The Rise of Smart Manufacturing: Insights from Eseye’s State of IoT Adoption Report

Eseye

IoT Hardware and Connectivity Specialists

Smart manufacturing, or Industrial IoT (IIoT), is revolutionizing factories by using interconnected devices, sensors, and systems to collect and exchange data across the value chain. This shift is significantly enhancing efficiency, productivity, and profitability.

Eseye’s fourth annual State of IoT Adoption report sheds light on the latest trends in the UK and US IoT markets. This blog explores the results of our report in the manufacturing industry and how manufacturers are leveraging IIoT to optimize operations, reduce downtime, and maximize profitability while also providing insights into future growth and investment plans in this evolving field.

How IoT is Boosting Manufacturing Revenue

One of the most significant benefits of IoT in manufacturing is its impact on revenue growth. By making equipment smarter and enabling real-time data processing at the edge, manufacturers can conduct predictive maintenance, reducing production downtime and increasing overall efficiency. These operational improvements translate directly into higher profits and faster production cycles.

Encouraged by these advantages, a staggering 86% of manufacturing respondents plan to expand their IoT estates in the next 18 months, with 30% aiming to double the number of connected devices. This marks an increase from our 2023 survey where 80% of respondents indicated similar growth plans. The increased investment in IoT-connected technology underscores the confidence manufacturers have in these tools to drive further improvements in efficiency, profitability, and competitive advantage.

Budget Increases and Estate Growth

As manufacturers enhance their IoT capabilities, they are significantly increasing their financial investments. 79% of manufacturers expect their IoT budgets to rise over the next 18 months, reflecting a strong commitment to leveraging IoT as a key driver of future success. More than half of these respondents (56%) anticipate a significant budget increase of 25-50%. These findings solidify a year-over-year trend – in 2023 three-quarters predicted IoT budget increases with over half (55%) predicting a rise of 25-50%.

This growing investment reflects the industry’s strong confidence in IoT’s transformative potential. By allocating more funds, manufacturers aim to expand their IoT estates, enhance operational efficiency, and secure a competitive edge. This trend underscores a broader recognition of IoT’s crucial role in optimizing production processes and cutting costs. For instance, 89% of manufacturers are focusing on creating a single product stock-keeping unit (SKU) to simplify design and streamline inventory management.

How Smart Manufacturing and IoT are Shaping the Future of Industry 4.0

Smart manufacturing, also known as Industry 4.0, is transforming the manufacturing sector by integrating digital technologies, big data, and machine learning with physical production. This fusion is creating a more efficient and interconnected manufacturing ecosystem.

Several key factors are driving the growth of IoT in this space. The increasing demand for industrial autofwhenmation is leading manufacturers to adopt IoT solutions for real-time monitoring and control, which enhances productivity and reduces errors. Additionally, IoT facilitates centralized asset monitoring and predictive maintenance, helping to prevent downtime and extend the lifespan of machinery. The rise of cost-effective, intelligent devices and sensors is providing valuable data for operational improvements, while cloud technologies support the analysis and management of this data.

The benefits of IoT are evident, with 57% of businesses reporting that it has given them a competitive edge. Multi-connectivity options, including cellular, satellite, Wi-Fi, and Bluetooth, are seen as crucial for future-proofing IoT projects, according to 35% of businesses. To address challenges such as permanent roaming restrictions and data sovereignty regulations, 93% of manufacturers are turning to single eSIM solutions to achieve global coverage.

Key Challenges in IoT Adoption for Manufacturing

When asked what was the main device challenge they have had to overcome, manufacturing respondents revealed that achieving reliable multi-region connectivity is the number one hurdle (25%). This rings true for all industries surveyed. Out of 1,200 respondents across six industries and two markets, only 0.4% of companies are achieving resilient and robust connectivity levels of 98% and above. This is a staggering 73% drop compared to findings from 2023 (1.49%). This gap indicates ongoing difficulties in achieving optimal IoT performance and highlights the need for continued efforts to enhance connectivity and reliability in IoT deployments.

Security stands out as the primary concern for manufacturers. In the UK, 30% of respondents identify device security as the biggest obstacle in their IoT projects. More broadly, 27% of manufacturers are worried about the vulnerabilities of IoT devices. As the integration of IoT solutions expands, so does the risk of cyber threats and data breaches, making robust security measures crucial to safeguarding sensitive data and maintaining the integrity of IoT systems.

Beyond security, manufacturers encounter challenges such as integrating new technologies with existing systems, managing large data volumes, and ensuring interoperability among various IoT devices. To tackle these issues, 95% of manufacturers who responded indicated they would find value in partnering with end-to-end IoT service providers. Addressing these challenges requires careful planning, investment in security protocols, and effective data management and integration strategies to fully realize IoT benefits and maintain a competitive edge.

The Future of Smart Manufacturing

With 87% of manufacturers highlighting the critical need for more intelligent IoT devices and advanced edge data processing, the rapid evolution of the industry underscores the increasing demand for a reliable and robust connectivity provider.

Eseye offers unmatched expertise in guiding manufacturers through their IoT journeys, ensuring seamless implementation and management at every stage. Our solutions encompass advanced IoT connectivity platforms and innovative hardware, all designed to meet the specific requirements of your manufacturing operations. By delivering secure, scalable, and reliable connectivity, we help optimize efficiency, reduce downtime, and enhance data-driven decision-making.

To learn more about how our cutting-edge solutions can support your manufacturing goals and drive business growth, get in touch with one of our IoT Solution Specialists today.

Elevate Your Operations

Discover the insights from Eseye’s State of IoT Adoption report, which reveals how IIoT is transforming manufacturing and discover why 86% of manufacturers expanding their IoT estates in our most ambitious industry research report yet.

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Eseye

IoT Hardware and Connectivity Specialists

Eseye brings decades of end-to-end expertise to integrate and optimise IoT connectivity delivering near 100% uptime. From idea to implementation and beyond, we deliver lasting value from IoT. Nobody does IoT better.

The Rise of Smart Manufacturing: Insights from Eseye’s State of IoT Adoption Report

Elevate Your Operations

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