IIoT chipset market to be worth US$ 97.8 billion by 2030

The global IIoT chipset market, estimated at US$19.2 billion in 2023, is expected to reach US$97.8 billion by 2030, growing at a rate of 26.2 per cent per year, according to the report ‘ Industrial IoT (IIoT) Chipsets – Global Strategic Business Report’ by ResearchAndMarkets.com.

The increase in the IIoT chipset market is being driven by several reasons, such as the growing use of automation and intelligent technologies in different industrial sectors, advances in the semiconductor area and the increasing need to base decisions on hard data. The drive towards Industry 4.0 is a relevant factor in this scenario, as companies aim to improve their productivity and competitiveness through intelligent automation.

Technological advances in semiconductor production have resulted in more powerful and efficient chipsets, which has facilitated their widespread acceptance. In addition, the increased focus on energy efficiency and predictive maintenance solutions, based on real-time data and analyses, is further stimulating demand for IIoT chipsets. These trends, combined with the constant evolution of wireless communication protocols and the expansion of connected devices, are expected to drive significant growth in the IIoT chipset market over the next few years.

One of the main advantages that IIoT offers large industries is improved production control. By implementing sensors and connected devices throughout the production line, companies can now monitor every stage of the process in real time, even from a distance. This not only increases efficiency, but also allows for more agile and informed decision-making.

By having access to precise data on production performance, managers can quickly identify areas for improvement and optimise processes to ensure a more efficient and profitable operation. You can, for example, identify the volume of sealed packages, the cooling time for bread, the cutting speed and slicing accuracy of this product, among many other data points.

Another benefit of IIoT is the ease with which equipment can be serviced: by constantly monitoring machines, it becomes more assertive to identify when adjustments are needed and what intervention is required. The data generated by this technology also allows for a more in-depth analysis of any eventuality and provides decisive information for designing upgrades or performance improvements.

Trends that will heat up the market

From the implementation of real-time tracking systems and the advancement of high-performance computing to the influence of 5G connectivity and the rise of digital twins, Industry 4.0 is ushering in an era of unprecedented interconnectedness, efficiency and creativity. As sectors continue to embrace and adjust to these technological innovations, the coming years promise a more connected, intelligent and sustainable industrial landscape. Co-operation between humans and machines, driven by the fusion of Industry 4.0 and Artificial Intelligence, will unquestionably be one of the main drivers of progress in the fourth industrial revolution.

Here are the main forces that will drive the IIoT.

1. The evolution of Edge Computing

One of the main trends that will drive industrial IoT in 2024 is the steady advance of Edge Computing. With the increase in the amount of data generated by IoT devices, companies are increasingly adopting edge computing solutions to process and analyse data closer to its source. This change not only reduces latency, but also solves bandwidth problems, ensuring real-time decision-making and allowing industries to make the most of their data.

2. Integration of artificial intelligence and machine learning:

The interaction between the industrial Internet of Things and artificial intelligence is reaching unprecedented levels by 2024. Machine learning algorithms are becoming essential in IIoT systems, offering predictive analyses, irregularity detection and autonomous decision-making capabilities. This combination improves the effectiveness of industrial procedures, enabling proactive maintenance, optimising energy use and improving overall operational resilience.

3. Improved security measures:

With the expansion of the industrial IoT ecosystem, security concerns are becoming increasingly evident. By 2024, industries are emphasising the need to implement solid cybersecurity measures to ensure the protection of their IoT devices and networks. From using advanced cryptography to adopting secure device integration processes, companies are actively addressing vulnerabilities to defend against potential cyber threats that could jeopardise critical infrastructure and confidential information.

4. Revolution in real-time localisation systems (RTLS):

Real-time tracking systems (RTLS) are emerging as an innovation in the context of industrial IoT, and their influence is expected to grow by 2024. RTLS uses technologies such as RFID, GPS and Bluetooth to monitor and find assets, machinery and employees in real time within an industrial environment. This enables industries to improve work processes, reinforce safety measures and improve logistics.

The rise of RTLS systems

Within the context of the industrial Internet of Things, real-time tracking systems are expected to become essential by 2024. These systems employ a fusion of physical and virtual elements to provide precise and immediate data on the location of resources and employees in an industrial work environment.

a. Asset tracking and optimisation:

The Real-Time Location and Tracking System (RTLS) offers precise functionalities for controlling assets, allowing different sectors to track the movement and use of equipment, tools and materials in real time. This not only reduces the possibility of lost items, but also improves operational efficiency by improving resource management. With immediate access to the location of assets, sectors can improve their supply chains, reduce downtime and make informed decisions to increase overall productivity.

b. Personnel safety and emergency response:

On hazardous industrial sites, ensuring the protection of employees is crucial. Real-time location systems (RTLS) play an important role in improving safety standards by providing accurate information on the location of employees. In emergency situations, such as fires or chemical leaks, these systems enable agile and efficient evacuations, reducing the risk to human life and preventing potential damage.

c. Workflow optimisation:

By constantly monitoring the movement of goods and employees, RTLS systems help to improve work processes in industry. This not only increases the overall efficiency of activities, but also makes it possible to identify obstacles and points for improvement by analysing data. Based on this information, companies can make strategic adjustments that simplify procedures and increase productivity.

5. 5G connectivity reshaping industrial communication:

In 2024, the introduction of 5G technology is significantly impacting the industrial IoT context. Improvements in speed, low latency and greater device capacity in 5G networks enable more robust and reliable communication between IoT devices. This facilitates efficient data transmission, allowing industries to incorporate a greater number of connected devices and support applications with higher demands, such as augmented reality (AR) for maintenance activities and remote monitoring of equipment.

6. Sustainability initiatives drive IoT innovation:

As industries increasingly adopt sustainable practices, the Internet of Things (IoT) is playing a crucial role in improving efficiency and reducing environmental impact. By 2024, the use of sustainability-orientated IoT applications, such as intelligent energy management, waste reduction and emissions monitoring, is expected to increase. By using the information provided by the IoT, companies can optimise the use of resources, reduce waste and make informed decisions that contribute to a more efficient and environmentally responsible operation.

7. Expansion of Digital Twins:

Virtual copies, called Digital Twins, of physical equipment and systems are becoming increasingly popular in industry. In 2024, the concept of Digital Twins is expanding, no longer limited to individual pieces of equipment, but also encompassing the entire production line and complete processes. This detailed digital representation enables precise simulations, predictive modelling and a thorough analysis of industrial activities. Integrating real-time information from IoT devices into Digital Twins increases their accuracy, allowing industries to optimise procedures, solve problems and improve their overall performance.

8. Edge AI for autonomous decision-making:

In 2024, the use of artificial intelligence at the network edge is growing rapidly, making it easier to automate decisions. By implementing AI algorithms directly in edge devices, sectors are able to analyse data locally, reducing dependence on centralised servers. This approach not only reduces latency, but also improves data privacy and security. Artificial intelligence at the edge allows IoT devices to act more quickly and efficiently, improving responsiveness in critical industrial processes.

9. Collaboration between man and machine:

The interaction between humans and electronic devices is constantly evolving in 2024, ushering in a new era of collaboration between man and machine. The use of Internet of Things (IoT) technologies has been widely adopted in order to develop intelligent interfaces that extend human abilities and simplify complex activities. From devices that monitor employee health and safety to collaborative robots (cobots) that work alongside human workers, the industrial IoT is transforming the labour market and creating environments in which humans and machines cooperate to achieve maximum efficiency.

10. Continuous focus on data privacy and ethical AI:

With the rapid expansion of the Internet of Things (IoT) in the industrial environment, ethical concerns about data privacy and artificial intelligence (AI) are becoming more evident. By 2024, industries are prioritising ensuring the responsible and ethical use of data. Strong privacy protection measures, transparent data management practices and ethical AI frameworks are being adopted to deal with issues related to the collection, processing and storage of sensitive information, with the aim of promoting trust between the parties involved and the general public.