IoT Sources started to report more than a year ago how the Industrial Internet of Things is well-positioned for massive growth. Among all of the IoT applications, the IIoT has direct business implications where manufacturers facing stiff competition and tough-to-differentiate products are constantly looking for ways to generate cost efficiencies and differentiation opportunities to secure higher margins and better market positions. The IIoT, as with other technological advancements of the past, provides a new platform for achieving these goals.
According to a recent study on digitaljournal.com, the “global Industrial Internet of things market is anticipated to expand at a CAGR of +25% during the forecast period (2019-2026.)” This is an exceptional growth rate for the IIoT and demonstrates its value delivered to the markets in which it is applied.
Clearly, struggles remain with IIoT applications. Data security and privacy of the data continue to hinder progress. Although more systems and processes are being revealed to offset some risk, it seems the weight of these factors relates most to each company’s cost-benefit decision making. In other words, will data security and privacy ever not become a risk for IIoT implementations? As with all business risks, each company’s appetite for risk will determine whether to stall or blast forward with implementing new technologies and in this case, the IIoT. the willingness of each company.
Bellwether companies including IBM Corporation, Intel Corporation, Schneider Electric SE, General Electric Company, Emerson Electric, ABB Ltd., Accenture PLC, Siemens AG, Robert Bosch GmbH, and NEC Corporation are driving significant levels of the IIoT’s growth engine. A continual pace of innovative products and services along with market education is enabling these companies to prove value to the businesses implementing their solutions.
The digitaljournal.com article made an interesting point about how IoT penetration is helping to deliver stronger IIoT growth. The article stated,
Internet of Things (IoT) due to presence of factors such as high penetration of Wi-Fi connectivity, technological enhancements in wireless network technologies, and rise in adoption of cloud platform. Furthermore, growth in development of smart transportation and smart cities leads to increased adoption of IoT. This in turns propels the growth of the IIoT market.
The IIoT space is one to stay focused on through the next several years. We believe it will set the stage for Industry 4.0 and help technological advanced manufacturing dominant their markets and find new opportunities for significant, higher margin growth for years to come.
What do you think about the IIOT – is it best positioned, among all IoT applications, to reap the rewards promised by the Internet of Things?
