Global spending on IIoT cloud platforms expected to reach US$358 billion by 2019

The Internet of Things (IoT) allows communication among very heterogeneous devices connected via a wide range of networks through the internet infrastructure. According to a recently published iRAP report, titled ‘Internet of Things (IoT) — Cloud Platform for Industrial and Manufacturing Sector’, global spending on IoT cloud platforms specific to these targeted areas of industry is projected to reach US$358 billion by 2019, with a compound annual growth rate of 35% (based on 2014 spending of US$80 billion).

The IoT for any enterprise requires integration of products and services of information technology (IT) and operational technology (OT) companies. IT covers the entire spectrum of technologies for information processing and includes embedded technologies that generate data for enterprise use. OT covers connected assets. Companies using IoT technology are going through an evolution, questioning the shift toward more ‘modern’ internet and big data technologies.

IoT technology creates the opportunity to collect real-time data from things (sensors, devices and equipment) and combine that information with data and intelligence from business systems and people. Business processes become smart and connected, and operational performance can be improved within individual functional organisations — including engineering, manufacturing, supply chain, quality, support and service — or across the enterprise as a whole. Such comprehensive visibility introduces real-time optimisation capabilities for orders, materials, equipment status, costs and product quality. A personalised view of this information can be delivered via role-based applications to anyone, anywhere, at any time, allowing employees, customers and suppliers to make educated decisions with confidence.

The iRAP report focuses on usage and spending on implementation of IoT cloud platforms in three specific identified core areas: digital manufacturing as per Industry 4.0 standard; asset efficiency and optimum utilisation; and optimisation of the supply chain of components. The report examines dollar spending in 2014 on five core technology components of IoT cloud architecture: hardware, software, telecommunication, services and analytic solutions.

Cloud-based IoT architecture leverages three of the most compelling current technology trends to unlock the potential of the IoT: big data analytics, cloud computing and the Internet of Things.

With millions of electronic devices deployed around manufacturing and industries like oil and gas and mining, the capacity of organisations to conduct more efficient operations by gathering and analysing data is critical. The willingness of organisations to deploy networking products and applications to capture and analyse that data will depend on how efficiently these networking solutions can be deployed and maintained, and the expected benefits to be derived in doing so. IoT on a cloud platform aims to develop and market machine-to-machine (M2M) networking solutions at price points that can provide customers with a demonstrable return on investment.

The report includes forecasts of individual market segments for 2019 and analyses growth patterns in targeted core areas. The study also provides extensive quantification of the many important facets of market developments in the emerging markets of IoT cloud platform complied sensors, actuators, application hardware, communication providers, semiconductor components, microcontrollers, data centres, data analyst software and application software.

More details of the report are available from Innovative Research and Products (iRAP).