How IoT is Transforming Industries – Benefits, Use Cases & Examples

The Internet of Things (IoT) is the network of interconnected devices that communicate and share data over the Internet without human intervention. In simple terms, IoT connects everyday objects to the internet to enable data collection, analysis, and automation to improve efficiency, convenience, and functionality in various aspects of life.

Imagine you are on a road trip to a nearby town for a meeting. As you are driving, a notification pops up on your device, alerting you about the low petrol level in your car. You’re momentarily confused, but before you can react, another message appears on your smartphone, providing details about the nearest petrol station.

Wondering how is that possible? Well, it is nothing but a real-life example of IoT.  To be concise, IoT is transforming industries across the globe including healthcare, homes, cities, etc.

IoT can add value to the modern business world in many ways, redefining how businesses use devices in the workplace. IoT-enabled devices are equipped with advanced functionalities to autonomously exchange data over a network, communicating with each other in real-time, thereby automating tasks and optimizing workflows. Consequently, businesses of all sizes across industries are leveraging the power of IoT in many different ways, ensuring equipment maintenance, regulatory compliance, cost saving, and so on.

According to McKinsey, by 2030, developed nations are projected to represent 55% of the total IoT economic value. However, China, with its widespread adoption of 5G technology, is poised to be a prominent player in IoT expansion, accounting for 26% of the total value during this forecasted timeframe.

Interested in exploring the various use cases of IoT in businesses and how IoT is transforming industries? Let’s talk about it in detail in this article – starting with some exciting statistics that exemplify why IoT is gaining immense popularity across the globe.

Why Is IoT Rapidly Gaining Popularity?

The pervasive reach of the IIoT ‘Industry Internet of Things’ has impacted virtually every sector, driven primarily by factors like population growth and urbanization. While the use of IoT is seen mainly in smart cities, it significantly transforms other industries, such as healthcare and manufacturing. These sectors are projected to hold the largest share of the global IoT market. Owning its transformative impact across industries and its infinite potential for connectivity, the Internet of Things cements its status as a ubiquitous phenomenon.

Still unsure about the growing dominance of IoT in the modern business world? Let’s uncover some IoT industry trends and growth statistics because numbers don’t lie.

• The global IoT market is witnessing exponential growth, reaching a staggering revenue surge of $1,387.00 billion by 2024. Looking ahead, it is poised to surpass the substantial market volume of $2,227.00 billion by 2028, growing at a CAGR of 12.57%  from 2024-2028.
• Among various segments, Automotive IoT is anticipated to dominate the market, with a substantial market volume of  $494.20 billion in 2024. It leaves behind Industrial IoT, with $325.80 billion in revenue in the same year, while Enterprise IoT is projected to reach $483 billion by 2027.

• The potential economic value that the IoT could bring to businesses is large and growing. According to McKinsey research, IoT could enable $5.5 trillion to $12.6 trillion in value globally by 2030. The research found that IoT in manufacturing can generate the largest value by 2030, which is around 26% of the total potential value. Next, IoT for healthcare is evaluated to bring up to $1.76 billion in revenue.
• There is also an impressive number of IoT-connected devices in the world. According to Statista, the total number of devices connected to IoT is forecasted to reach 30.9 billion units by 2025, a sharp jump from 13.8 billion units in 2021.

Now that we have seen the growing dominance of emerging IoT technologies and how they can revolutionize the business world in the future, let’s explore how IoT is transforming industries with its various applications and advantages. But first, let’s understand how IoT works and its essential components.

Also Read: The Intersection of IoT and Robotics: Transforming Industries and Workforce

How IoT Works

IoT devices have built-in sensors that are connected to IoT platforms. These platforms are like big warehouses where all the data from the connected devices is stored. Then, we use this important data to do things that people need.

Now, just because all this data is stored on these platforms doesn’t mean it is useful. The devices are smart enough only to pick out the data that really matters for getting things done. This chosen information helps spot patterns, make suggestions, and even catch problems before they become big issues. This is how an IoT application works with smart systems that automate tasks to meet specific needs.

Major Components of the IoT Ecosystem

The IoT ecosystem consists of several major components, each playing a crucial role in enabling the seamless operation of IoT solutions. These components include:

Sensors/Devices

Sensors/devices are the foundational components of IoT and are responsible for collecting data from the physical environment. The environment can have many complexities, and IoT devices have built-in sensors that gather information such as temperature, humidity, motion, and more that will be used later. For instance, smartphones have built-in sensors like GPS, camera, etc.

Connectivity

IIoT Connectivity solutions enable communication between IoT devices and platforms. This includes various IoT connectivity technologies such as Wi-Fi, Bluetooth, Zigbee, Z-Wave, Cellular networks (2G, 3G, 4G, 5G), and Low-Power Wide-Area Networks (LPWANs) like LoRaWAN and NB-IoT. These mediums are all different and must be chosen wisely for best results. The effectiveness of IoT security highly depends on the speed and availability of these mediums.

Data Processing

After reaching the cloud infrastructure, the data is analyzed to determine the appropriate course of action. However, this step is often regarded as one of the most critical challenges in IoT application development because the analysis can be as simple as monitoring AC temperature to as complex as identifying intruders via camera surveillance. Consequently, IoT applications are engineered to swiftly process all the data, enabling prompt decision and action-taking.

User Interface

The last step is when the user is notified about the action with the help of a notification or an alert sound sent to the IoT mobile apps. This way, the user will know that his command has been run through the systems. However, this is not as easy as it seems. It all depends on how IoT technology is developed. Thus, it is essential for IoT app development companies to build a system that can also be manually adjusted. For instance, when a refrigerator’s temperature is not cold enough to freeze ice cubes, users should be able to do that manually without the system backfiring.

Also read: How to Use AI to Design Better Mobile App User Experience?

Top Use Cases of IoT for Industries

There is a wide variety of ways the IIoT can add value to the modern lifestyle and the corporate world. It helps businesses streamline operations and make informed decisions, and therefore, it is widely adopted across all industries. IoT technology enables a wide range of applications across various domains, including smart home devices, consumer electronics, wearables, healthcare devices, industrial sensors, and more. Let’s look at the top industries that can benefit from IoT applications.

Real Estate

When discussing IoT transformation in industries, real estate tops the rank with its integration into devices like cameras and sensors. These IoT-enabled devices provide extensive data about properties and their surroundings, including nearby facilities, neighborhood views, safety measures, and more. Real estate agents can aggregate this data for the listing and browsing of properties in a user-friendly manner. Also, IoT technology redefines the real estate economy by speeding up the decision-making process, offering more energy-efficient options, making space smart, and more.

Here are some real-world use cases of IoT in real estate:

Smart buildings: IoT in real estate monitors environmental conditions such as temperature, humidity, and air quality. It helps optimize energy usage and occupant comfort in commercial and residential buildings.

Building security: By monitoring entry points and detecting unauthorized access, IoT-enabled surveillance cameras and smart locks access control systems and enhance building security

Facility management: IoT devices track equipment performance and maintenance needs in real estate properties, enabling predictive maintenance and reducing downtime.

Manufacturing

IoT plays a pivotal role in acquiring crucial information and insights within the manufacturing sector. It facilitates monitoring the production process, enhancing worker safety, identifying potential issues, and pinpointing areas of weakness. Remarkably, IoT solutions enhance production quality, boost efficiency, minimize waste, and elevate workers productivity and safety.

According to MarketsAndMarkets research, the market for IoT in manufacturing is expected to reach $53.8 billion in 2025, growing from $33.2 billion in 2020 at a CAGR rate of 10.1%.

(Also read: 5G and IoT: Emerging Technologies With Endless Use Cases)

Here are some real-world use cases of IoT in manufacturing:

• Predictive maintenance: IoT sensors monitor equipment conditions in real time, predicting when maintenance is needed to prevent downtime.
• Supply chain optimization: IoT-enabled tracking and monitoring of inventory, equipment, and shipments helps streamline logistics and improve efficiency.
• Smart factory automation: The Industrial Internet of Things controls and optimizes production processes, leading to increased productivity and reduced waste.

Healthcare

IoT in Healthcare has opened the door to endless opportunities for medical specialists and patients. The purpose of Internet of Things data is to enable doctors to get real-time access to patient medical data, store them on the cloud, and share them with others. It also cuts down the waiting time, helps to check the availability of hardware and equipment, and simplifies the process of identifying chronic diseases and taking the right actions to mitigate the risk.

According to Grand View Research, The global IoT in healthcare market was valued at $44.21 billion in 2023 and is anticipated to increase at a CAGR of 21.2% from 2024 to 2030. This exponential market growth is driven by several factors, including the increasing usage of wearables, smartphones, and smart devices to monitor patients.

Here are some real-world use cases of IoT in healthcare:

• Remote patient monitoring: Devices connected with IoT help track vital health metrics, allowing healthcare providers to monitor patients outside of traditional clinical settings.
• Asset monitoring: IoT sensors track medical equipment and supplies, reducing inventory costs and improving asset utilization.
• Telemedicine: The technology facilitates remote consultations and virtual care delivery, improving access to healthcare services, especially in rural or underserved areas.

You may like reading: 7 Trends Shaping the Future of Telemedicine in Healthcare.

Finance

Technological progress and the advent of IoT influence every industry, and finance is no exception. In recent years, banks have increasingly embraced data analytics and IoT connectivity technologies. These technologies enable the collection of extensive customer data, facilitating the provision of personalized services and preventing fraud.

Here are some real-world use cases of IoT in finance:

• Security and fraud detection: Financial institutions can deploy IoT sensors and cameras in bank branches, ATMs, and digital banking platforms to detect and prevent fraudulent activities, unauthorized access, and security breaches.
• Customer service: IoT-enabled chatbots and virtual assistants provide personalized banking assistance and offer 24/7 support to customers through various channels such as websites, mobile apps, and smart devices.
• Risk management: IoT sensors gather data on environmental factors, market conditions, and customer behavior. This data allows financial institutions to assess and mitigate risks related to lending, insurance, and investment portfolios.

Related Article: IoT in Fintech – How It’s Transforming the BFSI Sector

Education

Industrial IoT technologies are also revolutionizing the education sector. They are connecting educators and students worldwide to ease the process of sharing knowledge, reduce the barrier to gaining access to any data, and introduce security in the education system.

Here are some real-world use cases of IoT in education:

Smart classrooms: IoT devices such as interactive whiteboards, sensors, and wearable gadgets enhance the learning experience by providing personalized and interactive lessons.

Campus safety: IoT-enabled surveillance cameras and access control systems improve campus security by monitoring activities and providing real-time alerts in case of emergencies.

Asset tracking: IoT tags track the location of school equipment, textbooks, and other resources, reducing loss and theft while improving inventory management. According to IoT Analytics, remote asset monitoring is the most widely embraced use case of IoT in industries, with 34% of companies interviewed in a survey have adopted it.

Retail & eCommerce

Another domain that is enjoying a myriad of opportunities from the Internet of Things technology integration is retail. Industry Internet of Things delivers a competitive edge to retailers with the help of  RFID tags and smart shelves. With industry IoT solutions, the retail sector finds it easier to deliver personalized experiences to its vast user base, automate checkout processes, perform maintenance effortlessly, and more.

According to Grand View Research, the global IoT market in retail was valued at $42.38 billion in 2022 and is poised to grow at a CAGR of 28.4% from 2023 to 2030.

Here are some real-world use cases of IoT in the retail sector:

• Smart shelves: Retail giants like Amazon, Walmart, etc. leverage IoT-enabled shelves to detect product levels and trigger alerts for restocking, optimizing shelf space, and reducing stockout situations.
• Personalized marketing: IoT beacons and sensors analyze vast troves of data to track customer behavior in-store. This data empowers retailers to deliver targeted promotions and offers.
• Inventory management: IoT sensors track merchandise levels in stores and warehouses, enabling automated inventory management and reducing the risk of overstock.

For instance, Walmart utilizes IoT data analytics and sensors to optimize inventory management across its vast network of stores. By tracking inventory levels in real-time and predicting demand patterns, Walmart ensures shelves are stocked with the right products, minimizing stockouts and stockouts while maximizing sales opportunities.

Travel & Hospitality

IoT is transforming industries like travel and hospitality by redefining the way businesses operate and serve their customers. By leveraging IoT technologies, hospitality agencies can provide real-time updates, automate key processes, and offer secure electronic key cards directly to guests’ smartphones. This integration of IoT in the travel and hospitality sector facilitates a more comfortable journey and stay for users, ultimately elevating the convenience, efficiency, and security of guests in the digital age.

Here are some real-world use cases of IoT in travel and hospitality:

• Smart hotels: IoT devices in hotel rooms control temperature, lighting, and entertainment systems based on guest preferences. It helps provide personalized experiences and energy savings.
• Baggage tracking: IoT tags and sensors track the location of luggage in real time, reducing lost baggage incidents and improving the passenger experience.
• Smart airports: IoT sensors meticulously monitor passenger flow, baggage handling, and airport facilities. This real-time data analysis optimizes operational efficiency, minimizes wait times, and enhances the travel experience for passengers.

Also Read: What is IoT in Aviation: Benefits, Applications and Challenges

Sharing Economy

The combination of IoT and Blockchain, i.e., (Blockchain of Things) is reshaping the sharing economy. The dual technologies are helping to build an online marketplace where data from all the companies and stores can be stored and shared securely using the concept of Smart Contracts.

Here are some real-world use cases of IoT in the sharing economy:

• Peer-to-peer rental platforms: IoT-powered locks and sensors allow for keyless access to shared spaces such as vacation rentals, coworking spaces, and shared vehicles.
• Payment automation: In the sharing economy ecosystem, IoT facilitates seamless transactions and revenue sharing between users and providers.
• Asset sharing: IoT devices track the usage and condition of shared assets such as bicycles, scooters, and tools. This information helps optimize asset utilization and schedule maintenance.

Also Read: AI and IoT in business driving innovation across industries

Business Benefits of IoT in Industries

The benefits of IoT in the industry are vast and diverse, spanning various aspects of operations to enhance efficiency and customer experience. In more elaborate terms, IoT’s integration into different industries can be instrumental in the following aspects:

Greater Connectivity

IoT connects different devices, systems, and individuals across the organization, facilitating seamless collaboration and communication. This interconnectedness enables real-time information sharing, remote monitoring, and agile responses to changing conditions.

Enhanced Safety and Security

Maintaining top-notch security of critical data and infrastructure is the prime concern for any business. IoT integration empowers businesses to improve the safety of physical assets, facilities, and environments. From surveillance cameras and access control systems to environmental sensors and fire detection systems, IoT helps businesses mitigate risks and respond to emergencies more effectively.

For instance, IoT sensors monitor employees working in high-risk workplaces like construction, manufacturing, or real estate and notify them instantly if any danger persists.

Improved Customer Experience

IoT plays a crucial role in enhancing customer experience. From smart retail stores that offer personalized recommendations to smart homes that adjust settings based on user preferences, IoT enhances convenience and satisfaction. Various industries, such as eCommerce, manufacturing, healthcare, agriculture, oil and gas, etc., leverage the maximum potential of IoT to enhance customer satisfaction and gain competitive advantages.

Improved Operational Efficiency

IoT transformation enables businesses to monitor and optimize processes in real-time, increasing productivity and reducing operational expenses. Businesses can use the vast volume of data produced by IoT devices to automate routine tasks and gain actionable insights, minimizing manual intervention and errors.

Cost Savings

Cost saving is one of the most integral advantages of the ‘industry internet of things.’ Industrial IoT (IIoT) technologies help businesses optimize resource utilization, reduce energy consumption, and minimize downtime through predictive analytics. By proactively identifying and addressing potential issues, businesses can avoid costly equipment failures and maximize the lifespan of assets.

Partner with Appinventiv to Elevate Your Digital Transformation Journey with IoT

The Internet of Things is revolutionizing the way we interact with technology, making our lives more convenient, efficient, and connected. With devices seamlessly communicating and sharing data, IoT opens up endless possibilities for automation, optimization, and innovation across various industries.

Unsurprisingly, IoT is a revolutionary technology offering transformational solutions to businesses of all sizes. By taking a proper approach to IoT implementation, organizations can unlock the full potential of IoT solutions for industries and benefit from increased operational efficiency, real-time visibility, reduced operating costs, improved decision-making, and data-driven predictive insights.

So, if you are looking for a trusted tech partner to bring your IoT vision to life, turn to  Appinventiv. Our IoT experts recognize the power of IoT transformation and have proven experience in developing cutting-edge IoT solutions for various industries. For instance, we developed an intuitive gesture-recognition application modeled on IoT Technology for ActiDrive, enabling drivers to drive hassle-free.

This advanced IoT solution for the automotive industry ensures driver safety and security, enabling drivers to focus entirely on the road while giving them complete control of their mobile devices in a touch-free setup. The device also works as a tracker to monitor users’ trips and remember the route, time duration, and distance covered.

As a leading IoT application development company in automotive, agriculture, manufacturing, smart homes, healthcare, and beyond, we can help you experience how IoT is transforming industries and different aspects of our lives.

If you still have any doubts about how IoT works or wish to design an IoT-based solution for your business, contact our IoT experts today.

FAQs

Q. What does IoT mean, and how does it work?

A. IoT refers to an ecosystem of interconnected devices that share information with each other without human intervention. These devices, equipped with sensors and connectivity features, collect and exchange data to enable automation, monitoring, and control across various applications. Different IoT applications available in the market are Smart homes, Smart Grids, Wearables, Connected Health devices, etc.

IoT connectivity technologies and devices empower businesses to streamline operations, enhance productivity, improve decision-making, and create new opportunities for innovation and growth across various domains.

Q. What is the cost of building an industry IoT solution?

A. The cost to build industry IoT solutions can vary significantly depending on various factors such as the project’s complexity, the number of devices to be connected, the required features and functionalities, the location of IoT developers, and the level of customization.

On average, industry IoT solutions cost between $30,000 and $300,000 or more. Businesses must conduct thorough analyses of cost-determining factors to determine the precise cost estimate required for their specific IoT project. Alternatively, you can connect with our IoT experts to get a more precise estimate of IoT solution development costs and timeline.

Q. What is the timeline for developing an industry IoT solution?

A. The timeline for building an industry IoT solution can vary depending on various factors, such as the complexity of the project, the scope of integration, and the availability of resources. Typically, the timeline for industry IoT solution development ranges from four months to a year or more. However, the specific timeline is determined by your project’s specific needs and objectives. Consult with our IoT experts to get a more accurate timeline for IoT solution development.

THE AUTHOR

Nayan Sharma

AVP - Technology Presales