The global number of Industrial IoT connections will increase from 17.7 billion in 2020 to 36.8 billion in 2025; representing an overall growth rate of 107%, according to a new research, Industrial IoT: Future Market Outlook, Technology Analysis & Key Players 2020-2025, by Juniper Research.
Research has identified smart manufacturing as a key growth sector of the industrial IoT market over the next five years. The report has predicted that 5G and LPWA (Low Power Wide Area) networks will play pivotal roles in creating attractive service offerings to the manufacturing industry, and enabling the realization of the ‘smart factory’ concept, in which real-time data transmission and high connection densities allow highly autonomous operations for manufacturers.
5G to Maximise Benefits of Smart Factories
The report has also concluded that private 5G services are crucial to maximizing the value of a smart factory for service users, by leveraging technology to enable superior levels of autonomy amongst operations. It found that private 5G networks will prove most valuable when used for the transmission of large amounts of data in environments with a high density of connections, and where significant levels of data are generated. In turn, this will enable large-scale manufacturers to reduce operational spend through efficiency gains.
The research forecasts that over 80% of global Industrial IoT market value will be attributable to software spend by 2025; reaching $216 billion. Software tools leveraging machine learning for enhanced data analysis and the identification of network vulnerabilities are now essential to connected manufacturing operations.