReporterLink: The Industrial Internet of Things (IIoT)
systems are primarily incorporated to enhance the
operational efficiency of industrial and
manufacturing processes, wherein machines are
connected. Technologies, such as big data and
machine learning, are being used increasingly to
harness the data generated from connected
devices, to improve machine-to-machine (M2M)
communication and streamline workflow. Also,
declining manufacturing and sensor costs involved in
the production of IoTs is further driving the demand.
o Significant advantages, such as large-scale
profit margins through improvements in power
efficiency, are attracting companies to invest
in the market aggressively. According to a
study by Microsoft in 2020, IoT is increasingly
becoming indispensable to the manufacturing
industry. 87% of IoT decision-makers in the
industry have adopted IoT, and the vast
majority say IoT is critical to the success of their
company and that they are satisfied with the
technology.
o Market incumbents, such as Google, Amazon
Web Services, and Microsoft, among others,
will have to establish more collaborative
partnerships with edge-computing
companies, to provide one-stop solutions to
industrial users. Further, the growing number of
industrial robot installations, globally, is
expected to create considerable demand for
low latency and low jitter communications,
greatly improving the need for IIoT solutions.
o In addition, in June 2020, Amazon Web
Services, Inc. (AWS) announced AWS
Snowcone, a new small, ultra-portable,
rugged, and secure edge computing and
data transfer device which weighs at under
five pounds and capable of fitting in a
standard mailbox. This enables customers to
collect data, process it
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 COVID-19 pandemic has affected almost all the
countries and industries across the world, with
industries such as manufacturing, oil & gas, and o In addition to this, the adoption of industrial
transportation industries facing the blunt of the robots in manufacturing industries is expected
effects. For instance, due to the pandemic and to further increase over the coming years.
lockdowns, Oil & gas industry observed a slump in
demand; for instance, Oil prices decreased by 50%
since January 2020, with US markets

SELECT RECENT DEVELOPMENTS

 Sensemetrics - Launches Tailored IIoT Solution to
Mitigate Risk in the Design, Construction and
Operation of Mine Tailings Storage Facilities

o Available globally, the solution drives safety

and mitigates risk across the entire TSF
lifecycle, providing mine operators with
unmatched access to real-time information
and analytics for continuous and complete
surveillance across TSF construction, operation,
and closure phases.
 Key Market Trends
o Amongst the industries, a prominent share of
investment and market share is held by the
manufacturing industry, with both discrete
and process manufacturing intensely investing
in IoT adoption.
o With the advent of Industry 4.0, IIoT is gaining
traction in both discrete manufacturing and
process manufacturing as IIoT are offering
means of optimizing operations, reduce
downtime, increase efficiency, and help
make data-driven decisions is increasing the
profit margin and reduce cost with short ROIs
on the IoT adoption.
o The adoption rates from the industry are
expected to be on the higher side compared
to any other industries due to the increased
propensity of decision-makers adopting IoT
solutions.
o In addition to this, a study by Capgemini
found that industrial manufacturing held
second-highest average implementation
percentage of high potential use cases by
industries after telecom, which stood at 33%
with the focus being production asset
maintenance, manufacturing intelligence,
and product quality optimization.
KEY MARKETS
 Manufacturing: Manufacturing industry leaders
investing in IIoT are reporting benefits, including
efficient and increased productivity according to a
TATA Survey. It’s thus crucial to note that IIoT use
cases will progressively expand in future. Here’s a
compilation of the top three industrial IoT use cases in
Manufacturing:
A. Real-time Asset Monitoring
Manufacturing companies are using IoT
assets to connect machines and systems
together – a paradigm shift that enables real-
time asset monitoring. Coupled assets
provide the opportunity to monitor
equipment in real-time for reliability,
compliance, and safety. Asset monitoring is
heavily used in remote manufacturing where
sensors help tracking production processes
and send status to the right personnel. It also
offers a platform to manage and control
assets for enhanced operation and
production; enabling proactive and timely
manufacturing decisions. Asset tracking in
manufacturing allows easy status monitoring
of key equipment and final products; to
augment logistics, sustain inventory and
prevent quality issues.

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B. Connected Operational Intelligence letting patients track their health. This is
By connecting machines/equipment, crucial for those situations that require
manufacturers can generate intelligent networks follow-up appointments with doctors.
that communicate and coordinate with each
other autonomously with little involvement by
operatives. With this use case, organizations can
amass and contextualize data from remote
manufacturing assets and systems into actionable
applications. Thus, providing proactive views into
key performance indicators thereby enabling
quicker problem identification to improve
operational performance. Additionally, through
IIoT, companies can now connect to disparate
operational data centers and unify them to
enable real-time data visibility across assorted
manufacturing systems. IoT enabled machinery
thus enables connected operational intelligence,
which transmits real-time insights to manufacturing
stakeholders enabling them to remotely manage
o Ultrasounds, thermometers, glucose
factory units.
monitors, EKGs, and more are all starting to
become connected and letting patients
C. Predictive Maintenance of Assets track their health. Business Insider Intelligence
Millions of dollars go into machine operational and
maintenance costs. However, if equipment o Multiple hospitals have started to utilize
maintenance is done on time, it would prevent smart beds, which can sense the presence
pauses on production processes. And if downtime of a patient and automatically adjust itself
could be detected before it knocks, to the correct angle and pressure to
Manufacturing companies can have substantial provide proper support without the need
decrease in operational costs. The use of sensors, for a nurse to intervene.
data analytics, and cameras in IIoT allow
machines to predict failure before it occurs. Such
 Fleet Management: IIoT is used by fleet managers
detection helps create strategic maintenance
to save time, money and productivity in areas
timelines that can be performed only when
such as:
needed – before glitches occur – think repairing a
crack in the dike. Manufacturers leverage IoT to o Passenger Vehicles
include vibrant, competent, and automated o Commercial Vehicles
manufacturing processes, where maintenance
schedules are autonomous rather than relying on o Routing Management
undependable maintenance personnel. o Tracking and Monitoring
Thereby,triggering better-planned maintenance
o Fuel Management
processes which promises huge cost savings in turn
reducing equipment failure and increasing o Remote Diagnostics
machine lifetime.

 Healthcare: The global internet of medical things

(IoMT) market is expected to swell to a $158 billion
valuation in 2022, up from $41 billion in 2017.

o The IIoT is slowly starting to weave into

healthcare on both the doctor and patient
fronts. Ultrasounds, thermometers, glucose
monitors, electrocardiograms, and more
are all starting to become connected and
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 According to a 2020 report from
MarketsandMarkets, the market size for IIoT fleet
management solutions is supposed to reach $8.28
billion by 2021. A few growth areas for IIoT in fleet
include:
o Predictive weather analytics so you can
get real-time updates about the weather
conditions your drivers are facing and
course-correct them in real-time. Sensors in
your vehicles and along your routes can
provide the most accurate weather data
so you can optimize delivery time.
o In-cab analytics to ensure your fleet is
driving responsibly and efficiently. Your
company doesn’t need a reputation for
having reckless drivers, and you should
know if your team is pulling all-nighters to
make their delivery schedules.
 Remote Building Management:
The goal of building management systems was—
and still is—to help optimize building performance
by:
o Providing data on core building operational
systems, specifically HVAC.
o Enabling the automatic control of a building’s
main operating functions. IoT for buildings has
the same goal of performance optimization
(and by extension, saving money) through
data and automatic control, but advanced
technology takes these aspects many steps
further than a traditional BMS system can.
 In the future, there will likely be an abundance of
IIoT sensors collecting data on temperature,
humidity, static pressure, and more, offering
greater visibility into building performance.
o The more significant change will be in how
remote monitoring of more endpoints can
enable feedback loops to determine what
approaches offer greater energy efficiency.
o Having the capability to view the performance
of individual system components in context of
the larger building operations means there will
be more opportunities for facilities managers to
provide value.
 Supply Chain:
The Industrial Internet of Things (IIoT) is set to make
a sizeable contribution to the global economy by
2023, according to a new global study launched
by Inmarsat.
o Organizations across the global supply
chain expect IIoT to be increasing their
annual revenues by 10% within five years.
o The Industrial Internet of Things is set to
revolutionize how businesses function in the
next few years. There will be significantly
increased automation and operational
efficiency through the use of real time
data and machine-to-machine
communication right across the planet.
o Access to reliable and resilient
connectivity, particularly in remote regions
or at sea, where terrestrial networks are not
available but satellite communications are
available, will be essential to the success of
many IIoT deployments, it added.
o Data generated by IIoT infrastructure is
expected particularly to bring greater
transparency to the global supply chain,
allowing businesses to automate processes,
reduce operational waste and speed up
rate of production, leading to higher
revenues and lower costs.