The Industrial IoT Ecosystem| Key Framework and Top Components
Internet of Things (IoT)
Silpa Sasidharan December 8, 2023

Do you know industrial IoT (IIoT) uses intelligent sensors and other connected devices to stay on top of the manufacturing process? Are you aware these connected devices work together to collect, exchange, and analyze data? Have you ever noticed that the use cases of IIoT pave the way for innovation and productivity on a large scale?

In this article, we will deal with industrial IoT, the difference between IoT and industrial IoT, the components of industrial IoT, and much more. Let’s deep dive into each aspect to get a clear idea about them.

What is Industrial IoT?

The Industrial Internet of Things (IIoT) is a collection of sensors and devices that connect to industrial applications via the Internet.

The network allows it to collect data, perform analysis, and streamline production, and minimize the costs of the industrial process.

Typically, IIoT applications primarily serve manufacturing, energy, transport, and logistics industries.

A complete Industrial IoT ecosystem translates into efficiency and reliability in manufacturing and industrial processes.

Therefore, the Industrial Internet of Things is making way for many enterprises to enhance operational efficiency, safety, and security.

What is an IIoT Infrastructure?

Generally, the Industrial Internet of Things infrastructure includes the following:

Edge Devices: such as sensors and actuators that collect data. The network infrastructure transmits data collected by Industrial IoT.

Cloud Infrastructure: stores data, analyzes, and makes suggestions and actions.

User Interface Devices: transmits essential inputs to operators.

IIoT Infrastructure

The Internet of Things market is ever-expanding. After all, most businesses understand the significance of building and implementing a robust industrial IoT ecosystem.

As per the Research and Markets report, the market size for IIoT is predicted to grow to $516.6 billion by 2028.

In the industrial IoT ecosystem, businesses use smart connected devices with sensors. For example, to verify the fluid levels in machinery and equipment. Further, it helps take action plans- either increase or decrease the fluid levels whenever essential to help it work ideally.

Did You Know: IIoT Statistics

What are IoT Platforms?

IoT platforms provide the support hardware that connects every device and actuator in the IoT ecosystem. As a result, it enables proper communication, sorting of data, and management of devices.

Above all, it verifies the functionalities of applications. Typically, IoT platforms perform several tasks, such as:

  • Connect sensors or hardware
  • Handle communication protocols
  • Provide advanced security features
  • Gather, summarize, and interpret data
  • Ensure integration with other web services
Read more: Can IoT Make A Difference In Smart Manufacturing And Industrial Sector?

What are the Components of the Industrial IoT Ecosystem?

There are several layers in the IoT ecosystem. In the beginning, you need a layer that allows IoT devices to collect data. Also, you need to transfer the data to the Internet. Also, you need to use the data for analysis, which necessitates the creation of organized data.

We shall break down each component in an industrial IoT system.

IoT Devices

Have you seen smart lighting and temperature monitoring systems in IoT? Yes, you guessed it right! These are smart IoT devices that form the first layer of the ecosystem. Typically, IoT devices have sensors and actuators embedded in them.

As the name suggests, sensors can sense some of the aspects of the environment. For instance, a proximity sensor can tell when there is someone near. Similarly, a light sensor tells when there is darkness, and so on.

On the other hand, actuators use the data from sensors to act. In the above case, the actuator triggers an alert if a proximity sensor tells an unauthorized person is nearby.

Likewise, when there is darkness, the actuator turns on the light. Therefore, actuators perform the desired course of action from the data received from sensors.


To transmit and receive data to and from the Cloud, you need connectivity to devices that interact with each other.

For example, a home modem that offers internet access and a router that connects your devices.

Software also can act as gateways with internet protocols for data transfer. Wi-Fi, RF, LAN, and Li-Fi are protocols that let devices connect to the Internet.

Analysis of data in the IoT ecosystem always comes with security concerns. Hence, you must always consider data security while using a cloud database for data collection, analysis, and transfer to the final destination.

However, using a peer-to-peer platform, which we will discuss below, can ensure security by directly transferring data.

IIoT: Top Components

Data Analytics

Data analytics help process data to gain insights. Often, we use cloud databases as it helps with predictive analytics. For example, if we want to predict the weather for a week.

The sensors collect the data, send it to the Cloud through a gateway, and analyze it in the Cloud. Based on several models, the system predicts the weather.

Cloud databases are ideal for deep predictive analysis that are not time-sensitive.

However, in cases where you need an immediate response from sensors, for example, smart traffic signals should respond immediately to the data about the traffic on the roads. Here, latency can cost lives.

Therefore, a peer-to-peer platform is ideal for fast analysis. In the P2P model, there is no need for a server or data storage that minimizes latency. As a result, it gives instant responses from sensors and actuators.

End-user Interfaces

Another critical component of IoT platform infrastructure is that the end-user interface helps summarize the data sensors gather. Further, it enables them to interact with your connected IoT devices.

For example, an IoT-powered workout app on your smartphone gathers data with respect to the number of footsteps you took with the help of sensors in your device.

The app sends data through the network to analyze and compare the footsteps you took the other day. Therefore, the final ecosystem layer gives you the comparisons.

Similarly, using an IoT system, you can keep tabs on the air quality in your industrial premises. The sensor in the IoT device measures the level of pollutants.

The analysis platform performs the data analysis. In any case, if it exceeds normal levels, the system sends alerts to the respective app on phones that become the end-user interface.

What are the Differences Between IoT and IIoT platforms?

The Industrial IoT is a collection of sensors and actuators connected through the Internet to industrial applications.

The major difference between IoT and Industrial IoT is that IoT is mostly customer-oriented, while IIoT places emphasis on advanced safety and efficiency at industrial sites.

To be clear, consumer solutions focus on smart home devices, for example, temperature sensors, virtual assistants, wearable devices for tracking fitness, and security systems.

What are the Technologies Related to Industrial IoT?

The industrial IoT scenario is constantly evolving. Therefore, the implementation of IIoT is closely associated with the latest technological advancements, such as:

Artificial Intelligence

Machine Learning

Big Data

Digital Twin

Business Intelligence

Edge computing

Cognitive computing

RFID technology

What are the Advantages of Industrial IoT?

The industrial IoT offers several benefits to companies. Let’s go through a few major advantages it offers:

Advantages of Industrial IoT

  • Creates new business prospects
  • Improves safety at work
  • Increases productivity and operational efficiency
  • Reduces asset cost
  • Better understanding of consumer demands
  • Enhances product innovation
Read more: LoRaWAN and LoRa-based Industrial IoT Services for Scalable Connectivity 

Industrial IoT devices assume great importance in digital transformation. Above all, businesses want to digitize the supply chain and streamline the production process.

Moreover, big data analytics will be able to include IIoT data. Also, it helps businesses identify evolving situations as and when they occur and respond in accordance with their needs.

Frequently Asked Questions

What are the key components of IoT ecosystems?

The IoT ecosystem consists of four separate components such as sensors, connectivity elements, data processing, and end-user interfaces.

What are industrial IoT systems?

Industrial IoT systems are primarily an ecosystem of sensors, devices, networking equipment, and applications that collectively gather, monitor, and analyze data from operations.

What is the significance of Industrial IoT?

Industrial IoT solutions enable quick decision-making as network components can directly communicate and send alerts in accordance with the changes in market conditions.

ThinkPalm’s Solutions in the Industrial IoT Sector

The IIoT services from ThinkPalm offer industrial IoT consulting, a decision support system, data analytics live monitoring, edge computing for real-time analysis, digital twin for data ingestion, modeling, trend study, record keeping, third-party integration, and data security.

Moreover, ThinkPalm’s Industrial IoT solutions focus on scalability and user-friendliness and offer multiple deployment options.

If you want the digital transformation to happen correctly, do not hesitate to contact us to implement a robust IIoT system.

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Author Bio

Silpa Sasidharan is a content writer and social media copywriting expert working at ThinkPalm Technologies, who aspires to create marketing texts for topics spanning from technology, automation and digital business solutions.