Manufacturing IoT: Definition, Benefits and Use Cases

  • Top 7 reasons for businesses to start utilizing Manufacturing IoT. Explore competitive advantages.
  • What future will the IoT industry have? Industrial IoT statistics 2023 and predictions.
  • The most common IoT use cases in Manufacturing. 6 ways to apply the Internet of Things to production processes in practice.
13 min. read
Manufacturing IoT Preview

Intro to IoT for Manufacturing

Manufacturing is one of the biggest industries that needs constant transformation to keep up with innovative tendencies and inventions. The most efficient way of improvement is the digitalization of manufacturing processes and management. Industry 4.0 has already proven its productivity and profitability for businesses and the global market. Such a sensible change in production organization and execution process was possible thanks to the adoption of manufacturing IoT. Many experts consider the Internet of Things in manufacturing to be among the main driving forces of development and improvement. Industrial IoT devices help to reorganize business and management operations making them more effective and economical at the same time. With the use of this technology, old manufacturing plants can be quickly reformed into smart IoT factories.

Atlasiko Inc. has great experience in the development and implementation of the Internet of Things for manufacturing. Our software development company provides companies of different sizes with manufacturing IoT solutions, ensuring their quality and responsiveness. Find out more about all benefits of production manufacturing with the use of factory IoT and request Industrial IoT services by Atlasiko Inc.

IoT for Manufacturing

What does Internet of Things mean?

First and foremost, it’s important to outline what IoT is in general.

So, when we talk about the Internet of Things we refer to the network which consists of physical objects with installed software, and sensors to enable receiving the data and its exchange between different devices and components of the IT system online.

IoT devices might be used in any industry or even in everyday life. To answer the popular question “What does IoT do?” and for a better understanding of the IoT work principles, let’s take a look at a simple example of the Internet of Things solution – a fitness tracker. Such a gadget is able to measure your heart rate and count steps thanks to the special sensors, track your location with inbuilt GPS, share this info with connected devices, etc. As you can see, it’s a physical object with installed software that can receive data from the real world via sensors and pass it through the network. This example describes the general way IoT solutions work. In the production process, factories use special IoT devices and software that have the same principles of work but also some specific features to meet production needs.

What does IIoT mean?

Along with the manufacturing IoT, they also use the IIoT definition which is the abbreviation for the Industrial Internet of Things. The Industrial IoT definition is pretty much the same as the IoT but has a more specific meaning. It regards only one particular industry with its use cases and other peculiarities. So, Industrial IoT software describes IoT solutions for manufacturing used in the industry to enable the quick and successful digital transformation of the production process. The IoT in manufacturing industries has special sensors and embedded software to provide manufacturers with exclusive capabilities and automate the workflow.

IoT in Manufacturing Industry

IoT manufacturer solutions are aimed to accelerate work efficiency and business productivity, improve working conditions and make them safer. Industrial IoT manufacturing technologies also grant evident competitive advantages to companies that choose to use Industrial IoT sensors and IoT machines.

Industrial IoT Solutions

The Internet of Things Manufacturing statistics

Nowadays a lot of statistics research is carried out that proves the profitability of the IoT for manufacturing. Let's take a look at the numbers that show the popularity of IIoT solutions and gauge the impact smart industrial devices make on manufacturing businesses.

Precedence ResearchThe global IoT in manufacturing market size is predicted to grow from $201.8 billion in 2021 to $1,5 trillion by 2030 with a Compound Annual Growth Rate of 24.9%.
Mordor Intelligence • 34% of manufacturers in the US believe in the extreme necessity of IoT adoption in the industry. • In the USA, 35% of manufacturers use smart sensors to receive and share data for improvement of manufacturing processes.
IoT Signals report by MicrosoftIn 2021, 90% of organizations (more than 3,000 businesses that participated in the survey) stated that the adoption of the Internet of Things in manufacturing is crucial for achieving success.
PWC91% of European manufacturing companies make investments in the creation of smart factories with the use of the IIoT.
GE Digital58% of IoT manufacturers confirm that the IIoT in manufacturing is important for the successful digital transformation of businesses
Accenture46% of manufacturing business owners use IoT solutions to boost employees’ productivity and efficiency of the work proces

As you can see, many companies request IoT development services to improve their production and management operations. Atlasiko Inc., as a qualified software engineering company, can provide you with the best IoT manufacturing solutions on your request for our services. Contact us to get more information.

Reasons why businesses need Manufacturing IIoT

The main reason why companies tend to use the IoT for manufacturing is that such technologies are highly advantageous and bring benefits to businesses in many ways. Let’s take a look at some most significant points of improvement that can be gained with the manufacturing IIoT.

  • Reduce cost
    Industrial IoT can help the organization to reduce the cost of manufacturing and management operations and provide new sources of profit. Manufacturing IoT solutions help to enable efficient agile operations and inventory management. Smart devices allow monitoring the usage of products and post-sale services to analyze the experience and rearrange expenses.
  • Improve planning and scheduling
    Smart manufacturing IoT technologies are aimed at automating processes. Digital transformation of manufacturing allows companies to organize automated production planning and operations scheduling as well as real-time monitoring instead of manual inspection.
  • Quicken commercialization
    Manufacturing businesses tend to use the IIoT to shorten the time of the product cycle, so the manufactured goods are delivered to the market for sale times faster. It’s possible thanks to the IIoT manufacturing solutions that make the production process and supply chain operations more efficient.
  • Improve safety
    A high-quality IoT device in manufacturing assures workplace safety. Contact Atlasiko Inc. to get special manufacturing Internet of Things solutions that can monitor employees’ health state and conditions of the work environment.
  • Boost production quality
    Industrial IoT sensors allow quick detection of any flaws in products so clients won’t happen to get goods with problems. It significantly increases the overall quality of released production.
  • Facilitate mass customization
    Automation of manufacturing processes enables the organization of mass production of customized products in accordance with the set standards, increasing the variety of goods. As the IIoT is a flexible system, manufacturing companies using the Internet of Things technologies can easily set up mass customization.
  • Enhance customer satisfaction
    The better quality with which companies manufacture goods, the more satisfied clients are with their purchases, and the easier to build long-term relations. Industrial IoT devices and software provide maintenance tools and assessment systems to assist in quality improvements.

Components of IIoT in Manufacturing

For a better understanding of how IIoT works, let’s look at the components of manufacturing IoT that are linked and provide proper functioning of IIoT systems.

  • Smart assets
    Intelligent asset is a set of devices, controllers, and software that are connected with one another in order to enable communication with local intelligence and perform analytics via the connection of these network items. Smart assets can include digital equipment, edge devices, plants instrumentation, and embedded systems.
  • Data communication infrastructure
    Smart assets can function at their full capacity only with the help of data communication infrastructure which connects these items via the network and enables data transfer. Industrial IoT is mostly implemented on the basis of cloud infrastructures that allow such systems quickly pass on, process, and manage data.
  • Applications and Analytics
    Industrial IoT software is aimed at processing and analyzing the data collected by manufacturing IoT devices. Atlasiko Inc. also develops special on-demand software with unique interfaces that can connect with other the IIoT solutions. Our cloud-based applications for manufacturing bring companies such competitive advantages as system flexibility, higher speed and security levels.
  • Manpower
    Although, the manufacturing IoT is initially created to reduce workers' involvement in the production and management process, manpower is still one of the significant components of the IIoT system. Definitely, in comparison with old methods in manufacturing, employees’ work is facilitated to the maximum level in companies that use the IIoT in manufacturing. In terms of interactions with the IIoT, people there are mostly responsible for the decision-making processes in accordance with data that they get from Industrial IoT devices.

3 aspects of the IoT impact on Manufacturing

Manufacturing Internet of Things bring innovations to the old production operations making them more efficient, economical and simplified. Specialists of any IoT factory define 3 main areas of the manufacturing process that get to be influenced and transformed by Industrial IoT devices.

Shop floor operations

Implementation of the Industrial IoT in the manufacturing process allows companies to ensure visibility of shop floor operations. Industrial IoT sensors embedded into IoT machines assist in collecting real-time data and metrics about operations and the quality state. After this, all gathered information is transferred to the cloud-based software that analyzes and manages it. Then shop floor managers see the analytics results with details in a special user application, which is also a part of the manufacturing IoT system. Such an IIoT cycle provides managers the opportunity to control shop floor operations in the most efficient way, quickly detect issues in the production process and apply new technologies and strategies without interruption of the workflow by simply adding new specifications to the IoT machines. The IoT for manufacturing makes shop floor operations safer for employees thanks to wearable IIoT devices. Such solutions can assess conditions of environments, record health indices, etc.

Supply chain

Alasiko Inc. provides businesses with high-quality supply chain management solutions. Our services include the development of responsive IoT software that can assist companies in controlling manufacturing supply chain organization. The program can monitor and track the delivery of supplies, their distribution within the manufacturing plant, and detailed info on their characteristics, conditions, pricing, etc. All these capabilities help to organize accurate calculations of materials and reserves of goods, and keep in check their transportation and storing conditions. Internet of Things manufacturing devices assist managers in establishing and managing supply operations as seamlessly as possible.

Remote and third-party operations

Modern enterprise companies mostly have more than a single location. Moreover, they might outsource some operations in order to make production cheaper and more effective. To establish the connection with separate branches and control all operations together, factories use Industrial IoT solutions. The utilization of the manufacturing IoT ensures that managers and contractors can monitor production activities and procedures that are remote or outsourced by third-party companies. This way it’s easy to regulate distributed manufacturing processes, quality standards, and transparency of business operations.

Challenges in the adoption of Manufacturing Internet of Things

  1. Issues of data security
    Despite the increasing number of devices connected with the IoT technology, a number of concerns have emerged about the security of their data. About 60% of IIoT adopters believe that the risk of cyberattacks is increasing , albeit 30% of them don’t have a plan to strenghen their cybessecurity systems to prevent losses. As the number of devices continues to rise, the number of security threats that are expected to affect the Industrial IoT devices will also increase.
  2. A gap in employees’ skills
    A survey conducted by satellite communications company Inmarsat revealed that almost 70% of businesses have a shortage of qualified employees who are able to handle the various aspects of the development and implementation of the IoT in manufacturing. Another study by Ubuntu revealed that 80% of companies lack skills in the areas of security, analytics, and embedded software development. These skills are in demand due to the increasing number of manufacturing Internet of Things devices and the complexity of the data they collect.
  3. Significant investment requirements and lack of assurance of ROI
    There are many factors that businesses have to consider when it comes to investing in the IoT manufacturing. Some of these include the cost of hardware, connectivity, and technical support. In addition to these, there are also other factors that businesses have to think of such as the time it takes to roll out new IoT solutions for manufacturing and the revenue they can expect to generate.
  4. Issues with the integration of the IoT in manufacturing
    Integrating the IIoT in manufacturing without data loss or security lapses is a complicated task. Nowadays, the growing use of web-based user interfaces and Ethernet protocols at the machine level are facilitating the integration process, but the problem still has to be solved. Only experienced professionals, like Atlasiko Inc., can perform integration services successfully and make sure that all systems are interconnected with new solutions properly.
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IoT use cases in Manufacturing

Remote Monitoring and Production Control

Leaders with industrial assets may benefit significantly from investments connected with the IoT and manufacturing, and remote monitoring is a fantastic use case to watch out for. Smart IIoT devices can track the health and utilization of the equipment, which aids in performance assessment. Additionally, if there are any issues, the sensors can assist in deploying the service. The equipment-as-a-service business model also opens up new avenues for IoT device manufacturers.

Digital Twins

IoT technology, artificial intelligence, machine learning, and cloud computing serve as the foundation for the Digital Twin technologies. The usage of digital twins, which are virtual replicas of actual products, on the production line many consider as highly beneficial. Engineers and administrators may replicate various processes, run experiments, identify problems, and get the data they need without endangering or harming tangible assets by using virtual duplicates of machinery and replacement parts.

Logistics Management

Because manufacturers have little control over the weather, logistics can be dangerous. Additionally, there is a high possibility of fraud, and there are a lot of assets that require to be maintained. Businesses that rely heavily on transportationtend to choose IoT systems and device integration. Industrial IoT software in logistics can handle a variety of use cases in a typical distribution chain, including cargo tracking, fleet management, and warehousing. Therefore, IoT machines and technologies are major drivers of digital transformation.

Manufacturing KPIs

Key Performance Indicators, or KPIs, in building with machines that manufacture goods are quantifiable measurements that provide vital information about the operation's performance. Since they are defined and established to assist firms in focusing on what is most crucial, the criteria are significant for manufacturers. In addition to this, they may monitor, assess, and improve performance over time. Industrial IoT sensors help to determine perfect metrics for high-quality standards and machine shop IoT apply them in the mass production process automatically. IoT manufacturing solutions also assist in monitoring and controlling of KPIs’ application on products.

Predictive Maintainance

Embedded IoT sensors in the manufacture machines can detect any operational issue (concerning temperature, turning number, pressure, voltage, etc.) and notify responsible staff about the deterioration of hardware, leaving workers to only fix problems. This eliminates the need for human involvement in the identification of potential defects in the performance of devices.

Predictive maintenance is a technique enabled by manufacturing IoT devices which helps technical support teams to identify problems before they can cause serious demage. All this is possible thanks to industrial IoT sensors and inbuilt analytics system of manufacturing Internet of Things.

Industrial Asset Management

Manufacturers can use online or mobile applications to get and keep track of real-time data regarding all of their assets. As a modern IoT manufacturer company, Atlasiko Inc. provides you with IIoT solutions that can track different asset management operations. 

  • Vehicle for moving products and raw materials
  • Inventory items
  • Resources connected to the production process
Сar on the Сonveyor Industrial iot

Through the use of Industrial IoT devices, managers and employees can monitor and improve assets at every stage of production, from the supply chain to the finished product. Asset monitoring enables the quick and precise identification of defects that have a detrimental impact on time-to-market or product quality.


Now you know what the Internet of things value is and how IIoT works. The manufacturing IoT helps industrial businesses run more efficiently by ensuring steady workflow, reducing costs, and reducing spending. Manufacturers can enhance consumer experience, more precisely predict market demands, shorten time to market, and comprehend the distribution network and industrial processes better by employing IoT data. But given the size and complexities of the Industrial IoT activities, precise coordination of Industrial IoT software design and execution segments is required for effective adoption of the IoT in manufacturing. Atlasiko Inc. offers IoT development services that can help manufacturing businesses to boost production and management processes. Our IoT solutions for manufacturing will assit you in achieving your business goals faster and with less expenses. Contuct us to get more details about our IT services.

Nataliia Huivan
Nataliia Huivan
Professional author in IT Industry

Author of articles for Atlasiko Inc. I do my best to create qualified and useful content to help our users to understand more about software development, modern IT tendencies and practices. Constant innovations in the IT field and communication with top specialists inspire me to seek knowledge and share it with others.

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