The IoT in manufacturing market comprises Internet-connected sensors, devices, and systems that enable the collection and exchange of data across manufacturing operations. IoT technology helps gather real-time data from plant floors, machinery, supply chains and product use to improve quality control, optimize processes and resource usage, and reduce downtimes through predictive maintenance of equipment. By streamlining manufacturing workflows and enhancing decision making, IoT offers opportunities for increasing operational efficiency in manufacturing plants.

The Global IoT in Manufacturing Market Size is estimated to be valued at US$ 271.16 Bn in 2024 and is expected to exhibit a CAGR of 28% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the IoT in manufacturing are EnableX.io (VCLOUDX PTE. LTD), Twilio Inc., Infobip Ltd., Vonage Holdings Corp, M800 Limited, MessageBird BV, Iotum Inc., Plivo Inc., Voxbone SA, Snich AB, Telestax, Voximplant (Zingaya Inc.), Mitel Networks Corporation, 8x8 Inc., AT&T Inc., Voxvalley Technologies, Avaya Inc., Bandwidth Inc. (Bandwidth.com), Wazo Communication Inc., and IntelePeer Cloud Communications.

The growing demand for enhanced visibility and remote asset management across manufacturing facilities is fueling the adoption of IoT solutions in the industry. IoT helps manufacturers track equipment performance, monitor product quality, and forecast maintenance needs from remote locations.

IoT technology is enabling global expansion of manufacturing operations through capabilities such as remote monitoring and management of machinery across geographically dispersed production sites. Industrial IoT allows manufacturing companies to centralize oversight and support of plant assets anywhere in the world.

Market drivers

One of the key drivers for IoT in manufacturing market is operational efficiency. IoT facilitates data-driven decision making that helps optimize resource usage, reduce downtimes and wastage, enhance production planning and quality control through predictive maintenance of machines. This increases overall equipment effectiveness of manufacturing plants and lowers operating costs.

Impact of geopolitical situation on IoT in Manufacturing Market growth
The ongoing geopolitical tensions and conflicts among major economies are impacting the IoT in manufacturing market growth. The ongoing Russia-Ukraine war has disrupted global supply chains, increased raw material costs and hindered cross-border connectivity initiatives. Many Western companies have halted operations in Russia in response to its invasion of Ukraine, disrupting existing collaborations. Meanwhile, the US-China trade tensions and technology decoupling has discouraged global partnerships and data sharing initiatives between companies of the two nations. Chinese companies are facing more scrutiny in international markets over data privacy and national security concerns as well. This geopolitical volatility is casting uncertainty over long-term investments and collaborations in borderless IoT networks. Manufacturers will need robust contingency plans to mitigate supply chain disruptions and diversify their sourcing & manufacturing footprints beyond politically volatile regions to sustain growth. Collaborations between like-minded allies and use of neutral cloud infrastructures can help maintain cross-border IoT initiatives.

Geographical regions with highest IoT in Manufacturing market value
North America currently accounts for the largest share of the global IoT in manufacturing market value, estimated at over 35% of the total in 2024. This is attributed to the region's early and widespread adoption of industrial IoT technologies by its automotive, electronics and machinery manufacturers. Asia Pacific follows with around 30% market share and is poised to witness the fastest growth through 2030. This growth will be driven by the expanding manufacturing bases of China, India, Japan and South Korea and increasing investments of regional companies in industrial automation and smart factory upgrades. Western Europe accounts for another 20-25% of the total IoT in manufacturing market value due to initiatives like Germany's Industry 4.0 that are transforming the region's production landscape.

Fastest growing region for IoT in Manufacturing market
Asia Pacific region, led by China, is expected to witness the fastest growth in the IoT in manufacturing market during the forecast period of 2024-2030. This is attributed to various factors such as rising labor costs that are encouraging local manufacturers to adopt advanced automation technologies for enhanced productivity and quality control. The large untapped opportunities for industrial IoT implementation exist across verticals like automotive, electronics, machinery etc. which form the backbone of Asia Pacific's industrial economy. Countries like China and India are aggressively supporting the development of smart manufacturing infrastructure through initiatives such as 'Made in China 2025' and 'Digital India'. This is attracting global technology companies to boost collaborations and investments in the region. Overall expanding manufacturing output, pro-industry policies and growing foreign investments are projected to fuel Asia Pacific's IoT in manufacturing market growth at a CAGR exceeding 30% through 2030.

Get More Insights on IoT in Manufacturing Market