What Is the Industrial Internet of Things (IIoT)?

The Industrial Internet of Things (IIoT) is a network of connected devices that collect, transmit and analyze data to extract insights for optimizing manufacturing and industrial processes. This analysis leads to more cost-efficient operations, improved maintenance and higher safety standards for workers.

While the more general Internet of Things connects devices within home and office environments, IIoT’s solutions are designed for specific industries. Manufacturing, oil and gas, agriculture, power and transportation are a few sectors that rely on the interconnectedness of IIoT to revamp and maintain their processes.

What Is the Industrial Internet of Things?

The Industrial Internet of Things (IIoT) is a network of connected devices that collect, transmit, share and analyze data to gather insights for optimizing industrial and manufacturing processes. This field’s solutions cater to industries like manufacturing, power, agriculture and transportation.

IIoT may occupy its own niche, but the IoT subset is part of a larger movement labeled Industry 4.0. This phase of the Industrial Revolution prioritizes the interconnectedness of devices by combining areas like machine learning, big data and data analytics. As a result, companies can speed up physical production with digital technology.

How Industrial IoT Works

Industrial IoT consists of sensors, applications, networking equipment and other devices that work together to compile and analyze data. Because they communicate with each other, these devices are able to collectively evaluate data and discover new insights on manufacturing and industrial processes.

Examples of Industrial IoT Solutions

Improved production efficiency
In-depth asset monitoring
Enhanced predictive maintenance
Higher-quality product standards
Safer worker conditions
Faster data collection and response times

The interconnected ecosystem of IIoT makes it easier for teams to monitor individual devices, address minor fixes before they grow into major issues and execute predictive maintenance. Companies can then better maintain industrial equipment and products, reduce costly errors and raise the performance of their customer service.

At the same time, more connections mean more openings for hackers to infiltrate company systems. To counter these vulnerabilities, businesses have also emphasized cybersecurity alongside IIoT to maintain fast yet fortified networks.

Risks and Benefits of Industrial Internet of Things

Industrial IoT is bound to reshape industries for years to come, ushering in a new age full of possibilities and potential pitfalls for organizations to consider.

Older Systems

IIoT networks often connect a range of devices within a business, including systems and devices that may be decades old. These devices often lack the latest software patches and updates, leaving them vulnerable to the most basic cyber attacks.

Sophisticated Cyber Attacks

Even if organizations move all their data into cloud and wireless settings, online threats have evolved to penetrate IIoT environments. Complex malware and techniques for mimicking devices are a couple methods hackers can employ to infiltrate a network and disrupt company processes.

Lack of IIoT Training

Educating workers on IIoT best practices can be a challenge, especially as the technology continues to progress at a rapid pace. Employees may not have the expertise to operate and maintain IIoT-based tools and automations, leading to safety violations, interrupted productivity and potential openings for hackers to exploit.

Faster Data Collection and Analysis

The interconnected nature of IIoT networks allows many devices to store and share information with one another, speeding up data collection procedures and analyses. Teams can also automate many of these steps, maximizing the efficiency of their devices.

Enhanced Asset Monitoring

IIoT gives organizations a bird’s-eye view of their entire network, so teams can keep track of assets and gather production data in real time. Companies can then make quicker adjustments and detect any unusual or malicious activities.

Reduced Operating Costs

Automated processes and online connections cut down on unnecessary manual labor and equipment. In addition, Industrial IoT-powered devices can perform tasks more accurately than humans and conduct preventive maintenance, lowering costs associated with human-related errors and malfunctioning machines.

Security and Privacy Considerations of IIoT

Because it directly connects various devices to one another, the Industrial Internet of Things has led to more concerns over the security of companies’ data and digital resources, including:

Data breaches
Malware attacks
Old systems with no safeguards
Denial-of-service attacks
Data interception
Theft of physical devices
Infected or malfunctioning IIoT equipment

Data breaches and malware attacks are common fears, especially for businesses that still rely on outdated IT infrastructure. But the design of IIoT networks also leaves the newest devices vulnerable to distributed denial-of-service attacks, which flood a system with requests that lead it to shut down and paralyze workflows.

If hackers are after sensitive information, they can also infiltrate an endpoint device to intercept data while remaining undetected. Some companies still store valuable information on physical devices, so hackers may turn to stealing these devices as an alternative for accessing private data.

Data isn’t the only variable companies need to stay aware of. If a hacker infects IIoT-controlled machinery or even if equipment simply malfunctions, employees may face physical dangers in the workplace.

Applications of Industrial Internet of Things

Businesses may realize the advantages of IIoT outweigh the costs, so a range of industries have adopted the technology to boost their operations.

IIoT in Logistics

Logistics companies embrace IIoT’s ability to connect humans and machines by employing drone technology. Drones receive information from a controller, which human workers can operate to collect data and complete deliveries in a shorter amount of time.

IIoT in Manufacturing

Manufacturers integrate IIoT-powered devices, sensors and machinery into their factories to glean real-time insights from production processes. This method allows them to locate areas for improvement while determining when machines may need upcoming maintenance.

IIoT in Agriculture

Agtech companies use Industrial Internet of Things to create completely automated tractors. These vehicles rely on sensor technology to steer their way through fields, placing seeds with accuracy and compiling geospatial data for farmers to analyze.

IIoT in Automotive

The automotive industry depends on Industrial IoT to fuel the growth of autonomous vehicles. Self-driving cars leverage sensors to keep track of their location while adjusting their route based on real-time traffic data.

IIoT in Construction

Businesses in the construction industry apply IIoT’s interconnected structure to keep a close eye on equipment and track the progress of projects. Monitoring sites also enables teams to follow safety best practices and remain in compliance with OSHA regulations.

IIoT in Transportation

Transportation companies employ IIoT sensors and devices to optimize their routes and maximize the use of their equipment. This allows them to prevent perishable goods from spoiling and ensure no containers, ships and other objects are over- or underused.

IIoT in Power

IIoT makes it possible to split up the power grid into smaller sections that can be managed separately, reducing the complexity of power management. In addition, IIoT devices can automate turning off lighting, AC units and other variables when no one’s in the office.

IIoT in Wearables

Wearable technology and IIoT combine to prioritize safety in construction sites, assembly lines and other environments involving physical labor. Wearables can alert managers to safety hazards and confirm when an employee needs a break by measuring their vitals.

IIoT in Cybersecurity

Industrial Internet of Things’ ability to connect devices across an entire network empowers companies to monitor various endpoints and assets. Teams can then spot vulnerabilities and neutralize cyber attacks in their earliest stages.

IIoT in Robotics

Pairing robotics with Industrial IoT means companies can automate machine processes to increase their productivity and product quality. IIoT can also alert teams when a machine needs repairs before it breaks down, reducing maintenance costs.

Examples of IIoT

For a more in-depth look at how IIoT has aided businesses, consider these examples of companies incorporating IIoT solutions into their technologies and processes.

Volvo Group Performs Predictive Maintenance With IIoT

At its factory in Lyon, France, Volvo Group equips its autonomous guided vehicles with IoT sensors that are connected to the same local network, allowing teams to perform predictive maintenance and avoid unexpected shutdowns.

John Deere Powers Autonomous Tractors With IIoT

Through a combination of software engineering, AI, IIoT and other disciplines, John Deere is building a fleet of autonomous 8R farm tractors. Farmers can track the progress of these tractors with John Deere’s data management platform, which connects all tools and machines on the same network.

Bosch Establishes Smart and Sustainable Factories With IIoT

Bosch laid the foundation for its IIoT solutions in 2016 by outfitting equipment with IoT sensors. In 2020, the company applied AI and Industry 4.0 technologies to develop an energy platform that regulates energy consumption.

DHL Enhances Supply Chains With IIoT

DHL delivered over one billion Covid-19 vaccines across 160 countries, relying on advances in IIoT and network connectivity to do so. By attaching IoT sensors and devices to shipments, DHL was able to constantly monitor the location and condition of its goods.

Airbus Makes Aerospace Production More Efficient With IIoT

To realize the factory of the future, Airbus adopted Bosch’s IIoT-based platform and has improved the efficiency of its manufacturing processes. The company’s Saint Eloi factory can compile data from its entire assembly line to determine opportunities for fine-tuning its operations. Industrial IoT can also help machines apply the proper amount of torque, and Airbus has increased its efficiency by 20 to 30 percent because of this approach.

Future Prospects of Industrial Internet of Things

The global IIoT market is expected to reach $997 billion by 2028, signaling that Industry 4.0 and Industrial Internet of Things are here to stay. Below are a few trends that companies can expect to see as IIoT becomes more intertwined with everyday procedures.

Accelerated Automation With AI and Machine Learning

As IIoT devices and systems compile more information, artificial intelligence technologies will play a crucial role in managing vast amounts of data. Machine learning can automate the task of organizing and analyzing data, bolstering the efficiency of Industrial IoT networks.

Smarter Factories and Manufacturing Facilities

Industrial IoT has excelled in areas like preventive maintenance, quality assurance and machine accuracy. The next step is for IoT devices, such as power over ethernet switches, to streamline manufacturing processes while enduring more extreme temperatures and environments.

Companies Offering IIoT as a Service

Many businesses looking to adopt IIoT solutions may not have the personnel and expertise to install and manage these networks. This opens the door for third parties to provide IIoT services, allowing companies to focus on their operations without worrying about IIoT issues.

Strengthened Cybersecurity Measures

With the U.S. establishing a national cybersecurity strategy, IoT devices may need to undergo more rigorous testing and regulations. This trend is likely to carry over to the Industrial Internet of Things, especially in sectors that handle sensitive data like healthcare and power management.

IIoT and Virtual Reality

Industrial IoT’s connected networks and VR make for an exciting duo. For example, companies may display 3D models on IIoT mobile devices, creating opportunities for virtual trainings and real-life simulations.

26 Industrial Internet of Things (IIoT) Companies

Here are 26 companies using IIoT to design manufacturing processes that are more efficient and cost-effective than ever before.

Founded: 1847

Location: Washington, D.C.

How it uses IIoT: Siemens offers three IIoT solutions: Industrial Edge for integrating IT into production and leveraging machine data; MindSphere, which allows for custom IoT applications; and Mendix, a low-code platform for quickly and efficiently building apps. These areas contribute to Siemens’ goal of creating digital infrastructure to power a data-focused factory.