Data and analytics company GlobalData recently released its latest thematic report, “Industrial Internet,” on the state of this rising market. The report presents a comprehensive analysis of the industry over the next 12 to 24 months, including key growth areas and potential use cases. The Industrial Internet has been posed to challenge and change how the global industrial economy operates. It is just one part of the rapidly evolving ecosystem of intelligent machines that run on their own logic and communication. General Electric once said that the Industrial Internet can potentially account for $15 trillion of the world’s GDP by 2030.
While 2017 saw General Electric leading development of the technology, the report indicates that this is no longer true in 2019. Leadership in the industry is expected to be in the hands of software, data analysis and artificial intelligence specialists like Amazon, Microsoft and SAP.
“The reality is that the Industrial Internet is all about data, and the information and insight that data delivers to the organization. That is why the Industrial Internet is being led by ‘white collar’ IT departments, not ‘blue collar’ operations technology teams, and by software, data analysis, and artificial intelligence specialists like Amazon, Microsoft, and SAP, rather than by traditional industrial equipment vendors, like GE, who are at risk of being significantly disrupted,” said David Bicknell, principal analyst for Technology Thematic Research.
However, the GlobalData report suggests that the market could be in danger of failing to take off due to integration issues. According to the report, organizations have been struggling to integrate predictive maintenance—a key use case—into their existing operation environments. Additionally, numerous manufacturers have expressed reservations about integrating sensor data in the cloud.
Bicknell also noted, “Cyber threats area also a concern. Factory floor legacy systems were never intended to be externally linked and operations managers need to think as much about cyber safety as they do site safety.”
Despite these concerns, GlobalData forecasts that the market will be worth $145 billion by 2023. The report predicts strong growth in the Asia Pacific region—approximately 17.6 percent from 2018 to 2023. This will be driven primarily by China’s retooling, with utilities and manufacturing expected to be the key sectors to benefit from this. Industries such as manufacturing, energy, pharmaceuticals, utilities, agriculture, and even insurance continue to show interest in adopting sensory and AI technologies.
To access the report, check out GlobalData’s website here.
For more stories on the Industrial Internet, check out How to Use the Industrial Internet of Things in Your Factory.