IIoT Spending to Jump 40% by 2024 [Report]

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IoT Analytics has released a new report that forecasts global spending on Industrial Internet of Things (IIoT) platforms to surge at a compound annual growth rate of 40% over the next few years, from a total of $1.67 billion in 2018 to $12.44 billion in 2024.

IoT Analytics cites Choice IOT CEO Darren Sadana noting that the dramatic rise in spending will be driven in-part by autonomous IoT platforms beginning to replace large, software-driven manufacturing execution systems. Sadana, whose company specializes in wireless connectivity for IoT solution providers, said, “One thing that’s crucial at this point is for both manufacturers and platform developers to make sure they’re building the infrastructure they’ll need to support these new capabilities.”

Industry 4.0 is often discussed as though it were already firmly in place and delivering trackable benefits. But broadly, the revolution is only just getting started. IoT Analytics notes that many U.S. manufacturing plants are more than 20 years old, and fewer than 14% of the machines on shop floors are able to transmit and receive data in real-time. Not only are those older machines not equipped to operate in an Industry 4.0 environment, but they are also prone to breakdowns that account for up to $50 billion per year in lost manufacturing time.

“The bulk of manufacturers considering the use of industrial IoT are thus currently in assessment mode: increasing their ability to understand, monitor, and predict the processes they already have in place,” IoT Analytics said in its report summary. “In addition to systems and equipment, manufacturers are reviewing their overall management and personnel structures to ensure that the necessary training, understanding of roles, motivation, and feedback – including the management of an emerging ecosystem of industrial service providers – will be in place to make sure that Industry 4.0 takes off as planned.

The analytics firm noted that manufacturers are also paying close attention to digital infrastructure. It cites Sadana saying, “All the components of Industry 4.0, from fundamental technologies like AI and blockchain to multiple interlocking solutions platforms, rely on constant access to each other and to the cloud, which in turn requires constant, dependable 24/7/365 wireless connectivity. In planning and managing their businesses, manufacturers should be aware that it is possible to obtain accurate, current information – including pricing and contract requirements – about this essential commodity.”

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