IoT for Manufacturing Industry: Predictions, Advantages, Cases

Factories are no longer just about machines and manual labor. They are evolving into smart, connected environments where data flows seamlessly between devices, systems, and workers.

Did you know that, according to a report by Markets and Markets, IoT in manufacturing is expected to grow to $87.9 billion by 2026? This explosive growth shows how critical this smart technology is for modern factories aiming to optimize efficiency, reduce costs, and increase flexibility in their operations.

So, what’s driving this revolution? The answer lies in the power of IoT's real-time data, automation, and predictive insights. It’s reshaping how manufacturers operate, from monitoring connected equipment health to improving product quality and even enhancing worker safety.

But this is just the beginning — IoT solutions for manufacturing are expanding fast, and businesses that adopt them can gain a significant competitive edge. Beyond manufacturing, IoT in transportation industry plays a pivotal role in optimizing logistics, fleet management, and real-time tracking, highlighting IoT’s transformative potential across multiple sectors.

1. Early Automation (1970s-1980s). The introduction of programmable logic controllers (PLCs) and basic automation technologies helped streamline repetitive tasks and reduce manual labor, setting the stage for more advanced systems.
2. Integration of Sensors (1990s). Sensors were introduced to monitor machine parameters like temperature, speed, and pressure. This enabled real-time data collection, improving process control and paving the way for more sophisticated analytics.
3. Data Analytics and ERP Systems (2000s). The rise of data analytics and the implementation of Enterprise Resource Planning (ERP) systems allowed manufacturers to derive valuable insights from sensor data, optimizing processes and improving decision-making.
4. The Industrial Internet of Things (IIoT) (2010s). IIoT technology revolutionized manufacturing by connecting machinery, devices, and systems to the Internet, enabling real-time data exchange and more efficient production processes. This laid the foundation for smart manufacturing.
5. Cloud Computing and AI Integration (mid to late 2010s). Cloud computing allowed for the storage and processing of data, while the integration of AI and machine learning enabled predictive maintenance, quality control, and more efficient production operations.
6. Smart Factories and Sustainability (2020s and Beyond). Today’s smart factories leverage IoT, AI, robotics, and advanced analytics to create fully connected ecosystems. Additionally, the Internet of Things plays a key role in promoting sustainability through energy management and waste reduction, helping manufacturers minimize their environmental impact.

These milestones highlight how IoT helps in manufacturing transformation, evolving from isolated automation to interconnected systems that drive efficiency, innovation, and sustainability.

The result? Reduced bottlenecks, faster time to market, and minimized waste — all crucial for staying competitive in a fast-paced industry.

Real-Time Monitoring and Automation

Real-time monitoring, through advanced IIoT applications, has become the backbone of IoT and manufacturing. To ensure operational efficiency, businesses need to understand how to monitor IoT devices effectively, leveraging real-time data to prevent downtime and optimize performance.

Sensors embedded in equipment track performance metrics, providing instant feedback on productivity, machine health, and system efficiency. Paired with automation, these insights allow manufacturers to adjust operations on the fly, automatically reconfiguring processes to maintain optimal performance — whether it’s adjusting machine settings or rerouting workflows to avoid delays.

Enhancing Safety and Efficiency

Worker safety is a top priority in industrial settings, and the Internet of Things plays a pivotal role in improving it. Wearable IoT devices in manufacturing can monitor workers' health, ensuring that safety protocols are followed.

Meanwhile, IoT sensors track environmental conditions like temperature and air quality, alerting managers to potential hazards before they escalate. Not only does this safeguard employees, but it also boosts operational efficiency by reducing accidents and minimizing downtime.

Improving Product Quality and Traceability

Ensuring product quality and traceability is essential for manufacturers aiming to meet strict regulatory standards and customer expectations. The application of IoT in manufacturing provides real-time insights into production conditions, enabling immediate adjustments if inconsistencies are detected.

Additionally, smart traceability systems can track each component’s journey, from raw material sourcing to the final product, ensuring that any issues in the supply chain can be quickly identified and corrected.

Predictive Maintenance and Equipment Lifespan

One of the most valuable uses of IoT in factories is predictive maintenance. Instead of waiting for equipment to fail, the Internet of Things sensors continuously monitor machine performance and detect early signs of wear or malfunction.

This data allows manufacturers to perform maintenance at the most opportune time, minimizing unplanned downtime and extending equipment lifespan. Ultimately, predictive maintenance reduces repair costs, improves production uptime, and ensures smoother operations.

🟢 Solution. Implement middleware to bridge the gap between legacy systems and new Internet of Things technologies. Start with gradual integration, focusing on areas where the impact will be greatest, and avoid complete overhauls to minimize disruptions.

Data Management and Storage

IoT for manufacturing generates huge volumes of data — often too much for traditional storage and processing systems. Without proper management, this data becomes overwhelming, and its full value goes untapped.

🟢 Solution. Leverage cloud storage for scalability and edge computing to process data closer to the source. Implement robust data analytics tools to extract insights from raw data and streamline decision-making processes.

Connectivity and Infrastructure Issues

Reliable, continuous connectivity is essential for the Internet of Things to function effectively, but older networks or poor infrastructure can cause communication breakdowns, leading to data loss and operational inefficiencies.

🟢 Solution. Upgrade to 5G networks or use private LTE for faster, more reliable connections. For remote or challenging environments, consider mesh networks or satellite communication to ensure stable connectivity across all devices.

High Initial Investment Costs

The implementation costs of deploying IoT for factories — hardware, software, network upgrades, and employee training — can be high, making many manufacturers hesitant to invest. Understanding IoT app development cost is crucial for manufacturers planning to build custom Internet of Things solutions, as it contributes significantly to the total implementation expenses.

🟢 Solution: Start with small-scale pilots that demonstrate ROI before full deployment. Focus on areas where the Internet of Things can deliver quick wins, such as predictive maintenance.

Lack of Skilled Workforce

The introduction of the Internet of Things requires specialized skills in areas like data analytics, cybersecurity, and network management. Many manufacturers struggle with finding or training talent.

🟢 Solution: Invest in workforce development by offering training programs in IoT, data science, and cybersecurity. Partner with educational institutions to develop internship programs or collaborate with external consultants who can provide expertise while your team is upskilled.

Scalability and Interoperability

As the Internet of Things networks grow, ensuring that all connected products and systems can seamlessly communicate becomes challenging. Compatibility across various devices, platforms, and protocols is critical for large-scale adoption.

🟢 Solution: Use open standards and protocols that promote interoperability, such as MQTT or CoAP. When choosing the Internet of Things devices and platforms, prioritize scalable solutions that can evolve with your business transformation. Building a modular architecture allows for easier expansion and integration of new devices over time.

Smart Factories and Automation

Smart factories are the epitome of Industry 4.0, where connected machines, devices, and humans are interconnected in a seamless network. IoT in manufacturing industry enables smart factories to operate autonomously, improving both productivity and flexibility. Automation powered by the Internet of Things optimizes workflows, reduces human error, and allows for more agile production.

5G and Enhanced IoT Connectivity

With the rollout of 5G and IoT connectivity, manufacturers are gaining access to faster, more reliable, and low-latency connectivity technologies. This is essential for real-time applications such as robotics, remote machine control, and AR-enabled training. 5G enhances the Internet of Things by enabling real-time data transfer across vast networks of devices, making instant adjustments to operations possible.

As BLE technology becomes increasingly important for seamless the Internet of Things device communication, partnering with a BLE application development company ensures robust, energy-efficient connectivity solutions.

Advanced Robotics and Cobotics

Robots are no longer isolated units programmed for a single task. The Internet of Things and Artificial Intelligence have transformed robotics, allowing for the creation of collaborative robots (cobots) that can work alongside human employees. Cobots are equipped with sensors and real-time data from the Internet of Things devices, making them adaptable to various tasks without the need for reprogramming.

Sustainable Manufacturing and IoT

Sustainability is becoming a priority in modern manufacturing, and the Internet of Things technology plays a critical role in achieving eco-friendly goals. IoT solutions for manufacturing enable managers to monitor energy consumption, optimize resource use, and reduce waste. Sensors provide real-time insights into energy usage, helping manufacturers cut costs while reducing their environmental footprint.

Augmented Reality (AR)

AR is becoming an increasingly valuable tool in connected manufacturing, powered by IoT data. Technicians can use AR glasses to visualize machine data, receive real-time instructions, and troubleshoot issues more efficiently. AR also plays a key role in training, providing immersive, hands-on learning experiences.

Blockchain

Blockchain technology offers secure, transparent data management, making it particularly useful in complex supply chains where traceability and authenticity are crucial. For the Internet of Things in manufacturing industry, blockchain ensures the integrity of product data, from raw materials to finished goods, preventing counterfeiting and ensuring compliance with regulations.

Predictive Maintenance in Action

General Electric (GE) uses sensors in its power plants to monitor turbines. GE can predict maintenance needs by collecting data on vibration, temperature, and pressure, eliminating the guesswork of rigid schedules. This approach has saved millions of dollars, reducing downtime and increasing equipment lifespan.

Energy Management for Cost Savings

Schneider Electric leverages IoT-based energy management systems in its factories to optimize energy consumption. Real-time monitoring enables the company to reduce operational costs and carbon emissions, contributing to its sustainability goals. This solution has helped cut energy consumption by significant margins, reducing both costs and environmental impact.

Real-Time Quality Control

One of the examples of IoT in manufacturing is Cold Chain Monitoring by Maersk. A shipping giant uses smart sensors in its refrigerated containers (known as reefers) to monitor temperature, humidity, and location.

If the temperature inside a container fluctuates beyond a certain range, the system sends an alert to the driver or logistics team, ensuring that perishable goods such as pharmaceuticals or fresh produce are kept at optimal conditions throughout their journey.

Digital Twins

Kaeser Compressors utilizes digital twin technology to transition from product-based to service-based models. By creating digital replicas of their compressors, Kaeser can monitor operational data such as air consumption in real-time. This data-driven approach allows them to charge clients based on usage, resulting in a 30% reduction in operational costs and a more personalized customer experience.

Automation in IoT-Enabled Factories

At Siemens’ Amberg plant, 75% of production is automated using smart systems, achieving an impressively low error rate of 12 defects per million products. By connecting machines, systems, and workers in a cohesive network, Siemens ensures real-time quality control and enhanced productivity, showcasing the power of IoT for manufacturing industry.

Robotics and Cobotics

BMW employs cobots on its assembly lines to handle complex tasks like fitting doors onto vehicles. The Internet of Things sensors ensure these robots can perform precise movements, while real-time data keeps safety systems running smoothly, allowing for safe and efficient collaboration between humans and machines.

IoT in Inventory Management

Bosch’s Track and Trace program uses smart sensors to track tools and equipment across their facilities. The application of IoT in manufacturing reduces the time spent searching for tools and boosts employee productivity. As a result, Bosch has seen significant gains in both operational efficiency and staff morale.

Augmented Reality (AR)

Porsche utilizes AR technology to streamline the diagnostic process in its factories. Technicians use AR glasses to visualize real-time sensor data from vehicles and receive step-by-step repair instructions, leading to significantly reduced repair times and enhanced overall efficiency.

Wearables for Safety

North Star BlueScope Steel has introduced wearable IoT devices such as helmets and wristbands to monitor the health and safety of its employees. These wearables track vital signs and environmental conditions, alerting managers to potential safety risks and helping ensure that workers operate in safe conditions.

Wearable devices, now common in industries like manufacturing, have also transformed IoT in sports and fitness by tracking athletes' performance and monitoring their health in real time.

Smart Factory Safety

Honeywell demonstrates one of the key IoT use cases in manufacturing by integrating smart sensors within factory environments to detect hazardous gas leaks. These smart sensors monitor air quality and detect harmful gases like carbon monoxide or methane. In the event of a leak, the system triggers automatic alarms and sends real-time alerts to supervisors, allowing immediate evacuation or remediation, and preventing potential disasters.

Pilot Projects and Testing

Before a full-scale rollout, conduct pilot projects to test your IoT solutions in a controlled environment. Choose a specific area of your operation to implement smart technologies, such as a single production line or a specific machine.

Pilot tests often involve the question: what is prototyping in IoT? Prototyping helps refine devices and systems before full-scale deployment, ensuring seamless integration.

This approach allows you to gather valuable insights, identify potential issues, and refine your system before the widespread adoption of IoT for manufacturing. Document the results to measure performance against your initial goals and assess the impact on efficiency and costs.

Integrating IoT with Existing Systems

A successful IoT implementation requires seamless integration with your existing systems and processes. A critical aspect of integration involves addressing what is IoT device management, which covers tasks like provisioning, monitoring, and updating manufacturing software throughout their lifecycle.

Prioritize solutions that support interoperability to create a cohesive and efficient manufacturing environment.

Training and Workforce Readiness

Equipping your workforce with the necessary skills to utilize smart technologies is crucial. Develop a comprehensive training program that focuses on both technical skills and operational understanding.

Employees should feel comfortable using new tools and interpreting data from IoT systems. Fostering a culture of innovation and continuous learning will help your team embrace these changes and leverage IoT devices in manufacturing for enhanced performance.

Scaling IoT Solutions

Once your pilot projects are successful, it’s time to consider scaling your Internet of Things solutions. Start by expanding to additional areas of your operations, and gradually integrating more devices and sensors.

Monitor performance metrics closely to ensure that the scaling process maintains efficiency and quality standards. Additionally, keep an eye on emerging trends and technologies, allowing your manufacturing processes to evolve and remain competitive in a rapidly changing landscape.

This project showcases our ability to address complex IoT challenges, such as real-time data-driven exchanges and predictive notifications, which can be applied to IoT solutions for manufacturing or industrial settings.

Additionally, we helped Norsk build an internal app that helps verify the communication battery protocol in the early stages of manufacturing using BLE technology. This type of solution can be invaluable in manufacturing operations for managing assets and preventing costly downtime.