Industrial IoT in India: Niche Market Grows on the Back of Domestic Demand
The Indian IIoT segment, valued currently at US$1 billion, is populated by technology startups who have traditionally focused on mature Western markets.
Now, concerns about developing industrial efficiencies, creating sustainable models, and increasing output are driving the local manufacturing sector to seek technology-enabled solutions.
Investments into or the acquisition of Indian tech startups in recent months is further feeding sector-wide interest, and has become a big part of the brownfield landscape.
For instance, the acquisition of Zenatix, a provider of IoT based energy monitoring and control products by Hero Electrix and Hitachi’s investments into the startup Flutura, which focuses on machine to machine and big data analytics.
Industrial IoT foresees the integration of digital technology, data analytics, and industrial machinery so that machines communicate with operators and each other.
This entails a convergence of industry and technology, which when applied to business can allow for customized production targets, flexibility in operations, and easier scalability; it also creates the need for new products and service lines.
Use of data intelligence, applied through IIoT, provides businesses with real-time actionable insights and improves their ability to stay competitive and relevant.
In simpler terms, it means that machines such as gas turbines, jet engines, medical devices, or locomotives will be able to listen and respond as well as predict and react. This could in turn mean a reduction in the downtime of factory equipment, efficient fuel consumption by engines, less delays in the services industry, and better traffic management, among others.
Decline in the costs of sensors, storage and processing of data, and electronic equipment have incentivized the research and development into connectivity mechanics in recent years.
Increasingly, technology startups in India have begun to innovate hyperlocal solutions to long-standing challenges in the country’s industry, agriculture, and logistics sectors – and offer these products to the global market.
While previously companies in India were reluctant to adopt such technologies, results of their application in Western and Chinese industrial sectors have pushed local firms to restrategize.
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