Digital factory revenues to jump to US$375 billion by 2030
First Quarter 2020
Editor's Choice
Other technologies
Technology investments in the industrial and manufacturing sector are set to skyrocket, jumping from $59 billion in 2019 to $375 billion in 2030. Including hardware revenues, that figure climbs to over US$1 trillion, according to data from global tech market advisory firm, ABI Research.
Manufacturing is in the midst of a major digital revolution and is investing in Industrial Internet of Things (IIoT) technologies like Artificial Intelligence (AI), Augmented Reality (AR), robotics (AGVS, AMRs) and cloud-based simulation and modelling. “The transformative shift toward Industry 4.0 technologies and the broader field of software-defined manufacturing (SDM) presents a massive opportunity for a wide range of technology providers and implementers,” says Ryan Martin, principal analyst at ABI Research.
Intelligently connected hardware represents the largest share of revenue, growing from $200 billion in 2019 to a staggering $800 billion in 2030, but will diminish in proportion as associated software and services take hold. After hardware, data and analytic services is the fastest-growing segment in terms of revenue generation, reaching more than $185 billion in 2030, up from just $11 billion in 2019. “As the amount of custom code required to deploy new solutions on the factory floor drops, data and analytic service revenue growth in smart manufacturing will accelerate,” Martin explains.
Machine tools, asset tracking and connected PLCs will experience the most growth in terms of connected service revenue over the next 10 years. By 2030, machine tools such as 3D printers, computer numerical control (CNC) machines, lathes, mills and industrial drills, will grow in revenues to $134 billion; asset tracking will reach $78 billion, and Connected Programmable Logic Controllers (PLCs) will hit $40 billion. According to Martin, “Industry 4.0 is creating millions of new end points that need to be interconnected. However, the existing infrastructure can’t support it, which is creating an opportunity for connectivity experts and providers to step in.”
Currently, there are 260 million digital factory connections, with 230 million of those connections made via a fixed line. But, by 2023, a vast number of the 5,5 billion digital factory connections will be wireless. “This is driven by the rise in newly connected endpoints, including sensors, mobile robots (AGVs, AMRs), advanced asset tracking (RTLS), condition-based monitoring, and predictive maintenance applications,” says Martin.
The leading industries driving these revenues overall include automotive, heavy machinery, food, beverage, tobacco products and electronics. And, although Industry 4.0 is a global phenomenon, roughly half of the global revenue opportunities will be concentrated in China and the United States, followed by Germany and Japan. Furthermore, the United States leads the way in most industries such as automotive, while China leads in nonmetallic machinery.
“There is a long and compelling list of digital transformation technologies and pilot projects that are now graduating to the factory floor. The companies and production environments embracing these opportunities have quickly seen the benefits and want to scale, rather than risk falling behind,” concludes Martin.
Further reading:
Pushing technological boundaries with Festo Electric Automation solutions
Festo South Africa
Editor's Choice
In the ever-evolving landscape of Industrial Automation, Festo Electric Automation solutions are at the forefront of a revolution, fundamentally reshaping production paradigms. As a global leader in automation, Festo focuses on intelligent connectivity to reduce costs, save time, and increase efficiency and convenience for customers.
Read more...
Perfect balance for every race
Horne Technologies
Editor's Choice Electrical switching & drive systems & components
It goes without saying that success in Formula 1 requires a top driver. However, their chance of achieving a place on the podium depends on the car, which in turn depends on three essential factors: engine, tyres and aerodynamics. To find the optimum balance, the racing teams test models of their bolides in the wind tunnel. At Sauber, the adjustable components are moved on the model and in the test chamber using FAULHABER motors.
Read more...
MeerKAT radio telescope array
Editor's Choice News & events
Leading consulting engineering and infrastructure advisory practice, Zutari is continuing its involvement with the world-leading MeerKAT radio telescope array, where it has played a leading role since the project first broke ground.
Read more...
Top 10 emerging technologies
Editor's Choice
The World Economic Forum (WEF) has identified ten technologies likely to make a significant positive impact in the next three to five years. These are detailed in the ‘Top 10 Emerging Technologies’ report, which explains each technology’s potential for addressing global challenges and the factors that will shape the future and revolutionise connectivity still further.
Read more...
Electrifying the future
Parker Hannifin - Sales Company South Africa
Editor's Choice Electrical switching & drive systems & components
A revolution is underway, transforming the way we power compact construction machines and heavy-duty mobile machinery. This is the electrification of equipment, a movement propelled by the need for environmental sustainability, lower emissions, reduced noise levels, and the pursuit of a cleaner, greener future.
Read more...
How to clean compressed air effectively
Editor's Choice
SO-Reliability Partners has taken another step in bringing to market highly effective solutions to combat contamination in all its forms. The locally designed and patented Air Wizard inline water trap is proudly manufactured in South Africa. It has been SABS tested for the separation of water, oily fluids, rust and solid particulates from pneumatic compressed air or gas lines.
Read more...
New Black Bruin hydraulic motors for heavy-duty applications
Axiom Hydraulics
Editor's Choice Hydraulic systems & components
Axiom Hydraulics and Black Bruin have been working together since the late 1990s, serving southern Africa’s fluid power, mining, industrial, agriculture and marine industries. Now Black Bruin is extending its rotating shaft motor portfolio. With a patent pending design, the new X-series is engineered to enhance the performance of both new and existing machinery in terms of durability, serviceability and cost-effectiveness.
Read more...
Quality gearboxes for agriculture
SEW-EURODRIVE
Editor's Choice Electrical switching & drive systems & components
Offering a complete gear solution for centre pivot irrigation systems, SEW-EURODRIVE brings its quality products and support as an original equipment manufacturer (OEM) closer to South Africa’s farming sector.
Read more...
Robotic solution for adhesive tape application with flexible control
Beckhoff Automation
Editor's Choice Robotics & Mechatronics
In industry, even elaborate processes, such as the application of adhesive tape to parts with varying geometries are automated. Innovative Automation has developed a platform with Beckhoff control technology and a remote feeding module, which increases productivity and enables flexible customisation for different requirements.
Read more...
The information explosion
Editor's Choice Other technologies
The world has a data storage problem. There’s an explosion in the volume of data being generated and stored, and it’s rising exponentially. Fortunately, organisations are beginning to test new storage technologies like DNA storage, glass storage, neuromorphic computing, and extreme parallelism in order to keep up.
Read more...
printer friendly version