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Industrial Internet of Things

Industrial Internet of Things (IIoT) - Intended Benefits and Deployments

Nov 05, 2018

Summary Bullets:

  • Efficiency, Visibility, and Cost Reduction Lead: GlobalData highlights greater efficiency, insight and cost reduction as the top intended benefits of IoT. Industrial IoT applications have dominated the landscape to date. Increased revenue has great potential but trail others in importance – at present.

  • Intelligent IoT Platforms Address Challenges: Comprehensive IoT platform solutions are mostly required for use cases such as: Industrial IoT applications, Smart Cities, Transportation, Energy, and more; allowing fast, secure and economical deployment of new remote IIoT sites.

The Internet of Things Major Markets

GlobalData’s research indicates that there are six significant markets for IoT, each defined by its own characteristics:

  • Automated home
  • Connected car
  • Industrial IoT
  • Wearable technology
  • Smart metering
  • Connected stores.

Industrial Internet or Things (IIoT)

Much of the value derived in the IoT has so far been vested in industrial applications. This is not the flashy multicolored world of the smart home – it’s the domain of grime covered machinery, dust, and dirt. The bulk of the economic value driven by IoT deployments moving forward will come from the incremental improvements in cost and reliability that instrumentation can deliver within an industrial context. Security must also be an integral component and will become more critical as IoT moves to the cloud. Industrial IoT (IIoT) can provide many benefits, but operational efficiency and enhanced insight remain the key goals of today’s deployments, while cost reduction and new revenues currently trail. Edge Computing is being trumpeted as a key enabler for such insight and agility while reducing the number of required devices in remote sites.

Intended Benefits Achieved

Intended Benefits Achieved
Source: GlobalData IoT Tracker – Civil Infrastructure
01/1/2016 - present

Role of Devices Deployed

GlobalData’s IoT tracker database shows that 65% of the devices deployed in the past 3 years have been for monitoring, while 17% are performing both monitoring and some level of control, and 18% are deployed in a purely tracking role. As devices evolve, additional capabilities will be instrumented to help make necessary real-time changes. Nearly all of the deployments included fixed or static devices, while mobile devices are emerging. IoT networks will be required to support additional connectivity needs such as low latency and rigorous timing to ensure high levels of availability and reliability.

Role of Devices Deployed

Role of Devices Deployed
Source: GlobalData IoT Tracker – Civilian Infrastructure
01/1/2016 - present

IoT Platform Requirements

IoT platforms and gateways need to support application specific protocols in a highly secure environment and leverage the latest in IP technologies, follow similar trends being implemented in current network architectures such as virtualization and edge computing. Platforms will also need to support market specific protocols where legacy sensors and devices are present. Gateways and access points will need to be environmentally hardened in many cases and support connectivity over a  range from fiber, wireless (LTE) to legacy TDM interfaces.  LTE-M and NB-IoT networks, as well as non-cellular alternatives such as LoRaWAN, are ramping up globally, and represent a clear priority for operators. IIoT platforms must also support low latency and high bandwidth applications, which will require edge computing.

Tell us what you think
Where do you see edge computing implemented first?
PLC software
OT security software
Metering aggregation software
Please Specify:
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Local and/or remote management demand secure communications connections, resulting in the need for a layered security model to protect all levels of the network from external as well as internal attacks. Typically the use of IPSec and MACsec can be used to ensure the system protects from multiple attacks as noted in the graph below, taken from the energy sector, but applicable across most IIoT use cases.





IoT Platform Requirements

Source: GlobalData Survey


IoT presents an opportunity for service providers and equipment suppliers to deliver next generation IIoT solutions, which not only replace the legacy systems, but help modernize infrastructures to deliver significant advances in service agility, performance and manageability. Optimized IoT platforms are addressing key barriers to deployment by improving efficiency, enhancing insight and lowering costs.

Advances in network software (network virtualization, edge computing, and analytics) have matured and can effectively support large scale IoT deployment. RAD’s secure industrial IoT backhaul solution, for example, includes security, a range of connectivity options, edge computing and zero-touch configuration to help automate provisioning and installation.


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