Industrial internet of things market to top $123B by 2021
Manufacturing and healthcare will lead industrial internet of things growth
In the drive for efficiency and cost savings, different verticals are adopting industrial internet of things to use the power of data analytics to improve operations. As adoption continues to grow, a new report projects the industrial internet of things market will be worth $123.89 billion.
The new analysis, prepared by research and consulting firm IndustryArc, considers the purchase of industrial internet of things equipment–sensors, RFID, memory, processors and other devices–in the manufacturing, transportation, energy, retail, healthcare and agricultural industries.
According to IndustryArc, the manufacturing industry will be the highest “revenue generating segment” in terms of industrial internet of things growth, although the perpetuation of healthcare/medical devices will have the “highest growth rate,” according to the analysts, with a 60% year-over-year growth rate.
From the report: “The European region was the market leader in industrial internet of things market in 2015 with approximately 28% of the total market, and is estimated to growth a [compound annual growth rate] of 22.2%. Industrial IoT market will see a high demand from the growing IIoT penetration in manufacturing, transport and energy sectors.”
As to manufacturing representing the highest revenue generating segment, the report authors attribute that to Industry 4.0, which is both a blanket term for the fourth industrial revolution, which is the widespread adoption of automation in industrial processes, as well as a specific term for a German government-backed program to automate manufacturing in the European powerhouse.
After manufacturing and healthcare, the report indicates that energy will have the second highest CAGR of 39.7% in the time period covered.