The global industrial internet market will grow at a compound annual rate of 16.3% between 2024 and 2029, more than doubling in size over the same period, a new report forecasts.
According to the 2026 edition of GlobalData’s Industrial Internet report, the market will be worth over half a trillion dollars by 2029. Among its biggest segments will be manufacturing, accounting for nearly a fifth, followed by transport and logistics.
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The industrial internet, also known as the industrial internet of things (IIoT), refers to the use of connected sensors and actuators to control and monitor industrial machinery environments, helping to detect faults early and predict maintenance requirements. Its use is therefore increasingly widespread in manufacturing, with investment in smart manufacturing and operations forecast by GlobalData to grow in the second half of the decade “as manufacturers seek to improve competitiveness, agility and resilience amid an uncertain global business environment.”
Smart manufacturing uses data from machines and sensors to optimise production, improve quality and keep equipment running smoothly. Data from across the supply chain helps forecast potential disruptions, such as technical or maintenance issues, with many of those data streams now also harnessed to with AI models to predict and address potential equipment failures before they happen.
In this way, the Industrial Internet report suggests that industrial maintenance has moved from “chaotic, reactive approaches to a more ordered, predictive approach driven by data.”
“The combination of IoT sensors, cloud, AI and data analytics enables continuous monitoring of industrial equipment,” it explains. “According to a 2024 survey by Siemens, by adopting predictive maintenance, companies can reduce unplanned machine downtime by up to 50%, improve downtime forecasting accuracy by 85%, increase maintenance staff productivity by 55% and cut maintenance costs by 40%.”
AI is reshaping the industrial internet
The report also states that AI will reshape the industrial internet by making connected devices smarter. It explains: “AI is transforming the Industrial Internet by delivering advanced analytics, intelligent automation, and real-time decision-making. That is leading to massive gains in operational efficiency, predictive maintenance, quality control, and safety.
“By processing large amounts of data, AI can identify patterns to optimise processes, predict equipment failure, and reduce waste. Manufacturers have reported improved defect-detection rates, while logistics operations have also increased efficiency through autonomous routing and scheduling, leading to a drop in inventory and logistics costs of more than 20%, according to McKinsey.”
