The global market for Internet of Things (IoT) process manufacturing technologies will grow from $750.4 million in 2017 to $2.7 billion by 2022 with a compound annual growth rate (CAGR) of 28.7% for the period of 2017-2022

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NEW YORK, Jan. 15, 2018 — • The global market for Internet of Things (IoT) process manufacturing technologies will grow from $750.4 million in 2017 to $2.7 billion by 2022 with a compound annual growth rate (CAGR) of 28.7% for the period of 2017-2022.

Read the full report: https://www.reportlinker.com/p05286572

• The hardware market will grow from $314.3 million in 2017 to $1.0 billion by 2022 with a CAGR of 26.8%.
• The software market will grow from $374.8 million in 2017 to $1.4 billion by 2022 with a CAGR of 31.0%.

Chapter 1: Introduction
This report characterizes and quantifies the global market for Internet of Things (IoT) solutions for process manufacturers. Factories have historically relied on autonomous, proprietary solutions to create goods. Managers were only able to see part of the enterprise operation rather than view it as a whole.

Information was locked away in various systems that did not communicate, leading to inefficiencies in product design, production and customer service.
Managers have been searching for more integrated approaches toward creating, delivering and servicing their wares to customers. IoT technology has the potential to tie all of the different elements into a cohesive whole. The technology's potential impact is significant and game changing. The goal of this report is to provide an understanding of the market factors, state-of-the-art developments, economic influences and deployment challenges driving the IoT market. The report analyzes the major components.

Study Goals and Objectives
The report contains information useful for planning production and targeting market efforts for the delivery of IoT solutions. Trends in IoT automation are investigated, particularly the rise of intelligent sensors, which are pushing intelligence to the network edge; the challenges in connecting different systems; and the managerial hurdles companies must clear to deploy the technology.

Projections are provided for the total market through 2022, along with estimates of the market in terms of dollar revenue for vertical sectors and the cumulative totals for the market overall. The report quantifies the difference in revenue for equipment in three major categories: hardware, software and networking.

Reasons for Doing This Study
Several forces are driving trends toward increasing levels of automation of the systems that provide essential process manufacturing services. Higher levels of automation that enable suppliers to control their operating costs; enhance productivity; improve product quality; develop new services; and ensure competitiveness in a global, dynamical, highly competitive market are becoming available.

The development, proliferation and flexibility of small microprocessor-based sensors, along with the emergence of standard network protocols, has presented manufacturers with an opportunity to gather more performance information and automate manual processes. Traditionally, pricing constraints limited visibility into the performance of elements such as sensors and programmable logic control systems in the manufacturing process.

Smaller, smarter, less-expensive sensors; standardized network protocols; and increasingly sophisticated software are coalescing and providing manufacturers with new ways to dramatically improve their business processes.

IoT systems are a great fit with greenfield manufacturing plants. Integrating these solutions into existing facilities promises significant returns, but it can also be challenging. Manufacturers must deploy a complex infrastructure and retrain employees who might resist change.

This study explores the technology trends prompting this new era of factory automation, the major manufacturers of these solutions and the challenges and opportunities that they present to manufacturers.
The expansion of the overall global IoT process manufacturing market relies on the health of local and international markets. Consequently, sales of these products have been largely seen in the world's more advanced business epicenters: Europe, the U.S., China and Japan.

This study analyzes the different sectors in the process manufacturing market:
Extensive investigation has also been carried out to quantify the size of the market in the three segments to aid marketers, manufacturers, system integrators, contractors and other parties involved in the building automation industry to better present their products and services to the most promising markets.

Scope of Report
The building of IoT solutions includes three main components: hardware, software and networking. The markets are broken down into subsets. Hardware consists of sensors, programmable logic controllers and distributed control systems. Software involves IoT platforms, big data and security solutions. Networking is available in wired or wireless configurations.
This report examines the technologies, markets and factors influencing the markets for IoT systems. Markets are forecast based on historical activity and current opportunities, technical advances and challenges, and five subsets of the process marke The forecasts presented are for the total available markets. Discussion is provided that compares actual revenues with market potential.

Markets are broken down by technology and sector, and then discussed within the context of technology trends. A detailed analysis of the technology and market potential is used as a basis for estimating world markets for these products. Thorough analyses are carried out of IoT practices, along with trends toward the uptake of solution costs, emerging standards and common practices.

Prime decision makers in the project chain who select the type and scope of IoT projects are identified. Factors influencing the requirements and purchases for the systems are examined, as are national and international responses to global challenges.
In this report, the IoT market is segmented into three product areas—hardware, software, and networking—and five vertical markets: oil and gas, food, pharmaceuticals and life sciences, plastics and metal.

Hardware includes three types of factory floor devices: sensors, programmable logic controllers and distributed system controllers. Software consists of IoT platforms, big data and security. Networking is comprised of wired and wireless connections. The revenue numbers are for global sales.

Manufacturing is a mature market that is growing at a low single–digit rate. Of the five products segments, pharmaceuticals and food will grow at the fastest rates. A push to expand healthcare in industrialized countries will lead to more drug use. The global expansion will continue, and food will be available in more locations. Competition is fierce in established market and increasing in less established ones, which will spark innovation and the use of technology for competitive advantage

Information Sources
This report was prepared based on information gleaned from interviews with IoT manufacturing executives, engineers and marketers; standards body representatives; purchasing officers; information technology and operation technology representatives; vendor spokespersons; and national and international government organizations. Much of the market research numbers came from company financial reports; interviews with suppliers who outlined various market trends and company initiatives, and various industry experts. Extensive use was made of internet, company information and case studies, industry consortiums, industry trade publications and various media outlets. Digital and printed statistics were gathered to quantify and help verify trends in the level of activity in the various market sectors.

The approach taken to quantify the global markets for IoT systems involved several steps. Primary among these was delineating the technologies involved in IoT systems and the companies that produce them. The market is evolving, so clear boundaries among various categories can be difficult to discern. Autonomous product categories have been shifting, as suppliers have been trying to deliver more cohesive and integrated IoT solutions.

Companies have also been broadening their product lines, so many offer products in numerous categories. They often bundle these systems together to entice potential developers, so divvying up the revenue from different types of products can be difficult. Consultations with various vendors and industry experts helped to break these categories down as finely as possible.

A quantitative understanding was then developed for the characteristics of various industries. In addition, assessments were made of regulatory policies governing with respect to IoT requirements. This step was done with varying degrees of granularity.
A summary understanding of the markets was developed for component systems of IoT solutions.

With this information in hand, trade publications and internet searches were performed, along with concurrent interviews with industry representatives, regulators and vendors to discern trends in the extent of implementation of fully deployed IoT systems. This report also focused on activities in specific markets for systems that integrate disparate component systems.

Revenue from the various IoT products comes from two sources: new deployments and factory owners' decisions to upgrade their plants to become more efficient. Revenue was divided into different equipment sales associated with these projects. These numbers and market drivers were generated from public information based on various sources, including vendor product and company information. Public information from Gartner Inc., Industrial Internet Consortium, International Data Corp. and Wikipedia supplied some of the background material used in the discussion.

The global economy has become increasing complex, volatile and difficult to forecast. The projection numbers used in this report are from various economic monitoring groups, including the International Monetary Fund, the World Bank, the CIA World Fact Book, the U.S. Bureau of Labor and Statistics and the United Nations. Input from these sectors was used to complete the five-year market projections. All revenues are expressed in U.S. dollars.

Methodology
Manufacturing represents a large and vital sector of the global economy. According to the International Monetary Foundation (IMF), in 2016, global activities generated $75.2 trillion, with the bulk of that revenue coming from three regions: the U.S. ($18.6 trillion); the European Union (E.U.) ($16.0 trillion) and China ($11.1 trillion).
The IMF expects the global economy to increase at modest rates, approximately 3.0%, in the next five years. China is achieving growth of roughly 6% and more, whereas the U.S., E.U. and Japan are reaching increases of only 1% to 2%.
The global economy is quite volatile.

In Europe, the U.K.'s decision to exit the E.U. has created repercussions that are expected to impact there soon. In the U.S., the election of President Donald Trump in 2016 and the administration's decision to pull out of the Trans-Pacific Partnership will impact manufacturing markets. The projections in this report are based on modest global revenue growth and no disruptive events. A major negative event such as the economic downturn in 2008 will lower the growth numbers.

Manufacturing generates $11.1 trillion, accounting for a large percentage of the overall global revenue (14.7%). According to the United Nations (U.N.), the majority of the manufacturing income is concentrated in four countries: China ($2.9 trillion), the U.S. ($2.2 trillion), Japan ($1.3 trillion) and Germany ($1.1 trillion). The United Nations World Manufacturing Report reported growth of 2.6% in 2016, and it expects even higher numbers in 2017. Developing countries have small manufacturing bases, but they are investing in infrastructure, as well as in education and changing regulations to spur economic growth.

Consequently, their manufacturing output is increasing at high rates. Developed nations with larger bases and mature markets are seeing slower growth.
The Internet of Things is game-changing technology, one that will dramatically impact the industrial automation market. The potential is enormous as technology has driven change in many markets, but IoT technology is extremely complex and in a nascent stage of development, and thus it will make its impact slowly. First, IoT will be implemented in greenfield operations. As the benefits are seen and the technology improves, it will then be used in existing plants.

Regional Breakdown In this report, the regions considered for market analysis only include: North America, Europe and the Asia-Pacific region.
North America
Europe
Asia-Pacific

IoT Process Manufacturing Technologies, by Type

IoT Software
IoT Platform
IoT Big Data
IoT Security

IoT Hardware
Sensors
Programmable Logic Controllers
Distributed System Controllers

IoT Networking
Wired Connections
Wireless Connections

IoT Process Manufacturing, by End Use Market
Oil and Gas
Food
Pharmaceuticals and Life Science
Plastics
Metals

Chapter 2: Summary and Highlights
Information technology continues to impact many businesses, accelerating development cycles, increasing efficiency and providing a more complete operational outlook. At one time, applications such as accounts receivable and payroll operated autonomously with little to no integration, but these types of applications are now melded into cohesive financial systems.

A similar transformation is about to occur in the industrial process manufacturing market. Intelligence, which was once housed in standalone devices (e.g., programmable logic controllers) is about to be shared throughout the enterprise from the start to the end of the supply chain. A new generation of intelligent endpoints dubbed the Internet of Things (IoT) is being created. As a result, manufacturers gain insight into realtime operations, allowing them to manage their operations more effectively.

The change can positively impact the bottom line in many ways. Industrial automation corporations can determine the wear and tear on robotic arms and make adjustments as needed. Interest in the potential benefits is high, but industry suppliers must first clear some significant hurdles. One challenge has been extending networking capabilities out to these different elements. In general, assembly line items such as sensors have had little to no intelligence, and building the ecosystem to collect, interpret and proactively use the data represents a monumental undertaking, often involving a revamping of the manufacturing process that takes place while operations are running. Some have described the process as painting a moving bus. New networking technologies, cloud computing, big data, analytics and security have recently emerged to help companies move down this path.

Market changes have presented suppliers with new challenges. The traditional boundaries are blurring, and suppliers must determine their business focuses. The success of Amazon illustrates the potential for manufacturers today. The company began as an online retailer, but it has emerged as a technology powerhouse. Amazon has been successful beyond the retail marketplace. Traditional industrial automation suppliers must figure out their value-add and role in this rapidly changing marketplace. Information technology has been in a period of profound change.

Cloud computing is becoming the new data center, with central resources no longer always located on the customer's site. They may instead be located in the company's data center. Big data, which are large database management systems coupled with analytic solutions, are becoming the new ways of running a business. The Internet of Things (IoT) is adding intelligence to endpoints. Companies are thus able to use technology in new and exciting ways. Fitting the pieces together will not be easy. Manufacturing is a specialized market, one with high demands and significant competitive pressures. New interfaces and integration challenges await those who want to be on the leading edge. Success is not guaranteed.

In process manufacturing, the IoT market is in the early stage of development. Startups have flooded the market, with hundreds of players selling IoT platforms, the central nervous systems for next-generation solutions. Network elements, particularly wireless ones, are still being developed. New sensors are emerging, and companies are layering virtualized software over their PLCs and distributed control systems (DSCs) to secure a presence in this new environment.

Standards, however, are being developed in a confusing fashion. Efforts to create more well-defined standardization have already begun, but a considerable amount of work is still needed. Projects are currently in their early development and pilot phases. The next few years will bring great challenges, as well as tremendous opportunities, for suppliers and manufacturers to leverage IoT technology for competitive advantage.

IoT focuses on enhanced networking capabilities, but the networking portion of the market is lagging. Networking vendors are busy working on new form factors to shrink traditional IP capabilities into small, energy-efficient solutions. In the meantime, gateways are emerging to link current industrial networks and devices to IoT systems. Several potential standards are under development in the wireless space. Hardware vendors have been pushing more intelligence out to endpoints. New sensors have been built from the ground up to support intelligence and data collection.

Traditional industrial suppliers have been adding virtualization layers to their existing systems, so they can partake in IoT networks. Software has been corporations' main business driver. New IoT platforms promise to take the new endpoint intelligence and help companies streamline operations, improve system performance, lower defective products and provide customers with more services. Big data and analytics are at the heart of the IoT movement. Manufacturers can now collect more information and use it to glean insight into their operations. These systems must be secure. Computer hackers have already demonstrated that they can use IoT devices to wreak havoc on enterprise networks, and thus suppliers are trying to improve the security found with IoT devices.

Read the full report: https://www.reportlinker.com/p05286572

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