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How IoT In Manufacturing Enhances Automation and Efficiency
How IoT In Manufacturing Enhances Automation and Efficiency

March 31, 2025

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IoT technology has proven its worth to the world in every industry. This technology has great potential to detect, monitor, connect devices, and collect data to make analyses that make it different and potentially stronger than other technologies. The IoT global market size has also been incredible, as the global Internet of things (IoT) market size was USD 64.80 billion in 2024, estimated at USD 76.97 billion in 2025, and is anticipated to reach around USD 356.23 billion by 2034, expanding at a CAGR of 18.56% from 2025 to 2034.


As for every industry, IoT has been a great part of the success of the manufacturing industry in various terms. This technology is generally improving automation and efficiency in the manufacturing industry. That is not a common thing and this is the reason why many manufacturers are reigning the industry.

By facilitating real-time data gathering, predictive maintenance, resource allocation optimization, and streamlined processes, IoT in manufacturing improves automation and efficiency, which in turn leads to increased productivity, lower costs, and better quality control. IoT-powered sensors and devices generally collect the data that are used to analyze for insights. This is used to automate the various tasks leading to improved efficiency and productivity.

If we talk about the IoT impacts on the manufacturing industry till 2025, then it can be shown by the market size numbers, as the global market size of IoT in manufacturing has witnessed a swift expansion in the past few years. Its value will catapult from $286.53 billion in 2024 to $334.78 billion in 2025, progressing at a CAGR of 16.8%. The market size for IoT in manufacturing is projected to experience a swift surge over the coming years, escalating to a figure of $630.32 billion in 2029 with a compound annual growth rate (CAGR) of 17.1%.

Stay tuned to read more about the topic.

The Role of IoT In Manufacturing

IoT solutions in the manufacturing industry refer to improved automation and efficiency in manufacturing, resulting in more productive and optimized operations by enabling real-time data gathering, analysis, and automated decision-making through the connection of devices, machinery, and systems. Automation needs data to execute and IoT is the best in this business of gathering data. This technology has a bright and potentially advanced future in the upcoming years, not just for the manufacturing industry but also for other industries.

Benefits of IoT in Manufacturing for Better Automation and Efficiency

There are a lot of benefits of IoT in manufacturing for better automation and efficiency. Here are a few benefits mentioned below.

Smart Manufacturing

Implementing IoT in manufacturing for better automation and efficiency offers a lot of benefits as one of the major benefits is smart manufacturing. With the IoT powered devices , sensors, software enables the automation of various repetitive tasks that overall increases the efficiency and productivity. This overall enables to establish a smart system that could refer to smart manufacturing.

Predictive Maintenance

By enhancing automation in the manufacturing industry with the help of IoT, it is possible to enable predictive maintenance aspects. By using IoT automation systems to identify possible failures, proactive maintenance scheduling is made possible which overall lowers unplanned downtime and related expenses. Significant cost savings have been recorded by businesses using IoT-driven predictive maintenance.

Reduce Labor Costs

Enhancing automation with IoT for the manufacturing industry generally reduces the labor costs too. With the IoT automation powered robotics and equipment, it is possible to reduce the labor costs and also reduce the chance of injuries. The automated robots also work faster and with more accuracy than human labor that overall improves the efficiency of the manufacturing industry.

Better Energy Management

Energy management is crucial in the manufacturing industry and can be improved with the enhancement of automation and efficiency with IoT. The IoT-powered automation system generally monitors energy consumption and provides only the necessary amount of energy and resources. This overall enhances energy utilization and also establishes sustainability in the manufacturing industry.

Real-Time Data Analytics

Analytics are important to make decisions, and it could be much better if it will be real time. The IoT powered automation in the manufacturing industry can automatically analyze the data of every process or operation and provide analytics. This plays a very important role in decision making which overall improves the efficiency for the business.

Cost to Develop IoT Solutions for Manufacturing

The cost of development of an IoT solution for the manufacturing industry generally depends on factors like complexity, hardware, software,  data management, network connectivity type, scalability, infrastructure type, etc. Generally, developing IoT solutions for manufacturing can range significantly in cost, from around $5,000 for a proof of concept to potentially over $1 million for complex, large-scale systems. Simple solutions with a few sensors might cost less than $50,000, while complex systems with many sensors, actuators, and real-time data streaming can reach $1 million or more.

Final Words

IoT is a great technology that has enhanced various industries, aspects, and other technologies too. The manufacturing industry is one of the most impacted industries among others as IoT is enhancing automation and efficiency for this industry.

IoT offers various benefits and use cases like smart manufacturing, real-time data analytics, predictive maintenance, better energy, and resource utilization, reduced labor costs and needs, etc that overall enhance efficiency. The pricing of the implementation of IoT in the manufacturing industry generally refers to a crucial topic as many manufacturers do not have an idea about the factors and models. We have mentioned the pricing models that are gonna help you. Overall, IoT in manufacturing not only enhances automation and efficiency but also could be an incredible investment for an advanced future.

 


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