The industrial Internet of Things (IIoT) market — including the devices, software and services that can help businesses drive growth, lower costs and improve margins — is expected to see revenue from annual global shipments of devices grow from $47.9 billion in 2017 to $129.3 billion in 2027, according to a new report from Navigant Research. While IIoT implementations involve an initial cost, and while the array of solutions can be overwhelming to industrial managers at this relatively early market stage, the investment of time and money is leading to real cost benefits, case studies from the report indicate.
IIoT platforms enable more efficient use of energy as the software makes intelligent adjustments regarding energy consumption, while data from sensors yields enhanced insights on optimized equipment maintenance.
An increasing number of companies across the spectrum are adopting IIoT strategies, deploying hardware and software platforms to help lower operational spend, and to serve as a competitive differentiator that can help them sell products and services at lower costs, says Neil Strother, principal research analyst with Navigant Research. “IIoT technologies also support a broad digital transformation initiative within a business, enabling it to offer customers enhanced services and improved experiences.”
Industrial Managers Face IIoT Challenges…but It’s Worth It
While IIoT solutions can appear overwhelming to managers unsure how to harness the array of hardware, software, and service choices, companies engaged in these types of deployments at this relatively early market stage are starting to see their investments translate into real benefits.
Industrial managers face additional costs, complex technologies, big data, and uncertain outcomes when they consider IIoT solutions. The result is a confused potential customer base and a market searching for greater traction. Yet, the market drivers for IIoT are compelling, since the platform enables more efficient use of energy as equipment makes intelligent adjustments to energy consumption and lowers operational costs through enhanced predictive and preventive maintenance.
IIoT can also help increase worker safety and reduce component and data management costs, Navigant says.