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The IoT is not just connecting technologies; it is eradicating the difficult tasks that are faced by the businesses in different functions, especially in manufacturing, and creates new stepping stones for a new industrial revolution. Today, with new advancements in cloud computing and the data analytics, IoT improves the cost-effectiveness factor as well as the scalability factor. Using a smart factory system with sensors, devices, people, and processes provide valuable benefits to the business such as minimized surplus and defects, reduced downtime, end-to-end real-time visibility, and deep insights.
According to a study conducted by IDC in 2016, the manufacturing segment invested twice as much as the transportation segments: $178 billion. According to another market research by the ‘Markets and Market,' by 2022, the smart factory market is expected to reach $205.42 billion, with a growth rate of 9.3 percent between 2017 and 2022.
The data collected from the manufacturing through sensors and machines are transferred to the cloud by IoT and connected devices implemented inside the factory. The collected data will be analyzed later and shares with the authorized stakeholders of the company. The IoT devices make these processes much easier and efficient, enabling real-time decision making whenever needed.
Most of the manufacturers are ready to deploy IoT and its connected devices because they have realized the definite benefits of industrial IoT to implement smart manufacturing. Some of the benefits such as improved employee productivity, asset optimization, reduction of operating costs, and enhanced quality of goods make IIoT a key to gain more profit through an efficient production function.
The future of IIoT is expected to see another industrial revolution. According to a survey conducted by PwC in Germany, researchers have shared some valuable information. Today, 91 percent of the organizations invest in IIoT, and 6 percent of organizations wish to be functioning with fully digitized technologies. While 75 percent of them have invested in smart manufacturing to meet customer preferences and overcome the competition, 50 percent of the total respondents expect ROI from the implementation of IIoT within five years. In a nutshell, the potential for smart manufacturing is immense and should never be ignored. The main objective of an entrepreneur should be to understand this power and build confidence in the face of digital change.
See Also: The Manufacturing Outlook