ByteSnap Design report on World IoT Day shows risks facing IIoT

To mark World IoT Day today, ByteSnap Design has published a new report revealing that UK manufacturers are under increasing pressure to manage obsolescence in the face of accelerating adoption of Industrial IoT (IIoT) technologies.

The whitepaper, ‘Futureproofing Manufacturing: Tackling Obsolescence & Electronics Challenges in Industrial Manufacturing’, draws on insights from 593 manufacturing professionals. It reports that while embedded and connected systems are now central to industrial operations, most manufacturers lack the tools, expertise, and strategies to handle the risks that come with electronics obsolescence.

The research shows that 88% of manufacturers require specialist support to manage obsolescence, yet 81% struggle to find reliable partners with the necessary capabilities — a critical gap that threatens long-term IoT performance and system resilience.

“Industrial IoT has transformed how manufacturers operate, but it’s also introduced new dependencies on embedded hardware and connected electronics,” said Dunstan Power, Director, ByteSnap Design and author of the report. “When a key component becomes obsolete, it can affect not just one product, but an entire connected ecosystem. Manufacturers urgently need to think beyond short-term fixes and adopt lifecycle strategies that match the complexity of today’s industrial technologies.”

Key findings from the report show:

• Obsolescence is a regular challenge, not a rare event. 88% of manufacturers face issues with component or system obsolescence at least once a year, and over a quarter experience it every quarter. When it hits, the cost of redesigns — particularly in complex IoT systems — can exceed £250,000
• Being proactive pays off. The report shows that manufacturers who actively plan for obsolescence can reduce related costs by up to 80%. This includes steps like monitoring component lifecycles and designing in flexibility from the start — crucial when devices are expected to stay in the field for years.
• AI and IoT are a powerful combination — but only if systems are future-ready. 89% of manufacturers see AI as key to staying competitive, especially when it’s used alongside IoT for predictive maintenance, diagnostics, and smarter system monitoring. But without lifecycle planning, the benefits are quickly lost when hardware can’t keep up
• Cost remains a big barrier to tech adoption. Despite clear awareness of the benefits, 61% of manufacturers say tight budgets make it hard to upgrade ageing systems or invest in new technologies like IoT and automation — even when those investments could reduce disruption in the long run
• There’s a strong appetite for upskilling in embedded and connected systems. 72% of respondents want training focused on areas like advanced electronics, IoT integration, and obsolescence management. With experienced engineers retiring and newer systems getting more complex, many teams are looking to close critical knowledge gaps

The report also highlights the wider ripple effect of obsolescence on connected systems. When a key component or module becomes unavailable, it can render entire product lines unsupportable — subsequently disrupting production schedules, affecting time-to-market, weakening supply chain reliability, and even compromising regulatory compliance in sectors like medical and energy.

The report outlines a practical roadmap to help manufacturers assess their obsolescence readiness, build internal capabilities, and develop long-term strategies for electronics lifecycle management — particularly important for organisations scaling their IoT deployments.

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