IoT Asset Tracking: Redefining Efficiency in Indian Manufacturing

Industry 4.0 has transformed manufacturing and supply chain operations by replacing outdated manual tracking with sophisticated Internet of Things (IoT)-based solutions.

The global IoT market is projected to grow to $3,352.97 billion by 2030 with the Asia Pacific region leading the way due to rapid infrastructure development and manufacturing growth, where IoT asset tracking is rapidly becoming the standard.

To remain competitive and relevant, manufacturers must strengthen their digital solutions and IoT offerings while integrating Artificial Intelligence (AI) at every step. The fusion of IoT-generated data with advanced analytics and AI is seeing transformative implications, making it essential.

The future of IoT emphasises connectivity, security, agility and intelligence. Enterprises require a flexible platform that allows seamless switching between solutions, device integration, and simplified data visualisation for decision making. This platform, enhanced by AI, Machine Learning (ML) algorithms, neutral network technologies, and integration with existing systems, creates a robust digital IoT fabric. This blog details how IoT asset tracking is reshaping global enterprise management of connected assets.

The benefits of IoT asset tracking are undeniable

A Frost and Sullivan report forecasts global IoT spending to reach $79.5 billion. The global logistics sector, in particular, is thriving, with a projected CAGR of 14.0% by 2028. Consequently, most logistics companies are fast-tracking new age technology adoption to expand and boost revenues.

This growth is driven by increased use in smart industries, where analytics and IoT optimise inventory. The technology involves six core components: sensors on equipment, a cloud-based infrastructure, a data ingestion and processing platform, an application for visualising the tracking, a secure network for data transfer and a device for data viewing. Sensors continually transmit location and condition data to the cloud, where it’s processed and presented on a user-friendly software interface.

A crucial aspect of asset tracking is real-time visibility, providing enterprises with unparalleled control. For instance, in e-commerce, around 34% of businesses have unintentionally sold products  out of stock, causing shipment delays. This highlights operational challenges in inventory management. In logistics, real-time asset monitoring provides vital data on a container’s exact location, internal temperature, number of stops, frequency of opening and closing doors and damage alerts.

Real time visibility ensures precise monitoring of assets, from raw materials to finished goods, including critical components and specialised tools. Whether managing a factory floor or remote operations, one gains a real-time overview of one’s assets’ movement and status. In the automotive industry, IoT sensors have reduced search times for vehicles by ~ 30% for a leading automotive company, per Tata Communications’ internal estimates. Embedding sensors in machinery and components gives manufacturers visibility into assembly line processes, allowing for immediate action to resolve bottlenecks and optimise production flow.

Further, as the demand for temperature-controlled products rises, combining IoT sensors with temperature sensors is gaining traction. The UN’s 2024 Food Waste Index Report revealed that 1.05 billion tonnes of food were wasted in 2022, an alarming statistic. The integration of IoT and temperature sensors can help reduce food waste and create a more sustainable supply chain. Food and pharmaceutical companies must therefore rely on logistics partners equipped with the latest technology deployed.

IoT asset tracking extends beyond merely locating assets, and when combined with other technologies, it tackles the unique challenges of automotive production and enhances operational efficiencies. For example, the global AI chipset market in IoT is projected to grow from $5.26 billion in 2024 to $26.9 billion by 2032, fuelled by the proliferation of IoT devices, increased AI adoption and rising demand for edge computing solutions. These technologies interact through a unified connected platform, providing a streamlined end-to-end implementation.

Examples include:

• Private Networks: Transform manufacturing with faster, secure and reliable connectivity. Robust, technology agnostic private networks can connect numerous devices and sensors without disrupting existing infrastructure
• Work-in-Process Tracking: RFID tags or barcode scanners track components, ensuring smooth and efficient production lines.
• Tool Tracking: RFID or Bluetooth-enabled tools minimise search time and optimise maintenance schedules.
• Heavy Equipment Management: GPS-like sensors monitor heavy machinery movement and –utilisations), minimising downtime and maximising productivity.

Collectively, these solutions boost productivity, reduce costs, and enhance safety standards throughout the manufacturing process.

IoT must align with the growing emphasis on sustainability.

Implementing an IoT-based asset tracking system provides valuable real-time insights into resource usage, reducing environmental impact and supporting sustainability initiatives. In 2023, over 70% manufacturers reported that IoT asset tracking significantly improved resource efficiency, directly advancing their sustainability goals. By enabling real-time monitoring, IoT asset tracking prevents line stoppages and ensures efficient resource use, reducing wastage and energy consumption.

The future of manufacturing is intrinsically linked to digital transformation, with such technology accelerating the process. To overcome inherit challenges, manufacturers can partner with global communications technology (Commtech) to implement an ‘IoT fabric’ supporting enterprises. These specialists can design custom private networks for seamless communication, provide regional Points of Presence, and offer comprehensive support for data management and analytics.

As India continues to advance initiatives like ’Make in India‘ and ’Digital India’, the convergence of these trends offers a unique opportunity for the country’s manufacturing sector to enhance global competitiveness. The linkage between IoT and Manufacturing is natural, if not intuitive.

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