Industrial Internet of Things - IIoT Industrial Internet of Things

Internet of Things Internet of Things

• Catalog of IoT systems and projects

What is Industrial Internet of Things

Common terminology

The Internet of Things (IoT, Internet of Things) is a system of combined computer networks and connected physical objects (things) with built-in sensors and data collection and exchange software, with the ability to remotely monitor and control in an automated mode, without human participation.

Industrial Internet of Things (often Industrial Internet of Things) IIoT - the Internet of Things for corporate/industry applications - a system of combined computer networks and connected industrial (production) facilities with built-in sensors and software for collecting and exchanging data, with the ability to remotely monitor and control in an automated mode, without human participation.

In industrial use, the term "Industrial Internet" is used. Further, to simplify perception, instead of writing "industrial internet of things," the term "internet of things" is used in this context.

How the industrial internet of things works

The principle of operation of the technology is as follows: sensors, actuators, controllers and human-machine interfaces are initially installed on key parts of the equipment, after which information is collected, which subsequently allows the company to acquire objective and accurate data on the state of the enterprise. The processed data is delivered to all departments of the enterprise, which helps to establish interaction between employees of different departments and make informed decisions.

In addition, companies can replace quickly outdated paper documentation, as well as accumulate expert knowledge of^[1] specialists^[2]

The information obtained can be used to prevent unplanned outages, equipment breakdowns, reduce unplanned maintenance and supply chain management failures, thereby allowing the enterprise to operate more efficiently.

When processing a huge array of unstructured data, filtering and interpreting them adequately is a priority for enterprises. In this context, the correct presentation of information in a user-friendly form is of particular importance, for which today there are advanced analytical platforms on the market designed to collect, store and analyze data on technological processes and events in real time.

According to a study by consulting company IDC, in 2011, humanity generated 1.8 zettabytes of information. In 2012, the amount of valuable data almost doubled to 2.8 zettabytes. By 2020, this figure will reach 40 zettabytes. Such large amounts of data require processing in order to be used in the decision-making process.

In order to avoid downtime and to maintain security in the enterprise, technologies must be implemented to detect and predict risks. Continuous proactive monitoring of key indicators makes it possible to identify the problem and take the necessary measures to solve it. For the convenience of operators, modern systems allow you to visualize the conditions of technological processes and identify factors that affect them through any web browser. Real-time analysis helps users find the causes of problems faster.

These solutions turn production data into useful information that you need to manage your enterprise safely and efficiently.

The introduction of such technologies enables enterprises from different sectors of the economy to gain certain advantages: to increase the efficiency of the use of production assets by 10% by reducing the number of unplanned downtime; Reduce maintenance costs by 10% by improving procedures for predicting and preventing catastrophic equipment failures and identifying inefficient operations Increase productivity by 10%, increase energy efficiency, and reduce operating costs by 10% by using energy more efficiently.

Thus, new technologies allow enterprises in different industries to achieve significant competitive advantages.

How the industrial internet of things is transforming the economy

New Approaches and Models

The industrial Internet of Things radically changes the entire economic model of supplier-consumer interaction. This allows:

• Automate hardware lifecycle monitoring and management
• organize effective self-optimizing chains from enterprises - suppliers to companies - end consumers;
• move to "sharing economy" models and more.

In the most advanced cases, the industrial Internet of Things allows not only to improve the quality of technical support for equipment using advanced telemetry tools, but also to ensure the transition to a new business model of its operation, when the equipment is paid by the customer upon use of its functions.

The introduction of network interaction between machines, equipment, buildings and information systems, the ability to monitor and analyze the environment, production process and own state in real time, the transfer of the control and decision-making function to intelligent systems lead to a shift in the "paradigm" of technological development, also called the "fourth industrial revolution."

Foreign experts recognize the Internet of Things as a technology that introduces irreversible transformation into the organization of modern production and business processes and generates new business models.

An analysis of the experience of introducing the Internet of Things in the world conducted by consultants J'son & Partners Consulting shows that the transition to the IIoT concept is due to the formation of cross-industrial open (horizontally and vertically) production and service ecosystems that combine many different information management systems of different enterprises and using many different devices.

This approach makes it possible to implement in the virtual space arbitrarily complex end-to-end business processes that are able to automatically carry out optimization management (end-to-end engineering) of various kinds of resources through the entire supply chain and creating product costs - from idea development, design, design to production, operation and disposal.

This approach requires that all the necessary information about the actual state of resources (raw materials, electricity, machines and industrial equipment, vehicles, production, marketing, sales), both within one and in different enterprises, be available to automated control systems of different levels (drives and sensors, control, production management, implementation and planning).

Thus, we can say that the industrial Internet of Things is an organizational and technological transformation of production based on the principles of the "digital economy," which allows at the management level to combine real production, transport, human, engineering and other resources into almost unlimited scalable software-controlled virtual resource pools (shared economy) and provide the user not with the devices themselves, but with the results of their use (device functions) through end-to-end manufacturing and business processes (end-to-end engineering).

The difference between the IoT ecosystem and traditional markets is the transformation of enterprises from isolated self-sufficient systems, within which all production and business processes necessary for the production of goods or services are implemented, into open systems of integrated highly automated processes. Such open systems are implemented according to the model of cloud services, in which various market participants are combined into a single platform for providing services to the end consumer, for the creation of which the main means of production are not personnel, but cloud services that automatically control software-defined devices combined into pools (Fig. 4).

In other words, for traditional enterprises and their systems (markets), the basic resource necessary to directly manage all other types of resources is personnel, and as a result, the main type of information exchange in such systems is the exchange of voice information and data between people. And for IoT ecosystems that do not use manual labor directly in the execution of production processes, and whose control system automatically refers directly to the necessary actuators and sensors, the basic resource is information and automatic means of its processing.

The introduction of the Internet of Things requires changes in approaches to the creation and use of automated information management systems (ACS) and common approaches to the management of enterprises and organizations. Legacy production lines, which for various reasons cannot be automated with IoT, could be replaced with new automated and robotic equipment in the future. Another obstacle limiting the development of IoT is the absence or insufficiently high development of traditional corporate management information systems (ERP), then IoT solutions will be local and solve niche functions and problems.

IoT can evolve sequentially from connecting individual products and objects to diagnose and control them, to combining different products and more complex technological management objects in the IoT network, and IoT networks into more complex network platforms and complex production solutions.

In terms of information management and processing technologies, these changes are as follows:

• implementation of ACS software logic as interacting cloud services ("management cloud," "IoT platform");
• transition from rigidly hierarchically built information-isolated ACS to direct, without human participation and intermediate ACS, connection of control objects to the "control cloud."

At the same time, the "control cloud" performs all the necessary functionality (software algorithms for data processing and control) of both low-level control systems and control systems at the enterprise level and above. In other words, the "control cloud" simultaneously performs the functions of a universal means of integration and the functions of executing arbitrarily complex and diverse control algorithms.

By using the mechanism of open application programming interfaces (Application Programming Interface,) API , it is possible to connect any devices and any ACS to the management cloud without the need to make changes to connected devices and systems, and the ability to implement the logic of processing data supplied to the management cloud using ready-made templates and, in their absence, using built-in software application development tools.

The effect of "Big Data" accumulated in such IoT platforms, and the use of machine learning technologies, makes it possible to automate the processes of improving algorithms executable by the "control cloud," that is, to optimize control algorithms as historical data comes from a wide range of devices and ACS accumulate, which is basically impossible in information-isolated ACS.

The experience gained in the world of IoT implementation shows that the transition to the IoT concept allows you to quickly implement arbitrarily complex end-to-end fully automated business processes. Such processes cover many different ACS of different enterprises and organizations and involve many different devices, which, with the traditional approach to automation, in most cases cannot be implemented in a reasonable time and for an economically reasonable budget.

In the transition to IoT, end-to-end fully automated processes can cover all kinds of interactions between goods and service manufacturers and their consumers. These are, for example, traffic and transport infrastructure management, municipal infrastructure management, industrial production and product operation processes, security and much more.

Such a transformation of enterprises from closed self-sufficient "black boxes" into elements of open ecosystems, in turn, requires a radical revision of the business models of enterprises and organizations of all sectors of the economy, especially in terms of changing the nature of interaction in the supplier-consumer chain, which, in fact, has been happening in recent years in the global economy.

The technological factor noted by the management of companies for four years as having the greatest impact on the change in enterprises is the change in management technologies, and not production technologies. It is the stack of control technologies and control automation, unlike previous technological (industrial) revolutions, that determines the transition to a new technological structure - the fourth industrial revolution.

From the point of view of macroeconomics, an increase in the efficiency of processes in the supplier-consumer chain means a transition from inflationary development consisting in shifting rising costs (supplier revenue growth is an increase in consumer costs) to the "next in the chain," and from the end consumer - back to manufacturers (employers) through wage growth requirements - to deflationary. Deflationary development is based on increasing the efficiency of all participants in the IoT ecosystem, including end consumers, which is unprecedented for the history of the global economy.

When the resources of extensive economic growth due to the increase in the production of new goods and services in the previous cycle of technological development slow down (this is now happening in most developed economies), the key focus of development is the growth of the efficiency of production and sales processes. This, first of all, is characterized by the era of active development of Internet services and the introduction of IT technologies.

A separate segment of the growth of national economies is not consumers of Internet services, but the manufacturers and providers of Internet services, products and solutions themselves, which capture traditional industry niches and reformat them on the basis of cloud technologies. Typical examples are internet media, e-commerce and online taxi ordering.

Advantages of the industrial Internet of Things for the economy

According to J'son & Partners Consulting (Jason & Partners Consulting), the quantitative growth of the Internet of Things and the organizational and technological transformation of production are important qualitative changes in the economy:

• data that was not previously available, with increasing penetration of embedded devices, represents valuable information about the nature of product and equipment use for all participants in the production cycle, is the main formation of new business models and provides additional revenue from the offer of new services, such as, for example: life cycle contract for industrial equipment, contract production as a service, transport as a service, security as a service and others;

• virtualization of production functions is accompanied by the formation of a "shared economy," which is characterized by significantly higher efficiency and performance by increasing the use of existing resources, changing the functionality of devices without making changes to physical objects, by changing their management technologies;

• process modeling, end-to-end design and, as a result, optimization of the value chain at all stages of the product life cycle in real time, make it possible to produce a single or small-scale product at a minimum price for the Customer and at a profit for the manufacturer, which in traditional production is possible only with mass production;

• Reference architecture, standardized networks, and the lease model, instead of paying the full cost of ownership, make the joint production infrastructure accessible to SMBs, which facilitates their production management efforts, accelerates response to changing market requirements and shortens the product lifecycle, and entails the development and emergence of new applications and services;

• analysis of data about the user, his production facilities (machines, buildings, equipment) and the nature of consumption open up opportunities for the service provider to improve the customer experience, create more usability, a better solution and reduce the client's costs, which leads to increased satisfaction and loyalty from working with this supplier;

• the operation of various sectors of the economy will be continuously complicated by the influence of technology development and increasingly carried out by automatic decision-making by the machines themselves based on the analysis of a large amount of data from connected devices, which will lead to a gradual decrease in the role of production personnel, including qualified ones. Quality professional education will be required, including engineering, special training programs for workers and trainings.

Use Effectiveness Assessment

Ultimately, the introduction of any automation means, including according to the concept of the Internet of Things, will be justified if this has an economic effect compared to the accepted forms of production and business processes. In this regard, J'son & Partners Consulting consultants analyzed cases on the use of the Internet of Things in various industries in the world and analyzed the numerical values ​ ​ of efficiency indicators.

List of some performance indicators for the cases reviewed in the context of the main industries

Application of IIoT in various industries

IIoT in production

Conditions for implementation of IIoT

An analysis of the world's best practices for implementing IIoT in a study by J'son & Partners Consulting shows that the main areas of application of solutions in the field of industrial Internet are industries characterized by the presence of one or more of the following important conditions:

• issuing a wide range of products, using a significant list of components;
• the need to improve the quality of manufactured products and reduce the degree of scrap;
• The need to provide effective service to previously delivered products
• the need to reduce production operating costs;
• significant energy intensity of production;
• complex production conditions;
• the need for prompt diagnostics of process equipment faults to reduce unplanned production shutdowns;
• the need to ensure high productivity of personnel;
• the need to ensure the safety of personnel;
• the need for broad-spectrum system integration.

Typical results of implementation of IIoT in industry

A study by J'son & Partners Consulting showed that, firstly, the use of sensors to monitor the operation of equipment with access to the network allows the equipment manufacturer to remotely monitor its operation. timely carry out scheduled maintenance, predict accidents and carry out scheduled preventive repairs or prepare the necessary replacement parts in advance, etc., thus, We say that the Internet of Things is an effective product lifecycle management tool.

Second, knowledge of the actual and planned load of production equipment connected to the network allows for an automatic network of orders between different industries in a long chain from material suppliers to end-product customers. This is achieved by connecting all production sites to a single software platform, and legally different companies can be its participants.

This model dramatically optimizes transaction costs in cooperative chains that acquire the quality of self-optimizing. In other words, the Internet of Things (IoT) approach maximizes cooperative connectivity across the entire chain of member enterprises in order to achieve the most cost-effective outcome for the end user.

Thirdly, this concerns the transition from a model for the sale of devices and equipment measured by the amount of equipment supplied to a model for the sale of functionality (results of use) of devices and equipment "on demand." For example, when a company sells not just compressors, but compressed air with clearly defined and guaranteed parameters.

Thus, in the most advanced cases, we can talk not only about the new quality of technical support for equipment (using developed telemetry tools), but also about a different business model for its operation, when the equipment is not transferred to the ownership of the customer at all, but is paid to them upon use of its functions. According to this principle, they work, for example:

• the largest supplier of industrial compressors Kaeser - payment for compressor equipment is made by the volume of compressed air produced by it;
• manufacturer of agricultural machinery John Deere - payment for the actual time of use of agricultural machinery (tractors);
• many other leading manufacturers of industrial equipment and consumer machinery described in the report.

It is important to note that on-demand sales are a key characteristic of the cloud service. The Internet of Things acts as a necessary technical component to expand the cloud model beyond the information and communication industry. In those sectors of the economy where ICT equipment is not an end product, and computing and communication systems are used as auxiliary (for computerizing the management of other types of equipment and devices, the so-called built-in systems), the cloud computing model acquires the format of a life cycle contract, that is, a new model of relationships in the supplier-consumer chain.

The typical result of the IoT project is a multiple increase in the efficiency of all participants in the IoT ecosystem not only in the field of ICT and finance, where the product can be created and consumed in a fully digital form, but also in the industries of material production. Moreover, as the scale of these ecosystems grows, their efficiency grows, and does not decrease, unlike cooperative chains built on the traditional principle, where cost growth is proportional to the square of staff growth of interacting enterprises, J'son & Partners Consulting notes.

The consequence of this typical result of IoT projects is an increase in the competitiveness of IoT ecosystem participants in the global system of division of labor and an increase in their shareholder value, when a "traditional" company undergoing IoT transformation, achieving efficiency comparable to "technology" companies, begins to be evaluated by investors on the ratios of cloud/technology companies such as Google, Amazon and other similar.

IIoT in power supply systems

In the electric power industry, the definition of "Internet of things" usually includes "smart" or "smart" networks (smart grids) and meters (smart meters). New technologies are especially relevant for Russia, which has a historically large-scale centralized energy supply system, and this is over 2.5 million km of power lines, about 500 thousand substations, 700 power plants with a capacity of more than 5 MW. However, today the penetration of the "Internet of Things" into the Russian power is at the initial level.

At the level of management of the system, balances and modes in the electric power industry, a step towards digital binding of assets can make it possible to more optimally plan the load of generating capacities and, most importantly, their volume. Since the Russian power system is built on redundancy, the creation of an intelligent distribution model would make it possible to decommission part of inefficient generation and partially resolve the issue of overproduction of generating capacities (an increase from 215 GW in 2008 to 235 GW in 2016 in the absence of correlating consumption growth). At the same time, this would allow more widespread implementation of modern incentives for reducing electricity consumption: for example, demand response.

In the power grid economy, greater adoption of intelligent technologies, especially given the length of linear facilities, could lead to increased reliability and lower operating costs. This would finally allow you to move to managing the network "for the state," and not carry out repairs in accordance with strict scheduled deadlines.

In order to normally consolidate such a possibility, the Ministry of Energy of Russia at the beginning of 2017 proposed to consolidate by a government decree a change in the relevant repair standards for the companies of the Rosseti Holding. In Russia, there are a number of successful examples of the introduction of intelligent network technologies, for example, in the regions of Rosseti's presence, Tatarstan and a number of other regions. Most of the new equipment (transformers, switches) already has remote diagnostics systems.

There should also be no problems with the transmission of information, since the network complex, in fact, is the largest telecom operator in Russia: for example, all 110 kW substations (PS) have communication channels (overwhelmingly fiber-optic), all new PSs 35 kW have access to the Internet. The intelligent electric network will also allow integrating various electricity production facilities, including on the basis of renewable energy sources (renewable energy sources - sun, wind, etc.), distributed generation.

So far, the volume of renewable energy in Russia is insignificant, and the volume of distributed generation is about 5.5% of the installed capacity (slightly less than 13 GW), but the experience of other countries shows that these indicators will grow.

In North America and Western Europe, "smart grids" also allow the movement of electricity in two directions, making it possible to sell surplus electricity produced by households (mainly solar panels on rooftops).

In generation, elements of the "Internet of Things" are also used - these are ASMTP (the automated systems of management of technological processes)-class asset management systems. They are installed in various combinations at all power plants in our country and allow you to remotely control and receive information about the operation of key systems. At the same time, the share of domestic equipment, which is gratifying, is quite large. In order to develop IoT in generation, the Ministry of Energy, together with RUSNANO and Rostelecom, is forming a national project on the Industrial Internet on the basis of a pilot project for the development of a system for remote monitoring and diagnostics of combined-cycle gas plants.

Some private energy companies are also actively equipping their facilities with remote monitoring and diagnostics systems in order to improve reliability and reduce operating costs.

To be sure, a more intelligent power would bring obvious benefits to both consumers and power producers and the domestic economy as a whole. The corresponding goals are indicated in a number of program documents (the approved energy strategy of Russia for the period up to 2030, the draft new strategy until 2035, in the documents of Energy.net (which is part of the National Technology Initiative)). However, in our opinion, a clearer, substantive strategy of the state in the development of intellectual power is needed .

The EU, for example, aims to provide 80% of consumers with "smart meters" by 2020 (200 million electric and 45 million gas meters). In the United States, each state independently determines the policy for their implementation, but the number of "smart meters" in the country as a whole is already approaching 50% of the total (in six states the share of "smart meters" was more than 80%).

IIoT in the transport industry

The Internet of Things penetrated much deeper into transport. In an industry where the length of various types of tracks exceeds 1.6 million km, and the number of freight transport (road, railway and others) - 7 million units, in principle, it is impossible to do without remote monitoring systems.

IoT received the greatest development in road transport due to the distribution of the same smartphones that drivers take with them on the road and the share of which approached 50% of cellular devices in Russia. Thanks to them, road congestion monitoring systems were built on Yandex, Google, etc. Around smartphones in a car - entire ecosystems of software solutions (for example, Uber, Yandex Taxi, [GetTaxi]], etc.).

These solutions have completely changed the taxi market in large cities. Such services are no longer limited only to the taxi sector and penetrate the logistics sector: like UberCargo and Trucker path, GoCargo and iCanDrive startups have appeared in Russia, which are based on the use of IoT.

More serious intelligent transport monitoring systems are being implemented by installing remote movement monitoring systems in vehicles based on GLONASS sensors/and GPS fuel consumption control systems. Such devices can significantly reduce costs and control the targeted use of transport, analyze and optimize traffic routes, which is extremely important for logistics. Probably, no more or less large transport enterprise can do without such devices. At the same time, they are used not only for external transportation, but also within enterprises: "," Severstal for example, in this way monitors the mass and movement of goods, the routes of loaders at their factories. Quite a lot of manufacturers of remote transport monitoring devices have already appeared in Russia -, Omnicom"," AvtoGRAF Satellite Monitoring and Transport Control System" GalileoSky Fort," Naviset, "," "," IncotexStrikh-TaxoRUS"," etc Granite Navigator M2M Cyber. There are also many software products on the market that allow you to analyze the received data and optimize costs and processes.

Safety IIoT

2019: TK26 approves secure exchange protocol for CRISP industrial systems as guidelines

By the decision of Protocol No. 23.1 of the Technical Committee for Standardization "Cryptographic Protection of Information" (TK26) dated May 27-30, 2019, methodological recommendations MR 26.4.001-2019 "Secure Exchange Protocol for Industrial Systems (CRISP 1.0)" were approved. This was announced on June 27, 2019 by Infotecs. Read more here.

2018

A standard for ensuring the safety of industrial IoT equipment has been developed

On February 11, 2019, information appeared that the International Organization for Standardization (ISO/ISO) has developed ISO/TR 22100-4: 2018 "Safety of Production Equipment - Communication with ISO 12100 - Part 4: Guidance for Equipment Manufacturers to Review Relevant Aspects of Information Security ( кибербезопасности )» (ISO/TR 22100-4:2018 Safety of machinery — Relationship with ISO 12100 — Part 4: Guidance to machinery manufacturers for consideration of related IT-security (cyber security) aspects). The document was published in December 2018. Read more here.

Rise in IIoT leads to increased potential cyber attacks

The high penetration of the industrial Internet of Things into critical infrastructure and the manufacturing sector has led to an increase in the number of potential cyber attacks. This is evidenced by data from a study conducted by analysts at Frost & Sullivan, which became known on December 13, 2018.

According to them, cyber attacks in the energy and utility industries alone cost an average of $13.2 million annually. Frost & Sullivan experts note that increasing risks leads to the development of common approaches to ensuring cybersecurity. Strengthening the regulatory role of governments of the world in the field of information security and increasing awareness of the problem in both mature markets and young ones play a role.

The industrial Internet of Things is gradually gaining momentum along with the development of the Internet of Things. Both of these concepts involve the transmission of data over the Internet, use common hardware platforms and are managed using specialized software, which ultimately leads to an increase in the number of common vulnerabilities and possible attacks on industrial facilities. Frost & Sullivan reports that industrial and IT infrastructures are becoming more transparent. This is primarily due to the development of the Industrial 4.0 standard and the exclusion of complete isolation of industrial facilities, which, of course, entails general vulnerabilities, the use of SaaS security services for industrial facilities, as well as the use of hardware devices that a potential attacker can access quite easily.

Analysts note that the industrial cybersecurity services market is at the peak of its life cycle. This is characterized by increasing awareness of the rules of conduct among end users due to the growing need for cybersecurity skills. Which, however, does not save companies from the high risk of attacks on industrial control systems.

Industrial Internet of Things brings not only good profits, but also risks

Many end users use time-consuming security practices and do not have strict policies. Service providers should help automate the cybersecurity process and offer a more holistic approach. It can consist, for example, in a consolidated view of the IT and OT infrastructure

The Frost & Sullivan report identifies several recommendations for companies that want to grow in the cybersecurity services market. Among them are the development of integrated platforms that ensure a high level of end user security, the parallel implementation of best information security practices, the use of automated management services and an expanded analysts one to develop a comprehensive portfolio of services that can be adapted for all types of end users. In addition, analysts consider flexible pricing models and approach C (SaaS Cybersecurity-as-a-Service - "cyber security as a service") promising^[3]

2017: Recommendations for Protecting IoT Devices within Critical Infrastructure

The European Union Agency for Networks and Information Security (ENISA) at the end of November 2017 published recommendations for ensuring the security of IoT devices in the context of critical infrastructure facilities. Kaspersky Lab experts also contributed to the creation of this document.

The report consolidates the industry's knowledge of industrial cybersecurity, shows the model of threats to the industrial Internet of Things, and also describes the available measures that can protect against these threats. Kaspersky Lab experts participating in the IoTSEC Group (ENISA IoT Security Experts Group) have added a number of recommendations for those who develop unified security policies.

According to a Kaspersky Lab study, incidents with Internet of Things devices are among the three threats with the greatest financial damage to companies. This applies to companies of all sizes: both small and medium-sized businesses and large corporations.

According to Kaspersky Lab, one of the main problems in the field of cybersecurity of industrial IoT devices is still the lack of uniform standards. The ENISA recommendations are expected to be an important step towards the unification of security practices and policies, and they concern both the creators and users of industrial IoT devices and the various agencies European Union that develop security policies.

Kaspersky Lab has the deepest expertise in the security of critical infrastructures. We believe that our contribution to the ENISA recommendations will help companies develop more effective cybersecurity strategies, and regulators set relevant and relevant standards in order to be ready to combat modern cyber threats, "said Andrey Dukhvalov, head of advanced technologies at Kaspersky Lab.

Among the main recommendations developed for regulators are:

• Focus on sector-specific recommendations instead of general ones;
• Standardize recommendations within the EU, establish unified terminology and classification;
• Cooperate with industry representatives and involve the private sector in the development of laws using existing associations and associations, for example, AIOTI.

Top recommendations for device manufacturers and software developers:

• Ensure that all employees have up-to-date cybersecurity knowledge and skills;
• Ensure data compatibility with a reliable automated patch installation system;
• Audit code during the implementation process - this will help reduce errors in the final version of the product, as well as identify any attempts to inject malicious code or bypass authentication.

The full text of the document "Baseline Security Recommendations for IoT in the context of Critical Information Infrastructures" can be found on the ENISA website.^[4]

IIoT in Russia

Main article: Industrial Internet of Things - IIoT (Industrial Internet of Things) in Russia

IIoT Worldwide: Analytics and Forecasts

2023

The volume of the global industrial Internet of Things market for the year reached $255.3 billion

The global industrial Internet of Things (IIoT) market reached $255.3 billion in 2023, and sustainable growth is expected in the future. This is stated in the IMARC Group study, the results of which were published in January 2024.

Analysts note that the key factors contributing to the rapid development of the industry are the introduction of smart cities technologies and the increasing need for automation tools for various areas. It is estimated that in 2023 the size of the global market for smart megacities amounted to approximately $1.23 trillion. IIoT systems allow cities to monitor and optimize critical infrastructure that includes transportation networks and utilities such as water, electricity, gas, and waste management. In addition, the introduction of IIoT technologies makes it possible to increase energy efficiency, and therefore reduce the harmful impact on the environment. The integration of the Internet of Things into the urban ecosystem helps improve the quality of life of citizens.

The IMARC Group report states that the proliferation of IIoT contributes to the development of edge computing. In industrial environments, where real-time decision-making is critical for operations such as process control, edge systems help reduce delays in processing various data, such as readings from industrial sensors. In addition, edge computing improves the reliability and resiliency of IIoT platforms by reducing reliance on centralized IT systems. In the case of edge platforms, some services can be supported locally - for example, if an Internet connection is broken or the cloud is unavailable. The IMARC Group report says that by 2032 the global peripheral computing market will reach $90.3 billion.

The further spread of IIoT technologies, according to analysts, will be facilitated by the development of 5G mobile infrastructure. These networks provide high data transfer rates at low latencies, which helps in the implementation of IIoT platforms such as remote monitoring, autonomous operations and accurate production. Another factor that stimulates the development of IIoT, analysts call the growing availability of sensors that provide access to information in real time.

Among the key players in the industrial Internet of Things industry, IMARC Group names, Cisco Systems,, General Electric,, Honeywell,, Intel,, IBM,, etc ABB Group Rockwell Automation Siemens AG Huawei. Bosch KUKA Robotics Texas Instruments Arm NEC As of the beginning of 2023, the main amount of costs in the field of IIoT falls on hardware components: these are sensors, all kinds of actuators, gateways, etc.

At the end of 2023, as stated in the IMARC Group study, Europe leads the world IIoT market. This is due to the developed industrial ecosystem, including various industries, automotive, power, etc. European manufacturers are focusing on using IIoT technologies to increase automation, improve efficiency and reduce costs.

At the same time, the authors of the report say, the market is facing certain problems, including the lack of standardization of Internet of Things protocols. However, from 2024 to 2032, the industry is expected to demonstrate a CAGR (compound percentage CAGR) of 13.2%. As a result, by the end of this period, the volume of the global industrial Internet of Things market could reach $806 billion.^[5]

A system for simultaneous wireless data and power transmission has been developed. It is the future of the industrial Internet of Things

On September 5, 2023, researchers from Korea Maritime University announced the development of a new system for the simultaneous transmission of data and energy wirelessly. It is assumed that the solution will be in demand in the field of industrial Internet of Things (IIoT). Read more here.

2022:72% of companies increase spending on IIoT to meet sustainability objectives

ABB on February 21, 2022 published the results of an international study among leaders in the field of business and technology.

The survey is devoted to industrial transformation and, in particular, the issue of the intersection of digitalization and sustainable development. The study "Billions of better decisions: industrial transformation's new imperative" examines the level of implementation of IIoT and its potential to improve energy efficiency, reduce greenhouse gas emissions and stimulate change. The ABB project is intended to give impetus to the discussion in the industry of the possibilities of the industrial Internet of Things. The results of the study will help companies and employees make better decisions both in terms of sustainable development and practical benefits.

Sustainability goals are increasingly becoming a crucial factor in assessing the value of a company's business and reputation. In turn, safe, rational, sustainable activities are increasingly dependent on the industrial Internet of Things, "said Peter Terwiesch, president of ABB's Process Automation business. - Information hidden in operational data is key to making literally billions of the best decisions in industry and taking action on them. In this way, a significant increase in productivity, a reduction in energy consumption and a reduction in environmental impact can be achieved.

According to the study, the growing attention of industry to sustainable development is primarily caused by the desire of organizations to ensure their "competitiveness in the future," 46% of respondents said. Digitalization is considered "essential for sustainable development" by 96% of managers from around the world. Despite this, only 35% of the companies surveyed have implemented industrial Internet of Things solutions on a large scale. This gap suggests that many industrial leaders recognize the strong relationship between digitalization and sustainable development. At the same time, in order to act consciously and achieve goals in this area, production, energy, construction, transport and other companies need to work to deploy appropriate digital solutions as quickly as possible.

71% of respondents reported that the pandemic forced them to reconsider priorities and focus on sustainable development tasks.

72% said they were "somewhat" or "significantly" increasing spending on industrial IoT as part of sustainable development.

94% of respondents agreed that IIoT "improves the quality of decisions made and, as a result, overall indicators of sustainable development."

57% noted that the industrial Internet of Things had a "significant positive impact" on operational decision-making Vulnerabilities in information security systems are perceived as the main obstacle preventing IIoT from becoming a full-fledged tool for sustainable development.

Among the managers who took part in the survey, 63% fully agree that sustainable development ultimately brings financial results, and 58% are confident that it directly affects the value of the business. Obviously, the sustainable development and priorities of Industry 4.0 - speed, innovation, productivity, efficiency, customer focus - are increasingly intertwined with each other. In this environment, companies that want to do a better job while tackling climate change can see themselves in win-win scenarios.

The International Energy Agency estimates that global industry today accounts for more than 40% of greenhouse gas emissions, says Peter Terwish. - If we are to achieve climate goals, such as those of the UN and those of the Paris Agreement, industrial enterprises must incorporate digitalization into their sustainable development strategies. By introducing these technologies at all levels - from the board of directors to production workshops - we will turn the tide, because each participant in the industrial process will be able to more effectively solve issues of sustainable development.

2019

Gartner Magic Quadrant

In early July 2019, the analytical company Gartner presented the results of a study of the global market for platforms for the industrial Internet of Things - Magic Quadrant For Industrial IoT. Solutions of leading manufacturers, according to experts, combine opportunities for integration, analytics, security, as well as application management of large industrial complexes.

The number of industrial enterprises with local IoT platforms is expected to grow by 30% by 2023. The Gartner report named the leaders of the market in question: they included Software AG PTC Hitachi,,,,,,. Accenture Atos GE Digital IBM

The Cumulocity IoT platform from German vendor Software AG offers device management and pre-configured IIoT applications, as well as real-time analytics, enterprise and cloud integration. Of the platform's strengths, experts noted that Software AG customers are usually satisfied with their experience with Cumulocity. Of the weak - unsatisfactory platform maintenance.

PTC's ThingWorx platform focuses on monitoring assessment, predictive maintenance, and asset utilization. ThingWorx can be run on a cloud server, in a local or hybrid environment. The platform can also connect to existing cloud and IIoT environments. Of the strengths, it should be noted that customers praised ThingWorx for its ability to integrate and manage applications. Of the weak, ThingWorx Enterprise Edition is 20-50% more expensive than competitors' products.

Hitachi Lumada platform of Japanese supplier Hitachi offers a comprehensive solution for local and cloud deployments in resource-intensive industries such as industry, transportation, power and utilities. Of the strengths, it should be noted that Lumada can be used as a separate platform or in partnership with other original equipment suppliers for resource-intensive industries. Of the weak - limited resources for sales and service.

Accenture's Connected Platform as Service solution comes with ready-made and customizable applications for transportation and trading. The platform is available for local and cloud services. It should be noted from the strengths that Accenture has extensive customer experience. Of the weak, the company does not have a market-oriented developer program.

The Bezons platform of the French company Atos combines open source and third-party third-party software. Using this approach, the company provides a competitive product that is easy to use, deploy and implement. Of the strengths at Gartner, they indicate that the company is ready to work with old industrial control systems, from weak ones - it has a limited scope, mainly focusing on Siemens solutions.

GE Digital's Predix platform comes with capabilities to connect assets, aggregate sensor data, and analyze that data in business analytics. The company supports cloud and on-premises deployments. Of the strengths, high customer satisfaction should be noted, of the weak - constant changes in the management of the company, its structure and strategy of entering the market.

The Watson IoT platform provides a full suite of services and can be deployed as a managed cloud service in an IBM Cloud infrastructure or locally, with customers able to build their own services on top of the platform. From the strengths, it should be noted that most customers appreciate IBM IoT support, from the weak - significant costs for platform deployment.^[6]

Market Volume Growth Forecast

2017

Growth of the Industrial Internet until 2021

ABI Research

ABI Research analysts predict that total revenue from the use of industrial and production IoT applications, for which mobile and satellite communications are used, may amount to more than $138 million. In 2017, the number of new wired and wireless IIoT connections will increase by more than 13 million, amounting to 66 million connections by the end of the year (along with 53 million connections recorded in 2016).

The Asia-Pacific region is leading in new IIoT connections. More than five million additional connections are expected here in 2017. Global market opportunities will grow over the next four years, with 18 million new IIoT compounds projected upon reaching 2021.

Despite this, a decrease in revenues from communication services is expected, which will decrease to $122 million in 2021.

The main base of established connections is fixed communication (DSL, cable, Ethernet and PSTN). Wireless connections in 2017 will account for about 25% of new IIoT connections. Mobile network operators will continue to move their networks and equipment to provide IoT services from 2G technology to the 4G LTE range. Connections in industrial production also increase the use of low-power long-range (LPWA) networks. LPWA will have the most connections over the next four years.

2016

Accenture

According to analysts at Accenture, the industrial Internet of Things market will exceed $14 trillion by 2030. The Zyfras are good if there is a need to attract investors or persuade bosses to take up IoT. Don't take these numbers too seriously. From a forecast point of view, it is quite obvious that the industry is growing at a very fast pace.

Growth expects several jumps related to the adoption of common standards and protocol parameters, which should significantly reduce the risks of large investments in IoT systems.

Ovum forecast

Ovum predicts that the total volume of connected devices used in various segments of the global economy will reach about 530 million units in 2019, with the largest number of such devices in the field of power and housing and communal services, transport, industry, healthcare and trade.

The key driver of growth will be the continued reduction in the cost of sensors and equipment, communication services, data processing and system integration, on the one hand, and the reduction in costs and revenue of enterprises that implement innovative solutions, on the other hand.

Forecast by Machina Research and Nokia

According to Machina Research and Nokia, the revenues of the global industrial Internet of Things market will reach 484 billion euros in 2025, and the main sectors will be transport, industry, housing and communal services, healthcare and applications for the smart home. At the same time, Machina Research and Cisco estimate the total estimates of the Internet of Things (user and corporate) market in the world to $4.3 trillion in 2025.

Honeywell IIoT: Most manufacturers plan to increase investment in data analysis technologies

The survey, titled "The Impact of Big Data on Manufacturing: Examining the Views of Executives," involved more than 200 executives from North American manufacturing companies. The survey was conducted by Honeywell's Industrial Automation division in conjunction with KRC Research from May 23 to June 8, 2016.

The survey made it possible to draw the following main conclusions:

• Some companies are forced to operate under the threat of unplanned downtime and equipment breakdowns, which are seen as the most detrimental factors affecting revenue growth.
• Most companies acknowledge that they are already investing in data analytics technologies.
• More than a quarter of executives reported having no plans to invest in data analysis next year; a lack of understanding of the benefits of data analysis and a lack of resources are most often cited as reasons in this group.

"Vicious Circle"

Unplanned downtime is considered the main threat to income growth, but 42% of respondents admitted that they operate equipment with more load than they should. When asked how often their companies have faced production problems in recent years, 71% of respondents said that equipment failures occur from time to time, 64% said the same about unplanned downtime.

40% of respondents listed unplanned downtime as the greatest threat to income growth. Other causes included the following:

• Supply Chain Management Challenges (39%)
• Inadequate personnel qualification (37%)
• Marriage (36%)
• Equipment breakdowns (32%)

Data Analysis as an Effective Solution

Data analysis is a key component of the successful implementation of IIoT technologies for manufacturers. Most respondents recognize the effectiveness of technologies for data analysis. For example, executives said they agreed that big data analysis could lead to a reduction:

• equipment breakdowns (70%)
• unplanned downtime (68%)
• unscheduled maintenance (64%)
• supply chain management failures (60%)

Respondents said they believed data analysis could help make informed decisions faster (63%), reduce scrap (57%) and predict downtime risks (56%).

In addition, more than two-thirds of respondents (68%) said they were currently investing in data analysis, and 50% reported that they believed the companies they led were on the right track with regard to implementing data analysis technologies; and 15% said they were ahead of others in applying data analysis technologies.

The benefits are not obvious to everyone

While a majority of respondents said they were already investing and/or planning to increase investment in data analysis next year, 32% said they were not currently investing in data analysis. Meanwhile, 33% of those surveyed said their companies had no plans to invest in data analysis over the next 12 months or that they were not aware of such company plans.

Of the respondents who do not currently plan to invest in data analysis:

• 61% believe that their companies already have systems that can ensure security, profitability and business success
• 45% said that their company has a certain increase and without analyzing the data
• 42% said they did not fully understand the benefits of big data
• 35% believe that people overestimate the benefits of big data

63% of respondents who do not plan to invest in data analysis indicated that they simply do not have enough resources to invest, while 39% reported that they do not have the necessary personnel for the necessary data analysis.

2014: Verizon Score

According to Verizon, in 2014 globally the IIoT market totaled 1.2 billion devices, and by 2020 it will grow to 5.4 billion.

2013

See also

• Internet of Things (IoT)
• Internet of Things, IoT, M2M (Global Market)
• Internet of Things, IoT, M2M (Russian market)
• Industrial Internet of Things in Russia. Study of TAdviser and Rostec Group of Companies
• Internet of Things
• Internet of Things: you can't stay in time
• IIoT - Industrial Internet of Things
• Industrial Internet of Things - IIoT (Industrial Internet of Things) in Russia
• PaaS - Platform As A Service
• RFID
• APCS
• Smart Grid

• Big Data
• Big Data (Big Data) Global Market
• Big Data in Russia
• Big Data in E-Commerce

• National Industrial Internet ConsortiumTM, IIC
• National Association of Industrial Internet Market Participants (NAPI)
• IoT Consortium
• Russian Internet of Things Association
• National Industrial Automation Platform (NPPA)
• Industrial Internet ConsortiumTM, IIC (Industrial Internet ConsortiumTM, IIC)
• Industrial Revolution (Industry 4.0)

Notes