Major growth for IoT manufacturing market by 2026 - report
A new report by Future Market Insights on the Internet of Things manufacturing market says the market share is likely to reach approx. US$399 billion by 2026.
This figure will increase from US$175.3 billion in 2020 and the report, issued by the ESOMAR-certified market research and consulting firm, shows it will account for 14.5% CAGR over the next decade.
The report says this can be attributed in part to the wide range of major stakeholders, which has facilitated a competitive and diversified adoption of the Internet of Things (IoT) in the manufacturing market.
The IoT allows for industrial units to automate their operations, making them more cost-effective, affording a faster time to market, and enabling mass customisation and increased safety.
Future Market Insights says the IoT devices and next-generation manufacturing industry has experienced a significant increase in industrial automation in recent years.
This has resulted in IoT gateway manufacturers focusing their efforts on generating high volume and quality products due to increased market competition and end-user demand.
Furthermore, gateway manufacturers have decided to concentrate on the factory's essential areas, such as the IoT sensors for manufacturing, asset monitoring, and asset maintenance and support.
This gives manufacturers the ability to minimise direct human labour costs and expenses, increase productivity, offer better process or product consistency, and utilise automation to produce high-quality goods.
Future Market Insights says control systems, such as computers or robots, are used in industrial automation processes to monitor and control machinery.
Additionally, improving the process of industrial automation is a critical role in the manufacturing IoT sensors industry.
The company adds that the global economy has been influenced by COVID-19.
Energy, oil and gas, transportation and logistics, manufacturing, and aviation are among the financial and industrial sectors with a large economic influence.
It says that as a result, the world economy is expected to enter a recession due to the loss of billions of dollars.
"Economic activity is diminishing as a result of an increasing number of nations implementing and prolonging lockdowns, which will have an impact on the global economy,” a Future Market Insights senior research analyst says.
To boost flexibility and offer better production, IoT helps produce cooperative communications and interaction from IoT solutions for manufacturing industry field input or output including actuators, robots, and analysers."
The key findings of Future Market Insight’s report are:
- The increased demand for automated machinery and IoT devices for manufacturing will fast-track IoT adoption. In addition, demand for customisation, simpler and easy-to-use machinery, and reliable data will drive the IoT in the future.
- North America now has the largest market share with the growing number of start-ups and the widespread implementation of machine learning algorithms in both software and hardware equipment, which will contribute to the regional market's growth.
- The services category is a critical component of the IoT in the manufacturing market, as it focuses on optimising company processes and lowering needless expenditures and overheads for manufacturing firms.
- Apart from North America, the Asia Pacific market will expand significantly in the future years. The increasing acceptance of sophisticated and automated concepts, as well as the following demand for them, would add to the market in the Asia Pacific.
- Several factors have contributed to the market's recent expansion, such as industrial market competition has been extensively studied. The research also indicates the current strong demand and application areas for the product.