The Internet of Things (IoT) is changing business models, increasing output, and automating processes across a number of industries. But no other sector has been more impacted by this technological revolution than manufacturing.
Manufacturers across all areas —automotive, chemical, durable goods, electronics, etc. — have invested heavily in IoT devices, and they’re already reaping the benefits. Manufacturers utilizing IoT solutions in 2014 saw an average 28.5% increase in revenues between 2013 and 2014, according to a TATA Consultancy Survey.
What is Smart Manufacturing?
In short, smart manufacturing is the use of IoT devices to improve the efficiency and productivity of manufacturing operations. Typically, this involves retrofitting sensors to existing manufacturing equipment, but new manufacturing equipment often comes with IoT sensors pre-installed.
BI Intelligence, Business Insider’s premium research service, expects the installed base of manufacturing IoT devices to swell from 237 million in 2015 to 923 million in 2020. By that year, manufacturers will spend approximately $267 billion on the IoT.
More to Learn
In this detailed report on smart manufacturing, we examine the ways the IoT will impact the manufacturing sector. We include forecasts on device shipments, the investments made by manufacturers on IoT solutions, and we examine the return on investment that manufacturers are witnessing from their IoT solutions. Further, we look at the common IoT use cases in manufacturing, including asset tracking, control room consolidation, predictive maintenance, autonomous robots, augmented reality, and additive manufacturing.
Here are some of the key takeaways from the report:
Investment in the IoT by manufacturers will translate to billions in spending. We estimate that global manufacturers will invest $70 billion on IoT solutions in 2020. That’s up from $29 billion in 2015.
Manufacturers are currently using IoT solutions to track assets in their factories, consolidate their control rooms, and increase their analytics functionality through predictive maintenance. Many IoT solutions are still basic, but we expect manufacturers to eventually implement more complex technologies, such as autonomous robots and augmented reality (AR) tools.
There are four top barriers that will create challenges for manufacturers as they begin to upgrade to the IoT. These barriers include the increasing threat of a cyber attack, difficulty determining ROI, technical difficulty integrating the IoT into a factory, and reluctance to implement automation, which would result in job losses.
In full, the report:
– Analyzes the potential ROI of the various use cases.
– Identifies best practices manufacturers should take when implementing an IoT solutions.
– Examines multiple use cases of IoT solutions.
– Discusses the potential impact these solutions can have.