the growth of industrial automation is slowing

Recent results from industrial automation companies have been uneven, as late 2019 forecasts for US manufacturing investment have fallen for the first time in 10 years. In part, this can be attributed to investor uncertainty due to tariffs, US-China relations and the recently adopted USMCA. This reflects the pattern seen in the EU, UK and Japan.

Factors Affecting the Growth of the Internet of Things

But for the Industrial Internet of Things (IIoT), the outlook is more positive. It is anticipated that the IIoT market will not decline but will grow 29-40% between 2019 and 2023 depending on which analyst you speak to, with an overall consensus in the 33% CAGR range. This growth in IIoT adoption will be driven by developments such as the launch of 5G, the broader adoption of wearable technologies, the continued development of smart operations and connected assets, and interest in the development of smart buildings and cities.

For manufacturing organizations, deploying IIoT has many benefits, including increased efficiency, increased productivity, reduced maintenance costs, and supply chain optimization. These deployments also provide new areas of revenue opportunities for vendors as they try to better serve their customer base and deliver higher levels of customer satisfaction.

Digital Transformation is the Key to Success

To achieve these benefits, manufacturers are focusing on digital transformation. A Deloitte Industry 4.0 survey of 361 executives from 11 countries revealed that 94% see digital transformation as one of the top strategic initiatives for their organization. Edge Computing is increasingly supporting these digital business interactions. Wherever real-time processing is critical, when large amounts of data are being produced, and where minimizing downtime is critical, cutting-edge computing is critical. Gartner believes that it is the interactions between people, companies, and things that will drive cutting-edge computing use cases.

We know from our survey that more than 50% of companies are already implementing or testing use cases for high-end computing. Popular use cases include device failure detection, advanced process control, asset performance, and SCADA / HMI. Gartner approximations that by the end of 2023, more than 50% of large enterprises have deployed at least six cutting-edge IoT computing use cases or immersive experiences [1].

Smart companies seeking digital transformation and breaking the status quo will benefit from capital investment now and will be ready for increased demand and opportunities when the market recovers. More conservative organizations can be left behind, lose market share, and fail to take full advantage of cutting-edge computing when it really matters.