Industrial Internet of things, also known as industrial Internet, is one of the key areas of digital “new infrastructure” and is regarded as the second half of the Internet. With the promotion of favorable policies and the acceleration of 5g business, industrial Internet will be implemented on a large scale in various industries and application scenarios. According to the industrial Internet industry economic development report (2020) released by China information and Communication Research Institute, the industrial Internet will become one of the most active areas of national economy in 2020. It is expected that the economic scale of China’s industrial Internet industry will reach 3.1 trillion yuan in 2020.
From launching pilot projects to large-scale implementation and creating practical value, the deployment of industrial Internet of things (iiot) is rapidly maturing. Next, we will discuss the development stage of the current industrial Internet of things market and what factors will affect the future of the industry through some cases and data.
Over the years, “focus on the big, start with the small and expand rapidly” has been the creed of digital start-ups. However, the story of the maturity of the industrial Internet of things market gives this sentence a new meaning and provides a new perspective. According to the initial estimate, in 2025, the market scale of industrial Internet of things will reach US $933.62 billion and achieve great success. However, the start of the industrial Internet of things market was slower than originally expected.
Seize the opportunity and challenge customs clearance
The complex integration process, as well as a variety of sensors and data streams that may cause false positives and need to be recalibrated, the competition of technical standards, decentralized market and long-term cost / implementation cycle, have become the main obstacles to the implementation of industrial Internet of things applications.
Over the years, the dynamic change process from concept to full maturity has been described in many different ways, including the widely cited Gartner “hype cycle” curve, also known as the technology maturity curve. The emerging technology maturity curve report released by Gartner in 2018 shows that the Internet of things technology is in the peak period of high expectations, ready to fall to the bottom period, and then really reach the maturity period. This means that the Internet of things technology will gradually enter the substantive development stage of application landing in the future.
One step closer, the proof of value has begun
Deloitte recently released a report that they believe that the industrial Internet of things is finally maturing and its customers are shifting their focus from proof of concept to proof of value. Robert Schmid, Deloitte’s chief Internet of things technology expert, cited an example of a plastic manufacturer’s customer planning to build a new production line to meet the needs of specific products. By connecting various processes with industrial Internet of things devices and performing superposition analysis, Deloitte can help manufacturers increase production by nearly 10% without building new production lines, saving £ 20 million.
In the future, various application scenarios are emerging
In terms of active industrial Internet of things application scenarios, manufacturing is only the tip of the iceberg. In several other industries such as oil and gas, mining, public utilities and agriculture, the application of industrial Internet of things is also very attractive.
According to the report released by McKinsey, an enterprise ranked among the world’s top ten energy companies takes Internet of things applications and equipment as part of its extensive upgrading plan of processes and technologies. The plan has reduced the unit manufacturing cost of the energy enterprise by 33% in the past five years. Helped it save more than $9 billion in costs. In addition, they also deployed Internet of things analysis tools to evaluate drilling data, so as to improve the production capacity of existing mature wells.
In the field of public utilities, the value of industrial Internet of things appears
Ge, another early enterprise adopting the industrial Internet of things, has been developing industrial Internet of things solutions to promote the development of renewable energy. Ge installed sensors on wind turbine blades to accurately adjust blade angles to maximize efficiency. These sensors collect the data of the whole wind farm and transmit it to the efficiency analysis tool to help people understand the economic loss caused by the shutdown of each wind turbine and how to use this time to arrange maintenance, so as to make more effective use of the engineers’ time.
Improve the health care industry based on data analysis
Philips has also been actively trying to apply Internet of things technology to its medical devices for many years. By analyzing the industrial Internet of things data collected from ultrasonic and CT scanners, the company has moved from proof of concept to proof of value. Data collected by Philips shows that healthcare providers need to recalibrate CT machines between head scans and abdominal scans, thus wasting a lot of time. This information is used to create scheduling software to ensure that the number of recalibrations required is minimized.
The prospect is promising, and the industrial Internet of things is maturing
In short, the industrial Internet of things is rapidly maturing. Although enterprise size is a factor in building a successful application and value chain, the success of these early enterprises adopting the industrial Internet of things should help to establish standards and open up roads for small enterprises and latecomers. Another key factor will be the network operators themselves, as they are moving from beta testing of the next generation network to actively promoting business packages based on the network.
Focus on the big, start with the small, and expand rapidly. With the continuous maturity of technology, the value of industrial Internet of things will be confirmed soon.
By Martin Keenan, technical director, Avnet abacus