Industrial IoT Edge

Industrial IoT Edge Solutions Struggle to Scale While Hyperscalers Loom

The edge of industrial internet-enabled architectures plays a critical role in determining the success of digital transformation strategies.  Initially focused on delivering timely, clean data to cloud-based applications, the role of the edge continues to escalate as issues with latency, security, and distrust of off-prem, typically cloud-based, execution necessitate that the edge take on a more prominent role.

Industrial IoT EdgeCloud-based solutions need data from connected assets at the edge in order to maximize digital transformation efforts, driving interest from both IT and OT alike.  The pace of scaling remains a market challenge, however.  OEM markets for connected end products have scaled at a slower than anticipated pace, while end customers in connected operations applications have ramped up their PoCs at a slow rate, including due to challenges faced when transitioning from pilots to production.  Other impediments to date include security concerns, timeline for adoption of cloud-native technology at the edge, and lingering doubts in some corners as to the true edge value proposition.

Despite these findings, the long-term value proposition for industrial IoT edge solutions remains solid.  Whether together with cloud-based solutions or executed solely on-prem, edge solutions can help reduce cost, increase revenue, or achieve product and service innovation via connecting operations, products, and/or services.  Escalating requirements for edge-to-cloud connectivity, as well as compute power and storage to serve edge computing requirements, are driving further evolution.

Enterprise Cloud Providers Target the Industrial IoT Edge 

Industrial IoT EdgeAs cloud-based enterprise applications have become the norm, cloud solutions are extending to the edge to access their source data and fulfill their digital transformation value proposition.  This is particularly evident in AI, ML, and video analytics applications, where edge capabilities promise significant value in both data preprocessing and local execution of cloud-trained models.  Cloud providers are adding edge functionality and associated services that are a natural extension of their core capabilities in areas such as device management and security. 

Dedicated edge solutions from outside the enterprise cloud realm differentiate themselves on ability to generate quicker time to value and overcome real deficiencies when extending the cloud to endpoint devices.  These deficiencies include latency of edge to cloud communications and security and operational concerns regarding sending data to and from off-prem components of the architecture.  Industrial IoT edge solutions provide support for the OT environment in areas such as built-in support for northbound and southbound connectivity, easy-to-use industrial development and visualization tools, and domain-specific vertical architectures, while integrating the cloud component for data plumbing, compute, and store infrastructure.  

ARC Market Intelligence on the Industrial IoT Edge

Founded in 1986, ARC Advisory Group is the leading technology research and advisory firm for industry, infrastructure, and cities. We provide extensive market coverage of all aspects of the industrial IoT edge, ranging from edge and cloud software platforms to network infrastructure and endpoint devices. Strategic issues covered include:

  • What is and will be the role of the industrial IoT Edge in the Digital Transformation of Industry & Cities?
  • What impact will the descent of enterprise cloud players to the edge have on the competitive landscape?
  • How should suppliers respond to the emphasis on business outcomes, ease of use, and self-service?
  • How should hardware and software suppliers differentiate themselves?
  • What are the prospects for edge computing in total and by device type?
  • How large is the Total Available Market (TAM) for Industrial IoT-enabled endpoint devices and network infrastructure, and what is the potential for growth in each segment?

ARC Industrial IoT Edge Insights Podcasts

A series of periodic updates on the dynamic Industrial IoT Edge environment.

Episode 1:  Industrial IoT Edge Defined

Episode 2: Market Dynamics

Industrial IoT Research Topics

ARC covers a broad spectrum of topics related to the Industrial Internet of Things.  Global Market Research Reports are available for each of the topics below.  Technology Selection Guides are also available for several of the topics below.

Industrial IoT Edge Software Platforms

IIoT Gateways and Routers

IIoT Endpoint Devices - Total Available Market

  • Market data and scope:  logic, motion, and process controllers; drives; sensors; I/O
  • Market Research Report

IIoT Network Edge Infrastructure - Total Available Market

Industrial Cellular Routers

Fixed Industrial Routers

  • Market data and scope:  Ethernet and cellular, cloud integration, edge computing
  • Market Research Report  

Industrial Ethernet Switches

Industrial and IIoT Network Gateways


    Edge Controllers

    • Market Data and Scope:  region, hardware vs. software vs services, hardware type (PLC-based, IPC-based, motion controller, CNC, other controller)
    • Market Research Report

    Industrial Ethernet Endpoint Devices

    Wireless Devices in Process Automation

    Industrial and Outdoor Wireless Access Points

    • Market data and scope:  new vs. retrofit, fixed vs. mobile, form factor, Wi-Fi standard, environmental
    • Market Research Report 

    IoT Cloud Application Platforms

    Industrial/OT Cybersecurity

    Industrial PCs

    Industrial Private Networks (5G & 4G)

    • Market Data and Scope:  region, network type, hardware vs. software vs. services, network deployment
    • Market Research Report