The Internet of Things (IoT) is expected to lower operating costs for manufacturers as a wave of new applications and investments transform their products, services and operations this year.
The latest IDC Manufacturing Insights report looked at manufacturers’ prospects and found that IoT applications for processes and products are essential for future prosperity.
It also found that manufacturers have high expectations for the IoT’s impact on lowering operational costs.
The report pointed to investments in smart manufacturing, where benefits of applications include an increase in production output, workforce safety, product quality and energy efficiency.
It added that IoT investments in vehicles and industrial machinery would improve product performance, remote diagnostics, remote maintenance and remote operations.
Kimberly Knickle, practice director at IDC Manufacturing Insights and author of the report, said: "As IoT provides the basis for an increasing amount of automated data acquisition, manufacturers will be able to adapt their processes and their products not just for incremental improvements but also for more transformative purposes, including self-healing or autonomous processes and capabilities that evolve into new business models."
The report also predicts that by 2020 at least half of all corporate stand processes will have automated data acquisition (DAQ) systems, while a quarter will have self-correction capabilities.
