What is IIoT? A beginner’s guide to the industrial internet of things

What is the industrial internet of things (IIoT)?

The industrial internet of things is a network of devices, sensors, applications, and connectivity equipment that leverages machine learning to optimize industrial operations.

While you may associate the internet with websites, social media, and online gaming, it encompasses much more than that. It is a global network that connects servers, computers, phones, tablets, and other smart devices, and IIoT plays a critical role within it.

The basic idea of IIoT is similar to that of smart home devices. However, IIoT is unique because it integrates information technology (IT) with operational technology (OT), combining computers and industrial machinery to revolutionize industrial operations across various sectors, including manufacturing, agriculture, utilities, mining, and healthcare.

IIoT devices use physical servers known as gateways to facilitate machine-to-machine communication and share data with applications. This process is controlled by machine learning, a type of artificial intelligence (AI) that uses mathematical models to teach computers to recognize patterns and perform tasks. Machine learning helps IIoT networks collect and analyze real-time industrial data without human intervention.

IIoT networks also leverage edge computing to keep data up-to-date. Edge computing allows devices from remote sites to process data from the “edge” of the network and move the most important information closer to the central data center. This process minimizes latency and optimizes bandwidth usage, enabling real-time data collection and analysis.

An industrial IoT ecosystem gathers information, identifies patterns, and makes projections by combining hardware, software, and cutting-edge technology. This allows factories to better understand productivity levels, streamline processes, and reduce costs. Data insights can also improve safety and maintenance procedures.

IIoT vs. IoT

The IIoT is technically a subset of the internet of things (IoT). While they share common features, such as sensors, applications, and analytics, the main difference between IIoT and IoT is that they serve different purposes.

If you use a smart home device, smartwatch, or smart TV, you are already familiar with the internet of things. IoT devices connect to the internet and use sensors and software to process data. IoT works within the home, whereas IIoT is designed for industrial applications.

Overall, an industrial IoT system requires greater precision and reliability than IoT. IoT operates on a small scale, with the goal of improving convenience within homes, offices, or small businesses over a product’s relatively short life cycle. In contrast, IIoT technology integrates with OT to control heavy machinery and complex processes over an extended period of time.

Simply put, if IIoT technology fails, it could pose a danger to individuals, products, or machines. If IoT devices fail, it is just an inconvenience.

How does IIoT work?

IIoT works by allowing its interconnected devices to collect, distribute, analyze, and act on data in real time. It promotes machine-to-machine communication and allows industrial machinery to act independently of human interaction.

An industrial IoT system has four layers:

• Physical — sensors and connected devices, including wearables, smart machines, and industrial equipment
• Network — the IIoT gateway that connects all the devices
• Application — the software that analyzes and acts on data
• Interface — the device that humans use to interact with the IIoT system, such as a computer, tablet, smartphone, or virtual reality headsets

Smart sensors collect data and share it with other devices and software through the network gateway. The software then uses this information to run advanced analytics, make “decisions,” and automate tasks. By leveraging this advanced technology, IIoT saves industrial organizations valuable time, money, and resources.

Benefits of IIoT for industries

IIoT has the potential to revolutionize industrial operations. The broad industrial benefits of IIoT solutions include:

• Optimized operations. The data IIoT collects provides actionable insights into supply chain and operational efficiency, allowing managers to remove bottlenecks, streamline processes, and eliminate redundancy — ultimately increasing productivity and profit.
• Improved efficiency. IIoT can automate repetitive tasks and collect and analyze data much more quickly than other solutions.
• Increased safety. IIoT technology can identify potentially dangerous situations and gaps in safety protocols and prevent system failures. It can also leverage context-aware recommender systems to automatically stop operations that pose a safety risk.
• Predictive maintenance. IIoT can predict when a piece of machinery needs maintenance before it fails. This information allows companies to take proactive action, improves field service technician efficiency, and minimizes downtime.
• Effective decision-making. IIoT devices collect real-time data, allowing both machines and humans to make informed decisions as soon as possible.
• Scalability. IIoT systems give industrial organizations the information they need to effectively scale production.
• Refined inventory management. IIoT technology can monitor assets within facilities to verify locations, ensure safe storage conditions, and track items during shipping.
• Quality control. Automated processes and real-time data ensure consistent quality.
• Maximized profits. IIoT proactively problem-solves, increases efficiency, reduces the cost of operations and maintenance, speeds up the production process, and allows for scalability.
• Compliance. IIoT can be trained to automatically remain compliant with organizational, industry, and government regulations.
• Customer service. In addition to improving industrial operations, IIoT can also enhance the customer experience. IIoT networks can streamline the shopping experience and allow businesses to easily interpret customer feedback and make appropriate adjustments.

By implementing IIoT systems, industrial organizations can maximize profits, improve efficiency, and solve problems in real-time.

IIoT applications across industries

IIoT has applications across various industries and is poised to transform modern approaches to industrial operations.

In addition to IIoT’s broad benefits, specific industrial IoT applications include:

• Utilities. IIoT can meter energy, water, and gas usage, identify power outages, and notify when a grid or plant is facing high demand.
• Manufacturing. IIoT can manage supply chains and inventory, automate repetitive tasks, and monitor for consistency and quality.
• Automotives. The automotive industry already uses IIoT-driven robots to complete parts of the car manufacturing process, which is likely to continue.
• Agriculture. IIoT can analyze soil and weather to improve plant care, use predictive models to suggest the best harvest times and control self-driving tractors and other farming machinery.
• Livestock. IIoT wearables can monitor livestock health and suggest appropriate care procedures.
• Shipping and supply chain management. IIoT can track shipments, provide real-time notifications, and monitor storage conditions.
• Fossil fuels. Oil and gas companies already use autonomous aircraft to collect pipeline data and identify potential problems.
• Logistics. IIoT can respond to real-time data and suggest appropriate responses to meet demand, speed up deliveries, and minimize waste.
• Healthcare. IIoT can monitor patient vitals and minimize human error.
• Transportation. IIoT can be used to support self-driving vehicles on factory floors as well as self-driving commercial cars and public transportation.
• Property management. IIoT sensors can monitor factors that will affect building maintenance, such as HVAC systems, leaks, cracks, and humidity.

IIoT can be implemented in almost any industry to improve outcomes and maximize efficiency.

Challenges and risks associated with IIoT

IIoT is an emerging technology, and as such, it poses certain challenges — particularly regarding security, integration, and bandwidth.

Security is the primary challenge for IIoT implementation. Since industrial IoT systems are interconnected networks, if cybercriminals gain access to one device, the entire system could become vulnerable to cyberattacks. Industrial IoT attacks can expose confidential business data, but their impact may extend beyond that. Because IIoT operates on such a large scale, a cybercriminal could shut down a business’s entire operations and even, depending on the industry, directly impact customers.

IIoT security plans involve protecting all four layers of the system — physical, network, application, and interface — from bad actors. Secure IIoT deployments should prioritize:

• Regularly updating software.
• Using private internet connections.
• Implementing refined authentication procedures and strong system passwords.
• Encrypting data.
• Blocking system manipulation, hacking, and data breaches.
• Avoiding system malfunction.
• Identifying and managing connected devices.
• Segmenting networks into zones that can be monitored individually.

The Industry IoT Consortium, an interest group made up of major technology companies like AT&T, General Electric, and Cisco, has devoted considerable resources to furthering IIoT security efforts and making strong recommendations for security policies.

While security is a major concern for IIoT deployment, it is not the only challenge. IIoT implementation may also present difficulties with the following:

• Integration. Many industries use legacy processes and older OT that could be difficult to integrate with modern IIoT devices.
• Equipment durability. IIoT equipment must withstand the strain of industrial conditions and, depending on the industry, outdoor weather.
• Bandwidth. IIoT systems operate on a large scale, so they require a large amount of bandwidth. 5G networks are proving critical to ensuring that IIoT systems have sufficient bandwidth capacity.
• Fragmentation. IIoT technologies connect devices, which may use different standards and protocols. Building a cohesive IIoT system requires devices that can all work together.
• Centralized visibility. IIoT needs a centralized visibility system to effectively monitor all IIoT devices.
• Data compliance. IIoT data collection and analysis systems need to be designed to comply with data security regulations, particularly when they handle proprietary information or sensitive personal data.

IIoT implementation does present some challenges. However, as IIoT technology continues to expand, these challenges will likely be minimized, and the significant benefits of industrial IoT applications make it well worth the investment.

The future of the IIoT

The future of IIoT is exciting. Many analysts consider IIoT to be a driving factor of the “Fourth Industrial Revolution” or “Industry 4.0.” As a technology with over $200 billion of investment worldwide, IIoT is poised to become a major part of daily operations, affecting both industries and individuals.

The future of IIoT will likely see:

• Expanded implementation. IIoT implementation is expected to keep increasing in the coming years, impacting various industries, including oil, gas, water, manufacturing, logistics, healthcare, and agriculture.
• IIoT service providers. As more businesses implement IIoT, third-party service providers may emerge to help smaller organizations install and manage IIoT systems.
• Energy conservation. IIoT systems allow for advanced energy management. Businesses can monitor their energy consumption, which can inform energy efficiency, waste minimization, and conservation efforts.
• Interior location tracking. IIoT introduces the possibility of refined location tracking. Current Global Positioning System (GPS) technology provides approximate locations and is most accurate outdoors; however, IIoT can track items inside a building. With IIoT, businesses can quickly locate items within their facilities.
• Industrial robots. IIoT will allow for the broader adoption of industrial robots, which can complete repetitive tasks precisely and free up employees to handle more complex situations.
• Predictive maintenance. The IIoT’s predictive maintenance capabilities may become even more widespread, with implications for industrial machinery and personal possessions like cars and appliances.
• Smart cities. As IIoT develops, it could be harnessed to develop smart cities and urban environments that utilize IIoT to improve infrastructure and better serve its citizens.
• Automated vehicles. Self-driving cars are already beginning to become a reality. IIoT technology will allow for further advancements in self-driving cars, trains, and other vehicles, particularly within production processes.
• Advancements alongside emerging technologies. IIoT is directly connected to emerging technologies like AI, machine learning, cloud computing, and edge computing, so as those technologies advance, so will IIoT.

It is impossible to predict exactly what IIoT will look like in the future. However, IIoT’s powerful benefits and the significant investment it has already received can give us a clue. Today, IIoT holds great promise as an emerging technology. Tomorrow, it may be a critical part of our day-to-day lives.