Why Manufacturers Choose Custom IoT Platforms Over ThingsBoard?

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manufacturers choose custom IoT platforms over thingsboard

Summary

Discover why manufacturers outgrow ThingsBoard and choose custom IoT platforms for scalable automation, OEM control, and long-term growth.

Manufacturers and OEMs today need more than basic device connectivity. They need platforms that scale reliably, support complex automation, connect with business systems, and deliver branded experiences to customers.

Modern product teams increasingly depend on IoT platform solutions for manufacturers to manage growing device fleets, automate operations, and support long-term system growth.

Many teams begin with open-source tools like ThingsBoard because they are easy to set up and suitable for early testing. However, once products move into production and device fleets grow, platform limits become visible.

In this guide, we explain what ThingsBoard offers, where it fits, where it falls short for manufacturers, and why custom IoT platforms are becoming the preferred choice in 2026.

What is ThingsBoard?

ThingsBoard is an open-source IoT platform designed to help teams connect devices, visualize data, and build simple automation.

It mainly provides:

  • Device onboarding tools
  • MQTT, HTTP, and CoAP protocol support
  • Dashboard and widget creation
  • A basic rule engine
  • Cloud or on-premises deployment
  • Simple user roles

It is widely used for proof-of-concept projects and early testing environments.

Why do Manufacturers Start with ThingsBoard?

Manufacturers often start with ThingsBoard because it lowers the barrier to entry.

It helps teams:

  • Validate hardware designs
  • Test data pipelines
  • Create quick dashboards
  • Experiment with device communication
  • Demonstrate early product concepts

This makes it practical for pilots and internal demonstrations.

However, production environments introduce different requirements such as reliability, performance, automation depth, and customer-facing features.

Why does ThingsBoard become Limiting for Manufacturers?

ThingsBoard becomes limiting when the platform must support daily business operations instead of experimentation.

This usually happens when:

  • Device counts increase into the thousands
  • Data arrives every few seconds
  • Automation controls physical processes
  • Multiple customers access the system
  • Branding becomes part of the product

At this stage, the IoT platform is no longer just a technical tool. It becomes part of the product itself.

Does ThingsBoard Support Advanced UI Customization?

No. ThingsBoard supports widgets and predefined layouts, but does not offer full freedom over user experience design.

Manufacturers usually need:

  • Brand-specific dashboards
  • Custom data visualization
  • Industry-specific layouts
  • multi-level device grouping
  • Different interfaces for different user roles

With ThingsBoard, achieving this requires deep platform modification, which becomes difficult to maintain over time.

Can ThingsBoard Handle Large-Scale Device Fleets Reliably?

Not consistently.

As device fleets grow, platforms must process massive volumes of telemetry data in real time.

This growth increases demands on:

  • Data ingestion
  • Message processing
  • Storage systems
  • Real-time analytics
  • Automation execution

Generic platforms often struggle unless heavily optimized and clustered, which increases operational complexity.

Is ThingsBoard’s Rule Engine Suitable for Industrial Automation?

Not for complex use cases.

ThingsBoard supports simple event-based rules. Industrial environments require more advanced workflows, such as:

  • Multi-device coordination
  • Time-based automation
  • Combined sensor logic
  • Predictive conditions
  • Cascading system actions

Custom workflow engines are better suited for this level of automation.

Does ThingsBoard support OEM-Level Multi-tenancy?

Only in a basic way.

Manufacturers typically require structured access for:

  • Distributors
  • Dealers
  • Installers
  • Field operators
  • Enterprise customers

Each group needs different permissions, dashboards, and device visibility. Custom platforms support these hierarchies natively.

Is ThingsBoard Cost-effective at Scale?

Initially, yes. Long term, not always.

While the core platform is open-source, production deployments often require:

  • Enterprise features
  • Clustering for availability
  • High-performance databases
  • Custom development
  • Infrastructure scaling
  • Ongoing maintenance

Over time, the total cost becomes harder to predict.

What is a Custom IoT Platform?

A custom IoT platform is built specifically for manufacturer devices, workflows, and business models.

It is designed to:

  • Match hardware architecture
  • Reflect operational logic
  • Support automation at scale
  • Integrate with enterprise systems
  • Provide branded user interfaces
  • Evolve with the product lifecycle

It becomes part of the product offering rather than a generic backend.

Industrial IoT is growing fast. Market research estimates that this segment alone will exceed USD 2 trillion by 2034, driven by connected factories, energy systems, and large infrastructure projects. Smart sensors only deliver real value when they connect with a stable and scalable backend. This is why many manufacturers now invest in custom IoT platform development to manage sensor data, automation rules, and real-time device behavior across large fleets.

Why are Custom IoT Platforms better than Thingsboard for Manufacturers?

Custom platforms remove structural limitations found in generic tools.

They give manufacturers full control over:

  • Data models
  • Automation logic
  • UI design
  • User management
  • Security policies
  • Integrations
  • Infrastructure architecture

This alignment improves reliability and long-term flexibility.

How do Custom Platforms align with Hardware Design?

Manufacturers use unique:

  • Payload structures
  • Command formats
  • Sensors
  • Device behaviors
  • Firmware logic

Custom platforms adapt to these differences directly, reducing the need for data translation layers.

This simplifies development and improves system stability.

How do Custom Platforms Scale More Effectively?

Custom platforms use cloud-native architecture:

  • Microservices
  • Event-driven pipelines
  • Distributed message brokers
  • Horizontal auto-scaling
  • Region-based deployments

This allows platforms to process millions of messages daily with stable performance.

Why does Branding Matter for OEM IoT Platforms?

Branding builds customer trust and product identity.

  • Custom platforms provide:
  • White-labeled dashboards
  • Branded mobile applications
  • Custom workflows
  • Industry-specific design
  • Consistent user experience

Generic dashboards limit differentiation.

How does Automation differ in Custom Platforms?

Automation becomes part of the system design.

Examples include:

  • Irrigation scheduling based on soil data
  • Solar fault detection
  • Equipment condition monitoring
  • Maintenance prediction
  • Automated alerts and actions

This level of control is difficult to achieve using generic rule engines.

How do Custom Platforms Improve Security?

Manufacturers control:

  • Device identity management
  • Encryption standards
  • Authentication models
  • Audit logging
  • Compliance policies

This is critical for regulated industries and enterprise deployments.

How do ThingsBoard and Custom Platforms Compare?

FeaturesThingsBoardCustom IoT Platforms
Platform OwnershipLimitedFull
ScalabilityModerateHigh
UI BrandingBasicFully Customizable
Automation DepthSimpleAdvanced
Multi-tenancyBasicOEM-ready
IntegrationsLimitedAny System
Security ModelStandardConfigurable
Long-term CostVariablePredictable
Industry WorkflowsGenericCustom

Why are Manufacturers Searching for ThingsBoard Alternatives?

Manufacturers search for alternatives when:

  • Device fleets expand
  • Automation becomes central
  • Customers expect branded portals
  • Multiple user groups join
  • Compliance becomes important
  • Platform ownership matters

This transition usually happens after the pilot phase.

How does a Custom Platform support business growth?

Custom platforms help manufacturers:

  • Reduce manual support work
  • Automate operations
  • Improve device reliability
  • Launch new digital services
  • Collect valuable operational data
  • Enhance customer experience

Connected products become long-term service platforms.

How does automation differ in custom platforms?

Automation becomes part of the system design.

Examples include:

  • Irrigation scheduling based on soil data
  • Solar fault detection
  • Equipment condition monitoring
  • Maintenance prediction
  • Automated alerts and actions

The global IoT sensors market is growing rapidly as automation becomes more common in manufacturing and industrial systems. It is expected to increase from USD 23.9 billion in 2025 to nearly USD 99.2 billion by 2030, showing how strongly businesses are investing in real-time monitoring, machine data, and automated decision-making.

Which industries benefit most from custom platforms?

Industries with complex operations include:

  • Agriculture and irrigation
  • Solar energy
  • Industrial automation
  • HVAC
  • Water management
  • Smart appliances
  • Infrastructure monitoring

These industries require advanced automation and system control.

When should manufacturers move from ThingsBoard to custom?

Manufacturers should consider moving when:

  • The platform becomes customer-facing
  • Automation controls real equipment
  • Device count grows beyond pilots
  • Brand experience becomes important
  • Compliance requirements increase
  • Data volume rises significantly

At this stage, platform choice affects business performance.

Conclusion

ThingsBoard remains a useful tool for testing and early experimentation. It helps teams validate ideas quickly and explore connectivity.

However, manufacturing-grade IoT products demand more.

Custom IoT platforms provide:

  • Reliable scalability
  • Advanced automation
  • OEM-level user management
  • Full branding control
  • Enterprise security
  • Flexible integrations
  • Predictable long-term cost

For manufacturers and OEMs building connected products in 2026, platform decisions are strategic business decisions.

Choosing a custom platform creates a stable foundation for growth, innovation, and long-term product success.

About the Author

Palak Karavadiya

Content Writer

Palak creates high-impact content for B2B technology brands. She specializes in IoT, SaaS, and enterprise software topics, turning complex technical ideas into clear, search-friendly content. Her writing helps companies rank higher, build authority, and educate decision-makers with confidence.

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