Despite a fragmented and competitive vendor landscape of the global industrial internet of things (IIoT) market, a handful of companies such as General Electric Company and IBM (News - Alert) Corporation have established themselves as leaders, according to a new publication by Transparency Market Research (TMR). The focus of leading companies, in order to maintain their foothold, is to leverage innovative technologies to provide IIoT solutions. These players are also considering carefully crafted partnerships and acquisitions to expand their service offerings and to expand their geographical outreach.
Some other key participants in the global IIoT market include Intel (News - Alert) Corporation, Schneider Electric SE, Emerson Electric, ABB Ltd., and Accenture plc. This report by TMR forecasts the global industrial internet of things market to expand at a bite more than 23 percent CAGR between 2017 and 2025, with the market size growing to about $7.8 trillion by 2025.
High Adoption by Industries to Catapult Software Component Segment
The report identified component, hardware, software, and service as the key segments of the IIoT market. Of them, the software segment, which can be further segmented into IoT platform, embedded software, and analytics, is expected to display the leading growth rate over the forecast period. This is because of rising trend of adoption of software by large industries with the objective to improve their existing infrastructure so as to employ IIoT in their processes.
Manufacturing end-use segment is expected to account for the leading share of close to 35 percent of the global IIoT market over the forecast period. However, healthcare is expected to lead vis-à-vis growth rate over the forecast period on account of several advantages such as improved diagnosis and improved healthcare services. North America is presently the leading market for IIoT followed by Europe and Asia Pacific.
Reduction of Machine Downtime and Improved Productivity Boosts Growth
The key factors driving the global industrial internet of things market include technological developments, rising adoption of smart, connected devices, and increased demand for these devices from emerging markets. The expanding applications of smart, connected devices across industries in order to improve process efficiency is leading to a surging demand for connected devices, particularly in Europe and Asia Pacific.
"The deployment of industrial internet of things is revolutionizing manufacturing processes," said the author of the report. IIoT helps to improve operational efficiency by means of harnessing data and communicating with the data collected from smart machines. The collected data is further used to plan timely maintenance leading to considerable cutting in equipment downtime, which indirectly translates into business revenue. Due to the tangible benefits of IIoT, a large of companies are assessing their current data systems and opting for big data analytics to transform their business processes.