The Internet of Things in the manufacturing market is estimated to grow at a compound annual growth rate of 29.68% during the forecast period of 2015-2020, study shows.
Every gadget is getting smarter. The interconnected network of computing devices has completely changed the way people live. Now it is the turn of the Internet of Things in the manufacturing market.
Several major enterprises around the world are investing billions of dollars in the Internet of Things. In the year 2014, manufacturing firms achieved the highest revenue from their investments in the Internet of Things, according to a study by Market Research.
The world average of IoT spending per company in 2015 in the manufacturing industry was USD 110.35m, which was 0.45% of the average revenue earned by the companies in the manufacturing industry. By 2018, manufacturing companies around the world are expected to spend 10% more on IoT initiatives.
The pressure on manufacturing firms to reduce costs, find innovative business models to reach their customers, and create smart products is mounting day by day. With companies giving importance to the first mover advantage, the market for the Internet of Things in the manufacturing industry is growing rapidly.
With the amount of data generated in the world increasing at a whopping annual rate of 40%, we will generate approximately 35 zettabytes annually by 2020.
The untapped potential of big data, which is currently booming in data analytics, will be unleashed by 2020 and the IoT will have a major role in data collection from multiple facets of the value chain. The research expects that by 2020, there will be a shift in the focus from capital expenditures to operational expenses.
Customers value service offerings just as much as or even more than actual products. The IoT technology enables companies to establish loyal customer relationships, increase customer-lifetime-value, maintain quality standards throughout the product’s lifecycle, and inform the customers about future designs.
The analysts observed that among the major industry segments, the application related to supply chain monitoring is expected to grow the maximum (4%) during the next five years. Our observations show that in the APAC region, the percentage of manufacturing companies investing in the IoT technology was the highest in 2015. Surprisingly, North America came last in this list.
The research expects that by 2018, nearly 36% of the top 100 major firms will implement IoT in manufacturing and will rely on IoT-connected products. With IoT, predictive diagnosis and performance prognosis are soon going to be common features in the manufacturing supply chain of industry giants.