Integration of IoT technologies into manufacturing and supply chain logistics is predicted to have a transformative effect on the sector. The biggest impact may be realized in optimization of operations, making manufacturing processes more efficient. Efficiencies can be achieved by connecting components of factories to optimize production, but also by connecting components of inventory and shipping for supply chain optimization.

Another application is predictive maintenance, which uses sensors to monitor machinery and factory infrastructure for damage. Resulting data can enable maintenance crews to replace parts before potentially dangerous and/or costly malfunctions occur.