Before diving into the Industrial Internet of Things (IIoT), let's look at the overall definition of the Internet of Things (IoT). Simply put, the Internet of Things (IoT) refers to billions of connected devices that now utilize the internet to connect and communicate with other devices, networks, and the cloud. These devices can include adapters, sensors, thermostats, activity tracking devices, heart monitors, and much more. The vast potential of the IoT includes connected healthcare, connected cars, smart buildings, smart cities, transportation, agriculture, and manufacturing.
The Industrial Internet of Things (IIoT) primarily focuses on manufacturing, although the term is also widely used in other sectors. IIoT solutions allow manufacturers to install sensors at various points in the manufacturing process to continuously report productivity and provide updates on maintenance and other analytical data. IIoT can be defined as "machine-to-machine communication with data analytics that enables smart industrial operations to achieve improved and intelligent connectivity, increased operational efficiency, cost savings, time savings, and enhanced security."
Gartner defines the Industrial Internet of Things (IIoT) as "a suite of integrated software capabilities that improve asset management decisions in asset-intensive industries. IIoT platforms also provide operational visibility and control over factories, infrastructure, and equipment." According to the company, by 2025, 50% of industrial enterprises will use IIoT platforms to improve factory operations, up from 10% in 2020. Some of the major players in IIoT, according to Gartner, include PTC, Hitachi, Microsoft, GE Digital, software companies, Litmus, IBM, Oracle, Altizone, Exosite, and many others.
Here are some application examples of the Industrial Internet of Things:
Machine malfunctions: Before the advent of the Internet of Things (IoT), management had to determine if machines were malfunctioning or not operating properly by checking outputs or conducting site visits. With the help of Industrial IoT sensors, they can obtain this information instantly, enabling them to quickly resolve problems and improve productivity.
Proactive maintenance: With the help of the Industrial Internet of Things (IIoT), information can be communicated to the server before maintenance is due or an anomaly occurs, making it easier for companies to proactively upgrade or maintain equipment to avoid failures.
Tool tracking: Locating tools can be a waste of time. Bosch brilliantly introduced the concept of sensors on tools through its Track and Trace program to allow for rapid tool tracking, thus saving significant time.
Oil and Gas: The Industrial Internet of Things (IIoT) has been playing a vital role in improving efficiency in the oil and gas sector. By installing sensors on oil wells and drilling platforms, remote workers can easily monitor operations. They also receive alerts for any disruptions.
Mining: In the mining process, conveyor belts and equipment are crucial for transporting rocks and materials to locations several kilometers away for processing. A conveyor belt malfunction can cause significant losses. By installing sensors throughout the conveyor belts and related equipment, workers can remotely monitor the situation and take swift action to address any potential problems.
The Industrial Internet of Things (IIoT) market is projected to grow at a CAGR of over 20% in the coming years, making it a $1 trillion market. Regardless of company size, the benefits in operational efficiency, cost savings, increased productivity, and improved customer service are undeniable. For any company in the industrial sector, adopting IIoT is not only a necessity for growth but will become essential for survival.
