The researchidentified smart manufacturing as a key growth sector of the Industrial IoTmarket over the next five years; accounting for 22 billion connections by 2025.
The newresearch, Industrial IoT: Future MarketOutlook, Technology Analysis & Key Players 2020-2025,predicted that 5G and LPWA (Low Power Wide Area) networks will play pivotalroles in creating attractive service offerings to the manufacturing industry,and enabling the realisation of the 'smart factory' concept, in which real-timedata transmission and high connection densities allow highly-autonomousoperations for manufacturers.
5G to maximise benefits of smart factories
Thereport identified private 5G services as crucial to maximising the value of asmart factory to service users, by leveraging the technology to enable superiorlevels of autonomy amongst operations. It found that private 5G networks willprove most valuable when used for the transmission of large amounts of data inenvironments with a high density of connections, and where significant levelsof data are generated. In turn, this will enable large-scale manufacturers toreduce operational spend through efficiency gains.
Software revenue to dominate Industrial IoT market value
Theresearch forecasts that over 80% of global Industrial IoT market value will beattributable to software spend by 2025; reaching $216 billion (€184.34billion). Software tools leveraging machine learning for enhanced data analysisand the identification of network vulnerabilities are now essential toconnected manufacturing operations.
Researchauthor Scarlett Woodford noted: 'Manufacturers must exercise caution whenimplementing IoT technology; resisting the temptation to introduce connectivityto all aspects of operations. Instead, manufacturers must focus on thecollection of data on the most valuable areas to drive efficiency gains.'
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