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IoT in manufacturing with real use cases

The Internet of Things (IoT) has a dramatic impact on the production sector. With interconnected devices, the concept of smart manufacturing becomes a reality where the interaction of human abilities, machines, and automated processes leads to the best possible production outcome.
14 min read
iot in manufacturing industry
iot in manufacturing industry

    In this article, we will find out what IoT in smart manufacturing is and what benefits and challenges it brings to the industrial field.

    How IoT works: complex process in simple terms

    IoT refers to a network of physical objects that interact with each other via the Internet, often with minimal human intervention. IoT encompasses devices with embedded sensors and software for collecting and exchanging data with people and/or other connected devices. In many cases, IoT is associated with the “smart” prefix: smart home, smart watches, smart city, etc.

    Let’s explore how IoT works. First, we should point out that IoT includes several basic components: devices, connecting networks, IoT platforms (or IoT hubs), and also end users or systems.

    Simply put, the process is the following:

    • IoT devices use sensors to get information from the environment (temperature, humidity, pressure, sound, light levels, fluid level, distance to objects, and even chemical reactions).
    • Devices stream this data in real time to a gateway, which may perform basic processing or filtering.
    • The data is then sent to the hub—a central platform (often in the cloud)—where it is stored, analyzed, or forwarded to consumers. In some systems, processing can also occur on the device or gateway (edge computing).
    • Based on the data insights, software solutions are programmed to perform actions, such as turning on a heater or AC, sending notifications, or updating control systems.
    How IoT works in smart manufacturing
    How IoT works in smart manufacturing
    How IoT works in smart manufacturing

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    IoT in the manufacturing industry

    In recent years, IoT has found widespread use in the industry as a way to solve a multitude of tasks. IoT used for industrial purposes is commonly referred to as the Industrial Internet of Things (IIoT). IIoT systems are being increasingly adopted by many manufacturers. About 46% of manufacturers already collect and use data from smart sensors to improve production processes while about 85% of manufacturers believe smart manufacturing is the main driver of competitiveness. Studies predict that the IoT in the manufacturing market will grow at a rate of 25.33% CAGR from 2025 to 2030.

    IoT in manufacturing market size
    IoT in manufacturing market size
    IoT in manufacturing market size

    Source: precedenceresearch

    Environmental control

    IoT in manufacturing has enormous potential in the green economy. The technology can facilitate sustainable initiatives such as environmental monitoring and energy optimization. Smart sensors can detect excess heat, air pollution, radiation, or noise and send alerts, so that the staff can get the situation under control. Moreover, some IoT-enabled devices are programmed to automatically normalize the parameters.

    Automatic energy control through a smart grid can improve utility operation and performance. So, the resources are distributed more accurately, and the real needs are addressed without energy waste. Furthermore, in case of emergency IoT devices can level usage between critical and non-critical infrastructure.

    Man-hour savings

    Many tasks can be done with sensors, saving thousands of man-hours. Meanwhile, the staff can work on more urgent issues. This way, you can redistribute personnel more efficiently, reducing the production costs.

    To sum up, IoT in manufacturing allows businesses to:

    • Prolong the service life of equipment, preventing production stops.
    • Make products at lower costs, selling them at a higher margin.
    • Make energy consumption efficient, optimizing bills.
    • Ensure workplace safety, reducing the risk of hazards.

    All this can save you millions or even billions of dollars. Yes, transforming your enterprise could be expensive. The initial cost of the digital optimization may become one of the most challenging factors, but imagine how much you’ll save in the future.

    IoT trends and new possibilities

    IoT-enabled Product as a Service

    Practically, every business is based on three pillars: quality, cost, and time of production or service delivery. If businesses want to retain and increase their financial performance, they need to make a product uniquely, efficiently, and quickly.

    Implementing IoT can be of great help in this regard, but such a solution initially requires a reasonable investment, and then you have to wait for a while until the money pays off. But what to do if you don’t have funds right now and you understand that IoT is the best choice for your business? The traditional option is to look for an investor. But there is another one that is gaining momentum—Product as a Service.

    Product as a Service is a business model when the product is provided for use via a lease agreement. IoT-enabled Product as a Service transforms the way manufacturers sell goods and services and the way companies consume them.

    At first glance, this model may seem a perfect option as it reduces the risk of asset investment and performance risk. The cost of the technologies required to implement the IoT-enabled Product as a Service business model is going down thus making them more affordable. The use of open-source technologies and access to out-of-the-box solutions to integrate into IT and OT systems considerably reduces development and implementation costs.

    In addition, this model eliminates the need for staff to maintain and support assets since IoT-enabled Product as a Service vendors take over product support and maintenance in exchange for regular payments. This encourages manufacturers to produce more robust, long-lasting, and easy-to-use IoT products.

    However, there is the flip side of the coin. This model is more efficient in the short term, but usually more expensive strategically, while custom implementation on top of an out-of-the-box platform is more efficient in the long term, but requires more investments from the start.

    IoT and Edge computing

    The amount of data generated in the IoT ecosystem is constantly growing. However, not all information is relevant to an enterprise. Therefore, corporate data centers are gradually moving toward operational data processing in which edge-IoT computing can help. As the name implies, it combines IoT and edge computing technologies.

    Edge computing brings data processing as close as possible to the IoT device, which in turn analyzes the data and delivers instant results. So, the data is analyzed right at the collection point. Thus, this process eliminates latency and conserves bandwidth.

    IoT and edge computing are powerful technologies that can save businesses a lot of time and effort. Using IoT and edge computing together can be a great way to achieve different goals within the same infrastructure by rapid data analysis in real time.

    IoT and 5G

    5G technology for IoT in manufacturing
    5G technology for IoT in manufacturing
    5G technology for IoT in manufacturing

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    Conclusion

    F.A.Q. about IoT in manufacturing

    • The Internet of Things (IoT), or Industrial Internet of Things (IIoT), refers to the use of connected devices, sensors, and machines that collect and exchange data to improve efficiency and productivity and achieve automation in manufacturing processes.

    • In manufacturing, IoT is used for real-time monitoring and process control, predictive maintenance, managing accesses and environmental conditions, ensuring personnel safety, detecting defects and controlling quality, tracking assets, and more.

    • Often, manufacturers use sensors for temperature, vibration, humidity, etc., smart meters and energy monitors, RFID tags and scanners, and edge devices and gateways.

    • Some of the key IoT benefits for manufacturers include improved operational efficiency, enhanced product quality, reduced downtimes through predictive maintenance, better inventory and logistics management, data-driven decision-making, and cost savings over time.

    • By integrating IIoT with AI, machine learning, and other advanced analytics, manufacturers can unlock practical insights and predictive capabilities that enhance decision-making and operational efficiency. Acting as the brain in the IIoT ecosystem, data analytics turns a network of connected devices into a smart, self-optimizing industrial system.

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