USA Industrial Internet of Things (IIoT) Market Outlook to 2030

USA Industrial Internet of Things (IIoT) Market Overview

• The USA Industrial Internet of Things (IIoT) Market has experienced notable growth, this is reflected by the market reaching a valuation of USD 74 billion in 2023. This growth is fueled by advancements in sensor technologies, improved connectivity solutions, and the need for enhanced operational efficiency.
• The key players in the USA IIoT market include General Electric, Cisco Systems, Intel Corporation, IBM Corporation, and Rockwell Automation. These companies are at the forefront of developing innovative IIoT solutions and have established strong market positions through strategic partnerships, mergers, and acquisitions.
• In 2023, IBM and siemens announced their collaboration. This partnership integrates IBM’s AI-driven IoT solutions with Siemens’ industrial software to boost manufacturing productivity, aiming to leverage AI for predicting maintenance needs and optimizing processes, thereby reducing downtime.
• Cities like San Francisco, San Jose, and Los Angeles in California dominate the IIoT market due to their strong tech ecosystems and high concentration of innovative companies. San Francisco leads with significant investments in R&D, San Jose is home to numerous tech giants and startups focusing on IIoT innovations, and Los Angeles benefits from its diverse industrial base and skilled workforce.

USA Industrial Internet of Things (IIoT) Market Segmentation

• By Component: The USA Industrial Internet of Things market is segmented by components into hardware, software, and services. In 2023, the hardware segment held the largest market share, driven by the increasing deployment of sensors, actuators, and connectivity devices. The demand for robust and reliable hardware solutions is essential for the effective implementation of IIoT systems.

• By Application: The USA Industrial Internet of Things market is segmented by application into manufacturing, energy and utilities, and transportation. In 2023, the manufacturing segment dominated the market, as the adoption of IIoT in manufacturing is driven by the need for operational efficiency, predictive maintenance, and real-time monitoring.

• By Region: The USA Industrial Internet of Things market is segmented by region into North, South, East, and West. In 2023, the Northern region was the market leader because of the strong presence of the manufacturing industry and significant investments in smart manufacturing technologies.

USA Industrial Internet of Things (IIoT) Market Competitive Landscape

• General Electric: In recent years, GE has undergone a major restructuring. In 2021, CEO Larry Culp announced plans to split the company into three independent public companies, each focusing on specific sectors: GE Aerospace, GE HealthCare, and GE Vernova (energy). The spin-off of GE HealthCare was completed in January 2023, and GE Vernova is set to launch in April 2024.
• Cisco Systems: In 2024, Cisco partnered with Optus to provide network and data security services, and it became the Official Network Equipment Partner for the LA28 Olympic and Paralympic Games. The partnership includes Cisco-powered secure firewall and managed secure service edge services, as well as additional capabilities such as vulnerability management, advanced email security, and threat hunting.

USA Industrial Internet of Things (IIoT) Industry Analysis

USA Industrial Internet of Things (IIoT) Market Growth Drivers

• Focus on Industry 4.0: The shift towards Industry 4.0, which emphasizes smart factories and automation, is a significant driver of IIoT growth. Companies are increasingly investing in IIoT technologies to enhance operational efficiency, reduce downtime, and optimize production processes through real-time data analytics.
• Emergence of Smart Cities and Infrastructure: The development of smart cities and the integration of IoT in transportation and logistics are expanding the IIoT market. For instance: In 2021, Siemens has committed substantial resources to IIoT, with investments exceeding $1.5 billion in digitalization and smart manufacturing initiatives.
• Integration with Advanced Technologies: In the North American robotics market, total installations in manufacturing rose and reached 41,624 units in 2022, indicating a growing demand for automation. The integration of the Industrial Internet of Things with robotic systems is a transformative development in modern manufacturing and industrial operations.

USA Industrial Internet of Things (IIoT) Market Challenges

• Cybersecurity Risks: In 2024, the Cybersecurity & Infrastructure Security Agency (CISA) has highlighted the significant threat posed by cyber incidents targeting industrial control systems (ICS). CISA's ongoing initiatives emphasize the importance of defending these systems against a growing number of cyber threats, which include various forms of malware and targeted attacks. Specifically, it has been reported that 31% of malware attacks are now targeting industrial systems, indicating a rising trend in such incidents
• Interoperability Issues: A 2024 study by the Industrial Internet Consortium (IIC) revealed that 6 out of every 10 companies encounter significant challenges in integrating Industrial Internet of Things (IIoT) solutions due to compatibility issues. This lack of standardization and interoperability among devices and platforms from different vendors creates critical barriers to seamless data exchange, ultimately diminishing the overall efficiency of IIoT systems.

USA Industrial Internet of Things (IIoT) Market Government Initiatives

• Smart Manufacturing Leadership Coalition: In 2024, the U.S. government launched the Smart Manufacturing Leadership Coalition (SMLC), with a funding of $70 million, to promote the adoption of smart manufacturing technologies. This initiative aims to enhance the competitiveness of the manufacturing sector by integrating IIoT solutions to improve operational efficiency and reduce energy consumption.
• Partnerships and Innovation Centers: In May 2020, NC State University partnered with the Clean Energy Smart Manufacturing Innovation Institute (CESMII) to establish the Smart Manufacturing Innovation Center (SMIC), aimed at advancing digital transformation in manufacturing. In November 2023, the SMIC hosted a workshop that brought together industry professionals to explore advanced technologies like big data analytics, artificial intelligence (AI), and the Internet of Things (IoT).

USA Industrial Internet of Things (IIoT) Market Future Outlook

By 2028, the USA Industrial Internet of Things market will be Growing substantially. The future growth will be driven by advancements in 5G technology, increased focus on smart manufacturing, and the integration of AI and machine learning in industrial operations.

Future Market Trends

• Expansion of Predictive Maintenance Solutions: Predictive maintenance solutions, powered by IIoT, are expected to become more prevalent over the next five years. By 2028, it is estimated that over 10,000 manufacturing plants in the USA will implement predictive maintenance systems, leading to annual savings of USD 15 billion in maintenance costs and unplanned downtime.
• Integration of AI and Machine Learning in IIoT: The integration of artificial intelligence (AI) and machine learning (ML) in IIoT applications will revolutionize industrial operations. By 2028, AI and ML-powered IIoT solutions are projected to improve operational efficiency by 30%, reducing production costs by USD 20 billion annually. These technologies will enable real-time decision-making and predictive analytics, driving significant advancements in industrial automation.