I have known Eddie Habibi, founder and CEO of PAS (now PAS Global) for about 20 years. So I’ve followed the development of his company for that long. There was alarm management, and process safety, and process asset management. And the company grew at a typical pace for the market.
Then he went all-in on process control system cybersecurity. He accepted some investment money, hired some pros in the field, and combined security with what the company was already known for.
The results are in the latest press release from PAS Global LLC where it announced a 45% increase in term revenue year-over-year and increased market recognition of its solutions.
In March 2019, the company introduced an expanded Cyber Integrity offering with risk analytics for continuous operational technology (OT) endpoint security. Following this milestone, the company marked record growth in the adoption of this solution across multiple geographies and verticals including the United States, Europe, and the Middle East with leading organizations in the chemicals and oil & gas industries, in particular.
A Fortune 50 independent petroleum refiner was challenged with increasing cybersecurity risks as they deployed connected technology to achieve faster and more efficient production operations. PAS Cyber Integrity was deployed as the foundation for the refiner’s OT cybersecurity program to create an automated, comprehensive, evergreen OT asset inventory and to more quickly identify and remediate security vulnerabilities. What used to take the company months to assess “critical” or “high” ICS-CERT vulnerabilities can now be done in minutes across all refineries.
A global, integrated oil & gas company operating across five continents is pursuing digital transformation to grow its business, enter new markets, and compete more effectively. Underpinning this initiative is a cloud-based analytics platform. The team chartered with this program sought to leverage their multi-vendor industrial control system (ICS) data and ensure reliable data flows from field-level devices to their data lake. They sought a platform-independent solution that could not only deliver this data, but also provide a topological view of assets and site connections, monitor configuration baselines, and manage change. Additionally, the company’s cybersecurity team sought a solution that could provide comprehensive OT asset inventory and rapid vulnerability assessment capabilities. PAS Automation Integrity and Cyber Integrity were selected to address these needs.
A major electronic materials firm with operations in North America and Asia sought to establish an enterprise-wide cybersecurity program on an aggressive schedule to eliminate gaps in visibility and security controls. Cyber Integrity was selected to automatically build a detailed OT asset inventory for each site, identify patch levels across systems, and implement change management workflows. The company now has the inventory and configuration visibility it needs to support digitalization efforts including data lake, 5G, and artificial intelligence initiatives.
“Industrial organizations are increasing investment in cybersecurity solutions specifically built for OT not only to reduce their overall cyber risk but to ensure they can accelerate their digital transformation efforts safely,” said Eddie Habibi, Founder and CEO of PAS. “We are pleased to be working with a growing list of global companies who are leveraging PAS Cyber Integrity to give them the foundation they need for managing industrial cyber risk.”
The company also saw significant year-over-year growth in purchases of its operations management and process safety solution, PlantState Suite.
“Of equal importance is the work we do to help companies improve process safety through effective operations management,” Habibi added. “We are pleased to have been recognized once again as the market leader for both alarm management and safety lifecycle management. This is a testament to the hard work of the PAS team over many years and the confidence our customers place in our solutions.”
PAS cybersecurity and process safety management solutions are installed in more than 70 countries in over 1,450 industrial facilities for over 535 customers, including 13 of the top 15 chemical companies, 13 of the top 15 refining companies, 7 of the top 20 power generation companies, 4 of the top 5 pulp and paper companies, and 3 of the top 5 mining companies in the world.
Collaborative robots, known as cobots, fill a really nice niche in the overall robot and automation market. Among the first I physically saw were those from Universal Robots. I’ve liked its products from the way they are implemented to the way they are designed.
Despite a flurry of press releases discussing how great sales in the space are, I remain skeptical about adoption. This program for leasing robots tells me that the market needs a spur. Once again, a good program, but will this give sales a shot in the arm?
Here is the news.
Universal Robots (UR) launched its new cobot leasing program in collaboration with DLL, a global vendor finance company. The new partnership enables all manufacturers, regardless of size or capital equipment budgets, to reap the benefits of automation without worrying about cash flow and seasonal fluctuations.
“We’re leveling the playing field by enabling all manufacturers to immediately put cobots to work without an upfront capital investment,” said Klaus Vestergaard, CFO at Universal Robots. “UR Financial Services offers end-users a fast, low-risk and financially-friendly model to accelerate automation in their factories. The partnership makes it easy to upgrade existing cobots, add additional units or test cobots for the first time – and equips end-users to maximize productivity, quality and profitability, without increasing costs or cash outlay.”
DLL offers UR’s customers tailor-made financing and leasing programs designed to meet the needs of the modern manufacturing business. As business needs change, customers will have the option to schedule payments to fit fluctuations in cash flow, upgrade to new equipment, or add cobots anytime during the contract term. At the end of the finance term, customers will have the option to buy the equipment for a fraction of the original cost, upgrade to newer technology, extend the finance term or simply return the equipment.
“We are delighted to establish a global partnership with Universal Robots,” said Neal Garnett, President of Construction, Transportation & Industrial (CT&I) Global Business Unit at DLL. “The market we operate in is evolving rapidly. Through this partnership we can now offer financial solutions for a wide variety of automation equipment. Cobots are transforming the industry and UR is clearly the market leader. Our tailored financial solutions give UR’s end-users an easy way to reduce the risk of deploying cobots by shifting from ownership to flexible, usage-based financing. Manufacturers can build the operations they need to compete and thrive, while people work on strategic tasks.”
UR’s distributor network will work directly with DLL’s dedicated finance experts in each country to provide new payment and leasing options for interested customers. Through the experts’ specialized asset knowledge, flexible financing solutions and strategic marketing resources, they will support UR to execute the growth strategy. End users will continue to experience the benefits of working with UR, including its global reach, local support, service and maintenance, training offerings through its online UR Academy and global network of Authorized Training Centers, and UR’s extensive UR+ Ecosystem.
When Dell developed an Internet of Things (IoT) group, I began following it. The team developed a gateway compute device, brought together various groups within the company, along with many partners. But the market was evidently not large enough to sustain a group. Eventually IoT was moved into the OEM business and the entire team was either laid off or shuffled over to other groups.
Therefore, I found it refreshing that a large IT company not only could spell Class I, Div 2, but develop a product for hazardous areas within petrochemical (and other) plants.
Dell positions its new rugged tablet as an element of digital transformation (of course), but the Latitude 7220EX Rugged Extreme Tablet has ATEX and IECEx certification for use in potentially explosive environments that will give technicians, operators, and engineers a mobile view into operations.
Dell customers in North America and Canada can expect to see Class 1, div 2 certifications on the existing Dell Latitude 7220 Rugged Extreme tablet in the coming months. With these additional ATEX and IECEx certifications which meet EU and International standards respectively, the Latitude 7220EX Rugged Extreme tablet will make it easier for customers to procure and deploy one platform across various regions.
The Latitude 7220EX Rugged Extreme is an 11.6” fully-rugged tablet featuring the brightest-screen in an ATEX-certified tablet, for use in potentially explosive environments. It includes a 1000-nit screen, which increases direct sunlight viewability, and also offers glove-touch capacity. To balance the security of the device with user accessibility, the Latitude 7220EX Rugged Extreme features a built-in infrared camera with “Windows Hello” facial recognition and an optional next-generation fingerprint reader.
I picked this news item up from The Economist Espresso app.
For years, technologists have gushed about the promise of the “Internet of Things”, enabling ordinary objects—from kettles to cargo ships—to communicate autonomously with each other. The two essential technologies speeding the IOT’s arrival, inexpensive sensors and super-fast networking kit, are advancing rapidly. Gartner, a research group, predicts that the global number of devices embedded with sensors will leap from 8.4bn in 2017 to 20.4bn in 2020. So is 5G, a telecoms-networking technology superior to today’s 4G mobile networks. But the world’s 5G system could split into two different and potentially incompatible entities. One has been developed by Huawei, a Chinese telecoms-equipment giant, at a cost of $46bn. But some are worried about the company’s links to the Chinese Communist Party. Several countries, led by America, have banned the use of Huawei’s gear in their systems for security reasons. The year 2020 could herald the arrival of the Splinternet of Things.
I daresay that most likely many countries in the world are concerned about the ability of the US government to monitor internet traffic through the technology of American companies. These swords always cut two ways when you take the larger view.
More relevant to this topic, though, could a potential splintering into two 5G systems globally impact IoT?
In the short term from what I can gather interviewing technologists, benefits from 5G will accrue from the ability for private, plant-wide broadband rather than from some global linking of sensors.
Perhaps we are a bit early for journalists’ raising fear, uncertainty, and doubt. Listening to people actually building out the technology, I think we are going to experience much benefit from 5G in the not-to-distant future.
I have received three different robotic market research reports from two different research firms. Both of these firms seem to do the work that it takes. I’ve done some private contract research and analysis and have an grasp on the work it takes. These reports have major agreements and a few different takes. The short take is that we finally have momentum in new forms of robotics–and that is a good thing.
[Note: In moving this post from my text editor this morning, I inadvertently had left the setting as “publish” instead of “draft”, therefore you received an email with no link. Oops. Sorry.]
Cobot Market Growth
Cobot Market to account for 30% of Total Robot Market by 2027 according to market research firm Interact Analysis.
- The growth rate of collaborative robots is leading the robotics industry
- Logistics will surpass automotive to be the second largest end user of cobots by 2023, with electronics in first place
- In the next five years, the fastest growing regions for collaborative robot shipments will be China and the USA
Market intelligence firm Interact Analysis has released a new market report – The Collaborative Robot Market – 2019 – which indicates strong and sustained growth for the collaborative robot industry.
In 2018, global revenues from cobot production exceeded $550 million. This was almost a 60% increase over 2017; and over 19,000 cobots were shipped. Interact Analysis forecasts that revenues for cobots will reach $5.6 billion in 2027, accounting for almost one third of the total robotics market, and that <5kg and 5-9 kg cobots, popular in small to medium-sized industrial settings, will represent the majority of sales in 2023.
Material handling, assembly and pick & place will be the three biggest applications of collaborative robots. But these functions, which accounted for 75% of cobot revenues in 2018, will drop to below of 70% total revenues by 2023, as other functions for cobots are developed. The use of cobots in non-industrial applications will play a significant role in the coming years – in sectors such as life sciences, logistics, and the hospitality sector. In part this is because they are flexible and easy to set up, making them attractive to smaller companies which may not have previously considered using robots.
Labour shortages and the drive to improve efficiency mean that China will be the fastest growing region for cobot shipments. The demand for simple, cost-effective, entry-level robots, together with different regulations surrounding industrial equipment in China has fuelled the growth of Chinese cobot manufacturers who only supply their local market. This has arguably distorted the market figures. Interact Analysis has responded to this by including in its report two data sets, one with and one without the impact of China. It is important to note, however, that growth outside of China is still forecast to rise at a CAGR of over 30% in the next 5 years.
Maya Xiao, lead analyst on cobots for Interact Analysis, says: “The collaborative robot market is still relatively immature, but Interact Analysis has identified clear potential growth areas, both in industrial and non-industrial settings, enabling manufacturers to respond effectively, and take full advantage of what we predict to be an area which will occupy a significant market share in the coming years”.
Robot Market Declines then Rebounds
- Automotive and smartphone production declines played a significant part in 2019 slowdown
- New applications, lower prices and wider use cases will lead to a significant upturn by 2023
- China shows its strength, both domestically and in attracting external investment
Market intelligence firm Interact Analysis has released a new market report focusing on the industrial robot market. The research outlines reasons to be positive in the sector, despite an immediate, short term decline in revenues.
The report goes into detail around specific headwinds that have challenged growth within the sector, including the slowing global economy, trade wars and uncertainty in the global automotive industry. Compared to 2017, where revenues associated with industrial robots increased by 20%, forecasted declines of 4.3 per cent in 2019 have caused some concern.
Jan Zhang, research director at Interact Analysis, said: “Automotive and smartphone production declines play a significant part in this downturn. As the largest end-user segment for industrial robots – accounting for over 30% share of revenues – any downturn in this area is always keenly felt in automation and robot investment.
“Despite this, however, there are reasons to be optimistic. Long term drivers, both for industrial robots and for automation as a whole, remain very strong. Growth is expected to pick up on 2020, and then accelerate further in 2021 due to new industry applications, lower prices and wider use cases.”
The report’s findings, based on interviews with all leading robotics companies (as well as a wide selection of innovative robot start-ups, system integrators and component suppliers), highlight the importance of new robot types in fuelling this growth. In particular, cobots – collaborative robots – which work alongside humans are finding favour in industries not traditionally associated with the use of robots. Among those industries identified are food and beverage, logistics, packaging and life sciences.
“Growth in these industries can’t fully compensate for the decrease in the automotive industry, but it does warrant optimism for the future,” said Jan.
A central element to the report’s findings is the impact China is having on the global industrial robot market in 2019. While Japan remains the largest producer of industrial robots, with an estimated 45% of total production, there has been significant growth in production capacity and output in China. This can be attributed a number of factors, including Chinese vendors entering the market and inward investment from traditional industrial giants like ABB, Fanuc, KUKA and YASKAWA.
Jan added: “While it is true growth of industrial robot revenues has slowed down, the reasons for this are clear and, for the most part, beyond the control of the vendors. Despite this, however, there is evidence that the industry is diversifying and putting the foundations in place for significant future growth, making this one of the more exciting spaces to operate in.”
Mobile Systems Drive Robot Market Growth
Robotics Industry Set for Seismic Change as Growth Shifts from Fixed Automation to Mobile Systems in Enterprise.
Of the 8 million robots shipped in 2030, nearly 6 million will be mobile.
The robotics market is set to transform over the next 10 years, based on the most comprehensive robotics tracker yet released by global tech market advisory firm, ABI Research. There will be enormous growth across all subsectors, highlighted in a total market valuation of US$277 billion by 2030. That growth will not be distributed evenly, however. By 2022, the burgeoning mobile robotics space will start to overtake the traditional industrial robotics market. Currently, mobile autonomy is concentrated in material handling within the supply chain, but mobile robots are set to touch every sector of the global economy for a wide range of use-cases.
“Everyone talks about self-driving passenger vehicles, but mobile automation is far more developed in intralogistics for fulfillment and industry,” said Rian Whitton, Senior Analyst at ABI Research. “The automation of material handling will see huge segments of the global forklift, tow truck, and indoor vehicle market consumed by robotics vendors and Original Equipment Manufacturers (OEMs) that bring indoor autonomy.”
Amazon Robotics is the leader that has driven growth in mobile robotics for the last 7 years since their acquisition of Kiva Systems. With an estimated 256,000 automated guided vehicles deployed to date, Amazon holds close to 50% of material handling robot market share and is broadening its portfolio of robot subtypes with autonomous mobile robots for transport and delivery. Other major Automated Guided Vehicle (AGV) developers like Quicktron, JD.com, Geek, and Grey Orange are deploying thousands of robots yearly, while Automated Mobile Robot (AMR) developers are just beginning to scale up. Brain Corp. has deployed 5,000 systems primarily in retail, and BlueBotics has deployed some 2,000 robots for intralogistics in and around the supply chain. Meanwhile MiR, an AMR company acquired by Teradyne in 2018, is beginning to achieve growth rates in excess of the company’s other robotics acquisition of major cobot developer, Universal Robots.
The distinction between AGVs and AMRs can be contested, but AMRs do not require external infrastructure to localize themselves and are built with sensors and cameras to self-navigate their environments. Currently, AGVs represent the majority of mobile robot shipments, but by 2030, this will change. While there will be 2.5 million AGVs shipped in 2030, the total shipments of AMRs will reach 2.9 million in the same year. This is due to the declining costs of superior navigation and the desire to build flexibility into robotic fleets. “Many new verticals, like hospitality, delivery, and infrastructure, will demand systems that do not require external physical infrastructure to move about. While AGVs will thrive in intralogistics for fulfillment, especially in greenfield warehouses, AMRs solve the challenges faced by many end-users by offering incremental automation that does not require a complete change of environmental infrastructure,” Whitton explains.
In a major example of automation extending to new and important vehicle-types, the shipments of automated forklifts are set to grow from 4,000 in 2020 to 455,000 in 2030, with a CAGR of 58.9%. Meanwhile, the revenue for all mobile robotics is expected to exceed US$224 billion by 2030, compared to US$39 billion for industrial and collaborative systems.
Leading the way in mobile robotics are French manufacturer Balyo (which partnered with Amazon), Seegrid (who have sold over 800 units) and a number of smaller actors that are just beginning to scale. This opportunity is leading vehicle manufacturers such as Toyota, Yale & Hyster, and Raymond to partner with robotics companies to offer automation to manufacturers. Given the global shipments for forklifts is close to 1 million, half of all shipments could be automated by 2030.
Another significant sector for mobile automation will be maintenance and cleaning. There are already over 5,000 autonomous floor scrubbers in U.S. retail stores and commercial buildings. With Softbank’s deployment of mobile cleaners for offices being rolled out in Asia and the United States, cleaning robots will become a common sight within the service economy.
Even more esoteric form factors, like quadrupeds, are expected to increase significantly for data collection purposes, particularly for real estate, construction, and industrial inspection. ABI Research predicts that quadrupeds, exemplified by vendors like Boston Dynamics, Zoa Robotics, ANYbotics, and Ghost Robotics, will increase to 29,000 yearly shipments by 2030. “As mature sectors of the robotics industry achieve growth more in line with established technology markets, mobile robotics are set to create lasting transformative effects across the supply chain and will become increasingly ubiquitous throughout the global economy,” Whitton concludes.
These findings are from ABI Research’s Commercial and Industrial Robotics market data report. This report is part of the company’s Industrial, Collaborative & Commercial Robotics research service, which includes research, data, and ABI Insights. Market Dataspreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight where opportunities lie.
I received a notice from CyberX about a industrial and industrial control phishing scam. It just goes to show that we all need to be continually vigilant and disciplined about attachments and links.
From the CyberX blog:
Section 52, CyberX’s threat intelligence team, has uncovered an ongoing industrial cyberespionage campaign targeting hundreds of manufacturing and other industrial firms primarily located in South Korea.
The campaign steals passwords and documents which could be used in a number of ways, including stealing trade secrets and intellectual property, performing cyber reconnaissance for future attacks, and compromising industrial control networks for ransomware attacks.
For example, the attackers could be stealing proprietary information about industrial equipment designs so they can sell it to competitors and nation-states seeking to advance their competitive posture.
Also, credentials can provide attackers with remote RDP access to IoT/ICS networks, while plant schematics help adversaries understand plant layouts in order to facilitate attacks. Design information can also be used by cyberattackers to identify vulnerabilities in industrial control systems.
The campaign uses spear phishing emails with industrial-themed attachments.