Which IoT markets should you tap into for your next product design? With an aging population, I'm going to go out on a limb here and say healthcare.
Markets, consumers and bigwigs have started to see the appeal of the Industrial IoT (IIoT) according to another research report from Mind Commerce. In short, this report says that the IoT market is going to be hot.
Any market worth around $600 billion with a compound annual growth rate (CAGR) of 13.1 percent between 2016 and 2021 is sure to turn some heads. But considering that the report suggests that this only accounts for the North American IIoT market forecast, this is astounding.
Think that’s impressive? The European IIoT market looks even better, with an expected value of $629 billion; however, it’s at a lower CAGR of 11.9 percent until 2021.
Anyone with a high school history course under their belt can predict one of the leading sectors of the IIoT market. That’s right, the aging baby boomers have taken a large slice of the cake again, with an expected IIoT market value of $338 billion and a CAGR of 10.5 percent between now and 2021.
Other insights made by the report predict that the long-term value of the IIoT will be in using its big data collection for corporate and product insights. This includes finding new business models, process improvements and product improvements for the engineering design team to sink their teeth into.
Additionally, Mind Commerce predicts that IIoT will be one of the leaders to adopt the IoT in the overall market. One of the drivers for this is the insight into product use case scenarios, which can then be included into the redesign and improvement of products.
Is AI Really a Driving Factor in the IIoT?
It’s interesting to see that much of the movement in the IIoT space will not be in artificial intelligence (AI) in IIoT teleoperation and tele-robotics. IIoT AI seems to have only a sliver of the market, estimated at $19 billion by 2021. It’s nothing to sneeze at, but in the grand scheme of the IIoT market, it’s pittance.
A similar report from United Ventures estimates the AI IoT market will be at $26 to $30 billion by 2020. So though there is room for uncertainty in the number it’s not enough to make a dent in that $1.2 trillion pie.
Given the hype around predictive analytics, big data crunching and self-optimizing systems, it’s shocking to see such a small piece of the pie goes towards AI, especially when the Asian-Pacific smart factory market has a respectable 14.4 percent CAGR.
Perhaps factory owners in North America don’t see much of a difference between the automation already implemented into their plants compared to the IIoT. This might be further proof that upgrading and retrofitting technology is the way to crack this market.
Those that look into the report will also find:
- 2016 to 2021 market forecasts and leading market segments
- IIoT vendor analysis
- Leading IoT apps, services and solutions
- Leading IIoT security companies
- Teleoperation and tele-robotics opportunities
- IIoT support technology
- How the IIoT influences people, processes and other technologies
To learn more about IoT market trends, read “IoT Trends: Manufacturing and Automation to Lead IoT Growth into 2017 and Beyond.”