Industrial IoT (IIoT)

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IoT, Internet of Things, is often referred to a “smart” object. Everything from cars, home appliances to shoes and light switches that connect to the internet, passing and receiving data and connecting the physical world to the digital world are considered as smart object.

Industrial IoT projects are about automation, optimization and tactical or strategic goals in a mainly internal context . the Industrial Internet, IIoT incorporates machine learning and big data technology, harnessing the sensor data, machine-to-machine (M2M) communication and automation technologies that have existed in industrial settings for years. The driving philosophy behind the IIoT is that smart machines are better than humans at accurately, consistently capturing and communicating data. This data can enable companies to pick up on inefficiencies and problems sooner, saving time and money and supporting business intelligence efforts. Industrial Internet makes a connected enterprise by merging the information and operational department of the industry. Thus improving visibility, boosting operational efficiency, increases productivity and reduces the complexity of process in the industry. Industrial IoT is a transformative manufacturing strategy that helps to improve quality, safety, productivity in an industry.There is such great potential for the Industrial Internet to change the way industry works that GE Digital predicts the benefits to the global economy through the IIoT will be

  • 46% of global economy that can benefit from the Industrial Internet.
  • 100% Industrial Internet potential impact on energy production.
  • 44% Industrial Internet potential impact on global energy consumption.

Evolution of IIoT

The first industrial revolution in the 18th century, IIoT is transforming today’s manufacturing industry. This fourth industrial revolution is built on advancements in artificial intelligence (AI), IoT, 3D printing and robotics, and they’re the foundation for the factories of the future.

Industry 1.0: Mechanization Using Steam Power

Before Edmund Cartwright introduced the first mechanical loom in 1784, textiles were produced in people’s homes. Cartwright used water and steam to power his mechanical looms, which led to giant leaps in productivity and helped launch the first industrial revolution.

Industry 2.0: Mass Production Using Electrical Energy

The first assembly lines appeared in the meatpacking industry in 1870 and drastically reduced the time to slaughter and dress a single steer from eight hours to 35 minutes. Henry Ford the Father of mass production and the assembly line introduced the process in a car manufacturing plant by Ford to improve the productivity using conveyor belt mechanism.

Industry 3.0: Automated Production Using IT

In 1969, Richard Morley developed the first programmable logic controller (PLC) for General Motors. Originally designed to replace hard-wired relay systems, PLC’s hardened embedded processor, running a real-time proprietary operating system, became a mainstay of the industrial automation world. Miniaturization of the circuit boards through programmable logic controllers, Industrial robotics to simplify, automate and increase the production.

Industry 4.0: Cyber-Physical Systems

The fourth industrial revolution is the IIoT era, in which companies are leveraging intelligent, connected cyber and physical systems to monitor, analyze and automate manufacturing. The smart devices communicate with each other and create valuable insights. IIoT brought with it the advantages of asset optimization, production integration, smart monitoring, remote diagnosis, intelligent decision making and most importantly the feature of Predictive Maintenance.

Applications for the industrial internet of things

Smart dust

Applications of these connected smart dust particles in the IIoT are virtually endless, from oil exploration companies spreading smart dust to monitor rock movements to small sensors all over factory equipment continually looking out for changes and problems.

Energy networks

Smart meters are one example of the industry’s move towards IoT technologies, although at the moment they only record usage amounts and timings. Utility firms could potentially provide price information to these meters, which could in turn interact with other IoT devices to use energy at the most efficient time.


Drones may not yet be seen as a fully fledged connected IIoT device, but they can carry all range of sensors and are autonomous machines capable of gathering massive amounts of valuable data. Construction companies can use drones to undertake daily land surveys and feed this data into software to ensure construction is on schedule and send an alert if anything looks out of place or improperly built.


With the help of the Industrial Internet of Things technology, the Aerospace industry will be able to create highly integrated, reliable as well as high- performance systems with the help of standard- based software and machines. Aerospace is one of the many industrial sectors which require the processing of information in real- time in order to ensure high performance.


The IIoT technology, advanced devices can be connected with each other and hence the cost of treatment and machine procurement will also get reduced to a considerable extent. Not only this, this will also result in improved health conditions for all the patients. An integrated and faster operating system of devices means that machines and medicines will together have faster effect on the patient’s health and body. These connected devices will also be safer around patients.


In the field of defense as well, there is need for all latest information to be processed and disintegrated with 100 percent accuracy as well as in real- time. For this purpose, IIoT technology is very crucial as it assists the arrival and processing of command data with optimum accuracy. With the help of IoT, improvement in defense software capabilities can be improved and it also provides better control over warfare and other concerns related to flexible security.

IIoT benefits

  1. Collecting data from sensors (things) much more cost effectively than ever before because sensors are often battery-powered and wireless
  2. Interpreting this data strategically using big data analytics and other techniques to turn the data into actionable information
  3. Presenting this actionable information to the right person, either plant personnel or remote experts, and at the right time
  4. Delivering performance improvements when personnel take corrective action.

Challenges of IIoT :

Businesses are in a constant battle to balance the benefits of new technology with the risks of increasingly sophisticated data breaches. But things are a bit different for those responsible for critical infrastructure.The pressure to make everything “smart” keeps heating up. However, adopting the Industrial Internet of Things (IIoT) won’t do you much good if “smarter” control machinery doesn’t prove reliable.


Is the ability of a system or a product to work with other systems or products without special effort on the part of the customer.


Security is another major concern. Companies should know about their data security.

Connectivity Outages

Internet connectivity makes 100% availability nearly impossible. Even if the network isn’t going down unexpectedly, you might expect to go offline for maintenance.You can’t assume you’ll never experience intermittent outages. As you implement IIoT technology, make sure you’re using the proper cables and set yourself up to guarantee zero data loss—even in case of connectivity issues.

Data Storage

With the Industrial Internet of Things, you’ll collect thousands of data points that have critical relevance to other aspects of the business outside of the OT network. To make this data available across the organization in real time, you’ll need to plan for secure short-term storage.

Industrial Internet of Things market

            The overall Industrial Internet of Things market. According to research by IndustryARC, released end June 2016, the Industrial Internet of Things market is poised to grow to a whopping $123.89 Billion by 2021. That’s a big chunk of the Internet of Things market overall. We mentioned the manufacturing industry earlier for a reason as it will be the Industrial Internet of Things market segment that will be generating the highest revenue in the forecast period and for IndustryARC Industry 4.0 is key in it. IIoT segment which is expected to grow at a CAGR of 59.8 percent. The global market for industrial IoT (IIoT) is anticipated to grow at a rapid pace during the forecast period, and the prospects for growth in this market will be driven by the increasing government support and traditional industries’ digital transformation to enhance business productivity and sustain a competitive advantage. Also, the recent increase in data generation using IIoT is a significant factor that will spur growth in this market during the forecast period. Recently, it has been observed that many connected devices are used in industries to generate a high volume of data. This data is then used by companies to optimize cost and generate revenue.

In terms of component, the segments into which the industrial internet of things market is divided are hardware, software, and service. Hardware can be further segmented into sensors, robotic systems, and connected devices. The segment of hardware led the market in 2016. However, the software segment is expected to clock maximum growth rate over the forecast period on the back of high adoption of software by large industries. The segments of the market based upon end user are aviation, oil and gas, transportation, power generation and utility, manufacturing, healthcare, and others. Manufacturing is expected to lead the market with a share of close to 35% of the overall market during the forecast period. This is mainly because of high adoption of IIoT in the manufacturing sector. Healthcare is predicted to clock the leading CAGR over the forecast period ending in 2025. The key growth drivers of the sector include improved diagnosis due to data sharing between consultants and improved healthcare services. The segments of the global industrial internet of things market based upon geography are North America, Europe, Asia Pacific, the Middle East and Africa, and South America. Amongst all, in 2016, North America, driven by the U.S., led the overall market in terms of revenue. The region is expected to hold on to its lead position over the forecast period. The U.S. is a significant market for IIoT primarily due to the consistently rising demand for improved diagnostic facilities pushed by Big Data analytics. The increased spending on healthcare by the government is also driving the IIoT market in North America. Powered by China and India, Asia Pacific is also expected to display healthy growth rate over the forecast period. These countries are expected to be at the forefront of IIoT adoption on account of increasing investments in technology. India is expected to contribute substantially to the Asia Pacific IIoT market as the Indian government is pushing the ‘Digital India’ initiative.

MeenaG Staff

Internet of Things Enthusiast

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