What is IoT in Manufacturing?
The manufacturing industry, which is responsible for creating and distributing goods, has gradually adopted technology over the years. With the help of digital technology, the industry has been able to reduce manpower and increase machine utilization, saving time and money while reducing risks in the workplace.
IoT is one of the digital technologies making waves in the manufacturing industry. It’s become so prevalent that it’s estimated to have a potential economic impact of at least $3.9 trillion annually by 2025. Such prevalence and importance have resulted in a new term: the Industrial Internet of Things (IIOT).
The Industrial Internet of Things connects industrial tools and assets like machinery, vehicles, warehouses, inventories, equipment, and more. Rather than managing all these assets individually, manufacturers can use IoT to control and review them with one platform using a custom software for manufacturing.
What Is the Internet of Things (IoT)?
The Internet of Things, also known as IoT, is a network of physical objects that are connected using software, sensors, and other types of technology. This connection allows physical objects to share data with each other and other systems via the internet.
A wide variety of devices take advantage of IoT, from those you use every day in your home to those used as industrial tools in the manufacturing industry. For example, your voice assistants, fitness trackers, and smart thermostats are all examples of IoT devices.
Why is the Internet of Things Gaining So Much Traction?
IoT merges the physical and digital worlds, impacting every corner of our modern society. There has been a rise in sensor-enabled objects in the market, increasing the number of innovative smart networks that can be used in daily life. IoT can also be used across many industries, such as law enforcement, manufacturing, and healthcare. With IoT technology’s potential impact on daily life and the workplace, it’s easy to imagine why it’s gaining popularity in the market.
IoT Adoption in Manufacturing in Figures
According to Allied Market Research, in 2020, the global IoT in the manufacturing market was valued at $198.25 billion and is projected to reach $1,495.65 billion by 2030. This anticipates the market growing at a compound annual growth rate of 22.6% from 2021 to 2030.
North America dominated the IoT in manufacturing industry size in 2020 and is anticipated to keep this position through the 2030 forecast period. However, it’s expected that Asia-Pacific will experience substantial growth through the 2030 forecast period due to enterprises honing in on enhancing systems and increasing productivity to remain competitive.
The 3 dimensions of IoT’s Impact on Manufacturing
There are countless applications of Industrial IoT, but they often revolve around three main aspects:
Shop Floor Operations
Manufacturers can comprehensively view their shop floor operations with Industrial IoT solutions. Embedded IoT sensors are included in the machinery and equipment, so manufacturers can access real-time data and manufacturing operations conditions.
With Industrial IoT solutions, business leaders can continuously monitor manufacturing processes, production conditions, and product quality.
Manufacturing Supply Chain
With IoT sensors, users have the power to maintain end-to-end control of the manufacturing supply chain. For example, a manufacturing facility can monitor truck movements while delivering products, perform inventory management for warehouses, and even control the conditions products are stored (i.e., temperature, humidity, pressure, etc.).
Remote and Outsourced Operations
Today, few manufacturing businesses have only one location. Many offices and warehouses may be associated with the same business spread across the city, state, or country. Companies can even have outsourced and remote operations outside the country where they’re located.
Before IoT, this type of work was infinitely more difficult. How can you efficiently track machine utilization and production processes when you can only see what’s right in front of you? That’s where IoT sensor data becomes important. Now, one team can track data from across the globe using IOT technology.
Top IoT Use Cases and Applications in Manufacturing
How is IoT in manufacturing currently being put into practice? Let’s take a look:
Remote Production Control
Manufacturing teams can’t always be onsite 24/7, and one team may manage multiple locations. With remote production control, staff can collect data from remote sources to:
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Ensure standards and rules are being met and followed
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Change settings or processes
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Resolve performance issues
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Monitor device positions
This is just a small selection of the opportunities available with IIoT, and they all result in time and cost savings for manufacturing companies.
Predictive Maintenance
The price tag associated with machinery isn’t small, so it’s essential that manufacturers can predict issues on their tools using predictive maintenance. Not only will predictive maintenance save them downtime, but it will also help them increase their overall productivity by ensuring their manufacturing equipment is running optimally.
Smart Packaging
Some manufacturers are using IIoT to take advantage of smart packaging. Sensors and QR codes can monitor the product being packaged and offer customers additional information. Smart packaging can educate customers, grow brand awareness, and improve product and consumer safety. Here are just a few examples of smart packaging:
- A culinary tool’s smart packaging takes a user to a video displaying how to use it in the kitchen.
- A large produce delivery’s smart packaging can monitor the temperature and storage time to ensure freshness.
- A medication’s smart packaging can track how many pills or capsules have been taken and alert the consumer if they take the wrong dose.
Industrial Asset Management
With asset management, manufacturers can collect real-time data from their entire asset portfolio anywhere with an internet connection. They can track assets from product production to the supply chain using such data. Any fault points or snags in the process can be identified, which can positively impact quality and time-to-market.
Digital Twins
Digital twins are virtual copies of objects or systems updated with real-time data. These digital twins can use simulation, machine learning, and reasoning to support decision-making. Engineers can simulate processes and experiment to discover issues without the risk of damaging physical assets by utilizing virtual copies of equipment and parts.
Benefits of IoT in Manufacturing
IoT has revolutionized the manufacturing industry—but why? Manufacturers have discovered countless possibilities for growing their business, improving safety, and increasing the efficiency with IIoT. Let’s explore just a sampling of the benefits offered by IIoT technology:
Cost Reduction
The manufacturing industry is highly competitive, and companies must find ways to reduce operational costs to stay competitive. The highest expenses for manufacturers are typically:
- Materials
- Labor
- Equipment expenses
Manufacturing process automation and predictive maintenance can reduce operational costs, diminishing potential equipment issues and saving companies money.
Improved Decision-Making
Management and operations that require the involvement of humans and machines will require comprehensive data. IoT sensors can collect and provide real-time data in the manufacturing facility, supporting decision-making. Utilizing IoT devices can provide managers with the necessary information to make informed decisions in a timely manner.
Quicker Time-to-Market
By utilizing an IoT solution, managers can take advantage of real-time data to make decisions faster and adjust to changes in the market. Valuable data generated by IoT sensors can also be used to improve efficiency in the production process, allowing products to hit the market at a faster rate.
Safety Improvements
IoT in manufacturing will continue to rise as a safety measure to improve employee health and prevent injuries in the workplace. With sensors, companies can use data on facilitates and equipment to determine risks and hazards. Here are a few examples of using IoT devices to make the workplace safer:
- Wearable IoT devices can track employees’ health conditions and receive a notification when it could be dangerous for them to continue their work.
- Predictive maintenance allows companies to identify malfunctioning or failing equipment before any damage can be done to employees or other equipment.
- Smart sensors in the facility can monitor the environmental conditions and send notifications when conditions are dangerous to work in.
Higher Customer Satisfaction
Producing high-quality products will bring in potential customers and keep them loyal. IoT technology enables companies to create the working conditions to produce quality products, including predictive maintenance and employee wellness. IoT devices also decrease human error and improve the quality control process, increasing customer satisfaction.
IoT Adoption: The Challenges of Digital Transformation
While there are plenty of benefits to adopting IoT in manufacturing, let’s take a look at some of the challenges holding some companies back from committing to IoT:
Data Security
Regardless of the industry, security and privacy will always be a priority. In smart manufacturing, it’s important to protect systems from cyber threats like data leaks and malware. As a result, authentication is crucial for IoT systems to work safely.
Maintaining security and privacy means:
- Tracking IoT devices to ensure they don’t get lost or stolen
- Performing risk assessments regularly to identify any risks early on
- Using encryption
Investment Needs and ROI
A common challenge manufacturing companies face when incorporating IoT into their business structure is the high adoption investment. While IoT is known for reducing costs, it’s difficult for companies to justify the investment when the return on investment (ROI) is unclear, and they don’t have experience implementing IoT solutions.
Skills Gap
Technical skill is a challenge that comes with any significant change, especially with manufacturing IoT solutions. New technology requires a new skill set, and companies face the decision of training current employees or hiring those with existing skills and knowledge. A recent Salesforce survey found that many respondents felt unequipped and unprepared for some of the essential digital skills needed for the workplace.
Technology Integration with Legacy Systems
Integrating IoT technology with legacy equipment, systems, and routines is a challenge every manufacturing company will face. Companies have spent years building and improving systems and production processes, meaning the current setup may be a complex blend of technology. Adding IoT technologies to an already complex setup may cause more issues at the start of integration.
See Also: Combining HMI and PLC Technology
How Can IoT Help Your Business Grow?
Are you looking to take advantage of Industrial IoT systems but aren’t sure how? Our team here at Geneca is ready to brainstorm and take action whenever you are. By partnering with a team who understands software and business, you can successfully take your production processes to new heights. Get in touch with us today to discuss how we can bring IoT to your manufacturing operations.