What is IIoT (Industrial Internet of Things)? | Neos Networks
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What is IIoT (Industrial Internet of Things)?

IIoT connects industrial devices for smart decision-making using real-time data. Learn how it works and how it's transforming industrial processes and networks.

Neos Networks | 30/12/2024
Examples of Industrial Internet of Things (IIoT) applications

What is the Industrial Internet of Things (IIoT)?

The Industrial Internet of Things (IIoT), also known as the industrial internet, refers to using interconnected smart sensors and other devices to collect and share data to enhance industrial processes. By connecting devices that process data in real time, IIoT can improve operational efficiency, productivity and safety.

IIoT is increasingly used in sectors like manufacturing, energy management, logistics and transport. For example, IIoT-enabled sensors and devices on production lines can help ensure quality control, optimise energy usage and enable predictive maintenance – spotting issues before equipment fails.

Together with emerging technologies like AI, big data analytics and robotics, the Internet of Things is one of the main drivers of the Fourth Industrial Revolution.

IoT vs IIoT: what’s the difference?

The Internet of Things (IoT) is a general term that refers to connecting devices to the internet to remotely control them, from smart home gadgets to city infrastructure. Consumer IoT applications, like smart TVs, smart thermostats and wearable fitness trackers, focus on convenience and enhancing user experience.

A subset of IoT, Industrial IoT (IIoT) refers to connecting devices in large-scale industrial environments like factories and warehouses. Since IIoT failures can lead to costly downtime or safety hazards, IIoT focuses on ensuring high reliability and low latency for precise real-time control.

IoT vs. IIoT

Examples of industrial IoT applications (smart healthcare, farming, delivery vehicle, energy management, connected train and factory robot) compared with consumer IoT devices (smart light bulb, speaker, thermometer, TV, watch and phone).

 

How does the Industrial Internet of Things work?

IIoT works by connecting machines, sensors and other devices to the internet to collect, monitor and analyse data in real time. Here’s how it works in more detail.

IIoT-enabled devices

Sensors or other devices built into industrial machinery collect data such as temperature, pressure, speed and vibration. For example, a vibration sensor in an industrial motor may collect data on the level of vibration in the device.

Connectivity

The sensors and devices are connected using wired or wireless network protocols like Wi-Fi, Bluetooth, Ethernet or 5G. They send data to a central server or cloud-based IIoT platform for real-time analysis.

Edge computing

Some data may be aggregated and initially processed locally using edge networking and edge computing. This reduces latency and bandwidth usage by enabling real-time analysis without sending all the data to the central server or cloud.

Data analytics

Once in the central server or cloud, data is aggregated and analysed using big data analytics, AI or machine learning to identify and act on patterns in the data. For example, certain vibration levels in an industrial motor can be used to predict a breakdown before it occurs.

Insights and automation

The processed data may be visualised in dashboards, allowing operators to monitor critical metrics and take action to optimise processes. Similarly, IIoT systems may directly control machines based on insights from real-time data analysis, optimising efficiency and automating routine tasks.

By harnessing real-time data analysis and automation, IIoT systems can significantly enhance the efficiency, resilience and scalability of industrial processes.

Examples of IIoT applications

From production lines and supply chains to energy management and healthcare, IIoT is used for various applications in a wide range of industries. Here are some common examples.

Smart manufacturing

In smart factories, sensors capture data on inventories, production line performance and the condition of equipment. By analysing this data, IIoT platforms can improve efficiency, reduce costs and enable predictive maintenance.

Supply chain logistics

In warehouses, IIoT devices like RFID tags and GPS trackers are used to track and optimise the movement of goods. For example, Amazon uses IIoT-enabled robots, AI and machine learning to streamline operations in its fulfilment centres.

Energy management

In distributed energy systems, IIoT-enabled smart meters and other devices enable real-time monitoring of energy usage and remote control of energy assets. For example, IIoT is a vital component of smart grids as the UK transitions to net zero.

Intelligent healthcare

In hospitals and patients’ homes, smart medical sensors allow doctors to monitor changes in a patient’s health in real time. By enabling round-the-clock monitoring, IIoT-enabled remote patient monitoring can improve health outcomes and patient engagement.

Smart agriculture

Farmers use IIoT technology for precision farming. For example, IIoT-enabled devices can be used to remotely control operations, like monitoring soil and crop conditions, tracking livestock, and optimising water, energy and fertiliser usage.

Benefits of IIoT for businesses

As IIoT enables real-time monitoring, insights and automation, it offers several advantages for businesses, especially in manufacturing and logistics. Here are some key benefits:

  • Enhanced efficiency: Intelligent monitoring and automation can help to optimise workflows and enhance productivity.
  • Predictive maintenance: Real-time analytics allow you to predict equipment failures, reducing unscheduled downtime.
  • Reduced costs: Optimised workflows and automation lead to lower operational costs and energy consumption.
  • Improved safety: Sensors can monitor potentially dangerous equipment 24/7, while remote automation can minimise worker interventions in hazardous environments.

Overall, the actionable data, flexibility and scalability of IIoT-enabled systems can help you better adapt workflows and production processes to ever-changing markets.

Challenges of deploying IIoT devices

While IIoT systems offer several advantages, implementing them poses several challenges.

The first is data security and privacy. The more IIoT devices you connect, the greater the risk of cyberattack. You need to manage the vast amounts of data generated and ensure your devices are protected against online threats.

Another challenge is the upfront cost. Investing in IIoT devices, software and infrastructure can be costly, although the return on investment may be good in the long term.

Third, integrating IIoT systems to work seamlessly with existing infrastructure can be complex, especially as devices from different vendors may not be interoperable. As the technology is new and evolving, finding staff with the required IIoT and cyber security skills can be difficult.

Finally, scalability can be an issue as you grow your business. You need to manage increasing amounts of data and connected devices while maintaining performance and reliability.

The future of IIoT

Looking ahead, the number of IoT devices worldwide is expected to roughly double by 2030, reaching around 40 billion. For Industrial IoT devices, that means a CAGR of around 14%, its market volume rising to about $455 billion by 2029.

As IIoT takes off, here are six emerging trends to look out for:

  1. 5G and Wi-Fi 6: The rollout of 5G (with 6G to follow) and Wi-Fi 6 will drive IIoT growth, as they provide high-speed, low latency connectivity for mobile devices, essential for real-time data processing.
  2. Moving to the edge: As more IIoT-enabled devices come on stream, computer processing and storage will increasingly shift to edge networks.
  3. AI and ML: Rapidly evolving AI and machine learning will enable more sophisticated automation and analytics for IIoT platforms.
  4. IIoT standardisation: To solve the interoperability challenge, unified standards and protocols for IIoT will likely emerge.
  5. IIoT security: As IIoT devices proliferate, expect to see more sophisticated security for IIoT deployments, such as AI-powered threat analysis.
  6. Green IIoT: The pressing need for sustainability is likely to drive the development of IIoT solutions to reduce energy usage and waste.

IIoT connectivity

No matter how IIoT evolves, one thing is certain: it will need more high capacity, low latency connectivity in the future. At Neos Networks, we provide high capacity connectivity for businesses with over 90 data centres and 600 points of presence across our UK-wide network.

If you’re looking to connect IIoT applications or need low latency connectivity for business-critical networks, join us. We’ll be happy to make connectivity work for you.

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