What is Industrial Internet of Things (IIoT)? Definition, Benefits & Applications
March 13, 2025
The Industrial Internet of Things (IIoT) refers to the integration of internet-connected devices and sensors into industrial settings. The collection and analysis of data in real time results in an increased efficiency and productivity. As of 2024, there were 16.6 billion connected IoT devices, and the projections indicate a growth for $18.8 billion at the end of 2024.
One use of IIoT is in predictive maintenance. Companies are able to equip machinery with sensors and monitor equipment health in real time and predict how gear is about to fail. For example, Airbus has already made strides at the smart factory level with implementation of initiatives that embed intelligent sensors and actuators in the equipment that provides control over how production progresses and decreases mistakes.
Energy management also plays a significant part in the role of IIoT. Organisations can optimise energy consumption and save costs and the environment by analysing data from connected devices. This method of running their operations, in addition to cutting operational expenses, contributes to sustainability.
IIoT, however, has its widespread adoption challenges, particularly security. Cyberattacks could exploit more than 50 percent of IoT devices I’ve tested due to critical vulnerabilities they have. This highlights the importance of strong security defences in factory conditions.
In summary, the Industrial Internet of Things is transforming industries by providing valuable insights and automation capabilities. The benefits are immense, but one can not take advantage of the full potential of IIoT without addressing the security risks. Read on this article from Designveloper to get fully acquainted to this subject.
How Industrial Internet of Things Works
The Industrial Internet of Things (IIoT) operates by interconnecting industrial equipment through smart sensors and devices. These sensors gather data from machinery which is then sent to centralized systems for the analysis. This allows for real time monitoring and taking of decisions for improving operational efficiency.
For instance, predictive maintenance uses IIoT in the manufacturing industry. Equipment conditions are also monitored by sensors which alert operators before equipment fails, improving down time. IIoT also allows machines to communicate and to coordinate the tasks among themselves without human intervention and automation.
In recent data, it is calculated that there will be 18 billion connected IoT devices in 2025. The growth also indicates that the application of IIoT is spanning the industries. More and more devices are interconnected, and with that, businesses can access great volumes of data that enable a process of optimization and innovation.
Key Components
The Industrial Internet of Things (IIoT) integrates various technologies to enhance industrial operations. Understanding its key components is essential for grasping how the industrial internet of things functions.
1. Smart Sensors and Actuators
With the help of smart sensors, real time temperature, pressure or vibration of the machine can be managed. This data is then used by actuators to do something, such as shifting equipment settings. For example, in manufacturing, sensors detect anomalies and actuators such as shutting down machines are used to avoid damage. The combination improves the efficiency and safety of industrial processes.
2. Connectivity and Communication Protocols
Communication of IIoT systems is vital. The data is transmitted using protocols such as MQTT and HTTP. However, by doing so, we can guarantee the seamless interaction of sensors, actuators and central systems. To give an example, MQTT could be used in an example IIoT network in a factory to monitor the equipment status in real time.
3. Edge Computing
Data is processed near the source of its generation (latency is reduced). In terms of IIoT this means analyzing the data on location, without sending it to other servers located far away. For example, edge computing is used by oil rigs to monitor their equipment and take appropriate action on problems as they arise. It is advantageous in terms of operational efficiency and safety.
4. Cloud Computing
IIoT data is stored and allows for the ability to process that data quickly and at scale through the use of cloud computing. Thus, it allows industrial systems to be remotely monitored and managed. For instance, energy companies adopt the cloud to screen out numerous consumption patterns so that resources can be distributed optimally. It creates a savings in cost and an improvement in the way service is delivered.
5. Data Analytics and Machine Learning
Data analytics and machine learning extract insights from IIoT data. Using this information, they can predict equipment failures by identifying patterns that precede them. For example, they can analyze vibration data to predict motor failures and lower downtime. This is a proactive approach which will add a positive contribution to the company in terms of increasing productivity and reducing maintenance costs.
6. Cybersecurity Measures
It is very important to protect IIoT systems from cyber threats. The implementation of effective cybersecurity measures protects sensitive data and provides seamless operation. For instance, utilities secure the IIoT networks on which utilities’ closures depend in order to protect themselves against attacks that could disrupt the distribution of power. This leads to reliable service delivery, safeguarding critical infrastructure.
Understanding these components is fundamental to leveraging the industrial internet of things effectively. Collectively they increase the efficiency, safety and decision making in industrial environments.
How IIoT Connects Machines, Systems, and People
The Industrial Internet of Things (IIoT) seamlessly integrates machines, systems, and people, transforming traditional industrial operations into interconnected ecosystems. In this integration, efficiency, productivity and decision making processes are enhanced across various sectors.
Machine-to-Machine (M2M) Communication
IoT or IIoT establishes a direct communication across machines embedded with sensors and actuators. For example, within manufacturing, equipment that has sensors can manage its own production schedule with one another so that downtime is reduced and workflow is optimized. Through this M2M communication, real time adjustments are made hence increasing the overall operational efficiency.
System Integration
IIoT goes beyond interconnecting individual machines, it connects the entire system of an organization. As an example, using IIoT technologies helps combine data from equipment for the drilling in the oil and gas industry and stations, as well as oil facilities. An interconnected business can also help companies better accommodate varying demands and price fluctuations, improve its cybersecurity and reduce its environmental impact.
Human-Machine Interfaces (HMIs)
Advanced Human Machine Interfaces (HMIs) also bridge the human operator with the machines involved through IIoT. User friendly dashboards can be used by the operators to monitor and control industrial processes through real time data. A good example of this particular application in the field of smart manufacturing is when workers utilize tablets or wearable devices that send out alerts pertaining to equipment status helping the workers make informed decisions in time.
Predictive Maintenance
Predictive maintenance is a very significant one of many advantages provided by IIoT. The company can predict an equipment failure before it happens by studying data from connected machines. This method cuts down on unexpected downtime and maintenance costs. For example, with intelligent maintenance systems, they can save up to 12% over normal repairs, reduce costs up to 30% on total maintenance costs and eliminate the breakdowns by potentially as much as 70%.
Incorporating IoT and smart home technologies not only enhances convenience but also contributes to more sustainable and cost-effective living.
Key Benefits of Industrial Internet of Things
The Industrial Internet of Things (IIoT) offers numerous benefits that are transforming industries worldwide. It possesses one of the key advantages, that is, increasing operational efficiency. Integrating IIoT technologies helps companies to optimise processes, achieve higher productivity and minimise operational costs. For instance, healthcare device manufacturer Paragon Medical used IIoTenabled production visibility and achieved some impressive improvements, including equipment utilization increase from 20% up to 60%, increase of equipment effectiveness from 57% up to 85% and the number of quality end product parts produced increase from about 4,200 to over 10,000.
Improved Operational Efficiency
The Industrial Internet of Things (IIoT) significantly enhances operational efficiency across various industries by integrating advanced technologies into traditional processes. It comes with minimal downtime and costs savings, and also optimized performance.
Predictive Maintenance
Predictive maintenance is one of the primary ways in which IIoT improves operational efficiency. Continuous monitoring with sensors helps organizations anticipate if its equipment will encounter a failure. Using such a proactive approach reduces the chances of unexpected downtime and even proves favorable in extending the lifespan of machinery.
Enhanced Asset Management
With IIoT, assets can be tracked and managed in the real time which ensures proper assets utilization. For example, Shanghai Automobile Gear Works (SAGW) utilized GE Digital’s Proficy Plant Applications to build ‘Process Digital Twin’. The result of this effort was 20% improvement in equipment utilization, as well as 40% savings in inspection costs.
Process Optimization
IIoT allows companies to collect and analyze data from every stage of production and identify inefficiencies in order to streamline operations. The Ministry of Economy, Trade and Industry in South Korea reported that adopting the use of smart factories in factories on average contributed to a 27.6 percent decrease in defective products and a 29.2 percent savings in costs.
Automation and Robotics
IIoT integration of robotics and automation reduces manual intervention and makes processes faster and more accurate. For example, Amazon has introduced more than 750,000 robots into its fulfillment centers. They are used to sort packages and moving inventory, making these processes much more efficient and lower in cost to run.
Energy Management
The IIoT permits the exact track monitoring and control of energy consumption. Organizations are able to improve energy use which leads to reduced cost and also the environment. For instance, by integrating IIoT in energy management systems, more efficient distribution and waste in energy can be realized.
In summary, the industrial internet of things plays a pivotal role in enhancing operational efficiency. The IIoT transforms the regular industrial operations into more efficient and cost effective system by enabling predictive maintenance, improved asset management, process optimization, automation and energy management.
Better Safety and Compliance In Industrial Environments
The Industrial Internet of Things (IIoT) significantly enhances safety and compliance in industrial environments by integrating advanced technologies that monitor conditions, predict hazards, and ensure adherence to regulations. In this integration, you get a more secure workplace, less accident rate and a more purposeful safety management culture.
Real-Time Environmental Monitoring
The IIoT devices with sensors constantly track environment conditions like air pressure, humidity, temperature, etc. For instance, IIoT systems in automotive workshops help to detect the levels of toxic gases and temperature fluctuations, and then send real time data, hence helping to minimise occupational hazards. Such systems have come to significantly enhance worker health as well as compliance with safety standards.
Predictive Maintenance and Hazard Prevention
IIoT analyzes data from machinery to predict the maintenance of machinery even before the fault is encountered as a part of predictive maintenance. It plays a proactive strategy where unexpected breakdowns that could stand for safety risks are eliminated. Such as monitoring equipment health for example, so you can intervene on time to prevent accidents and maintain continuous safe operation in manufacturing applications of IIoT.
Wearable Technology for Worker Safety
With many wearables transformed into IIoT enabled wearables, these include smart helmets and vests that monitor workers’ vital signs and activities. They can detect if a worker is fatigued, exposed to hazardous substances or assumes an unsafe posture. The worker and his management are warned of a possible danger. Along with improving individual security, it helps to ensure the general compliance of all facilities with sanitary regulations.
Enhanced Compliance through Data Analytics
IIoT systems provide the means to collect huge data to be analyzed for ensuring safety compliances. For instance, observing the use of safety equipment such as eyewash stations and safety showers guarantees they are running appropriately and accessible when needed. Continuous data collection and analysis enables staying with safety protocols and identifies areas for improvement.
Integrated Safety Systems
IIoT facilitates the integration of various safety systems within an industrial environment. For instance, IoT sensors when coupled with computer vision capability to shut down machinery automatically when a safety breach is detected, saves the life of people. This relationship helps to respond quickly to hazards and the overall workplace is safer.
Addressing Security Concerns
Although IIoT provides a number of safety benefits, cyber security is its Achilles heel. A survey showed that 99 percent of IT professionals have trouble keeping the connected devices of their network secured and 88 percent have insufficient resources to address the problems. Security measures greatly need to be implemented when it comes to IIoT systems otherwise cyber threats could concern safety and compliance.
In summary, the industrial internet of things enhances safety and compliance in industrial settings by enabling real-time monitoring, predictive maintenance, wearable safety technologies, data-driven compliance strategies, and integrated safety systems. However, maximum benefits can be realised only if cybersecurity risks associated with these benefits are addressed.
Real-World Applications of IIoT
The Industrial Internet of Things (IIoT) is revolutionizing various sectors by integrating advanced technologies into traditional industrial processes. Such a transformation brings about higher efficiency, cost savings and safety improvement. For example, the IoT market worldwide is expected to grow almost twofold to $991 billion by 2028 as a result of the accelerated use of this technology by industries.
Smart Factories (Automated Production Lines)
The Industrial Internet of Things (IIoT) is revolutionizing manufacturing through the development of smart factories with automated production lines. Furthermore, these are advanced facilities which employ technologies of IoT, artificial intelligence and robotics, so as to improve the efficiency, flexibility, and product quality.
Key Features of Smart Factories
Smart factories are characterized by:
- Connectivity: Machines, sensors, and systems communicate in real-time, enabling seamless data exchange.
- Automation: Robots and automated systems perform repetitive tasks, reducing human intervention and minimizing errors.
- Data-Driven Decision Making: Advanced analytics process vast amounts of data to optimize operations and predict maintenance needs.
Global Adoption and Impact
The adoption of smart factories is on the rise worldwide. For example, industrial robot density in China has already overtaken Germany to become third worldwide at 470 per 10,000 workers. This comes as China continues to make strong progress in the automation of its manufacturing plant.
Case Studies
Ferrari’s E-Factory: “The e-building” is how Ferrari describes its new €200 million investment in a state of the art ‘e-building’ for Ferrari in the town of Maranello in Italy. This 42,500 square meter facility was designed by architect Mario Cucinella and places a focus on sustainability and efficiency. The car uses 3,000 solar panels and rain water harvesting systems as the manufacturer seeks carbon neutrality by the end of the decade. Additionally, production is streamlined by having AI systems and autonomous trolleys which is in accordance with the inning for innovation and environmental responsibility.
Shanghai Automobile Gear Works (SAGW): Shanghai Automobile Gear Works (SAGW), a subsidiary of SAIC Motor Corporation, relied on GE Digital’s Proficy Plant Applications to transform its manufacturing, and create a “Process Digital Twin.” This resulted in a 20% increase in utilization of equipment and a 40% decrease in the cost of inspection. Real time data availability led to a 30% cut down of inventory and an 80% of required storage space which clearly shows the colossal benefits of IIoT integration.
Supply Chain Optimization (Real-Time Tracking and Inventory Management)
The Industrial Internet of Things (IIoT) is transforming supply chain management by enabling real-time tracking and inventory management. This integrates operational efficiency, lower cost and higher customer satisfaction.
Real-Time Tracking
GPS trackers and RFID tags that are IIoT devices continuously monitor assets from the supply chain. Foreseeing disruptions and optimizing the operations become possible with this visibility for companies. For example, sometimes advanced tracking technologies will allow businesses to see how a product is doing on the way, be able to anticipate delays, and adjust logistics.
Inventory Management
Cloud-based inventory management systems, powered by IIoT, offer real-time data access from various devices. This accessibility enables businesses to track inventory levels, generate reports, and make informed decisions remotely. Such systems reduce hardware expenses and deployment times, allowing startups and small-to-medium businesses to scale efficiently.
Technological Advancements
Traditional barcode scanning is no longer the type of innovation in tracking systems. Modern devices emit signals similar to smartphones, using cellular networks, Bluetooth, and RFID technology to maintain continuous visibility of packages. In addition, these advancements help to improve the tracking accuracy and the risk of misplaced or lost parcels.
Case Study: Hoopo
A company by name Hoopo based in Israel provides energy savings proven tracking solutions for supply chain management. LPWA technology enables them to provide real time location data of assets which then protects against running into bottlenecks and allows them to perform proactive maintenance. By following this approach, operational efficiency is enhanced alongside the reduction of cost savings.
Energy Management (Monitoring and Reducing Power Consumption)
The Industrial Internet of Things (IIoT) is transforming energy management by enabling precise monitoring and reduction of power consumption. As a result of this integration there are many efficiencies and cost savings across different industries.
Real-Time Energy Monitoring
Those IIot devices with sensors gather detailed information about energy consumption. Monitoring is continuous; efficiency issues are identified and corrective measures are taken. We can use an example of smart grids where IIoT technology is being used to effectively balance power generation and its consumption improving efficiency and reliability of electricity distribution.
Predictive Maintenance
IIoT sensors can be used to analyze the data to predict and prevent equipment failures. This proactive method truncates the downtime and maintenance cost. It is shown in studies that intelligent maintenance systems try to prevent up to 70% of breakdowns and they can reduce total maintenance costs up to 30%.
Smart Grids and Energy Distribution
Development of smart grids optimizing energy distribution and consumption is impossible without the use of IIoT. For example, Chattanooga is a city which has enacted a smart grid that cut power outages down by 60 percent, saving them roughly $60 million per year. In addition, this system also decreased the amount of carbon emissions produced because of less maintenance related travel required.
Case Study: Verdigris Technologies
Verdigris Technologies is an AI powered IIoT platform for energy management in commercial and industrial buildings. They operate their system based on operations in buildings, deploy proprietary hardware and software to monitor and save remarkable energy. Peak power usage has been reduced for clients such as hotels and manufacturing plants, and clients have been given a head start to the potential of equipment faults.
Conclusion
The Industrial Internet of Things (IIoT) is revolutionizing industries by connecting machines, systems, and people. The result of this integration is increased efficiency, increased productivity, and increased innovation. If IIoT is implemented, there is projected to be $15 trillion added to global GDP in 2030.
Real-world applications of IIoT span various sectors. For example, the smart factories in the manufacturing industry use automated production lines to optimize their workings. IIoT is used to monitor soil condition precisely in agriculture to enhance crop yields. IIoT can be used to implement smart grids in the energy sector to optimally balance power generation and consumption.
The impact of IIoT on the global industries is huge as it continues to evolve. Organizations that want to drive growth in this fast changing environment must embrace IIoT technologies.
Also published on
Share post on
Read more topics
