In the Bsquare 2017 Annual IIoT Maturity Survey, 86% of senior decision-makers in manufacturing, oil and gas, and transportation reported adopting IIoT solutions, and 84% rated those solutions as very or extremely effective. Fewer than 2% of respondents at the time were not considering an IIoT implementation.
Almost all respondents believe that the technology provides a significant or tremendous global impact on their industry and that setting clear business objectives prior to deployment, such as better managing devices, increasing production volume, or reducing operating costs, is an important driver of deployment maturity and return on investment (ROI). Fewer than 2% of respondents are not considering an implementation within the next 12 months.
What Does the IIoT Maturity Survey Show?
The Bsquare 2017 Annual IIoT Maturity Survey confirms that IIoT adoption follows a maturity progression. Companies begin with basic machine connectivity and advance to analytics, automation, and edge computing. Despite high adoption rates, only 54% of devices in adopter organizations are IIoT-supported, leaving substantial room for growth across all three industries surveyed.
As organizations see the increasing benefits of implementing IIoT, 73% of adopters say their investment will increase in the next 12 months, with transportation and manufacturing leading O&G. As the result of this continued investment, respondents expect to see increases in achievement of business priorities such as automation and real-time monitoring over the next year.
How Is IIoT Adopted in Manufacturing?
Manufacturing companies showed strong commitment to IIoT as part of broader Industry 4.0 efforts. According to the Bsquare 2017 Annual IIoT Maturity Survey, 76% of manufacturing respondents chose cloud-based IIoT solutions over on-premise deployments, a preference driven by the relative ease of cloud deployment.
Current Industrial IoT Adoption
Manufacturers are strongly committed to IIoT and place a very high level of importance on it for their organizations.
Solution implementation is based on business needs. Seventy-six percent have chosen a cloud-based solution compared to 24% for on-premise. This preference is likely driven by the ease of deployment offered by cloud-based solutions.
What Are the IIoT Maturity Stages in Manufacturing?
IIoT maturity in manufacturing advanced through four distinct stages, from basic connectivity to full automation. The Bsquare 2017 Annual IIoT Maturity Survey found that most manufacturers are concentrated in the earlier stages, with the largest gaps at the analytics and automation levels where ROI gains are highest.
- Device connectivity and simple data forwarding: 67%
- Real-time dashboards and monitored activity through constant data stream: 62%
- Advanced analytics, such as machine learning, cluster analysis, and artificial intelligence, from data scientists: 47%
- Automated simple, single-step actions such as service-ticket requests: 32%
IIoT ROI increases once businesses apply advanced analytics, such as machine learning, to identify data correlations in real-time, and automation of processes such as repair tickets. Because the use of these two stages lags behind device connectivity and real-time monitoring, manufacturing companies have significant opportunity to advance their IIoT capabilities for greater future impact. When asked how large of an impact IIoT technology and related solutions will have on their industry in the future, 90% of respondents said it will have either a significant or tremendous global impact.
What Business Challenges Does IIoT Address?
IIoT solutions were most commonly deployed to address device health and logistics challenges. According to the Bsquare 2017 Annual IIoT Maturity Survey, maintaining and optimizing equipment and operational parameters are closely tied to supply chain efficiency, and 84% of current adopters rate their IIoT solutions as very or extremely effective.
In terms of effectiveness of their IIoT solutions, 84% of respondents felt that their IIoT solutions are either very or extremely effective.
Did Manufacturers Plan to Increase IIoT Investment?
Investment in IIoT was expected to grow significantly across manufacturing. The Bsquare 2017 Annual IIoT Maturity Survey found that 78% of manufacturing respondents planned to increase their IIoT investment within the next 12 months, with 20% planning to spend at approximately the same level as the prior year.
This is an excerpt from the report. A copy of the complete study can be downloaded here.
FAQ
1. What percentage of companies have adopted IIoT?
According to the Bsquare 2017 Annual IIoT Maturity Survey, 86% of senior decision-makers across manufacturing, oil and gas, and transportation industries have adopted IIoT solutions. Of those adopters, 84% rate their solutions as very or extremely effective. Fewer than 2% of all respondents are not considering an IIoT implementation within the next 12 months.
2. What are the stages of IIoT maturity in manufacturing?
The Bsquare 2017 Annual IIoT Maturity Survey identifies four IIoT maturity stages in manufacturing. First, device connectivity and simple data forwarding, used by 67% of respondents. Second, real-time dashboards and monitored activity, used by 62%. Third, advanced analytics including machine learning and artificial intelligence, used by 47%. Fourth, automated single-step actions such as service-ticket requests, used by 32%.
3. Cloud-based vs. on-premise IIoT: which do manufacturers prefer?
Manufacturing companies strongly prefer cloud-based IIoT deployments over on-premise installations. The Bsquare 2017 Annual IIoT Maturity Survey found that 76% of manufacturing respondents selected cloud-based solutions, compared to 24% who chose on-premise. This preference is driven by the relative ease of deploying and managing cloud-based IIoT infrastructure across geographically distributed manufacturing operations.
4.Why is setting business objectives important before deploying IIoT?
Setting clear business objectives before deploying IIoT is a key driver of deployment maturity and return on investment. The Bsquare 2017 Annual IIoT Maturity Survey found that objectives such as better device management, increased production volume, and reduced operating costs are closely linked to how effectively organizations progress through IIoT maturity stages and realize measurable operational benefits.
Related Reading
Why Historians Cannot Feed Physical AI
