Industry 4.0 to be lead application for IoT within 5 years

July 06, 2021 // By Jean-Pierre Joosting
Industry 4.0 to be lead application for IoT within 5 years
Third annual IoT Survey from Farnell also confirms rise in IoT for medical applications due to the COVID-19 pandemic, leading to an increasingly connected world.

Farnell, an Avnet Company, has published new research on the Internet of Things (IoT) which reveals the growing role of IoT for industrial automation and control applications essential to the delivery of Industry 4.0. The IoT Survey, which is run annually by Farnell, generates new insights on this key market, including opportunities and challenges for engineers working in IoT.

The top three industry segments leading the way in IoT applications are industrial automation and control (25%), home automation (18%) and artificial intelligence (12%). Despite industrial automation and control being deemed a key market for IoT, there is recognition that Industry 4.0 adoption remains slow, primarily due to concerns over security (32%) and lack of business strategy (30%) hindering the adoption and integration of smart manufacturing solutions. Security continues to be the most important aspect for developers to consider (29%) when developing their design, and it is also their primary concern (36%), followed by connectivity and interoperability.

The perceived value of data collected by IoT connected devices is a considerable factor in the adoption of IoT. The increasingly connected world of smart cities, factories, homes and vehicles now has devices and systems autonomously exchanging and storing data. This data offers organisations the ability to make improvements, increase profits or reduce costs across many business functions while delivering improved quality, increased efficiency, compliance and predictive maintenance benefits. In the survey, 48% of respondents cited productivity and manufacturing enhancements as their main reasons for designing-in IoT connectivity.

Not unexpectedly, respondents continue to adopt AI as part of their solutions. 39% said they are using AI in their designs already and a further 47% say they would be willing to implement AI within future projects. Environmental sensors are reported as the most common sensors used within IoT devices, used to measure temperature, humidity, pressure, gas and more. This has been a consistent trend in each of the three years that Farnell has run the survey. The survey also found that a large number of respondents are using SBCs as the core of IoT designs (48%).

Innovative offerings for smart home, industry, marketplace and government are paving the way to build the future of IoT. Research showed that the IoT continues to be important for future designs. Nevertheless, when asked whether their company is taking a leadership position in the future of IoT, half of respondents (49%) stated they have 0-25% confidence that their company will take a lead role in shaping IoT. Only 11% of respondents expected to be ahead of the IoT curve and have a clear vision about its future.


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