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2021 Industry Report:Industrial Internet of ThingsAndrew BrightManaging DirectorW O O D S I D EC A P I T A LP A R T N E R S
Introduction This report on the Industrial Internet of Things (IIoT) provides an overview of the market, its drivers, the industrystructure, start-ups as well as established players It is intended to be used by start-ups and growth-stage companies, VC & PE investors as well as CorporateDevelopment teams and provides key information to assist those developing & implementing IIoT strategies This report covers in some detail: IIoT smart sensors IIoT gateways & networks, IIoT platforms IIoT data analytics 66 start-ups & growth-stage companies from the above sectors are profiled in detail towards the back of this report Follow-up reports are foreseen to cover additional IIoT topics: Industrial cyber security Industrial service robots & drones Industrial augmented / virtual reality Mobile workforce management The author, Andrew Bright, is a Managing Director at Woodside Capital Partners, a former Group VP of CorporateDevelopment, and a former Head of Engineering for a leading Industrial Automation player2W O O D S I D EC A P I T A LP A R T N E R S
Key Take-AwaysThe sectors represented in this report are growing with a CAGR 30% and will be worth 100B by 2025COVID is accelerating the growth of IIoT as more plants need to be monitored & optimized remotelyKey technology enablers include: lower cost sensors & data storage as well as big data maturityIndustrialInternet ofThings(IIoT)Top 3 IIoT analytics use cases are predictive maintenance, quality assurance & process optimizationBig tech, industrial giants, system integrators and AI specialists are all vying to become leaders in IIoTNumerous start-ups & growth-stage companies are actively shaping and participating in the IIoT sectorMany Corporates are making acquisitions in the IIoT sector to close portfolio & capability gaps3W O O D S I D EC A P I T A LP A R T N E R S
Industrial Internet of Things (IIoT): Executive Summary (1/2) The IIoT platform market is growing with a CAGR of 36% and is expected to grow from 5B in 2020 to 24B in2025Industrial IoTPlatform Market Prior to COVID, quality, process & OPEX optimization were key business drivers of Industrial IoT adoption, now inaddition safety, remote worker enablement and information transparency are key drivers 24B Key customer concerns that are restraining IIoT growth include: uncertain return on investment, fear of vendor lockin as well as cyber security and data privacy concerns Too many IIoT projects get stuck in pilot purgatory, 85% of pilots reportedly last longer than 1 year IIoT has the potential to disrupt the entire PLC / DCS / SCADA based traditional automation stack A new IIoT stack is emerging, Hardware, (sensors, gateways, edge compute), Connectivity, Back-end Software,Analytics Applications and Cyber Security are the key building blocks Industrial Gateways & Routers are used to connect a variety of field and edge devices to a variety of communicationnetworks, the market is worth 700M and growing with a CAGR of 12%, Cradlepoint (recently acquired byEricsson) , CISCO and Sierra Wireless are the largest players The Industrial Internet Consortium is emerging as the world’s strongest leading Industrial IoT alliance 5B Big-Tech companies (Google, Microsoft, Amazon) as well as Industrial giants (Siemens, Hitachi, GE) are all seeking tobecome leading IIoT platform providers 4 key industry characteristics that increase the likelihood of IoT adoption: moveable equipment, remote high-valueassets, key component suppliers, measurement products20202025UtilitiesIndustryW O O D S I D EC A P I T A L4P A R T N E R S
Industrial Internet of Things (IIoT): : Executive Summary (2/2) The IIoT analytics market will be worth 18B in 2020, it is growing with a CAGR of 31% and is expected to reacha value of 71B in 2025 A broader range of companies are seeking to lead in IIoT analytics s: hardware players (Cisco, Intel), systemintegrators (Accenture, Tata), industrial giants (Samsung, Honeywell), Big-Tech (Tencent, Oracle), AI specialistsPalantir, Splunk)Industrial DataAnalytics Market 71B The industries which most use data analytics are: oil, gas & chemicals, transport, and metals & mining Most industrial companies are attempting a ‘Digital Transformation’ most are attempting to transform portfolio,processes & culture (although not always in that order) Industrial companies typically begin by adding digital features (e.g. sensors) to their existing products, the goal isoften to move towards co-creating innovative digital services together with key customers 18B Many corporates have been actively making IIoT investments & acquisitions to accelerate their digitaltransformations, common rationale includes the need to add new digital features, capabilities and expertise Industrial IoT projects & offerings should comprehensively address Cyber Security, advanced features which areincreasingly requested include: security at the edge, threat identification & protection Many start-ups and growth-stage companies are actively shaping and participating in the IIoT sector, this reporthighlights a selection of 66, spanning: smart sensors, gateways & networks, IIoT platforms and IIoT Data Analytics 16 of these start-ups raised equity funding in 2020; a total of 500M, 2 have been acquired & 1 filed for an IPO This report is not exhaustive, if you represent a start-up or growth firm which you feel should have been included,please contact me at andrew.bright@woodsidecap.com & I will get you featured in an upcoming WCP report202020255W O O D S I D EC A P I T A LP A R T N E R S
WCP: The Leading Corporate Finance Advisor for Tech CompaniesDeeply Experienced20th year; 10B in transactionvalue; 200 engagementsfrom straightforward to verycomplexSector Expertise15 bankers – backgroundsfrom top investment banks,strategic acquirers &entrepreneurs/CEOsRecent EngagementsCapital RaiseSale of CompanySale of CompanySale of CompanyDebt CapitalSale of CompanyUltra-Personalized ServiceExceptional Track RecordSell-side advisory, buy-sideadvisory, strategicpartnerships, privateplacementsGlobal relationships withactive corporate executives,investors, and thought leadersWCP Has Sold Companies ToGlobal NetworkOffices in Palo Alto (HQ) andLondonWCP Has Completed Advisory Assignments ForCapital RaiseCapital RaiseSale of Companyand many moreand many moreW O O D S I D EC A P I T A LP A R T N E R S
About the Author: Andrew Bright, WCP, Managing DirectorAndrew is a Managing Director at Woodside Capital Partners, providing Corporate Finance advisory to advanced technologycompanies seeking liquidity events and capital raises Andrew brings 25 years of experience in industrial automation, sustainable energy and transport He spent 12 years as a Group VP at ABB where he became an expert in industrial automation, strategy development &implementation, M&A, digital transformation & start-up investing, most recently at ABB he was Head of Corporate Developmentat ABB Power Grids & played a leading role in the Division’s 11B sale to Hitachi At ABB Andrew also was Head of Technology for ABB’s Power Generation Business, the global leader in the automation of powerplants. He led a global team of more than 200 engineers. Prior to ABB Andrew was a Principal Consultant, responsible for deploying high-technology solutions into the aerospace, defense,rail, marine & power generation industries Andrew recently spent 3 years in the heart of the Silicon Valley and is well connected to the start-up Venture Capital &Accelerator eco-system. He continues to mentor and advise several start-ups. In the summer of 20210 he returned to Switzerlandto lead a new WCP Zurich based European office Andrew has a Masters in Engineering Science from the University of Oxford, and graduated top-of-his MBA class at the Universityof St Gallen, SwitzerlandW O O D S I D EC A P I T A LP A R T N E R S
Industrial IoT is arguably the most important sub-sector of IoTKey IoT Segments7 key Internet of Things segments have been identified,2 of these are closely associated with the IndustrialInternet of Things (IIoT):Consumer productsThere are few companies today from, food & clothing toindustrial equipment that do not have a digitalization strategyHealthcare & wellnessA key pillar of most digitalization strategies involves IoTConsumer goods, buildings, cars, cities and factories are allbeing connected to the internet at an ever-increasing rate, inever more interesting waysTraditional manufacturers, big technology companies andstart-ups are all competing for a slice of the actionFinance & insuranceSmart buildings & citiesTransportIIoT is closely linked with both the Fourth IndustrialRevolution and Industry 4.0This report will focus on IoT applications for energy,water process & discrete industriesEnergy & waterFocus of thisreportProcess & discrete industries8W O O D S I D EC A P I T A LP A R T N E R S
Global IoT Platform Market SizeCAGR 20-25 B 4031%34%3032%29%2032%34%Focus of ergy & WaterTransport & LogisticsSmart Buildings & CitiesHealth & WellnessSmart AgricultureOther9W O O D S I D EC A P I T A LP A R T N E R S
Global Industrial IoT Platform Market Size by SectorCAGR 20-25 B ss2023HybridEnergy20242025Water10W O O D S I D EC A P I T A LP A R T N E R S
Global Industrial IoT Platform Market Size by Geographic RegionCAGR 20-25 B th America2023MEA20242025Rest of World11W O O D S I D EC A P I T A LP A R T N E R S
5 key categories of IIoT PlatformsIIoT Platform CategoriesKey FunctionsTools for developers to rapidly create, test, and seamlessly deploy an IIoT applicationApplication EnablementCloud Back-endMay include tools for: digital twin, rules engine processes, Integrated DevelopmentEnvironment (IDE), enterprise app integration, IIoT application marketplaceCore offerings: data ingest, storage, analytics & visualization via Infrastructure-as-a-ServiceAdvanced offerings: security (access control), mobile services (API gateways, managementtools (configuration tracking, monitoring), DEV/OPS, (containers, build & test), enterprise appsEnsures devices for new IIoT deployments are consistently & correctly configuredDevice ManagementMonitors & updates the connectivity of devices and their firmware (e.g. security patches)Edge application life-cycle managementTelco CommunicationConnectivity PlatformIndustrial DataConnectivity PlatformFacilitates connectivity orchestration, management, provisioning and billing for connected IoTdevices typically outside of factory environmentsAble to provide seam-less connectivity via a variety of communication technologiesProvides data acquisition from any connected part of the industrial automation systemSoftware Development Kits (SDKs) easily enable devices to be connected to the ApplicationEnablement Platform12W O O D S I D EC A P I T A LP A R T N E R S
6 Key Drivers of IIoT Adoption6 business level drives of IIoT adoption are identifiable:Key IIoT Drivers IIoT is an enabler for step-change improvements inprocess, employee and contractor safety. Compliance withregulatory reporting requirements can be automated.Safety & regulatory compliance Processes are standardized, deviations are easilyidentified, process & products are more often & morethoroughly inspected.Quality & process optimization With continuous condition monitoring & predictiveanalytics, breakdowns can be identified & rectified beforethey occurIncreased uptime & lower maintenance costs As product life-times shorten & delivery lead times reduce,factories must become more flexible, faster to commission& re-toolCommissioning & set-up speed & flexibility As the workforce ages & experienced workers retire,valuable knowledge is lost, IoT applications can capturethis knowledge The COVID pandemic has increased the need for remoteworking and for information to be immediately & readilyavailableAging workforce, knowledge captureRemote working & information transparency13W O O D S I D EC A P I T A LP A R T N E R S
5 Key Technology Enablers of IIoT Adoption5 technology enablers IIoT of adoption are identifiable:Key IIoT Technology Enablers Economies of scale, often arising from their use inconsumer goods have lowered the cost of sensors, aswell as their footprint and power requirementsLower cost & smaller footprint sensors A large variety of short-long range, low-high bandwidth,low-normal latency, standards-based and proprietarycommunications protocols are now availableLong-range, low power communications The cost per Giga Byte of data storage hardware iscontinually reducingLower data storage costs Our ability to extract useful information & insights from bigdata is increasing, often driven by advancements inmachine learning & AIBig data analytics maturity Industry is getting to used to cloud versions of enterpriseIT software, they are slowly getting used to the idea ofusing cloud for operational applications (OT)Cloud computing availability & acceptance14W O O D S I D EC A P I T A LP A R T N E R S
5 key customer concerns that are restraining IIoT market growthIIoT providers can unlock growth by addressing one-ormore of theses customer concernsKey customer restraints on IIoT market growth Both the costs and benefits of IIoT deployments can bedifficult to quantify in advance. Business cases are difficultto develop and get approvedUncertain return on investment A World Economic Forum report found that 70% of IIoTdeployments get stuck at the pilot phase, only 15% moveto commercial deployment after 1 yearIIoT deployments struck in pilot purgatory Some equipment & process types have low maintenance& high reliability, Customers fear that adding digitalhardware will add a new weak link into the processReduced equipment & process reliability Customers struggle to balance the benefits of purchasinga turnkey solution from a single vendor, with the benefitsof being able to switch vendors for service & upgradesFear of vendor lock-in Customers do not want to increase OT cyber securityrisks. They are also reluctant to let confidential data gooff-premiseCyber security & data privacy concerns15W O O D S I D EC A P I T A LP A R T N E R S
A typical IIoT Deployment Project involves 4 Key StagesPre-SelectionProof of ConceptTypically a team oftechnical experts usesdesk-top analysis to preselect 2 to 10 providersfrom a universe of up to 50providersUp to 10 providers invitedto demonstrate thecapabilities of their IIoTsolutions, normally over afew daysKey assessment criteriainclude:Sometimes a second-roundof POC1 assessment,where 2-3 providers areassessed over weeks Functionality Previous relationship PartnershipsAdditional key assessmentcriteria include: Security Scalability Usability Expected cost1 Proofof ConceptCommercialDeploymentPilotFollowing the POCassessments, the technicalteam recommends a winnerMost often the finaldecision on IIoT provider istaken by the CEO, usuallywith management teamsupportMost companies thendeploy a pilot IIoT projectwith the winning IIoTproviderSelecting specific factories /sites to act as Lighthousesand lead commercial IIoTdeployments is a provenmethod of escaping pilotpurgatoryKey success factors includeempowering and enablinglocal employees, who areoften best placed to identifyIIoT use cases with highreturns85% of pilots last longerthan 1 a year – a commonproblem is that Return onInvestment is challenging toproveW O O D S I D E16C A P I T A LP A R T N E R S
IIoT has the potential to disrupt the entire industrial automation stackTraditional Industrial Automation StackERP1Enterprise Resource PlanningArea addressed by IIoTMerging offunctionality andshift to the cloudMESManufacturing Execution System2SCADASupervisory Control & Data AcquisitionOPC ServerOpen Platform Communications ServerPLCs / DCSProgrammable Logic Controllers /Distributed Control SystemsI/OInputs / OutputsKeyCommunicationProtocolsProfinet, Profibus,ModbusHart, MMS,Goose, ectconnection tothe cloud or viagateways &routersEdge compute &analyticsSensors / Actuators17W O O D S I D EC A P I T A LP A R T N E R S
Disruption is ongoing and a new IIoT stack in emergingTraditional Industrial Automation StackKey Building Blocks of the Emerging IIoT StackERPApplicationsMESSCADASoftware Back-endOPC ServerPLCs / DCSCyber SecurityCommunicationsI/OHardwareSensors / ActuatorsW O O D S I D EC A P I T A LP A R T N E R S
Detailed building blocks of the new IIoT are increasingly recognizableTraditional Industrial Automation StackERPKey Building Blocks of the Emerging IIoT StackCyber SecurityApplicationsProcess OptimizationPredictive AnalyticsSecurity at the edgeMESSoftware Back-endSCADAApplication DevelopmentRemediationCloud-BackendOPC ServerDevice ManagementThreat identification &protectionCommunicationsPLCs / DCSTelco Communication ConnectivityDevice firmwaremanagementIndustrial Data ConnectivityI/OSensors / ActuatorsHardwareSensorsGatewaysActuatorsEdge ComputeW O O D S I D EDevice authorization,authentication & accessC A P I T A LP A R T N E R S
Gateways and Routers are key hardware components in the IIoT stackDefinitionsGateway: used to connect a variety of field or edge devicesto communication networks. Forwards & processes data.Supports a variety of communication protocols.Router: Forward data packets from one network to another.Only supports one communication protocol.Industrialized for use in harsh environmentsKeyFunctionsCloud integration protocols are supportedData processing & edge analytics increasingly requiredApplication Programmable Interface (API) ManagementNetwork edge increasingly in focusKey DriversEdge computing application growthIncremental edge processing capabilities,especially: AI, Machine Vision, Video AnalyticsSelected major Gateway &Router players20W O O D S I D EC A P I T A LP A R T N E R S
Global Industrial IoT Gateways and Routers Market SizeBy Network TypeBy Region1400CAGR20-25 %6006004007%40013%20002020 2021 2022 2023 2024 AsiaEuropeMEARest of WorldW O O D S I D E20242025North America21C A P I T A LP A R T N E R S
Global Industrial IoT Gateways and Routers Key Competitors & Price ErosionKey CompetitorsAverage Selling PriceCradlepoint 600CAGR20-25Cisco500Sierra Wireless-6%Digi xaHuawei100EurotechOthers00%5%10%15%2019 Market Share20%25%2020 2021 2022 2023 2024 2025EthernetCellularWireless22W O O D S I D EC A P I T A LP A R T N E R S
Opportunities, threats & high growth industrial segments for gateways & routersKey Opportunities for VendorsPartner with IIoT platform vendorsParticipate more broadly in the IIoT eco-systemMove from products to solutionsProactively address cyber security concernsHigh Growth Industrial SegmentsPower: Transmission &DistributionTransportation &LogisticsSupport a broader range of protocolsOffer increasing edge compute functionalitySmart CitiesAdd Time Sensitivity Networking (TSN) to enable realtime control of devicesOil, Gas & ChemicalsKey Threats for VendorsIIoT cloud providers descending to the edgeIndustrial MachineryDevices that connect directly to the cloud23W O O D S I D EC A P I T A LP A R T N E R S
The Industrial Internet Consortium is emerging as the strongest IIoT allianceA selection of the Industrial Internet Consortium’s PartnersOur mission is to deliver transformativebusiness value to organizations, industry& society by accelerating adoption of atrustworthy internet of things.Current Steering Committee MemberOrganizationsThe Industrial Internet Consortium’s has established liaisons withover 40 IoT alliances and standard’s organizations24W O O D S I D EC A P I T A LP A R T N E R S
Large1 IoT Platform Providers with an Industrial focusTechnology PlayersThese companies are seeking tostrengthen their presence inindustrial verticals1Industry FocusedTechnology PlayersThese companies are seeking toexpand their position in theindustrial digital value chainIndustrial PlayersThese industrial companies areseeking to add new digitalproducts & servicesProviders with more than 200 employees are targeted hereW O O D S I D EC A P I T A LP A R T N E R S
Global Industrial Data Analytics Market SizeBy Offering Type B 80By 8%3029%4032%30202033%1034%1002020 2021 2022 2023 2024 uropeMEARest of WorldW O O D S I D E20242025North America26C A P I T A LP A R T N E R S
Global Industrial Data Analytics Market Share by Industry & Use CaseBy IndustryBy Use CaseOil, Gas & ChemicalsPredictive MaintenanceTransportQuality AssuranceMetals & MiningProcess OptimizationComputers & ElectronicsCyber & Physical SecurityMachinery & EquipmentSupply Chain OptimizationPulp & PaperResource OptimizationElectrical EquipmentR&DOthersOthers0%10%2019 Market Share20%30%0%10%20%30%2019 Market Share27W O O D S I D EC A P I T A LP A R T N E R S
4 leading use cases for AI based industrial data analytics1b1aPredictiveMaintenance ofSingle AssetsPredictiveMaintenance ofCompete Plants /FactoriesPredicting when & how asingle asset will fail (e.g.by using vibration sensordata from a bearing)Prioritising maintenanceactivities in a plant /factoryIndustrieswith highestpenetration Mining Oil, Gas & Chemical Electricity T&D KeyCustomerValuePropositions Lower maintenancecosts Increased uptime ofcritical assets Lower maintenancecosts Increased plantuptimeKey UseCaseMiningOil, Gas & ChemicalAutomotivePower Generation2b2aAutomated OpticalQuality AssuranceAutomated NonOptical QualityAssuranceUsing a camera &computer vision to identifyincorrect assembly &component defectsUsing a variety of sensordata to predict productquality Computers &electronics Automotive Quality Improvement Lower inspection &warranty costs Regulatorycompliance Electrical equipmentMetalsMachineryAutomotive Quality Improvement Lower inspection &warranty costs Regulatorycompliance28W O O D S I D EC A P I T A LP A R T N E R S
Large1 Industrial IoT AI Analytics Providers (1/2)IoT Hardware PlayersThese companies are seeking toproduce hardware that isoptimized for AI analytics1IoT System IntegratorsThese companies are seeking toprovide customized AI analyticssolutions to their clientsIndustrial PlayersThese companies are seeking toadd AI analytics offerings to theirtraditional offeringsProviders with more than 200 employees are targeted hereW O O D S I D EC A P I T A LP A R T N E R S
Large1 Industrial IoT AI Analytics Providers (2/2)Big Tech PlayersThese companies are seeking tostrengthen their presence inindustrial verticals1Industrial Design SpecialistsThese companies are seeking toimprove their design softwarewith AIAI SpecialistsThese companies are seeking toapply their AI expertise to a broadarray of industrial sectorsProviders with more than 200 employees are targeted hereW O O D S I D EC A P I T A LP A R T N E R S
Most Industrial Companies are attempting a ‘Digital Transformation’Typical 3 Pillars of theDigital Transformation ofan Industrial CompanyHow is each Pillartypically advanced?Key ChallengesDigitalization of OfferedProduct & Services In-house development Partnering with digitallynative companies(established or start-ups) M&A Lack of speed & agility Finding the right customervalue propositionDigitalization of InternalProcesses (Enterprise &Operational) Purchase / lease ofEnterprise Software Partner with externalconsultants or systemintegrators to improvedigitalize operations Trial / pilot in-house digitalsolutions No willing systemintegration risk takers Robust & defensiblebusiness caseCultural & skills shiftto(wards) Digital Recruitment from digitallynative companies, Training New Chief Digital Officerled organizations Organization rejectsincoming digital culture Shift is far too slow31W O O D S I D EC A P I T A LP A R T N E R S
Most Industrial Companies are adding digital products & servicesDigitalization of Offered Product & ServicesEnabler 1 What: DigitalTwin How: In-housedevelopment,partnerships,acquisitions Why: To enableefficientdevelopment &delivery of newdigital servicesEnabler 23 key strategic thrusts What: Co-create new digital offerings together with key customers How: Collaborate to enable new customer revenues streams &/or significantefficiency gains, in-house development or adjacency acquisition Why: To position as a clear leader, via continuous customer-led innovation What: develop & add a series of apps that deliver value to the customer How: In-house partners for IoT platform, in house acquisition for dataanalytics Why: Products apps provides differentiation versus software-only players What: digitalize products e.g. by adding smart sensors How: work with vendors or via acquisitions Why: To add differentiation versus low-cost competitorsW O O D S I D E What: CyberSecurity &communications How: Partnershipsor acquisitions Why: To meetregulatory &customerrequirements, tomitigate risk ofsecurity breachesC A P I T A LP A R T N E R S
5 key reasons Corporates are making Industrial IoT acquisitionsTo add new features & functionality to anexisting product lineTo fill a portfolio white spotTo vertically integrate a strategic supplieror proven SI partnerTo add capabilities & expertise in astrategic high growth areaTo enter an adjacent segment with atechnology that disrupts the incumbents Corporate buyer uses start-up’s technology to add a new software module, ornew hardware functionality Aim is to increase the competitiveness of the current portfolio Corporate buyer is missing a product, that is often needed to be supplied as partof a broader customer solution Aim is to rapidly grow the acquired company, whilst better satisfying existingcustomer’s needs To bring in-house a strategic supplier to reduce supply risk and increase ownvalue add and margin Or to bring in-house a proven strategic System Integration (SI) partner, to secureaccess to rare key skills and improve customer intimacy To strengthen the buyer’s human resources and/or offering in a segment that hasbeen deemed strategic and/or high growth Acquisition's are typically much faster than individual hiring, training & in-housedevelopment A Corporate may not be present or barely present in an adjacent attractive marketsegment The Corporate can enter and disrupt the incumbents with the acquisition of aninnovative start-upW O O D S I D EC A P I T A L33P A R T N E R S
4 Recent Industrial IoT Related Acquisitions made by ABBABB (NYS: ABB) is a global industrial corporation, with a 130-year history, thefirm specializes in electrification & automation products systems and servicesTarget Scope: IoT smart buildingsolutionsMarch 2020Rationale: To enhance ABB’sportfolio for the commercialbuildings segment, particularly newinnovations in energy-optimizationand comfort.These companiesare seeking tostrengthen theirpresence inindustrialSept2017verticals 2.4BSept 2018Rationale: Sizable acquisition thatcomplements ABB’s already strongpresence in both process industryautomation as well as roboticsTarget Scope: High reliability, lowlatency fiber-optic mission criticalcommunications productsTarget Scope: System Integrationfor production end of line &packaging automationRationale: To strengthen ABBRobotics’ presence & capabilities innon-automotive sectorsTarget Scope: Products (e.g. PLCs,Industrial PLCs, software & services thatenable the automation of discreteindustriesJuly 2017Rationale: To expand ABB’scommunications portfolio to enhanceleadership position in high reliabilitycommunication networks for Power GridsW O O D S I D EC A P I T A LP A R T N E R S
4 Recent Industrial IoT Related Acquisitions made by SiemensSiemens is a large industrial conglomerate, specializing in automation, electrification, energy &health. Its separately listed business units include Siemens Healthineers and Siemens Gamesa, whichsupply medical imaging equipment and wind turbines, respectively.Target Scope: A leading provider ofvision-based quality & identificationsystems for a wide variety ofindustriesJanuary 2020Rationale: To fill a white spot inSiemens portfolio as it strives tobecomes a leader in the digitalizationof industryThese companiesare seeking tostrengthen theirpresence inindustrialverticalsJune 2018Rationale: To expand SiemensIndustrial IoT services offeringRationale: The acquisition supportsSiemens strategy to lead in thedigitalization of buildings. Siemens canaccelerate J2Innovations’ internationalexpansionTarget Scope: virtual testing for softwarecomposite materials. Accurately predictswhen and how composite materials canfail.Target Scope: Innovative software &services based on Microsoft .NETplatforms which support plant &machine builders and factoryoperators to implement tailoredsolutionsJan 2020Target Scope: Open software platformfor Building Automation and IoTNovember 2019Rationale: Fills a white spot in Siemenscomprehensive portfolio of industrialdesign software, which is in-turn a keypillar of Siemens leadership in DigitalTwinsW O O D S I D EC A P I T A LP A R T N E R S
4 Recent Industrial IoT Related Acquisitions made by PTCPTC (NAS: PTC) offers high-end computer-assisted design (Creo) and product lifecyclemanagement (Windchill) software as well as IoT and AR industrial solutions.Target Scope: SaaS 3D CADplatform that enables teamwork workvia any web browser, phone, ortablet. The platform designs productsand brings them to market fasterNovember 2019 470MRationale: Accelerates PTC’sbusiness model towards recurri
Prior to COVID, quality, process & OPEX optimization were key business drivers of Industrial IoT adoption, now in addition safety, remote worker enablement and information transparency are key drivers Key customer concerns that are restraining IIoT growth include: uncertain return on investment, fear of vendor lock-
