Industrial Manufacturing Sector Growth Drivers Emerge Despite IoT Adoption Hurdles

By 2035, the IoT in manufacturing market is projected to reach a staggering $1398.8 billion, a forecast that confirms a complete re-engineering of industrial operations. This immense growth, driven by a Compound Annual Growth Rate (CAGR) of 26.2%, promises to integrate digital intelligence across every facet of production and supply chains, according to Grand View Research. Such expansion envisions factories where machines communicate autonomously, optimizing output and predicting maintenance needs.

However, this trajectory toward hyper-connectivity faces significant friction. The industrial sector, while poised for unprecedented growth through advanced manufacturing and IoT, encounters substantial barriers. High capital requirements and critical skills shortages are actively creating obstacles to widespread adoption.

While the promise of a hyper-connected, efficient industrial future is immense, its full realization will likely be uneven, favoring well-resourced and agile players, and potentially widening the gap for others.

The Proliferation of Connected Devices

• 18.5 billion — The number of connected IoT devices globally in 2024, representing a 12% growth over 2023, according to iot-analytics.
• 21.1 billion — The projected number of connected IoT devices by the end of 2025, an expected 14% year-over-year growth, iot-analytics reports.

This accelerating proliferation of connected devices creates a data-rich environment. It forms the backbone for modern industrial operations, enabling real-time monitoring and predictive analytics.

Drivers and Connectivity Standards