What are the Key Use Cases of IoT in Manufacturing in 2024?

The manufacturing industry is undergoing a digital revolution and the Internet of Things (IoT) is driving this change. Continuing into 2024 and beyond, IoT solutions for manufacturing are set to make smarter factories. From predictive maintenance to real-time inventory management, IoT offers manufacturers new levels of transparency. What does this transformation look like and what value does it bring to the manufacturing sector?

In this blog, we will be discussing the top IoT use cases in manufacturing for 2024 and their effect on the sector internationally.

Use Cases of IoT in Manufacturing

1. Predictive Maintenance: Reducing Unplanned Downtime

Predictive maintenance is probably the most-discussed IoT use case in manufacturing and for good reason. Through the installation of IoT sensors, manufacturers can monitor the condition of machinery in real time. Parameters such as vibration, temperature, pressure and oil level are usually measured by sensors. This data proactively forecasts when a machine will require maintenance before failing.

The result? Less downtime, less cost for maintenance and equipment durability. Moreover, PwC states that predictive maintenance can help minimize machine downtime by as much as 50%.

For example, Tesla has adopted the use of predictive maintenance in all their assembly lines. They have been able to minimize the occurrence of halts in production by taking into consideration the IoT data to determine when robots need to be repaired.

2. Quality Control: Ensuring Real-Time Product Monitoring

Quality control is one of the essential features of manufacturing and IoT has a significant impact on it. IoT sensors can help measure and track important parameters such as temperature, humidity, pressure and vibration during production. This data assists in identifying defects within the process. With this, organizations can correct the flaws before the faulty products are manufactured in larger numbers.

For instance, Siemens uses IoT sensors to assess the quality of the wind turbine components during manufacturing. Any deviations from the optimal values generate alarms that enable operators to address problems in real time without halting the production process.

Real-time monitoring of product quality with Mapsted guarantees the quality of the product is maintained. It also helps to minimize wastage, increase customer satisfaction and reduce cases of product recall.

3. Inventory Management: Streamlining the Supply Chain

Inventory management is often one of the most significant problems in manufacturing, particularly when it comes to multi-tier supply chains. IoT solutions for manufacturing provide real-time inventory data by tracking the flow of raw materials and finished products throughout the value chain.

Through RFID tags, GPS sensors and even temperature sensors, manufacturers can pinpoint the location and even the state of their products. This assists in avoiding stocked-up inventories, minimizing the amount of materials that go to waste. This also helps in receiving materials at the right time, thus preventing processes from being held up.

For instance, Nike has integrated IoT to track the level of stock in their distribution centres across the world. This guarantees a shortage of important raw materials which is a great advantage when it comes to supply chain management.

4. Energy Management: Cutting Costs and Saving Resources

One of the biggest costs in any manufacturing process is energy consumption. Energy management through IoT solutions makes it possible for manufacturers to track and control energy utilization in real time. Through IoT sensors, manufacturers can control the usage of energy in the facility by monitoring each machine in the facility and reducing wasted energy.

These systems can also manage lighting, heating and cooling based on occupancy or production rates at runtime. For instance, smart lighting might dim or brighten according to the natural light in the building and HVACs might be programmed or controlled depending on how many employees are at the workplace.

McKinsey also says that IoT solutions can cut energy expenses by as much as 30% via energy management systems, which makes it one of the most profitable use cases of IoT in manufacturing.

Volkswagen has acknowledged that it is at the forefront of the IoT space in the field of energy management. They have been able to minimize wastage and optimize energy usage by implementing IoT sensors to monitor energy usage across their factories.

5. Worker Safety: Monitoring the Factory Environment

In the coming years, the protection of workers will be a key concern among manufacturers. IoT will be instrumental in refining the safety measures. Smart helmets or smart vests can be used to measure the health status of the workers (such as their heart rate or fatigue level), as well as the conditions in which they are operating. These wearables transmit information to a central system and notify supervisors when conditions turn hostile.

IoT sensors can also detect the presence of any form of hazards such as high noise levels, poisonous gasses, or hot temperatures within the factory. Such an approach of monitoring can help to prevent accidents and thus decrease the rate of workplace injuries.

For instance, Caterpillar has incorporated IoT sensors to assess dangerous conditions in mining sites. The collected data assists them in making sure that the workers are in safe environments and hence reduces the number of accidents and enhances the safety performance.

6. Fleet Management: Optimizing Logistics and Reducing Costs

It takes more than creating a product to be a manufacturing business; that product has to make it to the customer efficiently too. IoT is revolutionizing fleet management since it allows manufacturers to monitor vehicles and drivers in real time, as well as identify efficient delivery routes.

Manufacturers can utilize GPS trackers and IoT sensors to guarantee timely delivery of products, optimal fuel utilization and timely maintenance of the fleet vehicles. This results in reduced transportation expenses and heightened customer satisfaction.

PepsiCo uses IoT in their fleet management by making sure that products are delivered effectively. Besides this, PepsiCo also uses IoT for conserving fuel and preserving the life of vehicles.

7. Product Lifecycle Management: Enhancing Product Design

It is also important to note that the benefits of IoT in manufacturing do not only end at the production line. Manufacturers can embed IoT sensors into products so that they can monitor how the products are utilized over time. This data is useful in determining the performance of the product in the market. Also, this will help to assess the behaviour of the customers for future product design.

For instance, John Deere monitors the performance of its agricultural equipment through IoT trackers. This data helps them know how to come up with better products and also devise how to give their customers more appropriate assistance.

Market Snapshot: IoT in Manufacturing

Before diving into the use cases, here’s a general overview of the role of IoT solutions in manufacturing:

• Market Size: The global share of IoT in the manufacturing market is expected to grow to $87.9 billion by 2026.
• Growth Rate: The use of IoT in the manufacturing sector is projected to grow at a (CAGR) of 11.9% from 2021 to 2026.
• Key Trend: Centralized monitoring and predictive maintenance are among the most in-demand IoT applications in manufacturing.
• Real-Time Visibility: Only 16% of manufacturers have real-time visibility into their machinery, parts, materials and products.
• 5G Impact: 5G is expected to accelerate IoT adoption by making it cheaper to connect devices and by increasing the battery life.
• Regional Focus: North America holds the highest market share in the IoT manufacturing market.

Benefits of IoT in Manufacturing

With the main application areas described above, it is time to dive deep into the general benefits of IoT in the manufacturing industry in 2024:

1. Increased Efficiency and Productivity

IoT systems collect current information that assists manufacturers in recognizing inefficiencies and deciding on improvements within a short time. This results in better organization of manufacturing processes which in turn leads to less wastage and thus increased efficiency.

2. Cost Reduction

The benefits of IoT in manufacturing from the viewpoint of predictive maintenance, energy efficiency and inventory control, are tangible. Deloitte states that IoT solutions can decrease costs of operation to a manufacturing company by up to 25%.

3. Better Decision-Making Through Data

IoT has the potential of generating and analyzing large volumes of data. This puts manufacturers in a position where they can make decisions based on facts. By identifying these, businesses can discover new strategies for making processes more efficient and making quality products less costly.

Challenges and Solutions in IoT Adoption

Despite all the advantages of IoT, there are some issues that manufacturers have to face when implementing IoT solutions. These challenges include:

• Data Security: With the probability of cyberattacks increasing, the number of connected devices will continue to rise. It is important to have strong measures in place to guard IT networks and personal information against cyber threats.
• Interoperability: Most manufacturers procure equipment from various vendors and this hampers IoT devices in interacting with one another. This challenge can be solved by using standard protocols for communication such as MQTT or CoAP.
• Cost of Implementation: One of the major disadvantages of implementing IoT technology in manufacturing industries is the initial cost. This tech is expensive to the manufacturing industries, especially those that are small-scale. However, the long-term benefits in terms of efficiency outweigh the initial costs.

Conclusion: The Future of IoT in Manufacturing

The Internet of Things is a tremendous technological advancement that is quickly assuming the status of an essential element in the modern manufacturing industry since it enhances productivity, lowers costs and ensures safer work environments. As the market remains to expand – expected to be $87.9 billion by 2026 — IoT solutions for manufacturing are going to be even more influential in defining the future of manufacturing.

Manufacturers who take the time to invest in Mapsted’s IoT solutions today will experience enhancements in operating performance. From predictive maintenance to quality control to energy management and safety of the workers, IoT is revolutionizing the manufacturing industry.

Now, the challenge for manufacturers isn’t about implementing IoT technologies but about how to do it effectively to get an edge in their business operations. If you found this blog helpful, don’t miss our blog post on How IoT Takes Indoor Location Tracking Technology to the Next Level in 2024.  to learn more.