Internet of Things M
OM (Manufacturing Operations Management) systems have for decades enabled industrial manufacturing companies to control production and optimise efficiency - from
short-term scheduling of operations, to long- term planning for strategic objectives. Advances in industrial Internet of Things (IIoT)
technology now provide support for smart factories and increased efficiency using cloud platforms, ‘as-a-service’ business models, smart devices, edge connectivity, and analytical tools. Digital transformation has become a strategic
priority for manufacturers across the globe with the goal of fully optimised, digital operations that meet the demands of internal and external supply chains. Many MOM software providers offer IIoT capability to support this need, but there is strong and growing competition from new IIoT providers and IIoT applications from enterprise IT companies.
MArkeT sIze And GrOwTh – MOM And IIOT/COnneCTed APPlICATIOns The MOM market growth slowed slightly in 2020, but resumed in 2021 to nearly $7 billion. Cambashi’s current forecast shows a steady increase to around $8 billion in 2024, as supply chain issues and manufacturing disruption are resolved. The IIoT/Connected Production market area
provides applications to monitor, control, and analyse process and discrete manufacturing plant. It also includes Design/Simulation and OA (Operational Analytics) applications. Cambashi estimates this part of the IIoT/Connected Applications market to be worth nearly $2 billion in 2021, growing to over $3 billion by 2024. The chart below shows the MOM market
revenues (in blue) with the additional IIoT/Connected Production market revenues (in orange) added on top. This predicts an overall market size of over $11 billion by 2024.
Industrial automation:
The impact of Manufacturing Operations Management and industrial IoT software
MOM software is important to industrial automation for digital transformation. The industrial Internet of Things (IIoT) supports new ‘connected applications’ that present both opportunities and threats to established MOM software providers, as Cambashi’s Alan Griffiths, Joe Brooker and Anastasia Prokhorova explain...
areas with Service and Asset management applications using modern, mobile technology.
IndusTrIAl IOT And COnneCTed APPlICATIOns The IIoT/Connected Production market can be addressed by either MOM or IIoT providers, and is growing much faster than the MOM market – see below: The IIoT/Connected Applications providers
were badly impacted by the manufacturing slowdown in 2020 (more so than the MOM providers) but we saw dramatic recovery in 2021 as manufacturers realised the importance of boosting the resilience of their manufacturing operations using digital technologies and Connected Applications. As shown in the graph, IT/Enterprise
providers held up well in 2020; while they still experienced a reduction in growth, they were more resistant to the impacts of the pandemic than the OT or pure IIoT players.
smaller than their IT or OT counterparts but are growing quickly. As their solutions are typically niche – designed around a use case rather than an industry – their exposure to any one industry is reduced, and they were able to recover from the pandemic more quickly than the production- focused OT/MOM providers.
Worldwide TAM for MOM Software in 2021 was nearly $7 billion, growing to $8 billion by 2024. The Connected Production part of the IIoT/Connected Applications market was nearly $2 billion in 2021, growing to over $3 billion by 2024.
When projected MOM market revenues are combined with the additional IIoT/Connected Production market, this predicts an overall market size of over $11 billion by 2024, and the IIoT/Connected Production part is growing much faster than the MOM market.
Seven key providers have about 30 per cent
of the market, and about 60 per cent of the total market is owned by major, established industrial automation companies. Industrial IoT technology includes system and
application tools (at the center of the ‘flower’ diagram below). These are used to build ‘Connected Applications’ – shown as nine ‘market areas’ (the ‘petals’). Note that IIoT Connected Asset, Building and
Worker applications represent additional opportunities not included in this analysis. Established ERP providers such as IFS, and startups such as MaintainX, are successfully pursuing these
50 This resilience stems from their broader range of
offerings that span multiple industries and market areas. IT/Enterprise players also offer solutions for a wide range of use cases and are generally in a better position to take advantage of the move to the cloud. By comparison, the OT/IIoT providers, who are inherently associated with manufacturing/ production disciplines, are less able to repurpose their solutions for other sectors. Pure IoT Technology providers are often much
Many MOM software providers offer some IIoT capability, and this research shows where there is potential for growth; but there is strong and growing competition from new IIoT providers, and IIoT applications from enterprise IT companies.
Connected Applications are key to digital transformation initiatives and Connected applications such as Asset, Building, and Worker – peripheral to MOM and not included in the figures above – are additional opportunities that are currently being addressed by entrants new to the MOM and IIoT/Connected Applications areas.
Cambashi
www.cambashi.com May 2022 Instrumentation Monthly
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