What do an offshore oil platform, a mine in the Andes, and a vineyard in Catalonia have in common? All are being transformed by the Internet of Things (IoT), a technology that connects people, processes, data, and goods through sensors and smart devices. This connectivity offers unprecedented control over supply chain processes and events, becoming an essential tool for industries operating in complex environments.
🗣️Let me tell you why I'm writing this
In 2021, while studying digital transformation at MIT, my professor and now a great friend @Ezequiel Astrada asked us to write a research post in a study forum about the role of the Internet of Things (IoT) in global supply chains. At that time, I wrote about natural resource industries, given my expertise in the field, and today I revisited that document to reread and compare the scenario back then with what is happening now, and how we project ourselves in the short and medium term.
As a geologist, I focused on analysing the impact of IoT in sectors based on natural resources, where operations usually take place in remote areas with limited infrastructure and high levels of risk. In these contexts, digitalisation is not just a competitive advantage but a strategic necessity. This technology is becoming indispensable for our business models [1, 2, 3].
🛢️ Oil and Gas: Data, Risks and Opportunities
The World Economic Forum considered in 2021 that digitalisation was a one-trillion-dollar opportunity for these companies [2]. However, this sector has faced significant regulatory barriers, as its frameworks were not designed for data sharing.
Exploration and production require analysing massive volumes of geological and seismic data, as well as managing complex supply chains that include offshore platforms and distributed resources. In this scenario, advanced data analytics and predictive maintenance help reduce costly disruptions and improve operational efficiency. Technologies like machine learning and IoT can significantly reduce production costs.
Despite these benefits, a 2017 McKinsey study revealed that most supply chains had only reached a 43% level of digitalisation, even though many respondents cited supply chain transparency as a key operational goal. At that time, European oil and gas companies were still not fully leveraging these tools, partly due to challenges in procurement processes [4].
⛏️ Mining: From Resistance to Change to Necessary Innovation
The mining sector has historically been slow to adopt radical ideas and new technologies. However, pressure to improve margins and efficiency has driven transformation, and it's clear that new approaches are needed to reshape exploration and operations [5].
In the mining industry, the three main areas of IoT focus in 2020 were:
Studies from 2020 indicated that 67% of mining organisations had already fully deployed at least one IoT-based project, and 95% were testing some initiative based on this technology. This momentum responded to the need to drive ever-greater efficiency — doing more with less — but many of these projects were relatively simple, and not all moved beyond the pilot phase [7]. The main obstacles at that time were:
In those years (2020–2021), there was considerable geographic variation in IoT adoption and maturity across regions: 98% of North American companies had successfully implemented IoT-enabled projects, compared to only 50% in Africa and 38% in South America [8].
Since then, the landscape has changed significantly. Let’s look at how IoT usage has evolved in recent years.
💡What we know today
In recent years, the adoption of IoT technologies and digital tools in the supply chains of extractive sectors — such as oil, gas, and mining — has seen remarkable progress. For example, the global IoT supply chain market grew from $20 billion in 2020 to over $100 billion projected for 2026, and it is expected that 14 billion devices will be connected in logistics operations by the end of 2025, improving operational visibility by up to 85% [9].
In the oil industry, IoT sensor implementation reached 60% penetration in five years, with a 72% improvement in leak detection efficiency and transparency through blockchain [10]. Evidence from 2024–2025 shows that digital transformation and IIoT are now critical levers of competitiveness in oil and gas; Deloitte anticipates that investments in new technologies will be a central driver of sector performance in 2025, and 78% of oil companies have prioritised digital transformation to improve operational efficiency, while 65% reported enhanced safety measures after implementing digital technologies [11][12].
(https://www.linkedin.com/posts/ariana-carrazana-di-lucia_rtic-mineraedainteligente-transformaciaejndigital-activity-7331772287064403968-Lcqs?utm_source=share&utm_medium=member_desktop&rcm=ACoAAApR2HEBLsrJdQ9QLdYR--zQQkACLuB1rt4)
In mining, according to a 2024 Viasat study, 83% of mining companies were implementing or developing an IoT strategy, although only 18% used IoT for personnel monitoring — revealing a limited focus on critical operational applications such as safety and health [13]. This marks a substantial shift compared to the pandemic era when I began researching IoT usage.
Returning to 2024 indicators, there was also a 2.4% drop in IoT investment since 2021, suggesting that mining has fallen behind other sectors in adoption. The industry seems more focused on IoT applications for equipment and machinery, such as pump and conveyor belt monitoring. Connectivity remains a major obstacle, with 41% preferring satellite connectivity due to lack of coverage in remote areas [13], which poses a significant challenge for IoT deployment in underground environments, high-altitude mining projects, and jungle exploration operations.
Recent figures published by Statistics (2025) show that 70% of mining companies have already implemented digital transformation strategies, with 65% using IoT sensors for asset management. Additionally, the use of digital twins and autonomous trucks has led to cost reductions of up to 25%, according to surveyed companies [14].
In 2025, connected mining consolidates a sustained growth trend driven by automation, real-time data analysis, and the adoption of technologies such as IoT, artificial intelligence, and smart assets. The market is expected to reach $15 million USD, with 40% comprising smart technologies like sensors and autonomous vehicles that enable predictive maintenance and reduce inefficiencies. Open-pit mining, which represents 60% of the market, leads this digital transformation, while underground mining accelerates adoption for safety reasons. Despite challenges such as high implementation costs and cybersecurity, expansion in emerging markets and the need for more efficient and sustainable operations position IIoT as a strategic axis for sector growth [15].
This outlook shows substantial evolution compared to 2017, 2020, and 2021: while digitalisation barely reached 43% back then, today it exceeds 60% in leading sectors like mining, oil, and agriculture. This growth has been driven by post-pandemic resilience needs, regulatory momentum, and the development of more IoT and IIoT technologies. The evolution of IIoT technologies from 2017 to 2025 has been both quantitatively and qualitatively disruptive.
🔄 Evolution of IIoT: From Promise to Strategic Axis
Although the term Industrial IoT has circulated since 2011–2012 (coined by GE), its real boom began between 2020 and 2022 due to the disruption caused by COVID. Before 2020, IIoT was a transformation promise linked to an emerging concept related to Industry 4.0 in manufacturing, with low implementation in industries like mining, oil, and energy. McKinsey (2017) estimated an economic value potential of up to $3.7 trillion annually by 2025 thanks to IIoT, but warned of slow and fragmented adoption.
After the pandemic, it became an operational requirement and reached a turning point. The evolution was not only technical (more sensors and platforms) but strategic: IIoT shifted from being an innovation project to a structural business axis. According to Microsoft and ARC Advisory Group (2021), 90% of industrial companies accelerated their digital transformation plans during the pandemic [16][17]. The focus shifted from “local control” to real-time remote monitoring, AI integration for autonomous decisions, and resilience management in supply chains.
From 2023 to today, IIoT has reached consolidation and maturity in extractive sectors. Adoption exceeded 60% in industries such as mining, oil, and energy. Digital twins, predictive maintenance, autonomous robots, blockchain for traceability, and optimised energy have become standard applications in leading companies. In 2024, the global IIoT market was estimated to reach $500 billion USD by the end of 2025. In a global comparison, the United States is expected to be the main revenue driver in this market, with an estimated $99 billion USD for 2025 [18].
🌍 Global Outlook and Growth Projections
Additionally, a compound annual growth rate of 7.8% is projected, reaching $1.378 billion USD by 2029. This growth is driven by increased use of sensors and wireless networks, fuelled by demand for data centres and the popularity of cloud platforms. The growth of IoT and IIoT continues to accelerate globally, solidifying its key role in transforming extractive industries [19].
According to the State of IoT (2024) report by IoT Analytics, the number of connected IoT devices grew by 13% in 2024, reaching 18.8 billion, with a projection of 40 billion by 2030. Despite challenges such as economic uncertainty or component shortages, the market maintains an upward trajectory [20].
This sustained growth reflects not only quantitative technological expansion but also a qualitative shift: IoT — and particularly IIoT — has gone from being an optional tool to becoming a strategic enabler for efficiency, sustainability, and operational resilience. In sectors like mining, oil, and agriculture, this evolution translates into smarter supply chains, remote operations, predictive maintenance, and data-driven decision-making in real time.
🧪 Emerging Applications: Tailings, ESG, and Traceability
The technological transition is also accelerating due to the combination of environmental regulations (such as ESG standards and blockchain traceability) increasingly demanded by society. As the mining sector faces environmental scrutiny, especially regarding tailings storage, there is growing recognition that IoT can play a key role in monitoring and managing these facilities. More than half of respondents indicated they are implementing or testing IoT solutions for Tailings Storage Facilities (TSF), highlighting an area with growth potential.
🌍 Final Reflection: Digitalising from the Source
These industries provide the raw materials that fuel all global industrial activity. If we want to ensure trust and traceability in the supply chain, digitalisation must begin at the earliest links. Investment in IoT in extractive sectors not only improves efficiency but also signals an organisation’s commitment to safety, sustainability, and transparency. Despite this, challenges persist for small and medium-sized enterprises, although technology adoption models have become more flexible and scalable. In an increasingly interconnected world, it’s not a matter of if these technologies will be adopted, but when and how.
[1] IoT in the supply chain: How has it changed? - neuroons
[2] Main IoT applications in companies | neuroons
[3] What does the future of IoT look like in 2021 - neuroons
[4] Digitalisation and the future of the oil and gas supply chain - Achilles | Achilles
[5] Interview Horizonte Minero_Technology IoT in mining reactivation_ .pdf (hubspotusercontent20.net)
[6] The smart mining revolution - Think Big Empresas (blogthinkbig.com)
[7] Research Programme 2020: The Rise of IoT in Mining - Inmarsat
[8] IoT, revolutionising the mining industry – Signals IoT
[9] Supply Chain In The IoT Industry Statistics, Apr, 2025.
[10] Supply Chain In The Oil Industry Statistics, Apr, 2025.
[11] 2025 Oil and Gas Industry Outlook. Article 14-min read, December 2024. Deloitte Research Center for Energy & Industrials
[12] Digital Transformation In The Petroleum Industry Statistics, Apr, 2025.
[13] Viasat Report Reveals Mining Sector’s Struggles with IoT Adoption in 2024.
[14] Digital Transformation In The Mining Industry Statistics, Jun, 2025.
[15] Connected Mining Market, Last Update, Jul, 2025. Global Growth Insights
[16] 5 trends transforming business—2021 IoT Signals report, Oct. 2021.
[17] ARC Advisory Group: Key Technology Trends for 2021
[18] Industrial IoT – Worldwide Statista. 2024.
[19] IoT Technology Market Size, Share & Growth, Apr, 2024.
[20] State of IoT 2024: IoT Analytics, Sep, 2024.
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