IoT in Manufacturing Market to Reach $194.9 Billion by 2030, Driven by AI Integration and Industrial Automation

According to the latest market research study published by P&S Intelligence, the global internet of things in manufacturing market is projected to grow significantly, reaching a value of $194.9 billion by 2030, with a compound annual growth rate (CAGR) of 14.2%, up from $87.9 billion in 2024. This rapid expansion reflects a transformative shift within the manufacturing sector, driven by advancements in industrial automation, artificial intelligence (AI), and enhanced connectivity across production systems.

Download free Report Sample Now

Market Overview:

The IoT in manufacturing market has emerged as a key catalyst for operational efficiency, data-driven decision-making, and enhanced product quality. By integrating smart sensors, devices, and cloud-based technologies, manufacturers are increasingly able to collect real-time data from machines, production lines, and the supply chain. This data is then used to optimize processes, reduce downtime, improve safety, and enhance product quality across the manufacturing lifecycle. The ongoing trend of automation is further accelerating the adoption of IoT technologies in production facilities worldwide.

Key Factors Driving Growth:

• Industrial Automation: The primary driver for the market is the growing adoption of industrial automation. As manufacturers strive to improve efficiency and reduce operational costs, the implementation of IoT technologies has become integral. IoT enables automation systems to communicate and make real-time adjustments based on collected data, significantly reducing human intervention and increasing production speeds.
• Artificial Intelligence (AI) Integration: AI and IoT are complementing each other, creating highly intelligent manufacturing environments. AI-enabled IoT devices are capable of processing vast amounts of data generated by sensors in real-time. This allows manufacturers to gain valuable insights into operational performance, predict potential failures, and make smarter decisions based on predictive analytics. For instance, AI-driven algorithms help forecast maintenance needs, ensuring machines are serviced before breakdowns occur, minimizing downtime.
• Enhanced Supply Chain and Inventory Management: IoT applications in manufacturing are also revolutionizing supply chain and inventory management. By integrating IoT sensors throughout the production chain, manufacturers can track inventory levels, monitor equipment, and even automate reordering processes. This leads to greater accuracy, faster delivery times, and a more streamlined operation, all while reducing stockouts and overstocking issues.
• Workplace Safety and Security: Another critical benefit of IoT in manufacturing is its ability to enhance workplace safety. IoT-enabled devices can monitor environmental factors such as temperature, humidity, and gas levels in real-time. In case of any anomalies, alerts are triggered, helping to prevent accidents or safety violations. Furthermore, IoT allows for remote monitoring of machines and processes, ensuring adherence to safety standards while improving security protocols.

Regional Insights:

• North America: The North American market is currently the largest revenue-generating region, driven by the early adoption of cutting-edge technologies, strong industry presence, and substantial investments in smart manufacturing. The United States is home to a robust manufacturing sector that is heavily investing in IoT systems to drive productivity, especially in automotive, aerospace, and electronics industries.
• Asia-Pacific (APAC): The Asia-Pacific region is expected to witness the fastest growth during the forecast period. Rapid industrialization, particularly in countries like China, India, and Japan, along with government initiatives promoting smart factory adoption, is creating a conducive environment for IoT technologies in manufacturing. The region’s shift towards smart manufacturing is driven by the need to reduce labor costs and enhance operational efficiency in an increasingly competitive market.
• Europe: Europe is also experiencing significant growth in the IoT in manufacturing market, particularly in countries like Germany and the U.K., where industrial automation and IoT integration have already made substantial inroads. The region’s emphasis on Industry 4.0 and the digitalization of its manufacturing sector is expected to further drive demand for IoT technologies in the coming years.

Challenges and Barriers:

Despite the significant opportunities, the IoT in manufacturing market faces challenges such as high initial implementation costs, security concerns, and interoperability issues. The complexity of integrating IoT solutions into existing legacy systems is another hurdle for many manufacturers. Additionally, concerns regarding data privacy and the potential vulnerabilities of connected devices in manufacturing plants are creating obstacles to broader adoption.

Key Players in the Market:

Several global players are significantly impacting the growth of the IoT in manufacturing market. Some of the prominent companies providing IoT solutions for the manufacturing industry include Siemens AG, IBM Corporation, Cisco Systems, Inc., Honeywell International, Inc., GE Digital, and PTC Inc. These companies are investing heavily in developing advanced IoT technologies, AI integrations, and cloud-based platforms to address the increasing demand for smart manufacturing solutions.