How IoT Is Transforming The Industrial Ecosystem

Transcription

How IoT is transformingthe industrial ecosystemMarket drivers, the changing industrial landscape andstrategic considerationsStart

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreIIoT: Industrial as anIoT applicationThe Internet of Things (IoT) will affect broad portions ofthe manufacturing process in large and significant ways.–– Industrial Ethernet has been around since early 2000, butproducts like field devices remain unconnected or provideonly one-way communication.–– Industrial Internet of Things (IIoT) features two-waycommunication: Data is fed up to controller level(and to the Cloud in the future), but feedback is alsoprovided to devices.PREVIOUSNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreA host of considerationsWhen—and how—to introduce IIoT into manufacturing environments is not aone-size-fits-all endeavor.PREVIOUSWhere are we now?Ecosystem reviewDiscover industry challenges drivingdemand to implement IIoT solutionsExplore factors contributing to thechanging industrial ecosystemFuture & expansionStrategic considerationsExamine device- and connectivity-levelopportunities for introducing IIoTReview relevant factors whilenavigating the changing landscapeNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreTechnology developmentSensors are widely used in the manufacturing environment. But while theiruse will become more widespread, the ability to connect and transmit moredata faster and with improved integrity will be the true enabler of IIoT.9090808070706060505040403030202010102016: 99M IIoTdevices shippedPREVIOUSDiscrete control and visualizationEncodersIndustrial robotsMobile assetsMotor controlsMotors, generators and turbinesProcess control and instrumentationPumps and compressorsSensorsSwitchgear2021: 252M IIoTdevices shippedNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreImproved data transmissionConnectivity protocols and frameworks enable customers to collect andtransfer more data quickly and accurately, from sensors up to the Cloud,for data aggregation and analytics.Examples include IO Link, quickly being introduced by sensor suppliers;and OPC UA, supporting greater interoperability and more secureinformation transmission to the Cloud.Convergence of platformsNew IoT platforms have been introduced by playersfrom both operation technology (OT) and informationtechnology (IT) markets.Platforms are key differentiators supporting dataconsolidation and communication across multiple machines, facilitiesand companies, creating connected organizations and supply chains.PREVIOUSNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreIIoT demand driversBelow are the key drivers for making IIoT a reality.Connectivity,technology& innovationIndustrial sectors such asenergy are generating massiveamounts of data. Technologyfor data capture and analysisopens up new opportunity foroptimization and monetization.PREVIOUSStandardization& securityThe industry needs commonstandards to allow smartconnected products, machinesand equipment from differentmanufacturers to interactseamlessly. With industrial useof the Cloud, security remainsthe biggest concern.Business modelsThe industry is strugglingwith challenges, includingloss of engineering expertisebecause of a retiring workforce.New business models arise asa result for machine builders,supporting customers with IIoTrelated services (e.g., remotemonitoring and servicing).Innovation& competitivenessIIoT adoption can acceleratefactory productivity rates, viareduced unplanned downtimeand easier product customization,increasing the level of competition.NEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreMajor ecosystem changesConfusion is driving major changes in the industrial ecosystem.–– Preference as to which team at a company should lead IIoTprojects is evenly split between engineering and IT.–– Centrality of automation projects (i.e., DCS systems)influences the decision-making process.PREVIOUSNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreEcosystem elementsApplications– Fixed assets– Mobile assetsPREVIOUSBuildingblocksPlatforms &enablementproducts products NEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreApplicationsFixed assetsMotors, generators & turbinesMeasurement instrumentationProcess controllersDiscrete controllersABBMitsubishi lAutomationAzbilMagnetrolEmersonB&A ElectricRockwell AutomationCameronSiemensHoneywellBeckhoffSchneider ElectricEmersonVegaMetsoMitsubishi ElectricSiemensEndress HauserYokogawaDanfossDECEmersonGESchneider ElectricSiemensYaskawaMotor controlsABBDanfossEmersonGEMitsubishi ElectricPREVIOUSRockwellAutomationSchneider er ElectricSiemensYokogawaOmronHoneywellIndustrial robotsMeasurement instrumentationEnd-equipmentFanuc RoboticsNachiABBKrohneGardner olAtlas CopcoKSBToshiba MachineCameronSiemensGrundfosXylemYamaha RoboticsEmersonVegaIngersoll RandSullairYaskawaEndress lNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreMobile assetsService robotsHeavy vehiclesVirtual/Augmented realityDronesActiveLinkOpen BionicsCaterpillarNavistarAPXVirtalis3D nmentParrotAmazon RoboticsSoftbankJohn DeereVolvoHTE ViveWorldvizPrecision HawkCarbon RoboticsTitan MedicalMAN Truck & BusAscendingTechnologiesFetch RoboticsYaskawaCybAeroDJILocusBeaconsMicrosoft HoloLensSkycatchYuneecAutomated guided vehiclesBluvisionRadius SensoroSSI SchaeferDematicTerexPREVIOUSNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreBuilding blocksHardware (chips & modules)Software (embedded OS)Connectivity (field networks)Partners (system integrators)ARMNXPDDC-lQNXBluetoothZigBeeLeidos EnergyPrime ControlsAnalog DevicesSierra WirelessENEATexas InstrumentsLoWPANZ-WaveIntechInfineonTexas InstrumentsGreen Hills SoftwareWind RiverNeonWood Group MustangAutomated TechnologyGroupMaverick TechnologiesCG ControlsIntelLinuxSigFoxNexcomMentor GraphicsWi-FiSensors and actuatorsCloud hostingIndustrial EthernetChange management servicesAdvantechMemsicSAPOracleCC-Link DeloitteTEAmazon oftRouters & gatewaysDevelopment kits/SDKsIndustrial BUSManufacturing USAIndustrie 4.0AdvantechKontronAtmelTexas InstrumentsControlNetIO LinkMade in China 2025CiscoMulti-TechAvnetVMwareDeviceNetLinkAsia IoT AllianceIndustrial ofi BusHartUSBPREVIOUSIndustrial-specific alliancesNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out morePlatforms & enablementIndustrial platformsAnalyticsInterface (Virtual/Augmented kVuzixCisco JasperMicrosoftN3N VisualizeDaqriWorldvizEmersonPredixKCF TechnologiesHTC ViveFujitsuRockwell AutomationPruftechnikMicrosoft HoloLensGERTISenseyeVirtalisHewlett-Packard EnterpriseSchneider ckardCyber securitySoftwareHardwareServicesBeldenSymantecBAE SystemsRadiflowAccentureLockheed MartinLockheed MartinTrend MicroBeldenSELBAE SystemsSiemensPhoenix ContactMoxaSiemensDeloitteYokogawaSiemensPhoenix ContactPREVIOUSNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreRush to IIoT platformsThe growing conversation on IIoT potential is attracting manynew players to compete for a share of the market.PTCThingWorxMicrosoft AzureHPUniversal form for ConnectedIndustrial EnterpriseOracleIoT Cloud Service2015E H SupplyCareCloud PlatformKUKAConnectEmerson PlantwebFuji ElectricMitsubishi ElectricFA-IT Open h IoT SuiteSEW Sm@rt e PlatformIBM Watson IoTConnectedManufacturingNational InstrumentsBig Analog DataNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreDisruptive entrantsNew solutions could drive disruption in the industrial market.IIoT platformSecurityKey player in IoT connectivity managementplatforms with broadening capabilitiesSolves IIoT security challenges for “headless” OT devicesas well as traditional IT assetsMachine learningVirtual realityProvides situational intelligence to process industries byanalyzing data across assets, operational functions andenterprise resourcesIndustrial-grade immersive VR solution facilitates decisionmaking process of global interdisciplinary teamsIIoT operating systemsAugmented realityOperating system offers open environment for developers intheir language of choice, complete with downloadable snaps forquicker/cheaper path to marketEnables augmented reality experiences for field supportservices as well as engineering and designHuaweiSpaceTimeUbuntuPREVIOUSFortinetESI GroupThingWorxNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out morePartnerships, mergers & acquisitionsThe complex IIoT supply chain necessitates an ecosystem of partnerships.Partnerships are necessary between:a) IT companies supporting cloud platformsand analytics; andb) OT companies providingdeep-domain knowledge and hardware utilized es forming partnerships, firms are also activelyacquiring software vendors, introducing new elements oraugmenting existing parts to their own smart manufacturingportfolio. Such firms include GE Digital, Honeywell andSiemens, in digitalization as well as in technologiessupporting cloud platforms and data analytics.ITMachineIT Automation builders/OEMs infrastructure Connectivity Cyber security solutionsOT and / or ITIoTplatforms IndustrialsoftwareSystem integrators Applications CustomersNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreChallenges inIIoT adoptionIndustry change is required for full IIoTadoption to take place.Despite IIoT’s growing sophistication in processing power,software and platforms, the broader understanding andacceptance of IIoT within the industrial culture remains elusive.The goal: to move manufacturers toward wider implementation.For traditional players, fears of placing data in the Cloud mustbe addressed, given the rampant and pervasive cyber securitythreats of today.PREVIOUSNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreThe road ahead to IIoTIIoT is a story in the making, and many uncertainties remain.Many manufacturingcompanies remain hesitant toplace confidential data on aremote Cloud.IoT platforms are evolving by offering Edgeor Fog analytics, where data is collected andprocessed at the edge of the network,allowing companies to retain data in-house asan alternative or in addition to acloud-based solution.Is 5G anopportunityfor Industrial?Where is theCloud going?5G’s ability to providehigh reliability, ultra-low latencyconnectivity, strong security andavailability should create and drivesignificant new market opportunity formission-critical applications as well.5G will enable IoT support in more pervasiveapplications and uses cases, at much greatervolumes, and eventually at lower cost pointsthan traditional cellular technologies.Cloud/Edge analytics used formanufacturing operations is setto double by 2020.PREVIOUSNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreWhat lies ahead?IoT expansion will continue with new technologiesand growth in the IoT base.By 2030, the installed base of IoT devices including newer technologieslike LoRa, Sigfox, NB-IoT and 5G will exceed 120 billion.–– Analytics provided through platforms are key to taking fulladvantage of massive data transmission, set to double in volumeto 50% on average yearly for the next 15 years.–– Ethernet is continuing to influence fixed assets and will grow toreach more than 100 million in shipments by 2021.–– Automation products supporting connectivity to the Cloud willexpand at more than 60% CAGR during the next five years.PREVIOUSNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreFinding a place in thenew landscapeFor key market players, navigating the changing industriallandscape can prove challenging. Companies can considerthe following to find their place:–– Variation in IIoT adoption, depending on vertical sector–– Importance of partnerships–– Company fit in platform strategyPREVIOUSNEXT

IntroductionWhere are we now?Ecosystem overviewIIoT adoption variesThe roadmap to IIoT adoption is as complex anddiverse as its users.Future & expansionRamifications of adoption in IIoT are much greater than in consumercentric IoT applications. IIoT factors of production are much larger whilealso covering critical spheres of human activity, where failure of systemsis not an option.The roadmap to IIoT adoption will be dictated by a manufacturer’s ownneeds and customers. A direct relationship and impact can be measuredby a manufacturer’s adoption of—or failure to adopt—IIoT.Find out morePosition of each vertical relative to itsIIoT evolution phaseConnectAdoption of the IIoT will vary. It will depend on the openness of eachvertical in embracing IIoT technologies; and on individual industryknowledge, conservatism, access to capital and integration challenges.Analysis is complex in IIoT because industrial coverage is broad andintersects with multiple vertical markets, resulting in incredibly diversesets of end-customers, compared to verticals in the IoT universe.Strategic rgyMaritimeAgricultureChemicalsPREVIOUSNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out morePartnering with the competition:cooperation vs. coopetitionCompetitors can also be partners in a new paradigm.A more complex marketplace necessitates acknowledgement and appreciation of newcompetition through partnerships, or a cooperation vs. coopetition strategy. Coopetitionis the cooperation that occurs between competing companies—a business strategy usinginsights from game theory on when it is better for rival companies to work together.–– Partnerships are crucial, as automation vendors lack experience in cloud services,while cloud service providers lack relationships or knowledge of the industrial sector.–– “New business models and revenue streams are becoming online throughthe convergence of IT and OT solutions, and broad expertise necessary to thedevelopment of ecosystems to support these services will be critical. Expect tosee ongoing activity in 2018 as vendors look to augment and fortify partnershiparrangements.” - Alex West, IHS Markit Principal Analyst, Manufacturing TechnologyPlatform space is converging: Where do you fit?–– Partnership-led approaches to IoT platform development will continue tointensify competition in the IIoT space.PREVIOUSNEXT

IntroductionWhere are we now?Ecosystem overviewFuture & expansionStrategic considerationsFind out moreIndustrial IoT researchDesigned for companies looking to expand or establish a foothold in the Industrial IoTIndustrial IoT packageResearch supporting this ebook is sourced from the following products:–– Smart Manufacturing Intelligence Service – analysis andcommentary on the latest news and developments aroundthe “factory of the future”–– Industrial Communications Intelligence Service –examination of industrial automation networking adoptionand trends–– MEMS & Sensors Intelligence Service – coverage of theMEMS and sensors market, including analysis of leading andpotential applications using the technology–– Cellular IoT Intelligence Service – perspectives and insightsinto machine-to-machine (M2M) communicationsClick here to learn more about our IoT researchIoTPREVIOUSECO–– IoT Devices & Connectivity Intelligence Service – analysis ofthe devices and connectivity technologies used for the IoT–– Industrial Robots Report – highly detailed market analysis ofrobot systems used in manufacturing and production–– Industrial Cybersecurity Report – detailed view of the worldmarket for industrial cybersecurity hardware, software andservices–– Service Robots & Drones Report – examination of professionaland consumer service robots as well as the drones market,including trend analysis across 16 key industriesFor more information: technology.ihs.comFollow the conversation: @IHSMarkitTechAMERICAST 1 844 301 7334E technology us@ihsmarkit.comAPACT 604 291 3600E technology apac@ihsmarkit.comEMEAT 44 1344 328 300E technology emea@ihsmarkit.comCopyright (c) 2018. All rights reserved

IoT expansion will continue with new technologies and growth in the IoT base. By 2030, the installed base of IoT devices including newer technologies like LoRa, Sigfox, NB-IoT and 5G will exceed 120 billion. – Analytics provided through platforms are key to taking full advant