IIoT Platform Market by Platforms (Device Management, Application Enablement, & Connectivity Management), Services, Application (Predictive Maintenance, Process Optimization, & Automation Control), Vertical and Region - Global Forecast to 2028
[282 Pages Report] The IIoT platform market size is projected to grow from USD 9.5 billion in 2023 to USD 18.2 billion in 2028 at a Compound Annual Growth Rate (CAGR) of 13.9% during the forecast period. The major factors driving the growth of the IIoT platform market include the rising need for centralized monitoring and predictive maintenance of assets, growing demand for automation in industries, including increased investments in Industry 4.0, and government initiatives aimed at promoting industrial automation.
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Market Dynamics
Driver: Growing demand for automation in industries
The growing demand for automation in industries is a significant driver of the IIoT (Industrial Internet of Things) platform market. Automation enables industries to streamline their processes, reduce manual intervention, and optimize resource utilization. By leveraging IIoT platforms, industries can gather real-time data, monitor operations, and automate decision-making processes, leading to improved operational efficiency. IIoT platform plays an important role in enhancing the process of industrial automation in industries. IIoT platforms help generate cooperative communications and interaction from manufacturing field input or output involving actuators, robotics, and analyzers. These platforms help improve flexibility and deliver enhanced manufacturing..
Restraint: Absence of standardization in IoT protocols
A common protocol and communication standard are required to enable communication among IoT-enabled devices to share data or form an intelligent network. Interoperability and easy exchange of information among connected devices is of utmost importance. However, the current technical and market scenarios pertaining to the IIoT platform lack a promising architectural solution or a universal standard to solve the interoperability issues among connected devices. Hence, a universal standard or protocol for connectivity and data formatting is urgently required, as the IIoT platform is not just a network of internet-connected devices but machines, humans, and software. However, the absence of a universal standard for IoT is restraining this diverse IIoT platform ecosystem from being more effective and scalable.
Opportunity: Shift from on-premises to cloud-based data management strategy
IoT as a technology involves storing, managing, and analyzing data in real time. Storing and managing the huge volume of data on-premises lead to challenges that are related to scalability, security, IT infrastructure security, skilled IT workforce, and costs related to implementation and management. To address these challenges, organizations opt for a cloud-based data management strategy. Cloud platforms present a perfectly cost-effective and easily deployable alternative for data storage and eliminate the need to build on-premises data centers. While IoT is all about connected devices that produce huge amounts of data, the cloud platform enables analytics to help derive value from the data. Cloud computing technologies are providing companies a way to connect traditional information systems of enterprises to IoT-enabled devices. This capability enables enterprises to build IoT-based sensors and respond to systems quickly and economically.
The cloud platform is considered a secure platform for storage and computation of massive amounts of data due to in-built security and data management, and data analytics. Besides, the cloud also provides a unified platform that manages the service life cycle and organizes deployment. The adoption of IIoT Platform as a Service (PaaS) has increased the deployment of IoT solutions across many industry verticals. The cloud platform helps deploy various applications that provide organizations with newer ways of connecting traditional information systems to IoT-enabled devices. Moreover, many applications cannot run without cloud technology, making the cloud an essential part of the IoT ecosystem. Organizations are shifting from on-premises IIoT solutions to cloud-based IIoT platforms to leverage the benefits of cloud technology.
Challenge: Interoperability issues of legacy infrastructure and communication networks
Legacy systems are outdated computer software and hardware that remain in use even after the installation of modern technologies. Legacy systems are crucial for organizations as they support some key business functionalities. Organizations must upgrade their legacy systems as it becomes difficult to continue with systems whose services are discontinued by vendors. Most legacy systems do not have the configuration required to connect with smart devices and enhanced communication networks. Replacing these legacy systems can incur huge costs to companies. The market vendors face challenges integrating these legacy systems with various components in the IIoT platform ecosystem.
Machines must have built-in components facilitating Machine-to-Machine (M2M) communication for industrial applications. These components are connected to a wired or wireless network, such as Wi-Fi or RFID module. Thus, connected components collect relevant data from equipment and transmit it to a central computer for storage and analysis. The machinery in old industrial units may not be equipped with these data transmission components. As such, these components require to be fitted externally. Some legacy equipment may also require alterations to retrofit these components into them, thereby resulting in increased expenditure. This acts as a significant hindrance for organizations using old machinery. The impact of this restraint is expected to reduce gradually in the next few years as most industries have begun to realize the benefits of M2M communication. A few organizations have already started developing solutions to integrate their legacy equipment with communication networks. For instance, General Electric (US) has developed field agents or gateways that can be attached directly to industrial equipment to facilitate network connectivity.
Market Ecosystem
Platforms segment, by offering to account for a larger market size during the forecast period
IIoT platforms connect various devices, sensors, machines, routers, controllers, gateways, and edge computing systems centrally to streamline business processes and increase operational efficiency. The IIoT platform can be consumed as a technology suite, an open, general-purpose application platform, or both in conjunction. IIoT platforms are engineered to support the safety, security, and mission-criticality requirements associated with industrial assets and their operating environments. In addition, IIoT platforms monitor IoT endpoints and event streams, and support and translate various manufacturer and industry proprietary protocols. IIoT platform also analyzes data at the IoT edge and in the cloud.
Application enablement platform segment, by platforms is expected to grow at a higher CAGR during the forecast period
The application enablement platform is designed to ease the management of various applications, including packing, deployment, and a containerized Software-Defined Environment (SDE). The application enablement platform helps manage distinct application provisioning and ensure application-level security services. Moreover, application enablement platforms are being deployed to address the needs, such as intelligent product enhancements, dynamic response to market demands, lower costs, optimized resource use, and waste reduction.
Support and maintenance segment, by services is expected to lead the IIoT platform market during the forecast period
The support and maintenance service segment in the IIoT platform market is driven by various factors. These include the complexity of IIoT systems, which require technical expertise for troubleshooting and resolving issues. The continuous improvement of platforms necessitates ongoing support and updates to ensure optimal performance. Organizations also demand high reliability and minimal downtime to avoid disruptions in their operations..
Asset management segment, by application area is expected to lead the IIoT platform market during the forecast period
With the explosion of low-cost sensors, location-based services with GPS, affordable connectivity, and gateways, more and more assets are being equipped with tracking devices, sensors, and actuators, thus providing a centralized connection to the IIoT platform. IIoT platform-enabled asset management solutions minimize these risks by updating component location as soon as they arrive. Asset management is instrumental in managing physical assets and equipment performance on the manufacturing floor. The protection of physical assets, such as plants, machinery, and fleet, is the backbone of manufacturing operations. The asset management industrial application is crucial, as it provides a unified view of operations to all stakeholders and is instrumental in maintaining the effectiveness of manufacturing enterprises.
Discrete industry segment, by vertical is expected to grow at a higher CAGR during the forecast period
The discrete industry is concerned with the manufacturing and production of distinct units, such as automobiles, furniture, toys, smartphones, and airplanes. The discrete industry comprises a variety of verticals, such as automotive, machine manufacturing, semiconductor and electronics, medical devices, and logistics and transportation. IIoT platforms help these industries by offering solutions, such as predictive management, workforce tracking, and logistics and supply chain management, which enable organizations to improve operational efficiency, enhance asset life, and reduce downtime.
North America to account for the largest market size during the forecast period
IIoT platform is a steady-growing market in North America, which includes the US and Canada. These include technological advancements, the increasing adoption of industrial automation to enhance efficiency and reduce costs, the focus on data analytics and AI for informed decision-making, the need for regulatory compliance and safety measures, the growing emphasis on cybersecurity to protect industrial systems, and government initiatives and funding that support the development and implementation of IIoT platforms in various industries throughout North America.
Market Players
The report includes the study of key players offering IIoT platform market offerings. It profiles major vendors in the global IIoT platform market. The major vendors include Software AG (Germany), PTC (US), Hitachi (Japan), IBM (US), Microsoft (US), Cisco (US), Intel (US), SAP (Germany), Siemens AG(Germany), Accenture (US), Atos (France), Amazon Web Services (US), Oracle (US), Bosch.IO (US), Schneider Electric (France), Davra Networks (US), Eurotech (Italy), Altizon (US), QiO Technologies (UK), Litmus Automation (US), ROOTCLOUD (China), Augury (US), Braincube (France), UnifyTwin (US), and Samsara (US). The study includes an in-depth competitive analysis of these key players in the IIoT platform market with their company profiles, recent developments, and key market strategies.
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Report Metrics |
Details |
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Market size available for years |
2018–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Billion) |
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Segments covered |
Offering, Application Area, Vertical, and Regions. |
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Regions covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
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Companies covered |
Software AG (Germany), PTC (US), Hitachi (Japan), IBM (US), Microsoft (US), Cisco (US), Intel (US), SAP (Germany), Siemens AG(Germany), Accenture (US), Atos (France), Amazon Web Services (US), Oracle (US), Bosch.IO (US), Schneider Electric (France), Davra Networks (US), Eurotech (Italy), Altizon (US), QiO Technologies (UK), Litmus Automation (US), ROOTCLOUD (China), Augury (US), Braincube (France), UnifyTwin (US), and Samsara (US). |
This research report categorizes the IIoT platform market to forecast revenues and analyze trends in each of the following submarkets:
Based on Offering, the IIoT platform market has the following segments:
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Platforms
- Device Management Platform
- Application Enablement Platform
- Connectivity Management Platform
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Services
- Consulting Services
- System Integration and Deployment
- Support and Maintenance
Based on Application Area, the IIoT platform market has the following segments:
- Asset Managament
- Supply Chain and Management
- Business Process Optimization
- Workforce Management
- Automation Control
- Emergency and Incident Management
Based on Vertical, the IIoT platform market has the following segments:
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Process Industry
- Energy and Utilities
- Chemical and Materials
- Food and Beverages
- Others(Pharmaceutical, Mining and Metals, and Pulp and Paper)
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Discrete Industry
- Automotive
- Machine Manufacturing
- Semiconductor and Electronics
- Medical Devices
- Logistics and Transportation
- Others(Packaging and Printing, Textile, and Apparel etc)
Based on regions, the IIoT platform market has the following segments:
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North America
- US
- Canada
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Europe
- UK
- Germany
- France
- Rest of Europe
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APAC
- China
- India
- Rest of APAC
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MEA
- Saudi Arabia
- Israel
- Rest of MEA
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Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments:
- In March 2023, Accenture acquired Flutura, an internet of things (IoT) and data science services firm, for an undisclosed sum to boost the industrial AI services it sells under Applied Intelligence's umbrella.
- In January 2023, PTC acquired ServiceMax a Service Execution Management company. The acquisition adds important field service management (FSM) capabilities to PTC’s closed-loop product lifecycle management (PLM) and digital thread offerings.
- In February 2022, Software AG acquired treamSets, a leader in data integration for the modern data stack. With this acquisition, Software AG adds a sizeable and fast-growing SaaS and subscription business that is growing rapidly.
- In March 2021, SAP acquired Signavio, one of the leaders in the enterprise business process intelligence and process management space. As a part of the acquisition, Signavio’s products become part of SAP’s business process intelligence portfolio and complement SAP’s holistic process transformation portfolio. As a result of the deal, SAP can help companies quickly understand, improve, transform and manage their business processes at scale.
- In February 2021, Siemens, IBM, and Red Hat collaborated to use a hybrid cloud designed to deliver an open, flexible, and more secure solution for manufacturers and plant operators to increase the real-time value of industrial IoT data. Through the collaboration, Siemens Digital Industries Software will apply IBM's open hybrid cloud approach, built on Red Hat OpenShift, to extend the deployment flexibility of MindSphere. This will enable customers to run MindSphere on-premise, unlocking the speed and agility in factory and plant operations and through the cloud for seamless product support, updates, and enterprise connectivity.
Frequently Asked Questions (FAQ):
What is the projected market value of the global IIoT platform market?
The IIoT platform market size is projected to grow from USD 9.5 billion in 2023 to USD 18.2 billion in 2028, at a Compound Annual Growth Rate (CAGR) of 13.9% during the forecast period.
Which region have the highest market share in IIoT platform market?
North America is expected to hold largest market share in the IIoT platform market. The region is a major contributor to the IIoT platform market as the region is set to dominate IoT, cloud, AI, big data, and mobility, due to its size, diversity, and the strategic lead taken by countries, including US and Canada.
Which platform segment is expected to witness higher adoption rate in coming years?
The application enablement platform is is expected to witness higher adoption rate in coming years. The platform is designed to ease the management of various applications, including packing, deployment, and a containerized Software-Defined Environment (SDE). The application enablement platform helps in managing distinct application provisioning and ensuring application-level security services. Moreover, application enablement platforms are being deployed to address the needs, such as intelligent product enhancements, dynamic response to market demands, lower costs, optimized resource use, and waste reduction.
Who are the major vendors in the IIoT platform market?
Major vendors in the IIoT platform market are Software AG (Germany), PTC (US), Hitachi (Japan), IBM (US), Microsoft (US), Cisco (US), Intel (US), SAP (Germany), Siemens AG(Germany), Accenture (US), Atos (France), Amazon Web Services (US), Oracle (US), Bosch.IO (US), Schneider Electric (France), Davra Networks (US), Eurotech (Italy), Altizon (US), QiO Technologies (UK), Litmus Automation (US), ROOTCLOUD (China), Augury (US), Braincube (France), UnifyTwin (US), and Samsara (US).
Which application area segment is expected to lead the IIoT platform market ?
Based on application area, the asset management segment is expected to lead the IIoT platform market during the forecast period. The asset management industrial application is crucial, as it provides a unified view of operations to all stakeholders and is instrumental in maintaining the effectiveness of manufacturing enterprises.
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The study involved four major activities to estimate the current market size for the IIoT platform market. An exhaustive secondary research was done to collect information on the IIoT platform market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakup and data triangulation procedures were used to estimate the market size of the segments and sub-segments of the IIoT platform market.
Secondary Research
In the secondary research process, various secondary sources, such as D & B Hoovers and Bloomberg BusinessWeek, were referred to identify and collect information for this study. These secondary sources included annual reports, press releases, investor presentations of companies, whitepapers, articles by recognized authors, gold standard and silver standard websites, regulatory bodies, trade directories, and databases.
Primary Research
The IIoT platform market comprises several stakeholders, such as System design and development vendors, System integrators providers, Migration service providers, Consultants, Advisory firms, Support and maintenance service providers, Network service providers, Communication Service Providers (CSPs), IoT technology vendors, Academic and research institutes, Technology partners, Consulting firms, Research organizations, Resellers and distributors, Enterprise users, and Technology providers. The demand side of the IIoT platform market consists of the firms that deploy the IIoT platform. The supply side includes IIoT platform providers, offering IIoT platform. Various primary sources were interviewed from the supply and demand sides to obtain qualitative and quantitative information. Given below is the breakup of the primary respondents:
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Market Size Estimation
Multiple approaches were adopted for estimating and forecasting the IIoT platform market. The first approach involves estimating the market size by the summation of the revenue companies generate through the sale of solutions and services.
Bottom-Up Approach
The bottom-up procedure was employed to arrive at the overall size of the IIoT platform market from the revenues of key players (companies) and their market shares. The calculation was done based on estimations and by verifying key companies’ revenue through extensive primary interviews. Calculations based on the revenues of the key companies identified in the market led to the overall market size. The overall market size was used in the top-down procedure to estimate the size of other individual segments (component, deployment mode, organization size, vertical, and region) via the percentage splits of the market segments from secondary and primary research. The bottom-up procedure was also implemented for the data extracted from the secondary research to validate the market segment revenues obtained. Market shares were then estimated for each company to verify the revenue shares used earlier in the bottom-up procedure. With the data triangulation procedure and validation of data through primary interviews, the exact values of the overall parent market size and its segments’ market size were determined and confirmed using this study.
Top-Down Approach
In the top-down approach, an exhaustive list of all the vendors offering solutions and services in the IIoT platform market was prepared. The revenue contribution of the market vendors was estimated through annual reports, press releases, funding, investor presentations, paid databases, and primary interviews. Each vendor's offerings were evaluated based on the breadth of solutions and services, deployment modes, applications, and verticals. The aggregate of all the companies’ revenue was extrapolated to reach the overall market size. Each subsegment was studied and analyzed for its global market size and regional penetration. The markets were triangulated through both primary and secondary research. The primary procedure included extensive interviews for key insights from industry leaders, such as CIOs, CEOs, VPs, directors, and marketing executives. The market numbers were further triangulated with the existing MarketsandMarkets repository for validation.
The list of vendors for estimating the market size is not limited to those profiled in the report. However, MarketsandMarkets prepared a list of vendors offering IIoT platform solutions and services. They mapped their products related to the IIoT platform market to identify major vendors operating in the market.
Data Triangulation
The market was split into several segments and subsegments after arriving at the overall market size using the market size estimation processes as explained above. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
The IIoT platform is a software capability that connects smart devices, sensors, machines, routers, controllers, gateways, and edge computing systems in industries centrally to streamline business processes and increase operational efficiency by catering to various application areas, such as business process optimization, asset tracking, predictive maintenance, workforce tracking, and asset control management.
Key Stakeholders
- IoT hardware vendors
- IoT platform and software vendors
- IoT connectivity providers
- Communications Service Providers (CSPs)
- Consulting and advisory firms
- Regional and global government organizations
- Investors and venture capitalists
- Independent Software Vendors (ISVs)
- Value-Added Resellers (VARs) and distributors
- System integrators
Report Objectives
- To determine and forecast the global IIoT platform market by offering, application area, vertical, and region from 2023 to 2028, and analyze the various macroeconomic and microeconomic factors that affect market growth.
- To forecast the size of the market segments with respect to five main regions: North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America.
- To provide detailed information related to the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market.
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall market.
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the IIoT platform market.
- To profile the key market players; provide a comparative analysis on the basis of business overviews, regional presence, product offerings, business strategies, and key financials; and illustrate the competitive landscape of the market.
- To track and analyze competitive developments, such as mergers and acquisitions, product developments, partnerships and collaborations, and Research and Development (R&D) activities, in the market.
Available Customizations
Along with the market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (Up to 5)
Generating Response ...
Growth opportunities and latent adjacency in IIoT Platform Market