Driving the fourth industrial revolution with data and connectivity

Harnessing technology for safer, more productive industries

Industrial IoT

The heavy-duty world of industry is demanding. Downtime is costly and mistakes can lead to lives being lost. But by leveraging connectivity, data and automation, we can transform industrial operations, increasing productivity and efficiency while reducing the risk of human error.

IIoT is a subset of the Internet of Things (IoT), which was originally coined to describe a concept in a futuristic time when all the 'things' around us would be connected and communicate with one other. Today, this concept is already becoming a reality, so the term has evolved to represent how we are making this connected world happen.

Industrial IoT is the use of smart sensors, actuators and other devices such as radio frequency identification tags to enhance manufacturing and industrial processes. These devices are networked together to enable the collection, exchange and analysis of data.

IIoT focuses on connected industrial devices such as sensors and robots in factories, as opposed to the connected consumer devices you might use at home, such as smart appliances or wearables. Smart manufacturing is naturally a large segment for IIoT, however these capabilities also cover a broad range of industry applications including in ports, mines and even in utilities such as water and energy.

IIoT vs Industry 4.0

Industrial IoT is closely related to Industry 4.0, but the terms have different meanings. While IIoT is about the connectedness of industrial devices, Industry 4.0 refers to the fourth industrial revolution - a shift powered by digitalization and automation. IIoT can therefore be considered a key enabling technology for realizing Industry 4.0.

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Key considerations

IIoT devices such as sensors, smartphones, tablets, cameras, drones and even immersive technologies like augmented reality glasses can collect massive amounts of data, in real-time if necessary. These can be leveraged to guide decision-making, automate processes, monitor assets and infrastructure and make industry operations smarter – more efficient, sustainable and safe than ever before.

Monitoring and maintenance

Monitor the health and condition of machines and assets to assess their condition, identify wear and tear before it leads to breakdowns, predict potential failures and allow for predictive maintenance to avoid costly downtime.

Operational efficiency and control

Track the activity and performance of processes (e.g. products through a production line) and access real-time data – even remotely – to identify bottlenecks, diagnose issues and take corrective actions to improve production efficiency.

Tracking and management

Locate and monitor assets or equipment to ensure proper utilization and prevent wastage or loss, track materials or products to optimize stock levels – even throughout the supply chain, creating a digital thread from sourcing to delivery to customers.

Connected workers

Utilize devices and wearables to connect workers, providing them access to real-time information and guidance for tasks, the ability to submit reports, or even monitoring their location and safety conditions and providing alerts in hazardous situations.

Energy management

Use sensors and other devices to monitor energy utilization across equipment and infrastructure, collecting data to inform management decisions or trigger corrective actions to help optimize power consumption across the facility or site.

Automating processes and equipment

IIoT connectivity and data can be leveraged to automate complex or manual processes, such as introducing automated guided vehicles (AGVs) in warehouses, robotic arms in manufacturing or automated control systems in energy grids.

Benefits of IIoT driving business success

IIoT, particularly when powered by 5G, is a key enabler of industrial business success, using connectivity and massive data to elevate operations and take automation opportunities to the next level. These advantages are already being realized, in smart factories, for example – highly automated and data-driven manufacturing facilities and warehouses such as Ericsson's USA 5G smart factory.

Increased operational efficiency

Data-driven optimization, automation and proactive problem-solving for more productivity and less unplanned downtime

Elevated worker productivity

Instructions or feedback delivered directly to workers' devices specific to the task or equipment, ensuring accuracy and consistency

Quality and customer satisfaction

Faster, higher-quality deliveries from optimization, real-time monitoring and detection of defects and quick interventions

Optimized and lower costs

Streamlined operations and minimized waste from data-driven insights, including energy consumption, inventory levels and maintenance

Reduced time to market

Better coordination with suppliers with real-time tracking and process data, leading to smoother supply chain operations

Enhanced worker safety

Monitor locations, vital signs or detect harmful chemicals, temperatures and other environmental factors, triggering safety alerts

Manufacturing

Discover the road to smart manufacturing and factories, where connected equipment and massive data take productivity, efficiency and safety to a whole new level.

Ports

Cellular connectivity and the advantages of IIoT and automation are already helping to realize a vision of the sustainable and efficient connected smart port of the future.

Warehousing and logistics

Global supply chains are being revolutionized by automating processes and connecting both operations and the workforce, while securing on-site data.

Mining

Automation and remote operations can help solve core mining industry challenges by improving safety and productivity while reducing environmental impact.

Energy utilities

Being more connected is crucial for energy utilities, with monitoring, control and optimization enabling more reliable, secure and flexible operations and infrastructures.

Offshore and processing

The oil and gas industry is under immense pressure to reduce its carbon footprint and reach net zero emissions - and efficiency through connectivity has a key role to play.

For those just starting out or looking to scale up their IIoT, there are four core pillars which need to be taken into account to make your shift as successful and smooth as possible. Read more about the conditions that need to be addressed for each of these categories below.

Machinery and equipment

For IoT applications to be adopted in the factory setting, some machinery will need to be upgraded or replaced to accommodate IoT sensors and actuators.
Introducing IoT into the factory environment in many cases will not require wholesale replacement of production equipment since many machines already in use have sensors or can be retrofitted with the needed electronics.

Security and confidentiality

For the full benefit of IoT in factories to be realized, security and privacy issues need to be addressed.
Data security and confidentiality are important to address, as are organizational issues concerning workforce and collaboration.
To gather the data for usage-based design improvements, manufacturers need access to data about how their customers are using products. This may raise questions about confidentiality since a manufacturer is likely to consider specific details about factory performance to be confidential.
This concern needs to be overcome if IoT impact is to be maximized.

Data analytics

Improvements are also needed in data analytics and in the cost of basic technology such as sensors, micro-electromechanical systems (MEMs), as well as cloud data storage and computing.
Maximizing the benefits of IoT-based systems in factories also depends on improvements in the analytics—algorithms that can interpret and act on the flow of real-time data from many machines.
In today’s environment, little of the data generated by production machinery is actually used for decision making.
Better analytics would help companies use more of the information they collect for optimization and prediction.

Data communications networks

There also need to be improvements in connectivity and interoperability in many factory settings (both for machine-to-machine communications and for relaying large streams of data from the production floor).
Data networks within factory settings must often operate in environments with large amounts of electromagnetic interference.
The continuous flow of data between machines and to remote computer systems in IoT setups also requires high-bandwidth, long-distance communications.
In many instances, particularly in developing economies, plants are in remote locations, perhaps several hundred kilometers from major cities that have advanced telecom infrastructure.

Unlocking the promise of smart factories: Harnessing Industrial IoT with private 5G connectivity

IIoT is pivotal to the success of digital transformation in manufacturing, integrating devices and harnessing massive amounts of data to create truly “smart” factories. However, to fully unlock its potential, IIoT needs advanced connectivity.

Read the blog post

IIoT use cases leverage different connectivity solutions depending on their specific requirements, which can vary from very simple communication needs to real-time data or video processing with low latency and high bandwidth requirements.

Other factors such as security and mobility requirements can also play a role in determining the best choice (or mix) of connectivity options for a particular use case, with cellular even offering different types of technologies and solutions tailored for particular needs.

Land mobile radio

Land mobile radio connectivity offers voice and data and video transmission with 9.6K data. However, these systems are becoming dated and costly to operate. The device ecosystem is also more limited than that of cellular, which is more developed.

Wired / Cables

Wired connectivity, such as Ethernet, is still commonly used in industrial settings, especially for stationary assets that require high bandwidth and reliability. However, wired connectivity can be expensive and inflexible, and is not a practical option for mobility or hard to reach places.

Wi-Fi

Wi-Fi is a popular option for some IIoT devices, as it is relatively inexpensive and easy to deploy. However, Wi-Fi can be unreliable in industrial environments with interference, and may not provide sufficient coverage for large facilities - or security for sensitive business data.

Cellular

Cellular connectivity, such as 4G LTE and 5G, offers a reliable and secure option for IIoT. Cellular networks provide wide coverage, high bandwidth and low latency, making them suitable for a wide range of applications - particularly where outdoor coverage and portability are key.

A graph showing multiple access points where dead spots occur because the device must reconnect with each individual access point.

Wi-Fi - Access points

Multiple access points
Dead spots occur because the device must reconnect with
each individual access point

Graph showing that there are no dead spots due to central radio control with large cell.

Cellular technology - Small cells

All one cell
No dead spots due to central radio control with large cell

Cellular technologies for every need

Requirements	Low	Medium	High
Context	A large number of low-complexity devices that do not need to communicate frequently. Performance does not need to be high and low latency is not a requirement.	Applications that require greater capabilities than CAT-M or NB-IoT can provide in terms of performance, latency and frequency.	Critical IoT or Ultra-Reliable Low Latency Communications (URLLC) applications requiring reliable data or communications in real time.
Technologies	Low-power wide-area (LPWA) technologies: Long Term Evolution Machine Type Communication (LTE-M) such as Narrowband IoT (NB-IoT) and Category M (CAT-M).	Long Term Evolution (LTE) or New Radio (NR) Reduced Capacity (RedCap).	5G New Radio (NR), which operates in a broader range of frequencies with much larger bandwidths than LTE.
Outcome	Extreme coverage and extended battery lives for ultra-low complexity devices.	High spectral efficiency and data rates, low latencies, extended device battery life and improved coverage. RedCap can also support 5G features like enhanced positioning and network slicing.	Much higher throughputs to a larger number of devices with extremely low latency and ultra-high reliability.

The advantages of private 5G networks

Because private 5G networks are dedicated cellular networks tailored to the specific needs of an organization, they provide greater control, security and customization, making them ideal for business-critical industrial applications. Offering a unique set of advantages, private networks overcome the challenges posed by legacy systems and unlock the full potential of IIoT by delivering:

High bandwidth and low latency

Private 5G networks offer much higher bandwidth and ultra-low latency compared to traditional wireless networks. This allows for large real-time data transfers and immediate responses for critical applications, especially vital for predictive maintenance and remote control of robots. They also support multiple QoS classes for prioritizing essential tasks.

Enhanced security and reliability

Security is paramount when dealing with sensitive industrial data. Private 5G networks offer robust security features like network isolation, traffic separation and restricted access control, minimizing the risk of cyberattacks and unauthorized data breaches. Additionally, their dedicated nature ensures consistent, reliable data transmission, a critical factor for business-critical manufacturing operations.

Scalability and flexibility for future growth

Unlike wired networks that require complex and expensive cabling expansions, private 5G networks easily scale and adapt to growing device density. Based on an accepted security framework, adding new devices to the network is a simple process, allowing manufacturers to easily accommodate future IIoT growth. Additionally, the wireless nature of private 5G networks provides greater flexibility for changing factory layouts or new sensor installations, fostering continuous innovation and process optimization.

Integration with advanced technologies

Private 5G enables seamless integration of advanced technologies, such as edge computing, industrial generative AI and machine learning (ML) into IIoT applications. Its high bandwidth and low latency allow real-time data processing at the network edge, closer to where the data is generated. This allows for faster data analysis and facilitates the implementation of AI and ML algorithms for predictive maintenance, anomaly detection and process optimization. Additionally, decisions based on this analysis can be implemented in the production process in real time.

Explore private networks

Cellular IoT for service providers

A range of enhanced functionalities and solutions for diverse use cases. Leveraging 4G LTE and 5G New Radio (NR) capabilities, technologies include Narrowband IoT (NB-IoT) and Category M (CAT-M) for Massive IoT and Critical IoT for time-critical needs.

Enterprise private cellular networks

When it comes to IoT connectivity, existing technologies for enterprise often fall short due to technical limitations, cost, and complexity. Our Enterprise 5G portfolio addresses these issues, leveraging advanced capabilities to provide flexible enterprise solutions.

5G RedCap

Our Reduced Capability (RedCap) RAN software allows service providers to introduce services beyond enhanced mobile broadband on 5G standalone architecture, broadening the ecosystem and offering a range of new monetization opportunities.

Mission critical broadband networks

Governments and industries with critical communication needs are now procuring private networks and services that leverage service providers’ existing network assets and operations – without compromising required local control.

Wireless WAN for IoT

Scalable Wireless WAN connectivity solutions that enable IT teams and system integrators to securely connect IoT devices and applications. For use cases from enterprise stores, branches and offices to fleet vehicles and smart cities.

Vonage Communications Platform

Making it easy to simplify network complexities and securely leverage network and communications APIs such as video and SMS, Vonage unlocks advanced capabilities including differentiated services to release the full potential of IoT automation with 5G.

Learn how CJ Logistics is transforming warehouse operations, delivering groundbreaking enhancements and remarkable operational efficiency gains.

Read the case study

Camera with industrial sensors in factory environment.

Read how Hitachi America R&D is leading the manufacturing industry to innovate a groundbreaking computer vision solution, improving quality and reducing waste

Read the case study

Discover how Epiroc are boosting mine safety and productivity and making it easy for other mine operators to use private cellular technologies.

Read the case study

For more real examples of IoT in practice, browse all our IoT use cases here.

A core feature of IIoT is the ability to use technology to build or transform connections and interfaces between our physical reality and the digital world. Cyber-physical systems (CPS) are engineered systems that orchestrate sensing, computation, control, networking and analytics to interact with the physical world - including humans. Already deployed in autonomous vehicles and smart grids and buildings, these are also core to smart manufacturing and other IIoT technology deployments.

Browse the resources below to learn more about these systems, which represent some of the most exciting steps on our journey to a digitalized, programmable world.

What do cyber-physical systems have in store for us?

Read the blog post

Co-creating a cyber-physical world

Download the white paper

The value of transitioning to cyber-physical workplaces

Go to the report

Industry manufacturing quality inspection using AR app.

Digital twins: bridging the physical and virtual worlds

Learn more

Driving the fourth industrial revolution with data and connectivity

Industrial IoT

What is industrial IoT (IIoT)?

IIoT vs Industry 4.0

IIoT applications and use cases

Monitoring and maintenance

Operational efficiency and control

Tracking and management

Connected workers

Energy management

Automating processes and equipment

Benefits of IIoT driving business success

Increased operational efficiency

Elevated worker productivity

Quality and customer satisfaction

Optimized and lower costs

Reduced time to market

Enhanced worker safety

Smart industries leading the market

Key considerations for a strong IIoT strategy

Machinery and equipment

Security and confidentiality

Data analytics

Data communications networks

Learn more with expert insights

IIoT connectivity

Land mobile radio

Wired / Cables

Wi-Fi

Cellular

Wi-Fi - Access points

Cellular technology - Small cells

Cellular technologies for every need

Requirements

Low

Medium

High

Context

Technologies

Outcome

The advantages of private 5G networks

High bandwidth and low latency

Enhanced security and reliability

Scalability and flexibility for future growth

Integration with advanced technologies

Offerings and solutions

Success stories in the spotlight

Blurring the line between digital and physical

What do cyber-physical systems have in store for us?

Co-creating a cyber-physical world

The value of transitioning to cyber-physical workplaces

Digital twins: bridging the physical and virtual worlds

Enabling and related technologies

Explore further

Papers and reports

Blog posts

News