Companies building applications and appliances for the Internet of Things (IoT) are expected to invest over $500bn by 2020, a 2,400% increase from the $20bn spent in 2012.
The opportunity means a huge boost in revenues and improved decision-making for industrial companies, according to the report by Accenture.
Particularly, companies that introduce automation and ‘flexible’ production techniques to manufacturing can boost productivity by as much as 30%.
Predictive maintenance technology is also expected to save companies up to 12% in scheduled repairs, reduce costs by up to 30% and eliminate breakdowns by 70%.
Accenture CTO Paul Daugherty said: "Business customers will always need products and services that create more value for them.
"Michelin Group is using sensors inside tires that, combined with analytics, can coach truck fleet drivers on how to save fuel. Daimler AG, the carmaker, has created a rental service called Car2Go that forgoes the typical centralised rental office in favour of a downloadable smartphone app that allows users to access cars directly wherever they are parked."
He added: "For those companies looking to build a more innovative mousetrap – a new product-service hybrid that will completely revolutionise their company or industry – now is the time to harness the emerging Industrial Internet of Things to identify new growth opportunities and, with the right vision and leadership, turn them into reality."
According to the report, there are three major routes for growth in industrial companies. Firstly, companies can boost revenues through increased production. Secondly, they can innovate through new technology and finally, they can transform their workforce around the IoT.
The report added: "To reap the full benefits of the Industrial Internet of Things…companies must exploit sensor-driven computing, industrial analytics and intelligent machine applications and weave together enterprise and machine-generated data to create new monetisation opportunities."