The Industrial Internet of Things (IIoT) is set to grow 107 percent within half a decade, according to a new report from analyst firm Juniper Research.
The report says that the global number of Industrial IoT connections will increase from 17.7 billion in 2020 to 36.8 billion in 2025. It has identified smart manufacturing as a key growth sector of the Industrial IoT market over the next five years; accounting for 22 billion connections by 2025.
The report predicts that 5G and LPWA (Low Power Wide Area) networks will play pivotal roles in creating attractive service offerings to the manufacturing industry.
Private 5G networks will prove most valuable when used for the transmission of large amounts of data in environments with a high density of connections, and where significant levels of data are generated, the research forecasts.
Juniper claims that over 80% of global Industrial IoT market value will come from software spend by 2025; reaching $216 billion. Software tools leveraging machine learning for enhanced data analysis and the identification of network vulnerabilities are now essential to connected manufacturing operations.
“Manufacturers must exercise caution when implementing IoT technology; resisting the temptation to introduce connectivity to all aspects of operations,” said report author Scarlett Woodford. “Instead, manufacturers must focus on the collection of data on the most valuable areas to drive efficiency gains.”
AWS continues to dominate the cloud market
Worldwide spending on cloud infrastructure services grew by a 33 percent in Q3 2020, compared to the same period last year, according to a new report from analyst firm Canalys, which says that the huge rise is a direct result of the Covid-19 pandemic.
In the third quarter of 2020, worldwide businesses spent $36.5 billion on cloud infrastructure services, which was US$2.0 billion higher than Q2 and by $9.0 billion over Q3 2019, according to Canalys data.
According to Canalys, the dependence on cloud-based tools and services remained high across all sectors of the economy and the return of stricter lockdown measures in certain regions over the coming months means cloud will remain vital for sustaining business operations, remote working and learning, as well as customer engagement.
Amazon Web Services (AWS) was the leading cloud service provider in Q3 2020, growing its revenue by $2.6 billion compared to Q3 2019. Overall, AWS generated more revenue than the next three largest cloud service providers combined.
While Azure business of Microsoft grew 48% on an annual basis to reach a 19% market share (up from 17% share in Q3 2019), Google Cloud retained its position as the third largest cloud service provider with a seven percent share.
Canalys says multi-cloud and hybrid IT to continue gathering momentum as businesses assess the optimal deployment and operating model for each workload, based on cost and performance. This will include mobile edge incorporating 5G for existing and new applications requiring ultra-low latency. These include autonomous vehicles, industrial robotics, and augmented and virtual reality solutions
“Increased consumption has driven cloud infrastructure services spend this year, though some larger and more complex deals were delayed due to uncertainty caused by the pandemic,” said Matthew Ball, Chief Analyst at Canalys.
“But as organizations adjust to the new normal, these longer-term projects are accelerating again. Some organizations are taking a cost-driven approach by reducing capital expenditure on their own data centers and cutting management costs from outsourcing contracts. Others are taking a transformational approach, developing new cloud-native applications and business models. But they will all have to be more measured and cost-conscious, requiring greater control and visibility of spend, while also deciding not to migrate every workload.”
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