AUTOMATION & ROBOTICS
INDUSTRIAL AUTOMATION: THE IMPACT OF THE INDUSTRIAL IOT AND MANUFACTURING OPERATIONS MANAGEMENT SOFTWARE
MOM software is important to industrial automation for digital transformation and smart factories. The industrial Internet-of-Things (IIoT) supports new ‘connected applications’ that present both opportunities and threats to the established MOM providers.
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 manufacturing 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. We estimate 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. Seven key providers have about 30% of the
market, and about 60% of the total market is owned by major, established industrial automation companies. Industrial IoT technology includes system
and application tools (at the centre 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 areas with Service and Asset management applications using modern, mobile technology.
42 APRIL 2022 | FACTORY&HANDLINGSOLUTIONS
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