IIoT: Smart manufacturing for efficiency and product safety

Last updated: 17 December 2025

The Industrial Internet of Things (IIoT) is the part of the Internet of Things (IoT) that focuses on industrial applications. This means it involves the networking of machines, systems, sensors, and entire systems within production facilities, as well as across entire supply chains or even globally. IIoT pursues several goals such as increased efficiency, cost reduction, process optimization, and improved transparency in production.

How does the Industrial Internet of Things work?

At the heart of the Industrial Internet of Things are intelligent machines, sensors, and control systems such as PLCs or edge devices. The latter collect and measure process data such as fill levels, performance indicators, or humidity values. In the pharmaceutical industry in particular, pH values, viscosities, temperatures, particle contents, and similar parameters are common data points. An important prerequisite for IIoT is to record, monitor, and evaluate this data almost in real time.

In the second step, machines automatically evaluate this data. This often takes place at a central location via analytics platforms. These, in turn, provide feedback to the production systems, which are semi- or fully automated. This makes it possible to continuously monitor processes and optimize them without manual intervention. The prerequisite for this is a networked production chain – even across entire supply chains. This results in advantages such as increased energy efficiency, predictive maintenance, and more precise logistics.

In addition, it is possible to create digital twins of production systems. These make it possible to optimize processes and test the effects of changes without real interventions.

Areas of application of IIoT

The Industrial Internet of Things is widely used in industry – from semiconductor technology to automotive and biotechnology. Especially in the pharmaceutical industry, with its complex processes and high requirements, it offers many advantages.

It supports GMP-compliant, networked production processes through improved monitoring and documentation. In addition, it enables continuous process monitoring in aseptic processes such as blow-fill-seal, thereby strengthening quality assurance. This allows highly automated production – with maximum product safety and increased efficiency.

IIoT also increases system availability through predictive maintenance. Manufacturers benefit from safe products, higher efficiency, lower production costs, and compliance with regulations.

In other industries – chemicals, automotive, mechanical engineering, logistics, and energy supply – IIoT also brings automation, real-time tracking, optimized supply chains, and resource efficiency.

IoT & IIoT: related but different

IIoT is a subsector of IoT, which generally describes networked devices. While consumers often associate IoT with smart home applications, IIoT focuses on industrial applications.

Therefore, the focus is on security, reliability, scalability, and data protection. Process data is the decisive competitive advantage that companies utilize.

The sensors and systems on an industrial scale are also different – they must be more robust, precise, and secure. Nevertheless, there are overlaps, for example in sensor technology between smartphones and laboratory devices.

A general trend is the use of artificial intelligence (AI) and increasing data volumes. Therefore, the expansion of data infrastructure (e.g., the 5G network) is crucial.

Opportunities of the Industrial Internet of Things

The main opportunities of IIoT include:

  • Higher product quality through real-time monitoring
  • Process optimization through data-driven development
  • Faster innovation through networked systems
  • Data analysis through AI and big data
  • Increased efficiency, reduced costs, and lower reject rates
  • Support for regulatory compliance

Challenges: data protection and security

The biggest challenges of IIoT include data protection and data security. Companies must protect their critical infrastructure, for example through encryption of sensitive production data.

Further challenges include high investment costs, integration of complex systems, and shortages of skilled workers. Especially in the chemical and pharmaceutical industries, there are strict regulatory requirements (e.g., GMP, FDA, EMA).
At the same time, however, networked devices can help to implement these regulations efficiently.