IEEJ：May 2018 © IEEJ2018

The Factors on the Influences of Energy Consumption of IoT
in Manufacturing Industries
Mitsuaki Ota*
IoT in manufacturing industries has increased attention in recent years with various concepts including Industrie4.0 in Germany．
This paper organizes the characteristics of IoT，verifies

the current status from manufacturing industries in Japan and considers

the factors that affects energy consumption．IoT can be classified in terms of technologies and application process．The coretechnologies consist of ①things，②cloud serer and ③open channels of communication．The application process can be
categorized into 5 stages;①Collection ②Visualization ③Management（monitoring） ④Forecasting(analysis) and ⑤
Control(Implementation)．Based on the examples，while the introduction ofthings and cloud servers is advancing in terms oftechnology, we can see that introduction of open channels is lagging. As for the application process，most of examples still remain
in ②visualizing phase．For the quantitative study, it will be important to examine policies taking into account comprehensive
perspectives not just for the manufacturing industries, but of the supply chain, as well as the possibility of implementation inmaterials industries and small and medium companies and the potential for energy savings, as well as cross-sectional impact
focusing on the structural changes that will be caused by IoT implementation.
Keywords:Industrie4.0，IoT，Sensing，Cloud server, Open Channels

１． Introduction

begun in Japan’s manufacturing plants. In practical terms, services

In recent years IoT related activities have attracted muchthat use data from sensors attached to construction and agriculturalattention in various fields and industries, and manufacturing

equipment to detect problems or to perform remote equipment

industries have been no exception.

Industrie4.0, announced bymaintenance have already begun to arrive. Meanwhile, the public

the German government in 2011, has offered one opportunity forhas just begun to pay a lot of attention to IoT, and there has not

manufacturing industry IoT to attract attention. The objective there

been a lot of research into evaluation of the impact on energy

is to use IoT technology to further increase the efficiency ofdemand from broader implementation of IoT. Therefore, we think

manufacturing and make major cost reductions.

that it will be important to study and verify the factors that have

In response to the German initiative, the Industrial Internet

impact and the methods for understanding actual status. This

Consortium (IIC) was founded by private interests in 2014 in thearticle organizes the characteristics of IoT and verifies the current

US, and China announced the “Made in China 2025” vision to

status of the use of IoT from the perspective of manufacturing instrengthen the nation’s manufacturing in 2015. Similarly, theJapan, and at the same time considers factors that affect energy

Japanese government established the Robot Revolution Initiative

consumption and qualitative impacts focusing on the structure of(May 21015), and has announced various visions such as Society

IoT.

5.0 (January 2016), and Connected Industries (March 2017). In
Japan, it is characterized by plans for a future society where IoT is

２．Characteristics of IoT

not limited to manufacturing industries, but extends to agriculture,

2.1 IoT Core Technologies and Processes that Use it
IoT is generally translated as “Internet of Things” and in thishealth care, transportation, finance, resilience and various service

article we will mainly describe IoT in terms of the technologies

fields, and those are all linked.

and processes that use it. The core technologies that compose IoTWith this background, it can be said that use of IoT has already*

The Institute of Energy Economics, Japan, Fossil Fuels & Electric Power Industry Unit
Inui Bldg. Kachidoki, 10th, 11th Floor 13-1, Kachidoki 1-chome, Chuo-ku, Tokyo
104-0054 Japan,*This article is a presenting at the 34th Conference on Energy,
Economy, and Environment that Japan Society of Energy andResources (JSER) hosted.

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are ① things, ② cloud servers, and ③ open channels of

IoT

Past
Terminal
equipment

communication (Figure 1).

・Limited to computers, cell phones, etc.

・ All kinds of things including household appliances,

・Few types.

medical devices, vehicles, construction machinery,
agricultural machinery and die casting (①).
・Abundant and numerous types.

Information
network

・Collects massive amounts of data from all kinds ofManagement
servers

・Uses open cloud servers (②).

・Most servers owned by companies.

・Information closed off within company.

・Company LA N, etc, dedicated lines.

・Uses open channels typical of Internet lines (③).

・No connections to other fields or businesses.

・Advantage of being connected to all kinds of things

things, and stores it.
・Can be used for analysis of big data.

(Source) Created from various sources
Figure 1. IoT Core Technologies
Processes that use IoT are structured to use sensing and othertechnologies to ① collect (accumulate) information in cloud
The differences between IoT and past technology are shown

servers, and depending on the purpose, perform ② visualization,

here in Table 1. In the past the things connected to the Internet③ management (monitoring), ④ forecasting (analysis), and ⑤

were limited, such as computers and cell phones, and there wascontrol (execution). However, depending on circumstances, not all

not a lot of data to collect. With IoT, all kinds of things are

5 processes are always independent, and there are examples of ②

connected to the Internet that were not connected in the past, suchvisualization, and ③ management (monitoring) being equated,as household appliances, medical equipment, agriculturaland of existing manufacturing processes performing

equipment, vehicles, and furthermore construction machinery,visualization without performing stage ①, collecting information.

agricultural machinery, and die casting in manufacturing

In this article, the analysis is based on considering the 5 stages

industries, and it is possible to collect various and quality

above to be fundamental processes.

②

information by using sensing technology.
2.2

The information that is collected is accumulated in servers. In

Factors that Impact Energy Consumption

Table 2 shows the factors that affect both increased andthe past management servers were independent units owned bydecreased energy use based on utilization of IoT.

each company, and the tendency was for each company to keep its
information for its own use. In the age of IoT, they use open,

Table 2. IoT Factors that Impact Energy Consumption

external cloud servers. These servers accumulate informationcollected from “things” that belong to various companies andFactors that increase energy

Factors that decrease energy consumption

consumption
Technology

projects, in addition to information from their own company. The
information collected in this manner can be used by each company
in manufacturing and other processes, according to their own
purposes.
Furthermore, IoT uses open channels, typified by the Internet,① Things

Increased sensors.

② Cloud

Increased data center storage.

③ Open channels

Decreased

numberofserversdue

tooutsourcing.．

① Collection

Increased sensors-② Visualization

Increased monitors.

Autonomous energy saving activity.

③

Increased monitors

Autonomous energy saving activity.

Introducing programming.

Optimization of automatic manufacturing

Management(monitoring)

Processes that use it

as the communication network to connect “things” and the“cloud.” In the past, there was a tendency to use dedicated linesthat could only be used within companies, and they couldn’t④

processes.
Optimizationofautomatic

energyconsumption reductions.

⑤connect to other fields or businesses, but a society that uses IoT

Forecasting(analysis)

Control

Introducing programming.

(implementation)

Optimization of automatic manufacturing
processes.
Optimization

uses large amounts of data, and connections that cross barriersofautomatic

energyconsumption reductions.

between industries can be expected.
(Source) Same as Table 1.
Table 1. Comparison of IoT and Past Technology
On the technology side, the number of sensors increases as thenumber of ① “things” that connect to the Internet increases, andenergy consumption (mainly electricity) increases. We can also
imagine that electric power consumption by data centers will

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increase with the increase of information accumulated in ②
0%

cloud servers and ③ open channels. Meanwhile, it can be pointed
out that when company server functions are outsourced to external

10%

20%

30%

40%

50%

Overall全体

cloud servers, overall network energy consumption can be reduced①モノ①Things

Manufacturing製造行程
process

because external servers can reduce the amount of energy②Cloud server②クラウドサーバー

consumed per unit of information2). Therefore, it is necessary toSupply chain
サプライチェーン
③Open channels③オープン回線

evaluate overall network energy consumption for energy
consumption of IoT using

Customer
service
顧客サービス① “things,” ② cloud servers and③ open channels.
Meanwhile on the process side, at the ① collection stage, there

Figure 2. Status of IoT Implementation (Technology)

is an increase in energy consumption as the number of things with

(Source) Created from reference documents 2)

sensors attached increases. Continuing to the ② visualization and③ management stages, monitoring for visualization of operational0%

status of equipment and energy consumption is necessary, so it is

10%

20%

30%

40%

全体

Overallpossible that the increased number of operational monitors will be①収集①Collectiona factor for increased energy consumption. Meanwhile, we canManufacturing製造行程
process②見える化②Visualization③Management (monitoring)③管理（監視）expect that if energy consumption in factories is more visible, that
Supply chain
サプライチェーン

will be incentive for autonomous energy reductions such as when

④Forecasting (analysis)④予測（分析）⑤Control (execution)⑤制御（実行）

costs can be reduced by operating equipment more efficiently. At

Customer service

顧客サービスstages ④ forecasting and ⑤ control, it is possible that there could
be increased energy consumption for the computers used for

Figure 3. Status of IoT Implementation (Processes)

control for optimizing automatic production processes in(Source) Same as Figure 2

programmed production process management. On the other hand,
we might expect even bigger reductions in energy consumption

The “manufacturing processes” referred to here include

due to reducing energy consumption with the optimization of

examples of visualization and analysis of manufacturing

production processes, and program controls with higher priorities

equipment operational status, remote maintenance services

for energy savings. In this way, it will be important to consider how

connecting service centers with manufacturing equipment when it

IoT is connected to control of energy consumption as processes

breaks down for support of quick recovery, predictive maintenancethat use IoT go through each stage.

when accumulation and analysis of equipment data indicates it isdue, and virtual linking between factories when company A and３．Analysis of Current Status
3.1

company B have a contract for manufacturing systems. Also,

Status of IoT Implementation“supply chain” refers to examples of demand prediction for

In this section we analyze the spread of IoT in Japanese

products based on past sales results, for optimal management of

manufacturing plants, based on the characteristics of IoT describedorders, production, and shipping. “Customer service” aims for thein the last section, and consider the impact on energy consumption

diversification and further sophistication of user service, andfor the present and future. Regarding the current status of the

includes examples of placing sensors on manhole covers overspread of IoT, we analyzed a map of IoT use based on a sample ofsewer lines to monitor changes in water levels in real time in the

210 cases in manufacturing industries from the Robot Revolution

cloud, placing sensors in the area where gas is being supplied so

Initiative2). It is necessary to note that this is a sample of a portion

that gas can be cut off when disasters occur there. “Other”

of IoT usage in manufacturing industries.

primarily refers to establishment of the association and a summary

The results for the spread of IoT classified by technology and by

explanation, and not to examples of IoT.

process are shown in Figure 2 and Figure 3.

Based on the result, while the introduction of “things” andcloud servers is advancing in terms of technology, we can see that
introduction of open channels is lagging. Also, looking at it by3

IEEJ：May 2018 © IEEJ2018

purpose of implementation, it is apparent that there are few
4%(9 instances)

implementations for supply chain. Further, among these examples
there are cases of transitioning from paper input media to Excel

13%(28 instances)

input, and examples of companies using their own cloud foraccumulating manufacturing plant data, many examples that are
Manufacturing processes
製造工程

14%(30 instances)not correctly described as examples of IoT. In terms of processes

68%(143 instances)

there are many examples of using IoT for stage ② visualization,

Supply chain
サプライチェーン

but relatively fewer examples for stage ③ management

Customer service
顧客サービス(monitoring) and especially for stages ④ forecasting (analysis) and

Other
その他

⑤ control (execution). Looking at the current situation fromperspectives of both technology and process, we think that

Figure 4. Purpose of Introduction of IoT

introduction of IoT in Japanese manufacturing industries is at the(Source) Same as Figure 2.

beginning stage.

From the perspective of society overall, looking at

3.2 Viewpoint on Impacts on Energy Consumption

implementation by industry, we can see that implementation in

So far we have looked at the basic structure of IoT

machinery-related industries is the highest (Figure 5). Meanwhile,

implementation and factors that impact energy consumption, andthe introduction of IoT in materials industries for energy savings,

done a qualitative analysis of the current status of implementation

may have a relatively higher potential for reducing energyof IoT. In this section we will consider the requirements for aquantitativeevaluation

from

the

perspectivesofconsumption than in machinery-related industries. For that reason,

withinit will be necessary to evaluate the possibility of implementation

manufacturing plants and society overall (policy perspective).

separately by industry to look at the future impact of IoT.

From a perspective within manufacturing plants, businesses
view implementation of IoT as being applicable for various
purposes, including optimizing manufacturing processes and13%(27 instances)improving customer service (Figure 4). That is why it will be

1%(2 instances)
7%(14 instances)

necessary to investigate what kinds of equipment and machinery

1%(2 instances)and functions must be introduced for IoT in addition to IT

1%(2 instances)

機械製造業
Machinery manufacturing industry

equipment that is already in place, and to examine evaluation

食品飲料製造業
Food and beverage industry
77%(162

methods for the additional energy consumption that goes along

instances)with that introduction. In addition, the introduction of IoT makes

繊維工業
Textile industry
化学工業(含
石油石炭製品)Chemicals(includes
petrochemical products)
窯業・土石製品製造業
Ceramics industry

it very likely that the structure of the company’s supply chain

その他
Othersmight have to be changed. For that reason, in order for businesses
Figure 5. Share by Industry

to evaluate the impact of IoT on energy consumption, they must

(Source) Same as Figure 2.

consider it not just from the perspective of direct changes in the
manufacturing plant, but they must also look at changes to their

In addition, current utilization of IoT by small and medium

distribution methods and service configuration.

companies, which can be expected to further implement IoT underenergy policies, is low compared to larger companies (Figure 6).
We think it will be important to consider the impact of spreading
implementation of IoT among small and medium companies on
reducing social energy consumption overall.

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6%(12 instances)

31%(65 instances)
63%(133 instances)

大企業：301人以上
Large companies: 301 employees and up
Medium companies: 21 to 300 employees
中小企業：21-300人
Small companies: 1 to 20 employees
小規模企業：1-20人

Figure 6. Share by Company Size
(Source) Same as Figure 2.

Further, there is a requirement to examine policies focusing on
the structure of IoT. In practical terms, the advancement of IoT
within manufacturing plants leads to construction of the networks
relying on the services outside the factories such as the data centersand cloud servers, and it is possible that IoT implementation willbring about both increased and decreased energy consumption.
When looking at it from the perspective of saving energy andcountermeasures for global warming, in order to decide which
efforts to emphasize, it will be important to develop cross-sectionaland comprehensive methods to understand and evaluate the impact
of IoT implementation on energy consumption for society overall.
４.SummaryJapan’s implementation of IoT in manufacturing industries is at
the beginning stage, and when considering quantitative
examination of the impact on energy consumption in the future, itwill be important to examine policies taking into accountcomprehensive perspectives not just for the manufacturingindustries, but of the supply chain, as well as the possibility of
implementation in materials industries and small and medium
companies and the potential for energy savings, as well as crosssectional impact focusing on the structural changes that will becaused by IoT implementation.

References
1） IDC Japan:
https://www.kankyo-business.jp/news/009304.php(Access date: November 1, 2017)
2） Robot Revolution Initiative:
https://www．Jmfrri.gr.jp/iot/429.html(Access date: November 1, 2017)5
Contact :report@tky.ieej.or.jp