How will the manufacturing industry benefit from IoT


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The Internet of Things (IoT) has created a lot of buzz. Although some might say IoT is more of hype or something that will only come about in the distant future; the fact is that IoT is a lot closer to reality than many realize.

Apart from changing the way we live, IoT is all set to transform the way we work. And in this blog, we will focus on one of the areas that IoT will impact upon – the manufacturing sector.

Majority of renowned manufacturers have already started investing in hardware, software, and networking systems. The agenda is simple: to build the IoT architecture ASAP for capitalizing upon its benefits.

What will be the benefit of IoT on the manufacturing sector?
internet of things

Like any other industry, manufacturing companies have been collecting streams of continuous data for years. Post the implementation of IoT, they will be able to analyze it to improve their business. In short, IoT will provide greater visibility into operations and plant performance.

Through M2M communication, manufacturers will be able to take proactive steps to improve everything from supply-line efficiency to preventive maintenance.

Plus, M2M technologies will help reduce lost production time and wasted materials.
Example: In case of malfunction in the labeling machine, the machine will automatically send alarm to the operator. Plus, it will communicate with other machines to slow/stop the production process. Benefit: minimal production lost.

Advanced IoT architecture will make communication among the machine controllers and data collection systems possible. In addition to improved communication between machines, it will also connect the machine with hierarchal business applications. These IoT solutions will exchange data easily with SQL and other databases commonly used by ERP systems.

According to experts like Jason Fell – ‘’Packaging is one of the important areas of manufacturing that will immensely benefit from Internet of Things. For instance, manufacturers can use IoT devices to find out micro-level packaging inefficiencies and defects. They can use IoT tools to drill down the cause of these issues.’’
Proving this point further, let’s read what a recent study by EY has stated–

IoT has now become a differentiator in top manufacturers because it helps maximize productivity while reducing quality losses. It is useful for all aspects of manufacturing but is particularly applicable to packaging where it easily discovers packaging slowdowns.

Having stated all the key IoT benefits, what’s best is that manufacturers who are already using IoT have agreed of high value generation. This value comes from efficient conversion of raw materials into products at a fairly reduced cost.

Benefits from the cloud
cloud computing
Cloud Computing has become one of the key components in IoT. Considering the fact that IoT sensors and systems constantly streams chunks of data – cloud offers the most affordable solution to store them all.

Precisely why, manufacturers have been adopting the cloud technology to store in their IoT generated data. Benefit: they can adjust their computing and storage needs up or down without large capital investments.

For example, during the peak periods, manufacturers can use more processing power to handle additional production. The cloud provider will only charge the manufacturer for the additional space used in the specified interval.
Hence, manufacturers will not be compelled to purchase and maintain in-house servers and data storage to handle these peak phases.


  1. Manufacturing involving IoT enables better integration of plant processes, achieving higher levels of productivity, and taking manufacturing to the next level of transformation.


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