Industrial IoT (IIoT) Market Size, Share, Growth Analysis, By Component, Technology(Sensor, RFID, Industrial Robotics, DCS and Other), Connectivity(Wired, Wireless), Software(Visualization Software, SCADA, DMS, Farm Management, Other), Vertical, and Region - Industry Forecast 2024-2031

Driver

Implementation of IPV6:

• With the advent of Internet Protocol version 6 (IPv6), the industrial internet of things (IIoT) business has grown because of the exponential global growth of internet-connected devices. The IP version 4 (IPv4) protocol was unable to handle the exponential increase in the number of linked items. IPv6 provides 128-bit addresses, compared to the 32-bit addresses of IPv4. This allows for the unique identification of a significantly larger number of IoT devices. Furthermore, it is predicted that the implementation of IPv6 would result in a sharp rise in global demand for the industrial internet of things technology. This protocol allows for an open architecture and is the most efficient for the internet of things (IoT). 

Adoption of Smart Initiatives: 

• The number of Smart city projects going worldwide is a prominent growth driver for the industrial IoT market. The smart city projects include various smart transformations within the city like providing Intelligent transport system, smart parking, smart waste management, smart water management, etc. These smart initiatives would require a lot of IoT devices hence driving the growth of IIoT market. According to government of India the smart city projects have increased the number of connect IoT devices in India from 200 million to 2.7 billion by 2020. Similar increase in the number of connect IoT devices would be seen worldwide due to the smart city projects going across the globe. 

Restraint 

Cost Issues: 

• High cost of utilizing these IIoT devices would be a restrain. For example, M2M Communication is an important use case of IIoT devices in industries. For M2M communication industrial machinery must have built-in components. These components are necessary for collecting important information from device and transmit it to a central computer for archival and analysis. Older machineries might not have these component, therefore making it necessary to install these components in the older machines, which would increase the cost. 

Data and Privacy Breach Issues: 

• Data theft and security breaches are a major restraint for the IIoT market. These IoT devices, are constantly linked to the internet and they collect, store, and continuously transmit organizational data. This data is very crucial for an organization as it is used by them to formulate their internal strategy and for better decision making. Therefore, security threat becomes a major challenge. The data breach also cause huge monetary loss to the organizations. It was observed that an average data breach costs $4.45 million in 2023. Consequently, making data theft a major challenge for the IIoT market.