As with any new technological advancement, the journey from initial excitement to widespread adoption often follows a familiar trajectory. The Internet of Things (IoT), which connects countless devices in our daily lives, is no exception. According to a report by Fortune Business Insights, the IoT is expected to encompass 64 billion connected devices by 2025, with the market value reaching one trillion USD by 2026. With an annual growth rate of 24.7 percent, the IoT’s expansion has lived up to its hype. However, the qualitative realisation of its potential, especially within the Industrial Internet of Things (IIoT), tells a more nuanced story.
The IIoT promised numerous advancements, such as preventative maintenance, enhanced equipment effectiveness, seamless supply chain integration, and increased efficiency and sustainability. Although Skyquest data indicates a substantial market value of USD 102.48 billion in 2022 for IIoT, with an expected annual growth rate of 7.2 percent from 2024 to 2031, this growth lags behind the broader IoT trend. In fact, only 14 percent of machines on manufacturing shop floors are currently connected, highlighting a significant gap between industry leaders’ vision and the on-ground reality.
This disparity stems from the inherent complexity of manufacturing environments, which must balance safety, security, regulatory compliance, and the integration of diverse technologies. Early IoT solution providers encouraged manufacturers to adopt a “start small” approach, leading to the proliferation of disparate systems and technologies, further complicating the situation. The resulting failure of many early projects, coupled with the increased technological management burden, has led some to experience a period of disillusionment.
To fulfil the IIoT’s potential, it’s crucial to integrate these various systems into a cohesive whole that provides a clear view of overall performance. A key challenge lies in extracting data from older machines, which often lack the necessary sensors and connectivity. While retrofitting is sometimes possible, it rarely captures all required data. As older machines are gradually replaced with newer ones equipped with modern connectivity and cybersecurity features, the situation will improve. However, a complete overhaul isn’t feasible or cost-effective. Instead, integrating new components in a modular fashion, supported by standards like the Module Type Package (MTP), offers a practical path forward.
Additionally, integrated data platforms that consolidate information from various sources within a plant will be essential. These platforms, such as Microsoft’s Data Factory, enable advanced analysis through artificial intelligence, paving the way for more informed decision-making.
Ultimately, closing the gap between the IIoT’s promise and its current reality requires more than just new technologies. It necessitates a shift in skills and a blending of traditional IT with plant engineering. By embracing open connectivity standards, cloud-based data platforms, and AI-powered analytics, the true potential of IIoT can be realised, driving future success.
The journey to fully unlocking the IIoT’s capabilities is complex, but with the right strategies and innovations, the vision of a seamlessly connected industrial landscape is within reach.
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