Manufacturing and IIoT: Building the Smart Factories of Tomorrow

Eseye

IoT Hardware and Connectivity Specialists

LinkedIn

Manufacturers are once again at the forefront of industrial progress. With predictive maintenance, robotics, and edge processing, smart factories are no longer an aspiration. They are now a competitive necessity.

The mission is clear: speed up production, cut failures, and strengthen margins. But as our 2025 State of IoT Report shows, manufacturing’s IoT journey is also about more than financial gain. Priorities are expanding, risks are shifting, and investment is accelerating.

Manufacturers plan to double up to treble IoT estates

IoT has become core to industrial operations. In 2025, 57% of manufacturers report running estates of 1,001 to 10,000 devices. And the scale is about to surge. Over half (51%) expect their deployments to more than double up to treble within the next 18 months.

That momentum is not new. In 2023, 80% of manufacturers planned to grow their IoT estates. In 2024, the figure jumped to 86%, with 30% planning to double deployments. In 2025, 86% still plan to expand, showing a sector with unwavering commitment to IIoT as the foundation for Industry 4.0 and beyond.

From profit to purpose

Revenue growth remains important, but manufacturers are now broadening their sights.

• In 2024, 68% identified increased revenue as their top IoT benefit, echoing 62% in 2023.
• In 2025, revenue is still strong at 44%, but sustainability (46%) and social impact (45%) have surged in importance to the number one spot.

This evolution signals a new phase of Industrial IoT maturity. Smart factories are no longer judged only by productivity and profit. They are being measured by their ability to cut emissions, reduce waste, and support people as much as production.

85% of manufacturers suffer IoT security breach

As estates scale, new challenges are rising. In 2024, the security of devices (27%) was manufacturers’ top concern. In 2025, that has been overtaken by access to technical IoT support (24%).

The change highlights a growing reality: security risks have not gone away, but day-to-day device management and technical complexity are now equally pressing. In fact, 85% of manufacturers reported an IoT-related security breach in the past year, proving that vulnerabilities remain significant.

Edge intelligence powers Industry 5.0

As factories move beyond Industry 4.0 into the era of Industry 5.0, edge intelligence is becoming critical. The ability to process data locally and act in real time can transform everything from predictive maintenance to quality assurance.

In 2024 87%, rising to 86% in 2025, say devices need to become more intelligent and process data at the edge.

Julien Bertolini, IoT Expert at Volvo Group, explains:

“IIoT provides significant value for us, enabling a flexible production line capable of building both electric and combustion trucks. It’s helped us to shorten Time to Market by building Digital Twins and adapt quickly to market demands. Our Edge IoT solutions combine real-time monitoring, predictive maintenance, and computer vision for quality inspection and to improve OEE (Overall Equipment Effectiveness) — and that’s where we see the future of smart manufacturing headed.”

Volvo’s experience demonstrates how manufacturers can use IoT not just to improve throughput, but to unlock agility and prepare for the next industrial revolution.

Case in point: Martin Engineering

For many manufacturers, IoT is also the key to transforming service models and customer value. Martin Engineering, a global leader in bulk industrial material handling, partnered with Eseye to connect and manage its conveyor belt cleaning tools and other process flow accessories in wide-scale use on large industrial sites in EMEAI and North America.

By embedding AnyNet+ eSIM connectivity into its sensors and devices, Martin Engineering has:

• Achieved global coverage across multiple networks, essential for monitoring equipment in remote and challenging environments.
• Confidently tested and deployed its IoT solution in five new regions, without increasing operation and support overheads.
• Real time predictive maintenance capabilities that reduce downtime and extend the life of heavy-duty industrial assets.

IoT is engineering what’s next

Manufacturing reports the highest net increase in IoT budget for 2025 at 76%, underlining its position as the industry most committed to Industrial IoT. Companies are betting big on IoT to power flexible production, accelerate time to market, and deliver measurable gains in both efficiency and sustainability.

But growth without resilience is risky. With 85% of manufacturers reporting an IoT-related security breach and technical complexity still climbing, scaling must be done with the right support and technology stack in place. Eseye’s Infinity IoT Platform™ and AnyNet Federation provide global, secure, and futureproof connectivity to keep smart factories operating at peak performance.

Manufacturers are not waiting for disruption. They are engineering it. The winners will be those who embed IoT into their operations with security, intelligence, and resilience at the core — ensuring they stay ahead in the race to Industry 5.0.

In this article

• Manufacturers plan to double up to treble IoT estates
• From profit to purpose
• 85% of manufacturers suffer IoT security breach
• Edge intelligence powers Industry 5.0
• Case in point: Martin Engineering
• IoT is engineering what's next