FEATURE Smart Factories
Manufacturing Operations Management and Industrial IoT software
MOM software is important for digital transformation and smart factories. The industrial Internet-of-Things (IIoT) supports new, connected applications that present both opportunities but also threats to established MOM software providers. By Alan Griffiths, Joe Brooker and Anastasia Prokhorova at Cambashi
D
igital 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. Advances in Industrial Internet of Things (IIoT) technology now provide support for smart factories and increased effi ciency using cloud platforms, ‘as-a-service’ business models, smart devices, edge connectivity and analytical tools.
MOM (Manufacturing Operations Management) systems have for decades enabled industrial manufacturing companies to control production and optimise effi ciency – from short-term scheduling of operations to long-term planning for strategic objectives. Many MOM software providers off er IIoT capability to support this need, but there is strong and growing competition from new IIoT providers and applications from enterprise IT companies.
Connected applications
The MOM market slowed slightly in 2020, but resumed growth in 2021 to reach nearly $7bn. Cambashi’s current forecast shows a steady increase to around $8bn 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 plants. It also includes
20 June 2022 | Automation
design/simulation and OA (Operational Analytics) applications. We estimate this part of the IIoT/Connected Applications market to be worth nearly $2bn in 2021, exceeding $3bn by 2024. The IIoT/Connected Production market can be addressed by either MOM or IIoT providers, and is growing much faster than the MOM market. The IIoT/ Connected Applications providers were badly impacted by the manufacturing slowdown in 2020 (more so than the MOM providers), but there was dramatic recovery in 2021 as manufacturers realised the importance of boosting the resilience of their manufacturing operations using digital technologies and Connected Applications. This resilience stems from their
broader range of off erings that span multiple industries and market areas. IT/ Enterprise players also off er 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 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.
Growth • Worldwide TAM for MOM software in 2021 was nearly $7bn, growing to $8bn by 2024. The Connected Production part of the IIoT/Connected Applications market was nearly $2bn in 2021, growing to over $3bn by 2024. • When projected MOM market
revenues are combined with the additional IIoT/Connected Production market, this predicts an overall market size of over $11bn by 2024, and the IIoT/ Connected Production part is growing much faster than the MOM market. • Many MOM software providers off er some IIoT capability, and there are many potential areas 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 – are additional opportunities that are currently being addressed by entrants new to the MOM and IIoT/Connected Applications areas.
CONTACT:
Cambashi
www.cambashi.com
automationmagazine.co.uk
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