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IoT in Manufacturing: The Ultimate Guide

IoT in Manufacturing: The Ultimate Guide

  • Last Updated on February 25, 2022
  • 12 min read

Like every other sector, manufacturing too is now ready to leverage the power of digital technology. Modern technologies have evolved over time and now manufacturing industries are utilizing such modern technologies to drive efficiency.

One such technology involves the Internet of Things(IoT). The emergence of IoT applications in the manufacturing industry is because of the pique in consumer interests and their need for personalization.


Manufacturing businesses are adopting Industrial Internet of Things (IIOT) to improve their performance and make the most out of their existing resources.

The worldwide market of IoT in the manufacturing market will grow at Compound Annual Growth Rate CAGR) of 10.1%, from $ 33.2 billion in 2020 to $ 53.8 billion in 2025.

Industries can link and automatically integrate items and processes to construct cyber-physical systems, which forms the base for Industry 4.0. The prime objective of Industry 4.0 is to deploy newer technologies to create value manufacturing businesses while reducing waste.

Businesses can also adopt industrial IoT solutions that can optimize and utilize the workforce to offer better return of investment. And the IoT application in manufacturing can be the sole driving force of Industry 4.0.

What is the Industrial Internet of Things (IIoT)?

Manufacturing involves the process of producing a wide range of commodities with the help of humans and equipment. More recently, various digital technologies have been implemented by the industry, gradually reducing human engagement in industrial processes.

Many businesses have embraced smart manufacturing and industrial branches focused on intelligent automation aided by cutting-edge technology. The forefront digital trends in manufacturing are AI, machine learning, IoT, big data, robotics, and industrial analytics.

IoT solutions for smart manufacturing, which are at the heart of industrial digital transformation, have spawned a subclass of IoT technology known as the IIoT.

Now, the Industrial Internet of Things (IIoT) is a confluence of networked industrial assets like machines, equipment, trucks, warehouses, shop floors, inventories, and so on.

All these combine to collect, collate, and exchange data using embedded software and built-in sensors. Digital transformation in Manufacturing is possible with a single IoT platform to manage smart assets and gain useful data.


Components of IIoT (Industrial internet of things)

IoT applications in manufacturing need to blend with the day-to-day objects that are useful for manufacturing businesses. To better understand the functioning of Industrial IoT systems, let us first check out the components of IoT that remain at the core of this robust, modern technology.


Smart assets

Devices, security components, application software, controllers, and other networked items make up for the IoT based smart factory that boasts intelligent assets.

These current assets can communicate with local intelligence, assist analytics through connection, and help leverage smart inventory management solutions through the value chain of information.

Examples of intelligent assets of IIoT;

  • Plants instrumentation
  • Digital equipment
  • Embedded systems
  • Edge devices

Software and analytics

IIoT relies on the software to process the data that devices and systems collect at various touchpoints. It also offers an interface through which you may communicate with other systems.

IoT in manufacturing can help businesses profit from industreendless, limited benefits from cloud-based software over on-premise software. This increases the speed, flexibility, and dependability of the system.

Data communication infrastructure

Other technologies and the internet are necessary for the IIoT system's cte. IIoT solutions are increasingly implemented on cloud infrastructures such as Amazon Web Services to store remote servers, manage, and process data in these systems.

Existing enterprise application

It is impossible to successfully install an IoT business solution unless it works smoothly in tandem with essential corporate apps to enhance fundamental business operations.

Here, enterprise inventory management can get data inputs from business applications like ERP, CRM, BMS, MES, SaaS, and mobile applications that are used to monitor and control instrumented assets.

You also have legacy applications like mainframe or operational technologies that need to be part of the package with new IoT-based asset management solutions to get the most benefit using enterprise applications.


This is a crucial and perhaps the most underappreciated aspect of IIoT. People engage with the system by making data and analysis-driven decisions. The higher the data quality, the better the findings will be.

As a result, the interaction between humans and other IoT components like fleet and asset tracking solutions maintains a measured balance.

The aspect of industrial IoT impact

By injecting innovation into old processes, the Internet of Things is transforming four essential manufacturing areas. Let us understand each in a brief way to optimize these touchpoints to improve operational efficiency through industrial IoT solutions.

Shop floor operations

Real-time data of operations and the state of spare parts are gathered by sensors installed in machinery. After that, the information will go to a cloud platform for analysis.

The findings will be on screen of the user's application, giving shop floor supervisors a complete picture of the manufacturing process.

It is now possible to continually monitor production conditions and make data-driven choices in real-time to keep equipment in good operating order and enhance product quality.

Furthermore, wearable IoT in manufacturing can help track the health and whereabouts of industrial personnel working in hazardous areas, hence improving their safety.

Remote and 3rd party operations

New-age businesses will not be bound to a single location; instead, they often have a network of associate firms and branches spread throughout cities, regions, and nations.

They can also outsource manufacturing activities to third-party firms to save shipping and infrastructure expenses.

All remote and outsourced operations may be monitored using IoT and smart manufacturing and services as a single process. This is the most effective technique that ensures all contractors follow the technological revolution and that the finished items meet established requirements.

Supply chain

End-to-end manufacturing supply chain management is possible by implementing IoT sensors. Manufacturers may track the movement of vehicles transporting supplies and commodities, view extensive information on things in warehouses, and regulate the conditions (temperature, humidity) in which products are stored or moved.

Managers intending to build and promote flawless operations in their businesses can greatly benefit from supply chain management solutions enabled by effective transparency.

Workshop mirroring

The Internet of Things may connect Market-Ready Solutions (MRS) with business information management systems. It assists businesses in automating the control of IoT-enabled industrial processes carried out in workshops. Industrial IoT solutions help access, identify, and control the manufacturing execution process.

Modern businesses foraying into Industry 4.0 in supply chain management can use IoT to monitor all situations from the commencement of manufacturing to the final delivery of the product.

An industry's production and product-related input data passes from multiple IoT-enabled manufacturing layers. IoT and smart manufacturing with modern devices allow businesses to solve connectivity, computing, and control concerns properly.

Application of IoT in manufacturing

In manufacturing, the Internet of Things provides a win-win situation for manufacturers and consumers. The Industrial Internet of Things (IIoT) allows manufacturers to scale up various equipment that can be remotely monitored and repaired. As a result, businesses can accurately predict their consumers' demands.

As a manufacturing industry, the Internet of Things can revolutionize business. Networked control systems already aid process and monitoring in several facilities to apply this modern technology at various levels. Let us check them out!

Smart packaging

For producers, smart packaging directly employs materials with interconnected embedded systems to offer IoT benefits. The most crucial feature of smart packaging is that it allows customers to interact with it while also generating data that can be useful to manage a product better.

For instance, smart packaging includes culinary videos, beauty tips, and other demos to illustrate using the product.

Sensors, QR codes, AR, VR, and mixed reality possibilities are some of the ways IoT and packaging interact together. The goal is to provide customer value while simultaneously collecting data using smart asset tracking solutions that improve operations and efficiency.

Remote production control

Remote process monitoring and equipment configuration are possible with IoT in manufacturing. For starters, personnel may collect data on manufacturing processes from afar and determine if their consequences comply with certain rules and standards.

Second, they can remotely tweak and set up equipment, saving them a lot of time and work.

Furthermore, businesses can opt for IoT software development services to resolve numerous performance concerns via virtual networks without being physically present, simplifying equipment administration and control. Employees can also be aware of the position of devices, such as moveable assets, using virtual equipment monitoring.

Predictive maintenance

Human participation is no longer necessary to predict abnormalities in equipment performance: embedded IoT sensors in machines can detect any operational malfunction like temperature, pressure, voltage, etc. and alert responsible personnel, leaving employees to only take remedial action.

Predictive maintenance, also known as predictive mending, allows technical support personnel to discover and address faults before they lead to major equipment failure, minimizing downtime and expenses.

Predictive maintenance also allows IoT-connected equipment to be integrated with advanced analytics tools to predict when technical help is required.

Asset management

Manufacturers may acquire and monitor real-time information on all of their assets through the web or mobile applications. Industrial asset tracking with IIoT devices is possible as they enable the following.

  • Vehicle transporting raw materials and goods
  • Warehouse items
  • Production process-related resources

With the Industrial Internet of Things (IIoT), you can track and optimize assets throughout the production process, from the supply chain to the finished product.

Asset monitoring allows for the early and accurate detection of faults that negatively influence product quality or time-to-market.

Read More: Dynamic Logistic Management Services

Digital twins

The Internet of Things, AI, machine learning, and cloud computing are all digital twin technology. The digital transformation in manufacturing is enabled by digital twins that work as virtual replicas of actual products, and their use on the factory floor may be extremely beneficial.

Engineers and managers may mimic various processes, run tests, find faults, and achieve desired results using virtual duplicates of equipment and replacement parts without jeopardizing or harming actual assets.

Read More: AI and machine learning humanize app development

What are the benefits of IoT in manufacturing?

In terms of operations and procedures, this network gives insight into what is working and what isn't. Your company's ERP system is the most likely system to assist you in interpreting the data you've collected.


We can now check out a few of the top advantages of industry 4.0 applications in manufacturing for time to come.

Cost reduction

Energy, materials, and downtime losses are high costs for manufacturing companies. Process automation is a trademark of the Internet of Things, and it results in a considerable decrease in operating expenses.

When combined with better asset management, predictive maintenance prevents a lot of potential problems and saves money.

Solid decision making

Comprehensive data is necessary for resource management and asset optimization that involves both humans and machines. IoT-based sensors collect vital data and deliver it in real-time across resilient networks.

Fast data flow throughout the production plant allows for the continuous generation of dashboard metrics that aid in disseminating findings and decision-making.

Managers have precise insights and are always aware of their systems and devices' functioning thanks to IoT development in manufacturing, resulting in speedier and better-informed decision-making.

Speedier time-to-market

IoT allows for direct connection between employees and network components, dramatically boosting productivity. Real-time data availability also allows for quicker decision-making and better responsiveness to market volatility.

As a result, new goods move fast from concept to market, resulting in considerable time savings.


In many industries and factories, IoT sensors monitor working conditions. For example, the number of dangerous pollutants and wearable devices that monitor workers' health assist in creating a safer working environment and preventing numerous accidents.

Better customer satisfaction

Quality is the make-or-break element in how potential consumers behave and whether or not they become loyal customers. Predictive maintenance tools and statistical assessments are provided by the Industrial Internet of Things (IIoT) technology.

This will help innovation, planning, design, construction, operation, and maintenance of industrial facilities, resulting in higher product quality.

Asset tracking

You can follow items through the supply chain and alert stakeholders to any potential delays or issues with asset tracking solutions.

Read More: Help asset tracking and management

Machine utilization

The IIoT allows machines to be connected to the internet, providing you access to machine lifelines and KPIs. This information is useful in identifying the reasons for unscheduled downtime.

Process and behaviour monitoring

Managers in business organizations and companies may use IoT data to obtain insight into their workers' performance. For example, a root cause analysis might unravel that workers routinely create defections due to this process. This equates to increased scalability, cost savings, and quality assurance.


Businesses can adopt industrial IoT systems that help maximizing productivity by ensuring production uptime, lowering expenses, and eliminating waste.

Manufacturers may better know their production and supply chain operations, increase demand forecasting, reduce time to market, and improve customer experience by leveraging IoT data.

However, given the scope and complexity of Industrial IoT efforts, effective IIoT adoption necessitates careful orchestration across all IIoT application design and execution segments.


Tej Chalishazar

Tej is an experienced project manager with huge experience in mobile app development. He has worked on a lot of projects for various companies, ranging from startups to large corporations, and has successfully managed multiple projects from inception to launch. With a strong background in software development and project management methodologies, he is able to effectively communicate with cross-functional teams and stakeholders to ensure that projects are delivered successfully.

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