Industrial IoT, also known as IIoT, refers to the use of internet-connected devices and sensors to capture real-time data from industrial operations and assets.

Over the past few years, the rise of IoT and IIoT solutions has significantly transformed manufacturing operations around the world by enhancing productivity, reducing costs, and empowering businesses.

In this blog, we will take a deeper look at how industrial IoT is impacting businesses through improved efficiency, new revenue models, and strategic advantages in detail. Let’s start by exploring the economic impact of IoT!

What is the economic impact of IoT?

The IIoT is estimated to have a staggering global economic impact of over $13 trillion by 2030, according to various studies. IIoT helps boost productivity and reduce downtime through preventive maintenance of assets.

It is reported that 85% of manufacturing organizations worldwide have already experienced positive ROI from IIoT solutions. Another study found that companies adopting IoT technologies observe a 30% reduction in operating costs within 5 years. All these factors point towards how IIoT is drastically improving profit margins for businesses across sectors.

How does the Internet of Things change business models?

The Internet of Things enables entirely new business models built around data-driven services. Companies are leveraging real-time asset performance data to offer new outcome-based service models like pay-per-use, shared services, or asset performance optimization.

This shift from product-centric to service-focused business models helps increase customer stickiness and long-term recurring revenues for companies. It also opens opportunities for connecting previously unconnected systems and ecosystems for mutual benefit.

What do I need to know about the Internet of Things that B2B uses?

IoT finds widespread applications across industries to streamline operations and logistics through connected devices and digital integration. Major B2B uses include:

• Predictive maintenance of industrial machinery using sensor data
• Remote asset monitoring and control
• Supply chain optimization via real-time tracking of inventory and shipments

Industries like manufacturing, oil and gas, and mining extensively utilize IoT for automation, vehicle telematics, production optimization, and more. Connected vending machines, digital signage, and smart offices are also emerging IoT applications catering to B2B needs.

What dynamics could affect IoT adoption?

While IIoT promises unmatched rewards, certain challenges could impact its adoption rates. Ensuring the decentralized security and privacy of vast volumes of sensitive operational data requires rigorous protocols.

Fragmented standards and a lack of interoperability between IoT systems from different vendors pose integration challenges. Further, upfront technology investments and skills shortages act as initial adoption barriers for some organizations.

Government policies promoting IoT, the availability of cost-effective platforms, and reference architectures can help address these dynamics over time.

How does the Internet of Things help in the digital marketplace?

The IoT is a key driver of the digital transformation witnessed across industries today. It facilitates the creation of digital twins—virtual replicas of physical assets that mirror their real-time conditions and functions.

This helps simulate various scenarios for improved decision-making without disrupting live operations. IIoT also powers new digital marketplaces, connecting OEMs, suppliers, manufacturers, and other players to exchange real-time insights and collaborate seamlessly online.

For instance, carmakers are leveraging IIoT technology to launch online platforms enabling predictive services, parts trading, vehicle diagnostics, and more.

How big is the Internet of Things?

Industrial IoT is said to be one of the biggest drivers of IoT growth worldwide. The global IIoT market was valued at over $150 billion in 2020, according to estimates, and is expected to reach over $1 trillion by 2030.

A report also stated that industrial IoT spending will account for around 30% of total IoT investments by 2025. Connected manufacturing facilities alone are expected to feature over 21.5 billion IoT solutions by 2025, substantially improving global industrial productivity.

The growing convergence of IIoT and technologies like AI, 5G, and digital twins indicates its ongoing potential across industries. Therefore, it is safe to say that it is a big industry and will continue to grow in the future.

Is the Internet of Things secure?

While the industrial internet of things delivers huge opportunities, security remains an ongoing challenge due to the sensitivity of industrial operations and assets.

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Cryptobunq offers custody and wallet, crypto exchange API, crypto checkout and invoicing, batch crypto payments, and many more solutions to help organizations future-proof their IIoT security posture against evolving threats with the power of blockchain technology.

Moreover, new regulations and frameworks like Europe's Cybersecurity Act also aim to enhance IoT security governance globally through mandatory certification. The security aspect of IIoT requires a multi-layered approach combining technologies, processes, and policies to effectively mitigate risks.

How can the Internet of Things improve our lives?

Finally, the IoT gives us a glimpse of the exciting possibilities in store for the future. Connected homes through smart devices make living safer, more comfortable, and more sustainable. Wearables and remote health monitoring save lives by catching diseases early.

Intelligent transportation powered by IoT ensures smoother traffic and commutes. Energy-smart grids leveraging IoT optimize consumption and reduce bills.

IIoT also promises new experiences in sectors like education, agriculture, retail, and more through highly personalized services. With widespread adoption, the IoT will revolutionize every aspect of our lives by weaving technology seamlessly into our daily activities.

The industrial internet of things is transforming businesses globally while improving our lives through connectedness and productivity gains.

The bottom line

Industrial IoT has emerged as a disruptive force, digitally empowering organizations and unlocking new opportunities. Connected devices and data-driven insights are revolutionizing manufacturing processes and operations management.

IIoT also enables innovative business models centered around outcomes and services. While security remains a key concern, comprehensive strategies are being developed to address the challenges. With wider IoT adoption across industries, smarter and more efficient solutions are improving productivity levels globally.

Organizations can securely leverage platforms like Cryptobunq to accelerate their IIoT journey and maximize its benefits through their cryptocurrency solutions and e-commerce payment options on the most prominent blockchains.

Cryptobunq provides a one-stop shop for organizations to integrate with and start using the benefits of crypto and blockchain securely and efficiently for their digital marketplace needs. Check out CBQ case studies and contact us today to learn more about our services and how they can benefit your business!