IoT Shaping the Future of Automation & Manufacturing

The Internet of Things (IoT) has permeated more than half of the industries across the globe, connecting physical objects with the Internet, and creating an interactive communication network that requires no human intervention. A survey (Global 95 discrete manufacturers 2018/19) from IDC reports that nearly 55% of discrete manufacturers are researching, piloting, or in production with IoT initiatives in the manufacturing sector. Manufacturing is currently the fifth-leading segment to incorporate this technology. Factory premises, smart software, interconnected sensors, automation devices, and wireless internet connectivity can all be used to create products and provide a foundation for an Industrial Internet of Things (IIoT)/Industry 4.0.

Digitization of Manufacturing Operations: Considering Germany as a manufacturing sector hub, the figure below depicts the strong commitments of industrial companies in Germany/Europe to bring technological advances to their factories:

IoT has brought positive disruptions to the manufacturing processes, pushing automation into a new high-tech future. Manufacturing industries are process-driven, and manufacturing-specific IoT software connects IoT endpoints such as sensors and controllers to detect workflow inefficiencies.

Manufacturing industries are deploying IoT in three major areas: product development, traditional supply chain, and manufacturing processes.

IoT in traditional product development helps document actual product performance, creating early warning and detection signals to drive quality improvement in future products. At the same time, a connected supply chain is more focused on the adoption of mobile devices, using RFID and GPS technology to enable better tracking of inventory and assets.

Looking for a more in-depth analysis of the industrial technology and IoT sectors? 

If you are interested in discussing the current state of the capital markets within Industrial Technology or the broader Industrials industry, please contact us using the form provided below. We welcome the opportunity to learn how we can assist you in navigating today’s dynamic M&A environment and maximizing your strategic objectives. Our industrial technology investment banking team has a comprehensive understanding of the strategic, financial, and operational factors impacting middle market companies and has a long track record of success in representing companies in M&A advisory.