Internet-of-Things (IoT) Market in Manufacturing - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Internet-of-Things (IoT) market in manufacturing was valued at USD 175.3 billion in 2020 and is expected to reach USD 399.08 billion by 2026 and grow at a CAGR of 14.76% over the forecast period (2021-2026). With the increasing demand in the last two decades for traceability and transparency, companies have started making the processes involved in the production of their product transparent. Data collection and analysis through IoT devices make the whole process seamless for manufacturers.

With the number of networked sensors increasing across production, supply chain, and products, manufacturers are entering into a new generation of systems that enable automatic and real-time interactions among machines, systems, assets, and things. The pervasiveness of connected devices is finding applicability across multiple segments of the manufacturing and supply chain, throughout the value chain.

IoT in manufacturing can facilitate the production flow in a plant, as IoT devices automatically monitor development cycles and manage warehouses and inventories. It is one of the reasons that investments in IoT devices have skyrocketed, over the past few decades. IoT in manufacturing, logistics, and transportation is expected to rise to USD 40 billion, by 2020.

Due to the impact of COVID-19, there are major shutdowns and production losses that are taking place across the world. According to a recent survey by the National Association of Manufacturers, atleast 53% of manufacturers in the United States expect the outbreak to affect their operations. This is expected to have a direct impact on deployment of IoT in manufacturing in a shorter run.

Scope of the Report

• The Internet-of-Things (IoT) market in manufacturing is adding value to manufacturers, by making the proper decision regarding lead time, demand, inventory in hand, stock out, product visibility, inventory turnover, forecasting, and sales. It also helps the manufacturer to connect with both the upstream consumers and downstream suppliers, improving vendor relationships.
• IoT, with its data, appropriately manages and stores the bulk of data gathered from the transportation of raw material to final product delivery even up to after-sales service for a manufacturer. According to the application, one can use IoT services with various software depending upon the network connectivity.

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Key Market Trends

Supply Chain and Logistics Management Application to Spur Growth in the Market Studied

• There has been a substantial change in the supply chain, with the adoption of mobile devices and sensors, which includes RFID and GPS to track inventory and assets in warehouses.
• Improved inventory management, due to the availability of real-time visibility of items and the ability to track and keep a count of inventory, is a very important outcome of the implementation of IoT in the manufacturing industries.
• The collection of manufacturing information, expiry date, manufacturing date, after-sales status, and warranty period, using tracking devices, like RFID tags, may improve efficiency in supply chain monitoring in the manufacturing process.
• According to the SAS Institute, the United Kingdom may benefit the most from the manufacturing sector, with IoT giving approximately around GBP 4,032 million of the total economy. Similarly, other economies are expected to invest heavily in the automation of the supply chain, thereby, driving the IoT adoption in the overall manufacturing sector.

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