< Key Hightlight >

The global IIoT platform market size is expected to grow from USD 6.0 billion in 2020 to USD 13.7 billion in 2026, at a Compound Annual Growth Rate (CAGR) of 14.8% 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, proliferation of IoT devices, rise in the number of cost-effective and intelligent connected devices and sensors, increased government initiatives in R&D activities related to IoT, and emergence of IPv6.

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The COVID-19 pandemic has created significant disruption across every line of businesses, including enterprises, industrial, and government sectors. However, in recent times, with lockdown restrictions getting relaxed in almost every region across the world, businesses in various industry verticals, are resuming their operations. During the pandemic, the adoption of IoT devices has been increasing across many industry verticals such as healthcare, utilities, manufacturing, and transportation and logistics. Therefore, the demand of IIoT platform is increasing across these industry verticals. For instance, in healthcare, IIoT platforms are increasingly used in application areas including telemedicine solutions, such as remote patient monitoring, remote diagnosis, along with solutions, including connected ambulance and connected worker. Hence, the rising cases of COVID-19 leads to the rising demand for IoT-based solutions to improve the conditions of patients and staff of care providers. Moreover, the COVID-19 outbreak has gravely impacted the energy industries, enabling business leaders to think of IIoT platform as a replacement for manual intervention of field workers in the infrastructure. Organizations have started thinking of intelligent asset management solutions for remote monitoring, alerts and notifications, remote services and control, and predictive analytics and preventive maintenance using historical and real-time data analysis to combat potential failures.

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 or an open, general-purpose application platform, or both in conjunction. IIoT platforms are engineered to support the requirements of safety, security, and mission-criticality associated with industrial assets and their operating environments. In addition, IIoT platforms monitor IoT endpoints and event streams, and support and translate a variety of 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 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.

Support and maintenance segment, by services is expected to lead the IIoT platform market during the forecast period

Support and maintenance services assist the installed software within the entire IIoT infrastructure. These services include 24x7 troubleshooting assistance; upgradation of the existing software; problem-solving, repairing, replacing failure components; field maintenance; proactive services; technical support by the technicians; and test scenario management. As organizations are using several connected devices these days, the support and maintenance service providers help them uncover potential issues earlier and offer solutions to address issues before they can turn into bigger problems. These services are widely adopted by organizations to avoid business threats and safeguard their devices.

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 the performance of the equipment 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.

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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 countries are the early adopters of advanced technologies across various verticals, such as healthcare, manufacturing, and smart cities. These countries have sustainable and well-established economies, which empower them to invest in R&D activities, thereby contributing to the development of new technologies strongly. Due to the early adoption of trending technologies, such as IoT, cloud, AI, big data, and mobility, North American organizations are keen to integrate IoT technologies into their processes. Moreover, the increasing adoption of smart, secure, and connected technologies for asset-centric applications is expected to increase the market growth. The advent of SMEs and the adoption of digitization in manufacturing, along with high-speed networks, are expected to drive IIoT platform market growth in North America. 5G promises to be the backbone for IoT connectivity due to its high speed and low latency. The improved IoT connectivity through 5G is expected to improve manufacturing processes across the region.

Market Dynamics

Driver: Rising need for centralized monitoring and predictive maintenance of assets

IoT devices and control systems are widely used for tracking assets and monitoring industrial tools to obtain and share real-time information as the finished goods make their way down the production line. In organizations belonging to multiple sectors, there is a huge amount of operational data that is collected from the IoT-enabled devices and equipment, which can be analyzed for gaining meaningful insights and thus used for the centralized monitoring of the manufacturing environment. Predictive maintenance plays a major role in any industry for managing the equipment used in factories. In various industries, it helps in knowing the condition of the equipment to predict when maintenance on the equipment should be performed. Moreover, predictive maintenance is used to evaluate the equipment condition in-depth, such as vibration analysis, sound level measurements, oil analysis, and other specifications of the equipment.

Restraint: Integration with the traditional systems and lack of technically skilled workforce

The IIoT platform market requires specific IT technical skills and expertise to be deployed and managed correctly for effective operations of installed IoT devices and data management. The lack of operational and IT skills hampers the defective utilization of IIoT platforms. As more and more IoT devices are added to networks, network management is becoming more difficult for IT teams. This is due to the increased network complexity and data flow to the cloud. Along with the effective utilization of IIoT platforms, adequate knowledge is needed for business processes, such as collecting data, interoperability, integration, and analyzing data. Thus, the existing workforce is required to be trained regularly for handling these advanced technologies. Thus, the lack of a technically skilled workforce is hindering the adoption of the IIoT platform.

Opportunity: Rising demand for IoT-enabled digital transformation of businesses

IoT is a key digital transformation technology, enabling businesses to increase their operational efficiency. Other technologies such as big data analytics, cloud, and edge computing are spurring the demand for the digital transformation of business. The growing demand for the digital transformation of companies has forced the IoT solution providers to retool their current IoT solutions and rearrange their on-premises product models to support cloud-hosted delivery. The rising popularity of advanced technologies is helping organizations opt for IoT-based digital transformation of their businesses.

Challenge: Issues related to data security and privacy

The IIoT platform market has significant growth potential in all-sized enterprises; however, maintaining data security and privacy is a key challenge faced by the players operating in this market. The installed smart devices and sensors continuously generate a huge amount of data; this is expected to help organizations to handle a huge amount of data and gain insights into the market position of their competitors. This data is analyzed to generate actionable business insights; the majority of this data is processed at the edge and stored in the cloud from time to time. The majority of IoT-enabled devices are connected to various connectivity networks, such as mobile connectivity, public Wireless-Fidelity (Wi-Fi), and office Wide Area Networks (WAN). The public networks may not be as protected as they are required to be at an enterprise level. Thus, in a large‐scale deployment, privacy and security are two closely related issues for IoT devices. The business data collected at cloud and IoT-enabled devices can be accessed through various cyber threats and breaches.

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 Inc. (US), Hitachi, Ltd. (Japan), IBM Corporation (US), Microsoft Corporation (US), Cisco Systems, Inc. (US), Intel Corporation (US), SAP SE (Germany), Siemens AG (Germany), Accenture PLC (US), Atos SE (France), Amazon Web Services (US), Oracle Corporation (US), Bosch.IO (US), Schneider Electric SE (France), Davra Networks Ltd. (US), Eurotech (Italy), Altizon (US), QiO Technologies (UK), Litmus Automation (US), ROOTCLOUD (China), Flutura (US), Augury (US), FogHorn (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.

Scope of Report

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:

• Platforms
  • Device Management Platform
  • Application Enablement Platform
  • Connectivity Management Platform
• 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:

• Process Industry
• Energy and Utilities
• Chemical and Materials
• Food and Beverages
• Others(Pharmaceutical, Mining and Metals, and Pulp and Paper)
• Discrete Industry
• Automotive
• Machine Manufacturing
• Semiconductor and Electronics
• Medical Devices
• Logistics and Transportation

Based on regions, the IIoT platform market has the following segments:

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Rest of Europe
• APAC
  • China
  • India
  • Rest of APAC
• MEA
  • Saudi Arabia
  • Israel
  • Rest of MEA
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America

Recent Developments:

• In Fenruary 2021, IBM, Siemens, and Red Hat collaborated to use a hybrid cloud designed to deliver a secure solution for manufacturers and plant operators to drive real-time value from operational data. In one month, a single manufacturing site can generate more than 2,200 terabytes of data. Through the joint initiative, Siemens Digital Industries Software will apply IBM's open hybrid cloud approach, built on Red Hat OpenShift.
• In January 2021, PTC expanded its alliance with Fujitsu America, Inc., a company dedicated to delivering digital transformation solutions and services to clients in the Western Hemisphere to promote the adoption of IoT and AR technologies. Fujitsu has integrated PTC’s ThingWorx Industrial IoT and Vuforia AR platforms into its Smart Factory framework, enabling manufacturing customers to accelerate their digital transformation initiatives.
• In Decmber 2020, Software AG and RE’FLEKT, a provider of AR solutions, partnered to combine the interactive AR visualizations from RE’FLEKT with real-time machine data from the Cumulocity IoT platform. The partnership enables companies to profit from radically improved first-time fix rates with their machinery as well as significantly extend maintenance cycles.
• In June 2020, Microsoft acquired CyberX, IoT/OT Security company, to enable unified security across converged IT and industrial networks. By integrating the CyberX platform with the Azure IoT stack, Azure Security Center for IoT, and Azure Sentinel, Microsoft will provide a simpler approach to unified security governance across both IT and industrial networks, as well as end-to-end security across managed and unmanaged IoT devices, enabling organizations to detect and respond to advanced threats in converged networks quickly.
• In May 2019, Hitachi Vantara, a wholly owned subsidiary of Hitachi, Ltd., launched Lumada Video Insights, an end-to-end, intelligent, and adaptable suite of applications that delivers operational safety and business intelligence using IoT, video, AI, and analytics. Lumada Video Insights brings together Hitachi's video offerings for smart spaces with new technology updates, innovations, and integrations into Hitachi's Lumada portfolio.