A Look At IoT Trends for 2020 and More

A Look At IoT Trends for 2020 and More

Top Tens and Top Twenties of the past or future year have never been my favorites. However, one can perceive trends and strain out little nuggets of gold by scanning several. Especially industrial taken broadly along with Internet of Things (IoT) and other current digital trends. I just had an interesting chat with Sean Riley, Global Director of Manufacturing and Transportation for Software AG, who released his Top Ten for 2020.

Following are his ideas interspersed with a few of my comments.

Cost Management Becomes Exceptional

As uncertainty enters the global manufacturing outlook, enterprises will become myopically focused on cost reductions. This will drive organizations to find more efficient methods of providing IT support, leveraging supplier ecosystems and simplifying value chains. [GM-much of my early work was in cost management/reduction; this is a never-ending challenge in manufacturing; however, tools continue to evolve giving us more and better solutions.]

A Blurred Line Between Products & Services

Manufacturers continue their product innovation quest and more manufacturers will begin focusing on how to deliver products as a service. The Manufacturers that have already created smart products and have elevated service levels will now begin to work out the financing considerations needed to shift from a sales based to a usage based revenue model. [GM-This is a trend most likely still in its infancy, or maybe toddler-hood; we see new examples sprouting monthly.]

Moving To Redefine Cost Models To Match Future Revenue Streams

Anticipating the shift to continual revenue streams, manufacturers will seek to shift costs to be incurred in a similar manner. This will be initially seen as a continued push to subscription based IT applications. While much progress has already been made, a larger focus will occur. [GM-I like his idea here of balancing capital versus expense budgets, continually finding the best fund source for shifting costs.]

IT Focuses on Rapid Support for Growth

The lines between business and IT users become blurred as no-code applications allow for business users to create integration services. IT professionals will leverage DevOps & Agile methodologies alongside of microservices and containers to rapidly develop applications that are able to generate incremental growth as requested by business users. This will be critical to the near term success for manufacturers, especially with economic headwinds that seem to be growing stronger. [GM-I didn’t ask about DevOps, but this idea is springing into the industrial space; cloud and software-as-a-service provide scalability both up and down for IT to balance costs and services.]

Industrial Self-Service Analytics Become Mission Critical

Industrie 4.0 / Smart Manufacturing initiatives continue to receive greater amounts of investment but in the near term, manufacturers will focus on unleashing the power of the data they already have. Historians, LIMS, CMMS’ have valuable data going to and in them and enabling production engineers to leverage that data rapidly is critical. Industrial Self-Service Analytics that allow production and maintenance professionals to leverage predictive analytics without IT assistance will sought as a powerful differentiating factor. [GM-we are beginning to see some cool no-programming tools to help managers get data access more quickly.]

Industrie 4.0 / Smart Manufacturing Initiatives Continue to Draw Investment

It’s no surprise that Manufacturers will continue to invest in Industrie 4.0 as the promises are great however, the scaled returns have not been realized and won’t be realized in the near term. The difficult of implementing these initiatives has surpassed manufacturers expectations for several reasons. First, traditional OT companies were trusted to deliver exceptional, open platforms and that wasn’t delivered. Secondly, collaboration efforts between IT & OT professionals proved to be more convoluted and difficult than expected. [GM-I’m thinking these ideas became overblown and complex, and that is not a good thing; to swallow the whole enchilada causes stomach pain.]

Artificial Intelligence Enters the Mix

AI won’t allow for users to sit back and relax while AI handles all of their tasks for them but it will make an appearance in back office tasks. Freight payment auditing, invoice payment and, in some select areas, chatbots will be the initial main stream uses of AI and will be seen as not becoming an anomaly but be understood to be more mainstream this year. [GM-I think still an idea looking for a problem; however some AI ideas are finding homes a little at a time.]

3D Printing Find New Uses

While this technology has steadily crept into production lines, the push towards usage based product pricing will have the technology move into after market services. Slow moving parts will be the first target for this technology which will help to free up much needed working capital to support financial transformation. [GM-watch for better machines holding tighter tolerances making the technology more useful.]

5G & Edge Analytics Enable New Possibilities

As Industrie 4.0 is continued to be pursued, Manufacturers will implement new initiatives that could not previously be realized without the high speed data transmission promises of 5G or the ability to conduct advanced analytics at the edge where production occurs. This will also provide manufacturers with new methods to securely implement Smart Manufacturing initiatives and in new locations that were not previously feasible due to connectivity issues. [GM-5G is still pretty much a dream, but there is great potential for some day.]

Security Still Remains a Critical Focus

With the increasing rate of IoT sensors, IT-OT convergence, the usage of API’s and the interconnectivity of ecosystems ensuring data security remains a top priority for manufacturers. As more data becomes more available, the need to increase levels of security becomes ever greater. [GM-ah, yes, security–a never-ending problem.]

A Look At IoT Trends for 2020 and More

Software Investments—Looking Beyond the Surface

Rockwell Automation through Blake Moret, chairman and CEO, invested $1 billion in PTC with Moret gaining a seat on the board. The public reason was really to get early information about ThinkWorx, the IIoT product.

The investment valued PTC, a company with $1 billion in sales, at approximately $17 billion. On the surface, we all pondered why.

Speeding up the time, I was able to spend a couple of hours with several people from PTC at last week’s Automation Fair event. This really opened my eyes to the depth and breadth of the ThingWorx offering. There is much technology and usefulness under the hood. This is powerful software.

Now, I understand. Beyond a relationship and most likely some preferential access to ThingWorx and other PTC technologies, I’m surmising that Rockwell Automation can also drop some visualization projects, cut development costs, and utilize the full value of the PTC software. That alone would be a good return on the investment.

Therefore, the most prominent branding at Automation Fair–Powered by PTC.

Revealing more of Rockwell’s piece-at-a-time partnering strategy, it is not using PTC’s CAD and PLM offerings for its digital twin development, but instead it is partnering with ANSYS.

Like I noted in my initial report on Automation Fair, partnering was the centerpiece of news from the event. Looks like it is also the centerpiece of product development. That is most likely financially prudent.

A Look At IoT Trends for 2020 and More

Tech Podcast and Numbers

Gary on Manufacturing Podcast 200 has been published.

I have been podcasting in a variety of formats since around 2007. Obviously frequency is a problem. After I left magazine publishing, I spent some time figuring which direction to go.

This podcast (sponsored by Inductive Automation) gives a quick recap of where the podcast has been and then I take a look at challenges for industrial tech for the future.

On another note, yesterday I published two blog posts regarding market intelligence (or, lack thereof) reports.

One showed transparent methodology that yields granular data that is perhaps as trustworthy as possible.

The other had to have been a huge SWAG (strategic wild-assed guess). It was not transparent (despite the name of the firm including the word “transparent”) with results not passing the smell test.

The other press releases I get this time of year are magazine awards. I know how the sausage is made. I also heard John C. Dvorak once an editor with PC Magazine back in the day say the same things about PC Mag’s editor awards. Suffice to say, I don’t report on them. I’m happy the companies got an award for their relationship with the magazine, but it’s not relevant to this site.

Good information is so hard to come by. Sometimes I like to stir things up, but mostly I just like to give a clear unbiased view.

Let’s just say I can still remember my roots when I actually worked for a living–life on the line getting projects done and manufacturing producing.

A Look At IoT Trends for 2020 and More

Market Research Firm Says Digital Transformation to Drive Adoption of Manufacturing Operations Management Software

‘Tis the season—for market research reports. This one again from a firm I don’t know (but quite European centric)—by Transparence Market Research attempts to gauge the size and growth of the Manufacturing Operation Management (MOM) software market. I did not get a chance to chat with the company, but I find the list of companies “surveyed” interesting. Note, this software was previously (before ISA 95) Manufacturing Execution Solutions (MES), and when I did work in the space Manufacturing (prior-Materials) Resource Planning.

According to the market report, the global manufacturing operations management software market is projected to reach a value of US$ 17 Bn by 2027. The MOM software market is projected to expand at a CAGR of about 10% from 2019 to 2027. Growth of the market can be attributed to the shift of manufacturing toward digitization. [Note: I propose that as companies have acquired other companies, the MOM of choice—Microsoft Excel—became to cumbersome and not scalable. Add to this thought, the burgeoning data available through the Internet of Things.]

Asia Pacific is anticipated to dominate the manufacturing operations management software market at a CAGR of about 11% during the forecast period. In terms of revenue share, the manufacturing operations management software market is dominated by North America, followed by Europe. In 2019, the software segment is estimated to be valued at about US$ 5 Bn in the global manufacturing operations management software market, and see an opportunity of about US$ 10 Bn in terms of revenue from 2019 to 2027, reflecting a CAGR of about 9% during the forecast period.

The report does rightly point out that “MOM plays a vital role in integrating information systems on the shop floor, with business systems in corporate offices, leading to a gradual phasing-out of traditional paper-based systems.” They expect demand for manufacturing operations management software to increase during the forecast period due to these advantages offered by these systems.

Asia Pacific is one of the fastest growing markets in the global manufacturing operations management software market, as this region is witnessing increased adoption of new technologies. The manufacturing operations management software markets in North America and Europe are also expected to expand rapidly during the forecast period. [Gary’s note: have you ever seen one of these reports where the line on the graph did not reach upward from lower left to upper right?]

The research study includes the profiles of leading companies operating in the global manufacturing operations management software market. Key players profiled in the report include Siemens AG, ABB Ltd., Dassault Systems SA, Emerson Process Management, Honeywell, International Inc., General Electric Co., and Invensys plc. [Note: I’ll give them Invensys for historical data, but the software is now aggregated under AVEVA. I’d suggest a few additional players in the space.]

​​​​Motor Drives Increasingly An Enabler of IoT Says Market Intelligence Firm

​​​​Motor Drives Increasingly An Enabler of IoT Says Market Intelligence Firm

Just before Thanksgiving, I had the opportunity to talk with Adrian Lloyd, CEO of Interact Analysis. Interact is a new market research and intelligence company composed of industry veterans of other firms. The company researchers perform many more interviews than the industry norm combining with deep regional manufacturing data in order to achieve better and more granular results.

Company CEOs provided insight to me years ago about the accuracy (or lack) of many market analyses. I’m always in search of better information. We’ll try this one.

Interact has just released two reports—low voltage AC drives and motion control.

2019 low voltage AC motor drives report from Interact Analysis

  • Decentralized and motor mounted drives to show the strongest growth
  • Danfoss overtook Siemens in 2018 to be number 1 drives supplier to the EMEA region
  • Cabinet mounted general purpose drives have largest percentage of sales by product type

The research shows that growth in the intralogistics and materials handling sector has led to increased demand for decentralised and motor mounted drives, leading them to show the strongest growth over the five-year forecast period out of all seven product types covered. Cabinet mounted general purpose drives account for nearly half of drive sales globally, but also represent the slowest growing product type.

Meanwhile, from a regional perspective, although ABB is the number 1 drives supplier on a global basis, Danfoss has overtaken Siemens to be number 1 in EMEA. The Americas is predicted to be the fastest growing drives market for 2019, while the market in EMEA is shrinking, and China continues to occupy the largest share of the market (43% by unit shipments in 2019).

Interact Analysis has pioneered a new forecasting approach that gives an unprecedented level of detail. For example, users could choose to view anticipated demand for drives under 2.2 kW in the Indian packaging market. This is possible because the report is underpinned by 12 years of data on industrial production (the value of goods produced) and machinery production (the value of the machines used to produce goods). This information comes from Interact Analysis’s Manufacturing Industry Output Tracker – a big data tool that aggregates national manufacturing surveys from all major manufacturing economies in a set of over 1.2 million datapoints.

Lloyd says of this report: “In 2018 average drive prices fell by 2.7% compared with 2017, and we expect this trend to continue. To compound this, 2019 is experiencing a slowdown in the market. Yet the drives industry has reason for positivity. And not just because we expect the market to rebound in 2020.

“The world is becoming increasingly automated – in fact it is becoming rare to open a national daily newspaper and not read something about how automation is impacting the economy. Automation growth sectors, such as eCommerce warehouses, are creating vast new opportunities for drives. In the longer run, it is very positive for drives manufacturers that our research shows drives buyers increasingly see drives as the front line of predictive maintenance and industrial IoT.

“Most drives reports model industry dynamics by simply comparing the growth of the drives market with the growth of the entire manufacturing sector. Ours is different. Interact Analysis’s Manufacturing Industry Output tracker compares the value of goods produced with the value of machines used to produce goods to give a whole range of fresh new insights unavailable in any other drives report.”

Motion Control Market to Exceed $15bn by 2023

New 2019 motion control market report from Interact Analysis reveals

  • Despite a short-term dip in 2019, longer term forecasts predict solid growth
  • Increased reliance on industrial robotics a significant contributor
  • Growth rate to exceed that of global manufacturing production by 2020

Interact Analysis has released a new market report – Motion Controls – 2019 – pointing to strong growth over the next four years for motion control products.

Despite a small decline in 2019 (-3.8%) the report outlines how the market for motion control products will grow strongly, ultimately exceeding $15bn in 2023. Also noteworthy is the firm’s belief that the motion control market will outpace growth of global manufacturing production from 2020 onwards. The positive outlook holds true despite the torrid time currently facing machine tool vendors which, as the single largest consumer of motion control products, generated over a third of motion control revenues in 2018.

Interact Analysis points to several sectors which are helping to drive a more positive outlook for motion controls. These include food & beverage machinery, packaging machinery, robotics and material handling equipment, especially equipment for warehouse automation and intralogistics. Together these sectors generated just under a quarter of total motion control revenues in 2018 and are forecast to account for closer to 30% in 2023.

The report outlines further factors strengthening the outlook for motion control demand, including the trend for decentralization. Here higher-protection ratings are helping to advance the market for particular motion products. Although even combined the opportunity is small compared to the total (representing only 2.4% of the global market in 2018), the findings show that revenues for both products are projected to experience higher growth than the rest of the market, driving their combined value to exceed $500m in 2023.

Geographically, six regions – China, USA, Japan, Germany, Italy and South Korea – will continue to dominate market revenues. China, in particular, is expected to add significant revenues over the next four years, making it almost twice as big as the United States. In industry terms, sectors utilising metal cutting tools remain the largest in revenue terms, however the strongest overall growth during the forecast period came from mobile robots and industrial robots, which are the only ones forecast to experience growth in 2019 versus 2018.

Tim Dawson, research director for Interact Analysis and principal analyst of the motion controls report, said: “Although the motion control market may be considered fairly mature there are important trends impacting its future growth helping drive revenues at an above average rate for the long-term. Couple that with product releases from new vendors, plus expanding portfolios from existing ones; and the fundamentals for this industry appear very strong, even despite headwinds in certain key sectors.”

A Look At IoT Trends for 2020 and More

Software Investments—Looking Beyond the Surface

Rockwell Automation through Blake Moret, chairman and CEO, invested $1 billion in PTC with Moret gaining a seat on the board. The public reason was really to get early information about ThinkWorx, the IIoT product.

The investment valued PTC, a company with $1 billion in sales, at approximately $17 billion. On the surface, we all pondered why.

Speeding up the time, I was able to spend a couple of hours with several people from PTC at last week’s Automation Fair event. This really opened my eyes to the depth and breadth of the ThingWorx offering. There is much technology and usefulness under the hood. This is powerful software.

Now, I understand. Beyond a relationship and most likely some preferential access to ThingWorx and other PTC technologies, I’m surmising that Rockwell Automation can also drop some visualization projects, cut development costs, and utilize the full value of the PTC software. That alone would be a good return on the investment.

Therefore, the most prominent branding at Automation Fair–Powered by PTC.

Revealing more of Rockwell’s piece-at-a-time partnering strategy, it is not using PTC’s CAD and PLM offerings for its digital twin development, but instead it is partnering with ANSYS.

Like I noted in my initial report on Automation Fair, partnering was the centerpiece of news from the event. Looks like it is also the centerpiece of product development. That is most likely financially prudent.

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