How to Deploy IoT Sensor Monitoring in Manufacturing and Industrial Operations

Manufacturing is undergoing a massive digital transformation. The rise of IoT for manufacturing is helping operations teams shift from reactive to proactive strategies, using connected data to stay ahead of breakdowns, delays, and safety issues.

In most manufacturing facilities, much of the operations team’s time is spent reacting to breakdowns or manually checking equipment conditions. While guesswork and experience go a long way, staying ahead now means tapping into the power of connected IoT technology.

Unplanned downtime costs manufacturers an estimated $50 billion annually. IoT can help stop it before it starts.

In this guide, we walk you through how to deploy a robust, scalable IoT sensor monitoring solution in industrial environments. You’ll learn how to select the right sensors, plan your network, and extract real value from the data.

IoT in Manufacturing: A New Era of Efficiency

As manufacturing moves toward the collaborative, human-centric goals of Industry 5.0, manufacturing sensors continue to play a pivotal role in enabling smarter, more adaptive factory environments. These smart sensors reduce the need for manual checks and support greater industrial automation, enabling real-time visibility across assets and infrastructure.

They reduce the need for manual checks, enable proactive maintenance, and provide the data needed to continuously optimize production.

Here’s why sensor monitoring matters:

Predictive Maintenance

Sensors track vibration, temperature, and run hours to detect wear or performance anomalies before failure occurs. This allows maintenance to be scheduled ahead of time, reducing the likelihood of costly unplanned downtime.

Safety and Compliance

Machines operating outside of safe temperature or load thresholds can cause injury, damage, or non-compliance with safety standards. Sensors help enforce those thresholds with live data and alerts.

Operational Efficiency

Real-time visibility into machine behavior helps engineers optimize production processes, adjust flows, and allocate labor and equipment more effectively.

Regulatory Reporting

Automated data logging ensures that audit trails are accurate and accessible, especially for quality assurance, safety compliance, and environmental reporting.

Read more about Global IoT Adoption in Industrial Settings.

The Impact of IoT in the Manufacturing Industry

As manufacturing processes become more complex and interconnected, IoT provides a way to synchronize systems, detect risk, and act faster, all while reducing human error.

Here’s what leading research says about the impact of IoT in industrial environments:

• Efficiency and Productivity: According to McKinsey, IoT applications in manufacturing could generate an economic impact of $1.2 to $3.7 trillion per year by 2025.

• Predictive Maintenance: Deloitte reports that IoT-enabled predictive maintenance can reduce breakdowns by up to 70% and cut maintenance costs by 25%.

• Supply Chain Optimization: 78% of supply chain leaders are actively investing in IoT to improve delivery speeds, automate workflows, and reduce asset loss.

Discover how IoT has Enhanced Supply Chain Visibility.

Choosing the Right Sensors for Your Application

Before deployment begins, you need to define what you want to measure, track, and improve. The right sensor setup depends on your goals and operating environment. With the growing variety of sensor types and technologies available today, compact sensors are making it easier than ever to integrate smart monitoring across different stages of process automation.

Infrared sensors for thermal detection, vibration sensors for motor health, and proximity sensors for movement detection can all be essential for meaningful data collection.

A well-integrated sensor network can unlock significant benefits, allowing your IoT systems to deliver real-time visibility and control across your operations.

Consider the following:

• Vibration and temperature sensors for rotating equipment, motors, or compressors

• Environmental monitoring (humidity, gas, noise, etc.) via third-party sensors connected to the Hawk IoT Data Logger

• Bluetooth + GPS tracking for pallets, mobile equipment, and high-value tools

Sensor Selection Checklist

Choosing the right industrial sensor is crucial to a successful IoT deployment. Sensors must be aligned with the specific requirements of your application, regardless of whether you're monitoring production lines, environmental factors, or equipment health.

With this checklist, you can make sure that your power requirements, data requirements, and operating environment are aligned.

• Application Environment: Dusty? Wet? High-vibration? Temperature extremes? Choose sensors rated for your site conditions.

• Connectivity Method: Determine if LTE-M, NB-IoT, LoRaWAN, or Cat1bis best fits your coverage and bandwidth needs.

• Installation Constraints: Consider mounting surface, power supply access, signal interference, and distance to gateways.

Deploying Your IoT Network

A successful deployment starts with thoughtful planning. It’s not just about where the sensors go, it’s also about how they stay powered, how they communicate, and how their data is used.

Best Practices for Industrial Deployment

• Mount sensors near high-risk machinery, rotating parts, compressors, and motors.

• Ensure proper adhesion or bolted placement to withstand high-vibration factory environments.

• Use tamper-proof enclosures and rugged IP68-rated hardware, especially in outdoor or wet environments.

Connectivity Options

Choose based on network coverage, data frequency, and power usage:

• LTE-M: Reliable cellular connectivity with good building penetration and efficient power usage.

• NB-IoT: Low power, low bandwidth, ideal for deep indoor sensor locations.

• LoRaWAN: Ideal for private networks or large campuses.

• Cat1bis: Supports fallback and voice services, suitable for sites with 2G/3G sunset.

Power Options

Digital Matter devices like the Hawk and Oyster Edge are designed for longevity.

Choose from:

• Lithium batteries for multi-year deployments

• Rechargeable lithium polymer battery options for easier maintenance

• Solar add-ons for off-grid sensors or exposed outdoor locations

Configuring Your Devices with Device Manager

Digital Matter’s Device Manager makes it easy to configure, monitor, and scale IoT deployments across multiple facilities.

Key Features

• Bulk Onboarding: Add dozens or hundreds of sensors with minimal setup effort.

• Set Thresholds: Define custom vibration, tilt, or temperature thresholds to trigger alerts.

• Export Data: Send structured sensor data to internal systems using API or webhooks with no vendor lock-in.

Learn more about Digital Matter's Device Manager Platform

Tracking Machine Performance in Real Time

Once your sensors are active, they begin sending scheduled updates on machine status, temperature, run hours, and environmental conditions.

How It Works

• Sensors check in at scheduled intervals, e.g., every 15 minutes, hourly, or on change detection.

• Alerts can be configured for any threshold breach, sent via SMS, email, or directly to a dashboard.

• Long-term data helps uncover trends in machine behavior, enabling smarter planning and targeted maintenance.

You can also integrate alerting with Telematics Guru or push to external tools for maintenance ticketing or operator dashboards.

IoT Device Solutions: Use Cases and Case Studies

IoT technology is transforming the manufacturing sector, enabling greater control, efficiency, and resilience across every level of the production chain. As adoption grows globally, these smart tools are shaping the future of how we manage machines, resources, and processes on the factory floor.

Below are real-world examples that showcase how IoT devices and data-driven strategies are helping manufacturers reduce costly downtime, improve asset visibility, and unlock actionable insights.

Predictive Maintenance

One of the most impactful applications of IoT in manufacturing is predictive maintenance. By deploying sensors on critical assets, operators can detect anomalies early and intervene before equipment failure occurs.

Digital Matter’s Hawk IoT Data Logger, for example, connects to industrial sensors that track heat, vibration, or operating cycles. This enables teams to monitor equipment health in real time, prevent breakdowns on production lines, and optimize maintenance schedules, resulting in extended asset lifespan and reduced unplanned downtime.

Case Study: IoT-Enabled Predictive Maintenance
A manufacturing client deployed Digital Matter’s Oyster Edge GPS tracker and Bluetooth® Gateway to monitor motor vibration in a high-volume plant. By identifying subtle shifts in vibration patterns, the team spotted early-stage wear and scheduled repairs, cutting unplanned downtime by over 30%. The data collected also supported long-term reliability planning. Read the full case study.

GPS Asset Tracking and Management

IoT-enabled GPS tracking is becoming essential for modern manufacturing operations, especially when it comes to managing mobile assets, tools, and returnable packaging. These solutions offer full visibility into asset location, movement, and condition across plants and warehouses.

In industries like manufacturing and logistics, GPS IoT adoption supports asset monitoring and resource allocation through technologies like cellular GPS, BLE, and RFID tags. These systems generate valuable production data and help reduce loss, improve delivery accuracy, and ensure on-time project execution.

Pallet Tracking in the Supply Chain

Digital Matter’s Oyster Edge combines GPS, Bluetooth, and Wi-Fi location data for real-time pallet and tool tracking. This minimizes asset loss, supports returnable packaging programs, and simplifies audits. The use of compact, rugged trackers in supply chains not only protects goods but also supports sustainability through better use of reusable materials.

View GPS Pallet Tracking with Digital Matter.

Remote Monitoring and Control

In harsh or hazardous environments, remote monitoring offers a powerful advantage. Connected sensors continuously report conditions and performance data from equipment or infrastructure, helping operators manage critical systems from a distance.

Digital Matter’s solutions allow manufacturing teams to maintain visibility over dispersed assets without needing to be physically present. These systems provide reliable remote insights, helping improve safety, reduce manual checks, and keep manufacturing processes running smoothly.

Best Practices for Better Results

To maximize ROI and system reliability, follow these best practices:

• Calibrate sensor thresholds based on manufacturer specs for your equipment

• Avoid real-time data streaming unless necessary—use scheduled intervals to conserve battery life

• Leverage collected data for internal dashboards or to train AI models for advanced anomaly detection

Optional integrations with analytics tools or AI/ML models can help predict future maintenance events based on long-term sensor patterns.

The Future of Smart Manufacturing

As manufacturing transitions toward the human-centric principles of Industry 5.0, IoT sensor technology will continue to evolve, driving innovation across the entire manufacturing landscape.

Emerging trends include:

• Miniaturization: Smaller industrial sensors will enable better integration with compact equipment.

• Advanced materials: Innovations like graphene will improve durability and responsiveness.

• Wireless networks: More robust mesh and private wireless networks will support real-time control across plants.

• AI and machine learning: Sensor data will be used to automate decision-making and support self-optimizing systems.

Industrial IoT sensors are the foundation of smart manufacturing and getting your deployment right today positions your team to thrive in the factories of tomorrow.

Next Steps - IoT for Smarter Manufacturing

IoT-based sensor monitoring offers a scalable way to increase asset visibility, optimize production processes, minimize downtime, and support compliance, all while improving operational agility.

Whether you’re looking to deploy predictive maintenance, track mobile tools, or build a connected smart factory, Digital Matter’s rugged, industrial-grade devices can help you do it with confidence.

Get in touch with our team of experts today to get the technology, tools & support you need to grow your business.