The total industrial IoT connections are projected to surge from 17.7 billion this year to 36.8 billion by 2025, claims a recent research study.
The accelerating IoT environment is highly lucrative across industries as it is bringing a new era of business possibilities. It is a mainspring of this virtual world and is implemented by enterprises to enhance revenue streams and efficiency.
A recent study by Juniper Research revealed that the total number of industrial IoT connections would grow at a rate of 107% and touch 36.8 billion by 2025. This is up from 17.7 billion IoT connections in 2020
Over the next five years, smart manufacturing is going to be the key growth sector for the industrial IoT market. This will account for nearly 22 billion connections by the end of 2025. Hence, 5G and low power wide area (LPWA) connections would play pivotal roles in crafting smart offerings.
The services are primarily valid for the manufacturing industry and will drive the smart factory concept among businesses. In this, real-time data transmission, as well as high connection densities, will lead to highly-autonomous operations for the manufacturers.
Simply put, the 5G network will maximize the benefits of advanced and smart factories. Private 5G services are essential for maximizing the significance of a smart factory for service users. Simply put, the technology can be leveraged to enable higher levels of autonomy amongst business operations.
The study revealed that private 5G networks would be the most valuable – when used for large amounts of data transmissions with a high density of network connections. Besides, it is valid where substantial levels of data are being generated.
Undoubtedly, this will permit large-scale manufacturers to cut down on operational spend with the help of efficiency gains. As a result, it has been anticipated that the software revenue will dominate the industrial IoT market value.
More than 80% of the worldwide industrial IoT market revenue will be attributable to the software spend – reaching about $216 billion by 2025. Basically, the software and applications supporting ML for improved data analysis and network vulnerabilities identification are crucial for connected operations.
As mentioned in the report – “Manufacturers must exercise caution when implementing IoT technology, resisting the temptation to introduce connectivity to all aspects of operations. Instead, manufacturers must focus on the collection of data on the most valuable areas to drive efficiency gains.”