As we welcome a new decade full of new opportunities, we expect to see many drivers for manufacturers to adopt Industrial IoT-based software in 2020 and beyond. The world of IIoT is advancing every day and manufacturing operations need to stay abreast of the changing technology landscape to plan their digital transformation road map for the new year.
We’ve compiled a roundup of the latest IIoT statistics, articles, and trends in one spot to help manufacturers learn more about the growing field of IIoT.
IIOT MARKET GROWTH
The use of IIoT in the manufacturing space is rapidly growing in popularity as manufacturers begin leveraging IIoT based technology such as Smart Factory Software to achieve a higher level of efficiency, improve the quality of products and minimize wastage of resources.
- Global spending on IIoT platforms for manufacturing is predicted to grow from $1.67B in 2018 to $12.44B in 2024, attaining a 40% compound annual growth rate (CAGR) in seven years.
- Manufacturing is slated to be the largest market for IoT platforms with an expected value of $438 million by 2021.
- A Deloitte Industry 4.0 survey of 361 executives across 11 countries shows that 94% report digital transformation as their organization’s top strategic initiative.
- IoT Analytics predicts the industrial industry spent over $64 billion on IoT in 2018 and expects Industry 4.0 spending to increase to $310 billion by 2023.
As manufacturers start to accrue detailed end-to-end insights into production, operations can use IIoT powered technology to realize even greater strategic benefits, such as improving plant capacity.
- ITIF research reports, IoT applications for monitoring machine utilization can increase manufacturing productivity by 10 to 25% and produce up to $1.8 trillion in global economic value by 2025.
- According to IDC research, by 2025, the improvements in operations driven by IoT applications could be worth more than $470 billion per year.
- By 2020, 80% of supply chain interactions are expected to happen across cloud-based networks. The same source states that the transition towards smart, IoT-enabled supply chain management solutions is predicted to drive supply chain productivity by 15% and increase cost efficiency by 10%.
- A Gartner study indicates that 80% of surveyed organizations that have adopted IoT are achieving “better-than-expected results.”
- McKinsey reports that the average factory today is 25 years old, with machinery that’s going on nine years old and 30% of manufacturers surveyed believe that the IIoT will help them better understand machine health in their factories.
- IBM reports that using IIoT insights for manufacturing process optimization can lead up to 20% higher product count from the same production line.
Predictive Analytics is presently one of the most significant big data trends and will continue to be so in the years to come. Ensuring that all equipment is functioning optimally remains a key priority for manufacturers and many are turning to predictive maintenance technology in 2020.
- Widespread adoption of predictive maintenance technologies could reduce companies’ maintenance costs by 20%, reduce unplanned outages by 50% and extend machinery life by years according to management consulting firm McKinsey & Company.
- According to Deloitte, IIoT-based predictive maintenance solutions are expected to reduce factory equipment maintenance costs by 40% and generate an economic value of $630 billion annually by 2025.
- 55% of businesses are at least piloting predictive maintenance projects. This is how it is carried out from a technological perspective.
Manufacturers struggle to identify the right approach to IIoT digital transformation making it difficult to reach their target ROI. Start with a concrete business use case and measurable objectives that will have a positive impact on the goal and ensure that you are putting people first in your digital transformation journey.
- According to The German wing of PwC 91% of surveyed respondents are investing in digital factories but only 6% consider their factories to be fully digitized.
- Lack of qualified employees – Inmarsat found that 72% of businesses have a shortage of people at the management level with experience in IoT.
- Another 80% report a lack of skills among employees in IoT deployment.
- Research by Accenture reveals that 44% of operations sight poor information and communications infrastructure, and poor access to required capital.
- 42% said a lack of government support is preventing them from adoption.
- Gartner states IIoT implementation success is unpredictable because companies often fail to define important metrics to track and don’t utilize the technology to continuously improve.
SENSORS ARE A MUST
IIoT based technology such as preventative software rely on using sensors to know when maintenance is needed before a machine breaks and eliminates the need for routine checks, reducing downtime on both counts. Sensors are also vital to monitor and control temperature, pressure and other variables in operations making sensors one of the fastest-growing markets.
- Forecasted to reach over US$29.9 Billion by the year 2025, sensors will bring in healthy gains adding significant momentum to global growth.
- The Global IoT Sensor Market is expected to exceed more than US$ 68 Billion by 2024 at a CAGR of 40% in the given forecast period.
- The figure clearly indicates how the industrial IoT solutions are poised to bring about a substantial change in industrial automation.
Food and Beverage IIoT Statistics and Trends to Know
Food and Beverage (F&B) manufacturers face unique challenges when it comes to operations due to the strict regulatory requirements of the industry. More forward-looking F&B operations are leveraging the power of IIoT powered technology such as Smart Factory Software in 2020 to gain greater visibility of production and to ultimately create higher quality products while remaining compliant with government regulations.
While adoption numbers for IIoT tech are much lower in F&B (as well as CPG) manufacturing compared with other industries—there are many drivers to why they need to catch up. The strong correlation between the use of IIoT analytics and performance capabilities suggests that operations that are not planning to use IIoT data and technologies will lose ground to competitors.
- IoT and traceability for food and beverage (F&B) manufacturing market was valued at $4.08 billion in market revenue in 2017 and is expected to reach $8.43 billion by 2025, growing at a compound annual growth rate (CAGR) of 9.5%”.
- Manufacturers that are more mature in their Industrial Transformation programs empower operators and their direct managers with the data and analytics―and the authority―needed to make decisions immediately, without waiting for senior management to weigh in.
- Moreover, data shows that providing shop floor operators with visibility of data analytics has a marked impact on operational metrics including higher throughput and quality, and reduced costs.
- Waste – This is a massive issue ripe for innovation, as pre-consumer food waste comprises 40% of all food wasted in the U.S.
- IoT sensors can transform a supply chain that still operates based on assumptions into one that operates based on the real-time, granular data that provides visibility as to how to truly optimize decision-making.
- By adopting a data-driven approach enabled by IoT and cloud analytics, growers, processors, distributors and retailers can address the hidden issues currently impacting the fresh food supply chain to reduce waste — and improve food safety and supply chain transparency as well.
- Energy – Many manufacturers will start to use IIoT Smart Factory technology to monitor kilowatt consumption, optimize equipment utilization and build a robust control process to synchronize the system with plant operations.
- Using energy dashboards in the automation system to receive alerts about energy consumption so operators and facility managers can make quick decisions in the new year to drive additional savings and contribute to environmental improvement initiatives.
- Learn more about Shoplogix’s energy module which offers the ability to associate power and energy costs with plant floor production metrics, providing visibility into consumption at a granular level and helping to decrease energy costs.