Why Industrial IoT (IIoT) Companies Are Embracing Managed Wireless Solutions

According to forecasts by IoT Analytics, 40 billion IoT devices are expected to hit the market by 2030 — even in the face of economic concerns and high lead times on chipsets. Industrial IoT, or IIoT, factors prominently in this forecast, with an expected growth from over 544 billion U.S. dollars in 2022 to approximately 3.3 trillion by 2030.

But IIoT solution providers face certain challenges when integrating cellular connectivity to their equipment. To offset these challenges, many industrial solution providers are bundling managed services for cellular connectivity into their offerings. Exactly what does this trend mean for Industrial IoT (IIoT) companies and the customers they serve?

This article outlines the most common concerns and explains why many IIoT providers are turning to cellular MSPs for solutions.

Network Coverage and Reliability

Industrial solution providers often deal with a variety of environmental, technical, and logistical issues when bundling cellular solutions for their customers.

For instance, a cellular solution for mining, oil and gas, or agriculture might have to overcome weak signals or no signal at all. Thick walls, heavy machinery, and other barriers can interfere with wireless signals. Extreme temperatures, dust, humidity, and storms may disrupt signal strength and impact performance. Locations with multiple connected devices may experience congestion. Older infrastructure can also wreak havoc on reliability.

Outsourcing to managed services can help IIoT providers implement backup solutions, minimize signal interference, optimize traffic and bandwidth, and leverage expertise in network design to solve additional connectivity problems.

Multi-Carrier Management

Industrial solution providers that want to manage cellular solutions for their clients may not always understand the long-term implications. Nowhere is this more evident than when a provider has to chase down information from a cellular carrier.

Luckily, a cellular MSP can centralize carrier relationships and reduce the burden for solution providers. Here’s how:

Single point of contact – the MSP reduces admin hassles and simplifies communication with carriers
Carrier agnostic capability – Experts can select the right carrier for a specific application or location
Global connectivity – The right MSP can manage roaming, eSIM solutions, and cross-border carrier relationships
Scalability – Cellular MSPs can help scale network connectivity as operations grow
Compliance and security – Network security and regulatory compliance are taken care of across carriers
Automatic carrier switching – Depending on the application, an MSP can optimize connectivity automatically
Centralized management – Solution providers can turn to their MSP for single-platform monitoring
Billing consolidation – The solution provider only needs to worry about one invoice, not multiple
Cost savings – An MSP can negotiate better carrier rates and help optimize data usage
24/7 support – All troubleshooting happens in one place for improved uptime

In summary, cellular MSPs can eliminate complexities by managing multiple carriers and ensuring reliable, secure, cost-effective connectivity for industrial solution providers.

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Device Compatibility and Provisioning

While we’re on the subject of carrier requirements, it pays to consider the complexity around device certification and compatibility.

Basically, each device needs to meet specific frequency bands, network technologies like LTE and 5G, and regional standards. But managing compatibility checks across multiple carriers takes time and expertise. Solution providers must stay on top of evolving requirements over time.

Then, there are provisioning issues. If you are in charge of setting up devices on a carrier network, activating SIM cards, and ensuring correct credentials, these tasks can add up – especially if you’re trying to deploy at scale. The task becomes even more complex when you have to configure APNs and apply correct profiles to each device’s network. Are you prepared to deliver firmware updates and patches in a timely manner? If all these tasks seem overwhelming, you need a reputable MSP.

Greater Data Security

Managed connectivity also plays a critical role in data security, an essential aspect of industrial applications. Industrial processes often involve sensitive data, such as proprietary designs, customer information, and financial data. By outsourcing connectivity to a third-party provider, businesses can benefit from advanced security measures such as encryption, firewalls, and intrusion detection systems.

This approach helps protect data and prevent cyberattacks that could adversely affect operations and reputation.

Cellular MSPs use end-to-end encryption to protect data traveling between IoT devices, gateways, and a central cloud or data center. APN configurations create a secure, isolated environment for IoT devices and reduce the risk of external attacks. VPNs add an extra layer of security, masking the device’s IP address and keeping data secure (even over public or less secure networks).

An MSP can also leverage built-in security features in SIM cards. The right MSP can build private networks for clients and implement role-based access controls. They will also provide real-time data usage monitoring and take care of automatic security updates.

These are just a few security advantages that can help businesses optimize their operations, reduce costs, and improve their bottom line.

Faster Time to Market

With an MSP handling network management, cellular provisioning, device compatibility, and carrier relationships, solution providers can focus on quicker deployments.

In a real way, reduced lead times mean quicker customer acquisitions and improved revenue generation.

The right MSP can also pinpoint roadblocks more quickly and take care of supply chain logistics. With a fully managed plan, solution providers can take advantage of CapEx and OpEx financing to save themselves and their customers extra costs. A fully managed plan also allows for robust warranties and expedited shipping.

Solution Scalability and Convenience

The world of IoT is rapidly evolving. When a solution provider needs hundreds of units, they don’t have time to worry about logistics and complex integrations. A competent cellular MSP knows the industry and can always recommend the best technologies, carrier plans, support options, and security protocols. Because time is money, an MSP can fulfill quickly and help solution providers scale their solution quickly.

At the end of the day, industrial IoT providers are turning to managed services in increasing numbers. By the end of 2025, IDC estimates that over 60% of IoT deployments will incorporate some type of managed service. Given the stakes it’s easy to see why.

For more information on managed cellular solutions or industrial IoT, contact an OptConnect solution architect today.