Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D., Senior Editor
The industrial Internet of Things (IIoT) refers to integrating the Internet of Things (IoT) in industrial and manufacturing establishments. Advanced integration of information technology (IT) and operational technology (OT) is accomplished in IoTs. This integration provides industrial capabilities such as machine-to-machine (M2M) communication, big data, machine learning, automation, optimization services, and improved supply chain and logistics operations visibility. IoTs also provide machine-to-machine (M2M) communication, big data, machine learning, automation, and optimization services.
Source: Bosch ConnectedWorld and Gartner Forecast
Digital transformation is creating a significant impact on Manufacturing and industrial companies. Across different industries, there is an increasing focus on growth leveraged by implementing Industry 4.0 solutions and Industrial Internet of Things (IIoT) use cases. Industry 4.0 and industrial Internet of Things transformation are increasing the need for connectivity between industrial assets. According to Deloitte, companies invest in automated and remoted controlled machinery and sensors-based data capture for process monitoring and predictive maintenance to improve productivity and performance. Therefore, industrial organizations are looking at enhancing the connectivity of plant devices, local industrial systems, central systems, and the cloud. This means that it is paramount to invest in communications performance to retrieve the highest value from industry 4.0 use cases. According to Gartner Forecast, the manufacturing sector is expected to increase spending in IoT communications by 11% annually (CAGR) from 2019 until 2029.
The ASEAN’s Industrial Internet of Things (IIoT) market held a market value of USD 23,678.90 million in 2021 and is projected to reach 46,188.10 million by 2030. The market is anticipated to grow at a CAGR of 8% from 2022 to 2030. The market is expected to be driven by the rising adoption of platforms in the industrial sector and the increasing adoption of IoT devices to optimize operational efficiency, such as increasing demand for automation in manufacturing, rising adoption of cloud computing and big data analytics, and growing awareness about the benefits of IIoT among end-users. The significant industries driven by the IIoT market in ASEAN include automotive, electronics, and chemicals. Thailand, in particular, has been making substantial progress in developing IIoT. The Thai government has launched various initiatives to promote technology adoption, such as the Thailand 4.0 policy, which aims to transform the country’s digital economy. Thailand has also been investing heavily in developing smart cities, which rely on IIoT technology to minimize energy consumption, reduce traffic, congestion enhance public safety.
Source: Statista Market Insights
According to Statista Market Insights, ASEAN’s IoT market revenue is projected to reach USD 57.25 billion in 2023. The largest market within IoT is automotive IoT, with a projected market volume of USD 19.96 billion in 2023. The revenue is expected to show an annual growth rate (CAGR 2023-2028) of 14.12%, resulting in a market volume of USD 110.80 billion by 2028. Meanwhile, In Thailand, the revenue in the IoT market is projected to reach USD 7.10 billion in 2023. The largest market within IoT is automotive IoT, with a projected market volume of USD 2.24 billion in 2023. The revenue is expected to show an annual growth rate (CAGR 2023-2028) of 13.94%, resulting in a market volume of USD 13.63 billion by 2028. As of 2023, the Industrial Internet of Things (IIoT) landscape is witnessing significant trends driven by technological advancements and increased connectivity. The number of connected devices is expected to surpass 43 billion, transforming businesses with the convergence of digital twins and the enterprise metaverse. This allows for the creation of realistic digital replicas of systems and improved understanding and manipulation of variables. Enhanced IoT security measures are rising due to the prevalence of cyberattacks. IIoT plays a pivotal role in manufacturing, particularly in IoT analytics for performance improvement, predictive maintenance, automated quality assurance, and real-time monitoring. Edge computing and Edge AI, which bring processing closer to devices, are trending for faster and more secure operations. The trend of energy optimization in IIoT seeks to reduce energy consumption. Despite supply chain issues, advancements in 5G and data analysis are expected to boost IoT adoption. Lastly, industries like healthcare are leveraging IoT to enable remote patient monitoring and virtual hospital wards, providing better health insights through wearables. These trends highlight the evolving landscape of IIoT, driven by enhanced connectivity, security measures, and application in diverse sectors.
The Industrial Internet of Things (IIoT) landscape in ASEAN and Thailand has been shaped by increasing climate commitments, industry transformation, and technological advancements. ASEAN countries focus on green capital investment, emphasizing renewable energy and digital technologies to reduce emissions and create sustainable jobs. There has been notable progress in implementing IIoT networks in various sectors, driving economic growth and enhancing competition. These networks facilitate the transformation and upscaling of SMEs by reducing information platform costs and optimizing resource management. Intelligent sensing and mobile Internet communication have been particularly beneficial.
Source: Statista Market Insights
Technological advancements, like ‘Lightweight Cryptography’ for securing IoT devices and the growth of digital twin technology, have significantly contributed to the IIoT progress. Ensuring the reliability and relevance of data collected from IoT devices is critical for financial and non-financial reporting, and auditors are encouraged to consider the complexity and risks associated with IIoT. Overall, the IIoT in ASEAN and Thailand is positioned at the intersection of environmental sustainability, economic transformation, and technology advancement, offering promising prospects for the region’s green economy.