Industry Trends That Are Driving Manufacturing toward IoT Applications

The impact of adoption and implementation of IoT applications can be seen throughout the manufacturing industry and beyond. These changes have driven down manufacturing costs, increased production, and improved the quality of goods. Thus, ultimately industrial IoT has helped to accomplish optimization, digitization, visibility of the factory and manufacturing environment, and better customer service.

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Smart drivers triggering manufacturing ecosystem’s adoption of IoT applications

Industrial IoT has effectively delivered some of the most intelligent benefits to the manufacturing ecosystem, across verticals. A clear focus on IoT development has been possible, thanks to the critical drivers that have forced the manufacturers to look at IoT devices, IoT sensors, IoT services, and IoT platforms for a solution. So, here are some of the important drivers:


  • Digital/connected factory
  • Smart facility management
  • Automated asset management
  • Ensuring safety and security of operations
  • Transparent logistics and ecosystems
  • Instant capturing of customer preference and behavior
  • Intelligent Services and predictive maintenance
  • Accurate quality control
  • Streamlined supply chain management
  • 24*7 production flow monitoring, and
  • Real-time condition-based alerts

The manufacturing organizations are clearly shifting towards a service-oriented business model, and in this scenario comprehensive visibility, time, communication, and immediate response are crucial. In addition, the insights gained from an integrated IoT solution effectively deliver on all these expectations.

Smart trends that are enabling manufacturers in adopting IoT applications

I have listed some of the crucial industry trends that are supporting the adoption of IoT technology in manufacturing. Of course, these are critical supporters that enable effortless IoT implementation across the manufacturing ecosystem


The last few decades have seen explosive progress in wireless connectivity solutions. These standards-based solutions like Wi-Fi, cellular radios, and satellite connections are easily accessible today at lower costs. In addition, the technologies now provide smooth and consistent global connections. Similarly, the reduced costs have pushed businesses to adopt IoT.

Cloud solutions

The growth of IoT will definitely put a strain on the computing resources necessary to maintain the level of connectivity, data collection, and storage. In this scenario, cloud solutions offer a place to store all the data created, to manage and execute instruction sets. Thus, the cloud can be considered the backbone of IoT, providing inter-device communications, remote processing power and, analytics and monitoring.


Automation helps achieve high levels of productivity and efficiency while increasing product quality and profits. Additionally, automation of processes decreases labor costs, and it is used for work that would be considered unsafe, too imprecise, or impossible for humans to perform. In this scenario too, IoT technology will have a major role to play in industrial automation. In addition, companies are already investing in IoT-driven systems as the stepping stone to more opportunities in automation.

Distributed manufacturing

More and more companies are today using a network of geographically dispersed facilities, outsourcing their critical manufacturing processes to third parties. However, the consequence of this trend is the inventory scattered throughout the supply chain that needs to be tracked constantly. But a smart manufacturing environment that tracks supply chain, its components, location and ingredients can deliver new levels of transparency and visibility.

Sensor and data analytics

Smart IoT sensors can now perform tasks such as capture real-time data to enable automation, improve operational control, communicate with other machines, record feedback, and even shut off devices if an issue arises. This capability has meant that the focus has shifted from how to collect data to what should be done with the data. Thus, the advances made in the field of smart sensors, big data and edge analytics will bend the curve towards IoT.

Virtual reality

Virtual technologies are well on their way to widespread adoption in manufacturing, and new tools allow companies to create and test situations in the virtual world. Thus, from design to maintenance to factory floor planning, many of the processes are actively adopting virtual reality. This helps cut down on manufacturing time and companies are able to get a more realistic version of what they want. Integrating VR and IoT helps in building more intuitive, immersive, and empowering experiences.

Manufacturing involves many types of products, operations, and processes, as well as an array of components, machines, people, stakeholders, and information systems among others. The efficiencies offered by IoT solutions are helping manufacturing organizations in enabling wider business transformations. Companies that adopt smart manufacturing, or industry 4.0, will be markedly ahead of the rest. IoT-enabled machines, sensors, and gadgets connected to each other definitely opens the door for higher productivity and profitability.