The Growth of Industrial IoT

Introduction

The Internet of Things (IoT) has transformed numerous industries by connecting physical objects and allowing them to exchange data. One major application of IoT technology is in industrial settings, known as the Industrial Internet of Things (IIoT). IIoT refers to the use of network-connected sensors, instruments, and other devices to monitor, collect, analyze, and share vital production data. This data helps drive operational efficiencies, asset utilization, and other business improvements.

Over the past decade, IIoT adoption has accelerated as more manufacturers recognize its benefits. Incorporating IIoT enables industrial companies to optimize performance, prevent downtime, enhance worker safety, and realize cost savings. This article will examine the key drivers spurring IIoT growth and provide examples showcasing the impact of IIoT across various industries.

Drivers of IIoT Growth

Several important factors are fueling increased IIoT adoption among industrial companies:

Declining Sensor and Hardware Costs

One of the main drivers of IIoT growth is the falling cost of sensors, connectivity modules, and other hardware components. As these costs drop, it becomes more affordable for manufacturers to implement IIoT solutions. Adding sensors and internet-connected devices to legacy equipment is now a cost-effective way to collect operational data and enable automation. The costs savings make IIoT investments easier to justify.

Maturing Technology

Along with cheaper hardware, the technology powering IIoT has matured significantly. Robust industrial IoT platforms have emerged to securely manage connectivity, transmit data, run analytics, and more. There are now proven software solutions tailored to the needs of industrial companies in various verticals like energy, transportation, and construction. As the technology matures, concerns around reliability, security, and interoperability are being addressed which furthers IIoT adoption.

Increasing Data Volumes

The proliferation of cost-effective sensors and connected devices has led to an explosion of data in industrial environments. This massive influx of operational data reveals insights about production processes, supply chain logistics, and equipment performance. IIoT makes it possible to collect and derive value from exponentially more data. By turning this data into actionable intelligence, companies can optimize complex industrial systems.

Competitive Pressures

Finally, competitive pressures are driving more industrial companies to pursue IIoT initiatives. As pioneers demonstrate IIoT’s potential for performance gains and cost savings, their competitors feel pressure to follow suit. Implementing IIoT has become tablestakes for industrial companies wanting to remain competitive in the digital era. Laggard firms risk falling behind rivals who leverage IIoT’s advantages.

IIoT Use Cases by Industry

IIoT applications are transforming industries from manufacturing and logistics to energy and construction. Here are some real-world examples highlighting the business impact:

Smart Manufacturing

• In smart factories, IIoT-enabled machines andAssembly lines continuously collect data on output, material flows, equipment health, energy use, and more. Manufacturers analyze this data to identify production bottlenecks, predictive maintenance needs, quality issues, and opportunities to drive greater efficiency.

• For example, Taiwan Semiconductor Manufacturing Company used IIoT to increase their chip fabrication productivity by 10%. By monitoring vibration, temperature, and humidity on their production line, they prevent disruptive machine failures.

Supply Chain Optimization

• Logistics firms are using IIoT sensors on containers, trucks, and cargo to track locations, conditions, and handling events in real-time across their supply chain. This end-to-end visibility improves delivery times, asset utilization, and warehouse management.

• Maersk, the world’s largest shipping company, uses IIoT to optimize their container fleet. Tracking data on location, temperature, and movement allows dynamic planning that reduces unnecessary transfers and keeps ships on schedule.

Predictive Maintenance

• Smart sensors enable industrial companies to monitor equipment health and reliability, predicting problems before they cause shutdowns. By fixing issues proactively, plants avoid catastrophic failures and unplanned downtime.

• ThyssenKrupp, an industrial engineering firm, uses IIoT predictive maintenance to reduce elevator downtime by 50%. Vibration sensors alert technicians to failing parts, allowing repairs before breakdowns stall elevators.

Worker Safety

• In dangerous environments like mines, oil rigs, and construction sites, IIoT wearables and sensors track worker health and location. This allows rapid response to injuries or accidents. Sensors also provide environmental monitoring and alert workers to hazardous conditions.

• For example, the Zebra Safety Suite uses IIoT to locate workers in mines and trigger alerts if the system detects a fall or lack of movement. This has lowered mining deaths and injuries.

The Future of Industrial IoT

As these examples demonstrate, IIoT adoption is rapidly changing industrial sectors by enabling new levels of operational efficiency, automation, and intelligence. According to Bain & Company, IIoT could create $1.4 trillion to $2.1 trillion in value across factories, logistics, and energy by 2023.

Looking ahead, IIoT capabilities will expand further as 5G connectivity, AI algorithms, and edge computing power IIoT analytics. This will support more advanced applications. However, cybersecurity and technology interoperability challenges must be addressed. Organizations able to harness IIoT data at scale while managing its risks and complexities will gain a distinct competitive advantage. In coming years, IIoT will only grow more essential to the future of industrial manufacturing, supply chains, and infrastructure globally.