India’s industrial digitalisation drives rapid IIoT growth and decarbonisation opportunities

India’s industrial digitalisation is accelerating a structural shift in manufacturing that industry analysts say will reshape competitiveness, job composition and decarbonisation pathways over the next decade.

According to the original report by PS Market Research, the India Industrial IoT market is already sizeable , valued at roughly USD 10.1 billion in 2025 , and is forecast to more than double to about USD 22.1 billion by 2032, reflecting a compound annual growth rate near the low‑teens. Industry data shows this expansion is being driven by convergence of low‑cost sensors, expanded connectivity (including 5G roll‑out), edge and cloud analytics, and growing deployment of ready‑to‑deploy solution suites that cut integration risk for manufacturers.

Solutions accounted for the dominant share of revenue in 2025 as enterprises favour packaged IIoT platforms, smart sensors and edge devices that deliver immediate operational visibility. Services, however, are the faster‑growing segment: professional services, systems integration, analytics and managed operations are critical for manufacturers , especially SMEs , to secure predictable returns, integrate legacy equipment and address cybersecurity and lifecycle challenges.

On‑premises deployments remain the larger category today because industries with strict data and regulatory requirements , pharmaceuticals, defence, critical infrastructure , retain control over sensitive operational data. At the same time, cloud and hybrid models are growing faster as manufacturers seek scalability and lower upfront costs; hybrid architectures that combine edge computing with cloud analytics are emerging as the pragmatic compromise between performance, security and cost.

Application‑level adoption is already concentrating around predictive maintenance, which held the largest share in 2025. Predictive maintenance reduces unplanned downtime and maintenance costs and therefore offers a near‑term business case for decarbonisation by improving asset utilisation and energy efficiency. Automation control and management is the fastest‑growing use case, enabling tighter process control, closed‑loop quality and the adaptive production patterns needed to reduce waste and energy intensity in factories.

Sectorally, automotive leads adoption , reflecting its weight in manufacturing value‑add and intensive use of automation and quality monitoring , while electronics and communications equipment is the fastest growing end‑market thanks to government incentives and Production Linked Incentive schemes that are expanding domestic electronics capacity. Multinationals are responding: Rockwell Automation, for example, plans expanded manufacturing and technology centres in India, underscoring the country’s role as a near‑shore manufacturing hub and a base for developing industrial hardware and software talent.

For industrial decarbonisation strategies, the implications are twofold. First, IIoT deployment offers immediate levers for emissions reduction , improved process control, predictive maintenance and energy monitoring reduce fuel and electricity waste. Second, the growth of services and analytics capacity creates the capability to quantify, verify and optimise emissions reductions at scale, enabling manufacturers to link IIoT investments to corporate ESG targets and regulatory reporting.

However, the transition is uneven. On‑premises preferences and fragmented IT/OT landscapes slow roll‑out of standardised, interoperable solutions. Policy support such as Digital India, Make in India and targeted PLI incentives are accelerating adoption, but continued emphasis on skills development, cybersecurity standards and interoperable platforms will be needed to translate IIoT growth into sustained productivity and decarbonisation gains.

For stakeholders in industrial decarbonisation, the message is clear: prioritise use cases with rapid payback (predictive maintenance, energy monitoring, process automation), invest in integration partners to bridge OT/IT, and factor hybrid deployment architectures into long‑term roadmaps. Industry data indicates that doing so will not only improve operational resilience and reduce emissions, but also support the large‑scale job creation and manufacturing competitiveness the sector’s digital transformation promises.