IoT in the Industrial Sector Commentary

It is important to differentiate the Internet of Things into two distinct categories of use cases: 

Consumer, and Industrial. IoT is used in industrial applications such as energy (oil and gas, 

etc..), mining, chemicals, transportation (rail, aerospace, etc.) such as manufacturing, 

monitoring, process control and operations, and supply chain management. Many equipment

manufacturers use Industrial Control Systems, otherwise known as ICS, that are used to control 

processes like manufacturing, product handling, production, and distribution. ICS includes 

Supervisory Control and Data Acquisition (SCADA) systems, distributed control systems, and 

programmable logic controllers that incorporate IoT technologies. These are different from IoT 

technologies used in the consumer market that are prevalent in devices like smartphones, smart 

wearables, and smart home devices that collect and share data through an internet connection. 

IoT technologies in industrial markets together with components like sensors, data storage and 

integration, data analytics, and machine learning, can be applied to SCADA systems to improve 

interoperability and coordination among different machines. The sensors collect new data from 

various equipment and continuously feed the data into the analytics. This way, machine learning 

algorithms can learn from past data and fine-tune the settings on different machines for 

thousands or even millions of cycles to reach the optimal point of the entire system. Harnessing 

IoT in industrial markets brings several benefits: 

1. Increased efficiency in manufacturing operations. IoT gives manufacturers and industrial 

operators the ability to automate and optimize their operating equipment efficiency and/or 

utilization. The use of robotics and automated machinery can boost productivity and help 

manufacturers streamline productions, reducing unplanned equipment downtime. Using 

sensors, manufacturers and utilities gain valuable insight into operational performance of 

pieces of equipment as well as entire systems.

2. Reduction of errors. Through digitalization, manufacturers can reduce operational and 

manufacturing errors generally associated with manual labor. IoT can help reduce errors in 

operations, even in those operations that are automated like in continuous manufacturing 

operations. For example, IoT sensors can detect anomalies and/or variabilities in a chemical 

processing operation and adjust certain parameters to reduce process waste and increase 

yields. AI and machine learning can do much of the required computing and data analysis 

and make subsequent predictive recommendations which can improve a manufacturing 

process.

3. Predictive maintenance. IoT technologies can alleviate issues and unplanned machine 

downtime associated with reactive maintenance. By monitoring equipment performance 

consistently, industrial operators are able to identify issues before they occur and allows 

them to schedule maintenance prior to any downtime.

4. Improved safety. A fully functioning manufacturing operation that incorporates sensors and 

other IoT technologies can use the collected data to bolster worker and product safety. 

Integrated systems can protect workers by providing alerts which could automatically and 

safely cease operations if an accident is predicted or until an incident is resolved. Safety can 

be improved with sensors monitoring hazardous conditions and sending alerts when 

necessary, such as detecting chemical leaks or equipment malfunctions, reducing the risk of 

accidents.

5. Cost reduction. The data provided to manufacturers through Industrial IoT technologies is 

giving them the knowledge and tools to reduce costs and increase marginal revenue. By 
using data-driven insights into operations, production, marketing, and sales manufacturers 

can steer their business into a more profitable direction.

6. Enhanced Productivity & Quality: IoT technologies can improve productivity by providing 

workers with real-time data and insights. Continuous monitoring of product quality can 

automatically adjust processes to maintain consistent quality levels. 

7. Data-Driven Insights, Reporting, Compliance: The data collected by industrial devices

incorporated with IoT technologies can be analyzed to gain valuable insights. This datadriven decision-making can lead to innovations, process improvements, and a better 

understanding of customer needs. It can also simplify regulatory compliance by 

automatically recording and reporting data required for compliance purposes.

There is a tendency to often place both the Industrial sector and Consumer sector into the same 

category when discussing applicable standards, best practices, regulations, and legislations. 

Because, they have different use cases that is not necessarily accurate. As an example, this 

sector utilizes existing standards and conformity assessment schemes such as the ISA/IEC 

62443 series of standards and conformity assessment programs that provide a systematic, 

practical, and holistic approach to address cybersecurity in product development and across the

overall product lifecycle, starting at its inception. Additional justification for the need for this 

distinction between these two distinct categories of use cases is provided below: 

• Use/Scope: Consumer devices with IoT technologies are typically used for personal and 

home use, whereas IoT in industrial devices are used in settings for manufacturing, 

transportation, energy, and other critical infrastructure.

• Utility: Consumer devices with IoT technologies are generally used for convenience, 

health, personal productivity and entertainment purposes, whereas IoT in industrial

devices are used for enhancing productivity, improving efficiency, quality and reducing 

costs in industrial processes. 

• Applications: Consumer devices with IoT technologies are used for a range of 

applications such as home automation, health monitoring, and entertainment, whereas 

IoT in industrial devices are used for industrial applications such as monitoring and 

control of machinery, inventory management, and supply chain optimization. These 

operations may be in harsh environments, require low latency and may operate in long 

time scales before replacement. 

• Impact: Cybersecurity breaches in consumer devices with IoT technologies may result 

in loss of personal data and privacy violations, whereas security breaches in industrial

devices with IoT technologies can cause significant damage to critical infrastructure, 

including production downtime, supply chain disruptions, and safety risks.

• Life Support: Some industrial devices with IoT technologies such as medical devices 

and aerospace systems may involve human safety, and their cybersecurity 

vulnerabilities can lead to fatal outcomes.

• Automation: Industrial devices with IoT technologies are often automated and may 

interact with other machines and systems, whereas consumer devices with IoT 

technologies interact primarily with their human users and other consumer devices that 

have IoT technologies.
• Reliability: Industrial devices with IoT technologies must operate reliably and 

continuously in harsh environments, whereas consumer devices with IoT technologies 

typically operate in more controlled environments.

• Privacy and Confidentiality: Consumer devices with IoT technologies may collect and 

transmit personal data, and protecting user privacy is a critical cybersecurity concern. 

Industrial devices with IoT technologies may also collect sensitive data, but the privacy 

concerns may differ based on the application. The data being transmitted and processed 

in Industrial IoT environments can be highly sensitive and critical to business operations. 

This includes manufacturing data, process control information, supply chain data, and 

proprietary intellectual property. Confidentiality in Industrial IoT extends beyond personal 

information to safeguard critical industrial processes and trade secrets.

• Interoperability: Industrial devices with IoT technologies are often part of larger 

systems and must be interoperable with other devices and systems, including legacy 

equipment and other operations technologies. whereas consumer devices with IoT 

technologies are often standalone and may not require interoperability (although there is 

a trend towards increased interoperability in certain scenarios)

• Scalability: Industrial systems with IoT technologies often involve a large number of 

devices and must be scalable to accommodate growth, whereas consumer systems with 

IoT technologies may be smaller in scale

• Attack Surface: Industrial devices with IoT technologies have a larger attack surface 

due to their connectivity and may be vulnerable to various types of cyber threats such as 

hacking, malware, and ransomware. Consumer devices with IoT technologies may also 

be vulnerable to similar threats, but the attack surface may be smaller.

• Criticality: The cybersecurity of industrial devices with IoT technologies is critical for the 

operation of critical infrastructure, whereas consumer devices with IoT technologies may 

not be as critical

The advancement of IoT technologies in industrial applications can further amplify the 

efficiencies of the manufacturing process, allowing for production goals and outcomes to reach 

levels of scale that are previously unimaginable and physically attainable. And when properly 

and responsibly governed and applied, these technologies can achieve these efficiencies while 

enhancing workers safety and privacy while fostering energy and environmental stewardship.