Connected Machines Market Trends

Growth Drivers

• Advancements in industrial automation: The surge in the deployment of industrial automation is propelling the growth of the connected machines market. These machines facilitate predictive maintenance combined with real-time asset tracking and intelligent process control to develop manufacturing into an efficient data-driven ecosystem. Governments across the globe are making significant investments in the manufacturing ecosystem. For instance, in July 2024, the U.S. National Institute of Standards and Technology (NIST) invested nearly $139 million in smart manufacturing projects under the Manufacturing USA initiative, for the acceleration of manufacturing automation in the country. This development is boosting the production efficiency, further driving the market growth.

• Consumer demand for smart devices: The rising demand for intelligent devices worldwide is driving manufacturers to adopt IoT-powered connected technologies. Initiatives such as Digital India and Make in India by the government of India are making these technologies even more accessible while boosting innovation in the healthcare, manufacturing, and agriculture industries. The Smart Cities Mission integrates IoT applications to manage smart transportation, smart parking systems, and energy management solutions. In addition, the BharatNet Program provides broadband connectivity to rural areas by connecting the Gram Panchayats.

Challenges

• Infrastructure readiness: There is a need for modern infrastructure in the deployment of connected machine solutions, as the implementation of advanced digital technologies is challenging in areas with insufficient broadband infrastructure and reliable power supply. This lack results in higher maintenance costs, reduced performance of operations, and lower adoption numbers, which hamper the market growth, as there is a restriction on private sector involvement due to controlled network infrastructure.

• Non-Tariff barriers: Trade barriers result in major difficulties and hinder the expansion of the connected machine market. With this, the companies struggle with import licensing and various national technical standards. Such challenges slow down product releases and drive up the operational costs. Moreover, the trade barriers across regulatory frameworks require exclusive legal and logistical services that small companies cannot afford, further restraining the market.