IoT Implementation in Manufacturing All Set to Grow Exponentially by 2020
FREMONT, CA: With organizations inclining more towards adoption of IoT solutions for smart manufacturing along with improved security and reliability, the Internet of Things (IoT) in global manufacturing market size is expected to grow from $4.11Bn in 2015 to $13.49Bn by 2020 at a compound annual growth rate (CAGR) of 26.9 percent, forecasts Markets and Markets.
The new market research report, "Internet of Things (IoT) in Manufacturing Market by Software (Analytics, Network Management, Remote Monitoring, Security), Application (Predictive Maintenance, Logistics & Supply Chain Management), Platform, Service, & by Vertical - Global Forecast to 2020,” estimates the market size and future growth potential of IoT in manufacturing market across different segments, such as software, services, platform, connectivity technology, verticals, and regions. In the research, the market size is forecasted from 2015 to 2020.
The key findings of the report include:
Key Drivers for IoT Adoption in Manufacturing
The manufacturer’s need for operational efficiency which in-turn has increased the utilization of sensors through enhanced automation and integrated connected technology solutions across the manufacturing process. Plunging prices of hardware and connectivity costs and rise in the Information and Communication Technology (ICT) and IoT adoption across different industry verticals. The other factors for greater adoption of IoT include increasing penetration of connected devices, all as a whole has increased the demand for IoT solutions for various manufacturing applications. IoT in manufacturing software market provides real-time monitoring, security, and analytics to enhance the operational effectiveness.
The IoT in manufacturing market is classified across five broad regions namely, North America, APAC, Europe, MEA, and Latin America. The analysis shows that the spending on IoT in manufacturing is increasing globally due to the recovery of the global economy. North America is projected to dominate the IoT in manufacturing market during the forecast period due to technological advancements and early adoption of IoT in the region. North America, Europe and Asia-Pacific (APAC) market is expected to grow at the highest CAGR during 2015-2020. The primary driving forces for the growth are increasing technological adoption and huge opportunities in the manufacturing countries, especially China and Japan.
RFID Finds Greater Acceptance
The report also concludes that Radio Frequency Identification (RFID) will be dominating the connectivity technology in the IoT in manufacturing market due to decrease in the cost of connectivity devices and hardware across North America, Europe and Asia-Pacific (APAC) regions. RFID refers to the wireless use of electromagnetic fields to transfer data for the purposes of automatically identifying and tracking tags attached to objects. The combination of RFID systems and IoT software solutions provide real-time visibility of material and assests needed to keep manufacturing operations moving in proper sequence. The tags contain electronically stored information. While Near Field Communication (NFC), a short-range wireless technology is expected to witness the highest growth due to its compatibility with contactless infrastructure and other devices.
Data management software will be experiencing high market growth with the help of cloud and predictive analytics to manage data generated from machineries. The presence of massive heterogeneous data that is extracted from different connected devices will trigger the growth of data management. To prevent increasing cyber threats and attacks on the IoT infrastructure, network and application security is expected to grow at the highest CAGR during the forecast period.
Today forward-looking manufacturers rely on predictive maintenance to go beyond preventative and regularly scheduled maintenance, ensure production quality and maximize value at every step of the process. Driven by predictive analytics, this leading-edge capability is helping manufacturers reach new standards of quality and save money by minimizing downtime from unscheduled maintenance, practically eliminating unnecessary maintenance and providing superior forecasting of warranty accruals.
In manufacturing, operations managers can use advanced analytics to take a deep dive into historical process data, identify patterns and relationships among discrete process steps and inputs, and then optimize the factors that prove to have the greatest effect on yield. Advanced analytics refers to the application of statistics and other mathematical tools to business data in order to assess and improve practices.
The IoT in manufacturing ecosystem comprises software vendors, such as IBM, Bosch, and Zebra; security service providers, such as Intel, Symantec, and Trend Micro; system integrators, such as CSC, IBM, and Siemens AG; platform providers, such as IBM, Microsoft, and SAP; network providers, such as Zebra technologies, IBM; and device manufacturers, such as Cisco and Siemens AG that cater to the unique business requirements of the end users.
In the report, the main target of IoT manufacturing market has been concluded to be the solution vendors, manufacturing equipment suppliers, system integrators, advisory firms, national regulatory authorities, venture capitalists, private equity groups, investment houses, equity research firms, and other stakeholders.