Internet of Things value projected to near $1 trillion by 2023

Internet of Things value projected to near $1 trillion by 2023

A report published by Allied Market Research found that the Global IoT in manufacturing market is expected to reach $994 billion by 2023.

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November 28, 2017
Edited by Michelle Jacobson
3D/Additive/Alternative Manufacturing

Portland, Oregon – According to a new report published by Allied Market Research, titled, "IoT in Manufacturing Market by Component and Application: Global Opportunity Analysis and Industry Forecast, 2017-2023," the global IoT in manufacturing market was valued at $424 billion in 2016, and is projected to reach $994 billion by 2023, growing at a CAGR of 13.1% from 2017 to 2023. The predictive maintenance segment is anticipated to witness the highest growth rate during the forecast period.

North America was the highest revenue contributor to the global IoT in manufacturing market in 2016, owing to deployment of advanced IoT technologies including Industry 4.0, virtual reality, and augmented reality. In addition, the enhanced internet penetration, decreased cost of powerful sensors and controllers, rapid growth in communication and technology, bandwidth and connectivity, and rise in expenditure by government in the several developed and the developing regions, including North America, Europe, and Asia Pacific, drive the IoT in manufacturing market growth. However, Asia-Pacific is anticipated to witness a significant growth rate, due to increase in number of IoT connected devices; rise in smartphone penetration; convergence of technologies including analytics, cloud, and big data; and exponential social media adoption.

In 2016, the services segment accounted for the highest share in the IoT in manufacturing market, while the predictive maintenance segment is anticipated to witness the highest growth rate, owing to automation of manufacturing processes to deliver a better experience to their end users.

The key players in the global IoT in manufacturing market are Cisco Systems Inc., Hitachi Ltd., IBM Corporation, Microsoft Corporation, PTC Inc., Robert Bosch GmbH, SAP SE, Software AG, Texas Instruments, and Zebra Technologies. They have adopted competitive strategies, such as geographical expansions, mergers and acquisitions, new product launches, as well as partnerships and collaborations, expanding their businesses in the industry.

Key findings from the study

  • The services segment accounted for the highest share in the global IoT in manufacturing industry in 2016, growing at a CAGR of 13.8% from 2017 to 2023.
  • The predictive maintenance segment in the IoT in manufacturing market is projected to witness the highest growth rate of 17.6%.
  • North America IoT in manufacturing market generated the highest share of $148 billion, in terms of revenue, in 2016.