Market Trends of Digital Transformation Industry
The IoT Segment is Expected to Occupy the Largest Market Share
- The growing adoption of IoT technology across end-user industries, such as manufacturing, automotive, and healthcare, is positively driving the market's growth. With the traditional manufacturing sector amid a digital transformation, IoT is fueling the next industrial revolution of intelligent connectivity. This is changing how industries approach increasingly complex processes of systems and machines to improve efficiency and reduce downtime.
- Industry 4.0 and IoT are central to new technological approaches for developing, producing, and managing the entire logistics chain, otherwise known as smart factory automation. Massive shifts in manufacturing due to Industry 4.0 and the acceptance of IoT require enterprises to adopt agile, smarter, and innovative ways to advance production with technologies that complement and augment human labor with robotics and reduce industrial accidents caused by process failure.
- With the high rate of adoption of connected devices and sensors and the enabling of M2M communication, there has been a surge in data points generated in the manufacturing industry. These data points can be of various kinds, ranging from a metric describing the time taken for the material to pass through one process cycle to a more advanced one, such as calculating the material stress capability in the automotive industry.
- The advancements in field devices, sensors, and robots are expected to expand the market scope further. IoT technologies are overcoming the labor shortage in the manufacturing sector. For more and more organizations, using Industry 4.0 technologies, like robotization, is part of day-to-day operations.
- The global IoT demand trend is expected to shift toward the industrial space from consumer demand over the coming years, with sheer volume demand driven by various Industry 4.0 applications. A significant share of the demand is expected to drive the manufacturing industries, energy, business mobility, healthcare, and supply chain.
- Moreover, smart city initiatives are expected to spearhead IoT growth over the coming years. IoT devices and systems are expected to increase as part of transportation, utilities, and infrastructure. Government initiatives and drives in line with this are expected to boost the adoption rates.
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Asia-Pacific is Expected to be the Fastest Growing Market
- Traditionally regarded as the world's leading manufacturing facility, China has made significant efforts to transition from (cheap) employment manufacturing to high-end industrial production through digitization and industrialization. China is estimated to account for one-third of the worldwide IIoT market by 2025, according to the GSMA.
- The adoption of smart manufacturing and governmental efforts in the region are also likely to accelerate the country's digital transformation. China plans to develop its smart manufacturing system and accomplish major industry transformation by 2025, per the 13th Five-Year Plan of Smart Manufacturing.
- Furthermore, in the 14th Five-Year Plan for National Economic and Social Development and Vision 2035, the government emphasizes smart cities, robotic technology for the industrial industry, artificial intelligence, and the Internet of Things, among other things.
- In its Made in China 2025 (MIC 2025) industrial program, the Chinese government has identified the robotics industry as a strategically significant sector. Foreign investors have both possibilities and disadvantages as a result of this categorization.
- Additionally, the increasing prevalence of industrial IoT across countries has substantially aided market growth. For example, the "Made in China 2025" initiative aims to broaden the Chinese economy by shifting toward innovation-driven and quality-focused production.
- Furthermore, Asia's developing automobile sector is creating significant worldwide industrial robot market potential. China, for example, has the world's largest electric car market. According to the IEA, China registered 3.4 million electric vehicles, accounting for 51.5% of the worldwide market share. According to CGTN, China has also revealed its aim to become a worldwide robot powerhouse by 2025.
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