Industrial Internet of things (IIoT) explained

Abirami Vina

5 min read

August 1, 2025

Uncover how the industrial Internet of Things (IoT) drives smart manufacturing by linking devices, enabling real-time data exchange, & supporting automation.

A single smart factory can generate data volumes comparable to those of a small city. This flow of information is driven by industrial IoT. IIoT stands for industrial Internet of Things, which connects machines, sensors, and people into a smart, responsive system. 

Unlike traditional setups where data might be collected but left unused, IIoT can turn that data into impactful insights and informed actions. IIoT solutions enable real-time data collection, analysis, and response. This helps industries boost productivity, minimize downtime, and make smarter, faster decisions.

In fact, many major industries are rapidly adopting industrial IoT into their facilities. From using IoT in manufacturing plants and oil rigs to hospitals and farms, they are powering a new wave of innovation. Machines integrated with IIoT can think, adapt, and communicate issues in real time.

In this article, we'll explore what industrial IoT is and its impact across various industries. We'll also take a closer look at the role of computer vision in industrial IoT solutions. Computer vision is a subfield of artificial intelligence (AI) that enables machines to interpret and understand visual data. Let's get started!

What is Industrial IoT (IIoT)?

The industrial Internet of Things is a framework for making machines smarter by connecting them to sensors, edge devices, and real-time data processing systems. It’s like giving factory equipment a brain, allowing it to collect, share, and respond to data automatically.

IIoT solutions, like sensors, RFID tags, and actuators, are connected by a network that makes it possible for machines to share data with each other. This enables businesses to improve the efficiency, safety, and reliability of their operations.

Take, for example, IoT in manufacturing. IIoT sensors play a key role in conveyor automation by continuously monitoring machine output. If the output drops below expected levels, the system can detect the slowdown and automatically alert maintenance teams to investigate and resolve the issue.

In addition to manufacturing, IIoT is also used in industries such as energy, utilities, and the oil and gas sector. Rather than relying on legacy machines that operated in isolation, IIoT unlocks the hidden data these systems have always generated and transforms it into valuable insights through real-time analytics.

How does IIoT work?

Industrial automation and IoT work by using a network of smart devices and sensors that constantly talk to each other and share real-time data. These devices can be attached to machines, vehicles, or equipment in factories, smart warehouses, and other industrial settings.

Collected data is transmitted to a central system, either cloud-based or on-site via edge computing. There, it is analyzed to identify patterns and generate insights. These insights support better decision-making. For instance, they can be used to detect performance issues early, predict when machines need maintenance, automate routine tasks, and enhance workplace safety.

IIoT solutions also typically use feedback loops to make real-time adjustments. Based on the data received, machines can automatically change settings such as speed or temperature. These loops can also trigger alerts for operators or start automated actions when something isn’t working as expected. This keeps operations efficient and minimizes downtime.

IIoT technologies driving innovation

Now that we’ve a better understanding of what the industrial Internet of Things is and how it works, let’s take a closer look at the IoT technologies used in industrial automation.

Here’s a quick overview of the core components:

  • Edge computing: Edge computing can process data close to its source, such as sensors or local gateways, to reduce latency and enable immediate responses. For example, it can trigger the shutdown of an overheating machine before any damage occurs.
  • Cloud platforms: They provide centralized storage, support large-scale analytics, and allow remote access. They can also aggregate data from multiple sites to identify trends, optimize performance, and support strategic decisions.
  • 5G connectivity: 5G technology can deliver high-speed, low-latency communication for thousands of connected devices. This paves the way for responsive automation, mobile robotics, and real-time quality control.
  • Sensors and actuators: Sensors collect critical data such as temperature, pressure, and vibration. Actuators use this data to make physical adjustments. Working together, they provide continuous monitoring and real-time automated responses.
  • AI and machine learning (ML): These cutting-edge technologies can analyze data to detect patterns, predict failures, and optimize processes. Over time, they improve decision-making, reduce downtime, and enhance overall efficiency.

Benefits of IIoT across industries

Next, let’s walk through some of the key IIoT benefits and see how they are redefining operations across a range of major industries.

Many companies are already using industrial IoT solutions. In fact, the number of connected IoT devices worldwide is expected to exceed 31 billion by 2030. The reason they are being so widely accepted and adopted is that IIoT offers clear, measurable value. 

One of the most important aspects of IIoT solutions is their close connection to real-time visibility. By continuously collecting and analyzing data, these systems give organizations instant insight into their operations.

Another primary benefit of IIoT is that it enables smoother operation management. By using real-time data, machines and processes can be adjusted on the spot, reducing delays and keeping things efficient. It also reduces maintenance costs because issues can be found early and addressed quickly. 

Beyond this, IIoT solutions improve energy efficiency, reduce waste, and lower the need for manual labor. They increase workplace safety by detecting hazardous conditions early and taking automatic action to prevent accidents.

Common IIoT use cases

IIoT is actively reimagining how industries operate today. From healthcare and logistics to construction and agriculture, organizations are adopting IIoT technologies to achieve smarter, faster, and more reliable outcomes.

Energy production using industrial IoT

The energy industry is typically associated with large-scale, heavy-duty equipment such as drilling machines, refineries, and offshore rigs. While these systems have powered the industry for decades, the Industrial Internet of Things (IIoT) is changing how they operate behind the scenes.

Energy companies are using IIoT to boost efficiency and expand their operations. It gives energy providers more control by offering a real-time view of what's happening on the ground. 

Since replacing entire power grids with smart systems isn’t always practical, IIoT can upgrade existing infrastructure without major changes. This also makes it easier to monitor remote equipment, like pumpjacks or wind turbines, so plant operators can keep everything running smoothly and producing power longer.

Fig 1. Examples of different types of IoT sensors that help collect data. (Source)

A great example of IIoT in energy production is its application in monitoring electrical submersible pumps (ESPs). These pumps are placed inside oil wells to help move fluids to the surface and are essential to oil extraction. However, they can sometimes break down without warning, causing delays and expensive repairs.

To prevent this, a group of researchers created a system called the I²OT‑EC framework. It combines Industrial IoT with edge computing. The system can track factors like temperature and pressure in real time. This makes it easier to spot problems early, schedule maintenance before breakdowns happen, and keep the pumps running smoothly.

How IIoT solutions are reshaping modern healthcare

IIoT in the healthcare industry, also known as medical IoT, is helping make healthcare systems more efficient and less stressful for medical professionals. By connecting medical devices with artificial intelligence systems, IIoT supports better decision-making, reduces the risk of human error, improves patient outcomes, and helps hospitals and clinics operate more smoothly.

For instance, patients can be continuously monitored using wearable devices like heart rate and glucose monitors. These devices can detect early signs of health problems and even send emergency alerts to doctors in real time. As these technologies continue to evolve, more specialized IIoT solutions are being developed to target specific medical needs.

An interesting example of such an IIoT-powered healthcare device is Impedimed. It’s a device that can detect the risk of lymphedema, which is a common side effect of breast cancer treatment that causes swelling in the arms or legs. 

This IoT device looks like a scale. Patients can stand on it barefoot and rest their arms on a platform. It sends a gentle electrical current through the body to measure fluid levels and body composition. The results are processed in less than a minute using cloud software, then shared through a web portal and added to the patient’s electronic health record so doctors can easily review them.

Fig 2. An IIoT-based healthcare device (Source)

Smarter farming with industrial IoT solutions

Similarly, IoT in agriculture can assist farmers. Using IoT tools, farmers can better manage their crops and livestock with real-time information and greater accuracy. IoT devices can be placed in soil, attached to machinery, or even worn by animals to monitor conditions like temperature, humidity, soil moisture, nutrient levels, and animal behavior. 

Collected data can be analyzed to help farmers make data-driven decisions about watering, fertilizing, pest control, and overall farm management. These real-time insights allow them to use fertilizers more effectively, reduce waste, and plan better routes for farm vehicles. This helps save time and resources while boosting productivity.

Fig 3. An industrial IoT-based soil probe that can be used on farms (Source)

IIoT in manufacturing: Smarter production at scale

Industrial IoT in manufacturing involves using smart, connected devices and sensors to collect real-time data from machines and production lines. This data is then processed and analyzed to gain insights that help factories operate more efficiently.

With IIoT solutions, manufacturers can detect and fix problems early, reduce downtime through predictive maintenance, and manage inventory more effectively using edge sensors. Overall, the result is better product quality, faster response to any issues, and lower operational costs. 

Likewise, IoT in Industry 4.0 supports greater flexibility in production, making it easier for manufacturers to shift between product types or customize orders. It also makes the production of goods and materials more agile, accurate, and cost-effective. Using IoT for manufacturing can also ensure the safety and reliability of equipment.

For example, ensuring the safety and reliability of chemical manufacturing equipment is crucial, especially when it comes to handling toxic or flammable chemicals. Traditional maintenance methods often fall short in providing real-time insights. Using IIoT in the manufacturing of chemicals can help address this issue. 

Interestingly, some manufacturers are now using IIoT alongside augmented reality (AR) for equipment maintenance. Augmented reality is a technology that displays digital information, such as images, data, or instructions, over a real-world view, typically through smart glasses or headsets. 

In this setup, wireless sensors and edge computing monitor equipment in real time and send data directly to AR headsets worn by maintenance teams. This makes it possible for technicians to see live performance data or alerts in front of them, helping them identify issues quickly, lower maintenance costs, and make faster, more informed decisions.

Fig 4. Maintenance teams can view industrial IoT data through their AR headsets (Source)

The role of computer vision in industrial IoT

Another cutting-edge technology making a difference in IoT solutions is computer vision. Computer vision is a branch of artificial intelligence that handles the processing and analysis of visual data. 

In particular, computer vision models like Ultralytics YOLO11 support various tasks such as object detection (identifying and locating objects in an image) and pose estimation (determining the position and orientation of a person or object). 

With these capabilities, IoT systems can recognize and respond to visual information in real time. This is especially useful in applications like quality control in manufacturing. 

For example, in a manufacturing facility, IIoT can send visual data from the production line to a Vision AI system. A computer vision model, such as YOLO11, then analyzes the images to detect defects in products. If the model identifies any issues, they can be quickly flagged and resolved without delay. 

This improves product quality, reduces errors, and makes operations safer and more efficient. To achieve even faster results, edge computing can be used. In this setup, the data is processed directly on edge devices at the point of capture, enabling real-time decisions without needing to send information to the cloud and avoiding potential delays. 

Fig 5. An example of using YOLO11 to monitor a production line. (Source)

IIoT challenges & considerations

Now that we’ve seen how industrial IoT solutions can benefit different industries, it’s also important to take a closer look at the challenges that may come with implementing these solutions. Understanding these challenges is key to getting the most out of IIoT solutions and ensuring a successful rollout. 

Here are some limitations to consider:

  • Integrating with older equipment: Many factories still rely on older machines that were never designed to work with IoT-based technologies. Integrating smart industrial IoT features into these legacy systems can be costly. It often requires special adapters or converters to enable communication between old and new equipment.
  • Cybersecurity challenges: Connecting legacy machines to the internet introduces new security risks. Since these machines were not originally built with cybersecurity in mind, they are more vulnerable to cyberattacks. Many lack basic safeguards such as password protection or data encryption, making them easy targets for hackers.
  • Maintenance of smart devices: Even though IIoT systems can make things easier, the smart devices still need regular care. Sensors and other equipment have to be checked, updated, or replaced from time to time to keep everything working well. If they’re not properly maintained, the data might become unreliable and cause problems.
  • Skill gaps in the workforce: Industrial IoT brings together traditional equipment with advanced digital technologies, requiring a workforce with a mix of both skill sets. While some organizations may face gaps in this area, it also presents a great opportunity for upskilling and development. With the right training and support, teams can successfully adapt and fully leverage the benefits of IIoT.

Future of IIoT: Toward intelligent automation

As Industry 4.0 continues to advance, industrial automation and IoT are evolving beyond simply connecting different devices. It’s helping industries become more self-reliant and automated, with methods such as predictive maintenance. Another major breakthrough is the use of digital twins, which are virtual models of machines or entire systems that use real-time data to predict issues and fine-tune operations.

As we move toward fully digitized factories, technologies such as edge AI and computer vision are becoming even more important. Edge AI brings intelligence directly to the machines, enabling faster decision-making on-site without depending on constant cloud access. 

When combined with computer vision, factories can visually monitor production in real time, detect defects immediately, and respond to issues as they occur. This level of automation and insight is bringing industries closer to truly intelligent and self-optimizing operations. 

Simply put, industrial sectors are becoming increasingly intelligent. This shift allows every part of the process, from maintenance to quality control, to be guided by data and powered by smart technologies.

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