IoT benefits for machine builders: How to unlock new opportunities and revenue streams

In this article

We’ll explore IoT’s key benefits to machine builders, such as:

• Remote monitoring,
• Predictive maintenance, and
• Offering added value services.

The evolution of machine monitoring and maintenance

Traditionally, monitoring and servicing industrial machines has been a reactive and resource-intensive process. Service technicians would need to travel on-site for routine inspections or emergency repairs, resulting in significant operational costs and potential production delays for clients. However, IoT technology fundamentally changes this paradigm by enabling 24/7 remote machine performance monitoring, allowing manufacturers to also perform predictive maintenance on the machines.

Remote monitoring: Revolutionizing machine oversight

By embedding sensors in produced devices, machine builders and their clients can track critical parameters such as temperature, pressure, vibration, and strain in real time. This continuous monitoring capability delivers several immediate benefits:

• Early detection of potential issues before they cause machine failure.
• Reduced response time for critical issues.
• Proactive spare parts management based on actual wear and tear.
• Lower operational costs by minimizing unnecessary site visits.

As a perfect example of remote monitoring done right, let’s look at Agrifac, a Dutch agricultural machinery manufacturer and one of our clients. Their Condor self-propelled sprayer is equipped with over 400 sensors, and the traditional approach to data collection, storage, and analysis was out of the question.

Instead, the clever application of IoT technology and our industrial platform allowed Agrifac to create central cloud storage for all data accessible worldwide to everyone within the company. Among other benefits of a centrally managed system are the on-demand scalability or improved observability of the machines, creating additional value to Agrifac and its clients. If you’re interested in all the details, make sure to read our Agrifac case study.

Predictive maintenance: From reactive to proactive service

The ability to respond swiftly to equipment breakdowns is critical for machine builders. Historically, maintenance schedules relied on past performance data or predefined intervals, often resulting in unnecessary work or missed failures.

Fortunately, progressive manufacturers are already replacing the reactive service approach with a proactive one enabled by IoT technology. Analyzing a continuous stream of data is useful not only for understanding what’s happening right now but also for predicting what’s most likely to happen next with the monitored machine. With IoT-enabled predictive maintenance, service managers and technicians can:

• Monitor equipment performance in real time.
• Analyze performance patterns to predict potential failures.
• Diagnose and resolve issues remotely.
• Schedule maintenance precisely when needed.
• Reduce unnecessary maintenance visits.

This smarter approach to maintenance reduces unexpected downtime, saves costs by replacing parts only when necessary, and improves client satisfaction. Additionally, predictive maintenance eliminates waste, contributing to more sustainable operations. And those are the exact reasons why Cup&Cino, a German company specializing in renting coffee machines to businesses, decided to upgrade all their coffee machines with sensors and IoT technology.

With thousands of coffee machines in offices all around Germany, the only feasible way to ensure they all operate flawlessly and have enough supplies to create an enjoyable cup of coffee on demand is to monitor and predictively maintain the machines remotely. Check out this Cup&Cino success story to discover how they went about it. To cut a long story short, the IoT technology enabled them to drastically reduce maintenance on-site visits, manage devices from the cloud, and even predict customer behavior, allowing a just-in-time delivery of new supplies.

Added value services: Creating new revenue streams

IoT doesn’t just enhance existing services; it opens the door to entirely new offerings. By analyzing continuous data streams, machine builders have answers to questions such as “Is the machine operating at peak efficiency?” or “When will specific components need replacement?”. These crucial insights then enable manufacturers to develop and offer various new value-added services, for example:

• Proactive parts delivery: Send consumables or spare parts before the customer even realizes they need them, reducing downtime and client hassle.
• Subscription-based services: Offer predictive analytics and monitoring dashboards on a recurring revenue model.
• Usage-based billing models: Allow clients to pay based on actual usage, aligning costs with value received.

These new services position manufacturers as business partners rather than just equipment providers, fostering stronger client relationships and boosting customer retention. A prime example is Lely, an agricultural giant based in the Netherlands.

And who better to summarize the benefits of IoT technology than Thijs Voogth, the head of Data and AI at Lely:

“We were able to introduce our paid subscription Horizon Farm management solution based on this IoT platform in >60 countries absorbing huge amounts of real-time IoT data of the machines and animals for over 90% of our customers worldwide in a scalable and reliable way.”

You can find more details about how Lely collects data from over 100,000 robots around the globe in our case study.

Keeping ahead of the pack: IoT is the new black

The proverbial knowledge is power holds true even in the age of technology. IoT represents more than just a modern upgrade for machine builders – it’s a strategic opportunity to transform their business model and create sustainable competitive advantages by:

• Reducing operational costs through efficient service delivery.
• Creating new revenue streams with value-added services.
• Improving product quality through data-driven design.
• Strengthening customer relationships and increasing retention.
• Standing out in an increasingly competitive market.

The future of machine building lies in connected, intelligent equipment that delivers ongoing value to both manufacturers and their clients. Those who embrace this transformation early will be best positioned to capture the growing market for smart industrial equipment and services. And the rest of the competition will slowly be forgotten in a sea of rust.

So, the only question is: Are you ready to understand your machines?