Industry experts predict the Internet of Things will become a lucrative tool for the manufacturing industry.
The IoT represents a $2.2tn (£1.3tn) industry, revealed experts at PTC’s Live Executive Exchange on Tuesday, with the manufacturing industry representing the second biggest industry after healthcare to take the spoils.
Brian Lindauer, Senior Vice President of Solutions Development at technology solutions company PTC, quoted a recent piece of research by global management consulting firm McKinsey & Company focusing on the value of various disruptive technologies and their potential market value of $2.2tn to $6.7tn by 2025.
He said the IoT will become a lucrative tool to help marry service lifestyle management and manufacturing, allowing manufacturers to provide support services for products long after they leave the factory floor.
“The IoT, across all industries has a potential value of $2.2tn by 2025,” said Lindauer. “If you zoom in on the IoT opportunity and look across different industries the number one is healthcare and number two is manufacturing.”
Lindauer says the IoT will become a powerful tool to manage data, connected devices and services across all industries. Take the example of the rail industry, in which advanced service support alongside the physical product – in this the train – will represent a huge opportunity for increasing the value of a product as it is maintained throughout its lifecycle.
Train manufacturer Alstom saw an increase in passenger numbers from 13 million to 32 million after making SLM a major priority, through imposing self-inflicted fines on malfunctioning trains that caused delays to scheduling.
It is hoped that in the future the IoT will follow the 90’s technological revolution Intranet of Things, which allowed devices to connect on a local network level. The IoT will allow of manufacturing facilities to communicate with each other via internet or ethernet, transmitting health monitoring data back to the network for analysis.
This will allow manufacturers to make changes to operations and even connect to information applications on the internet such as Google Weather, which will result in lowered carbon emissions, increased productivity and energy and cost savings.
PTC’s announcement follows on from 2011 Cisco’s prediction that by 2025 the amount of connected devices globally will increase to 50 billion. This surge in connected devices will increase demand for infrastructure and services operating in the IoT industry.
Brian’s announcement comes following PTC acquisition of M2M application company Thingworx in January of this year. Thingworx provides a personalised software infrastructure and customised M2M applications to help manufacturers provide value-added SLM.
“Thingworx connects people, systems and things, it is beyond onboard software. Representing a robust alternative to the fragile, large, brittle systems manufacturers have come up with to manage sensors, devices and equipment.
They provide a useful way of leveraging control over connected devices, which will be of paramount importance in the future of manufacturing.
“For PTC, our traditional customer base is manufacturing, so this is definitely the space we want to be playing in, the Internet of Things and smart connected products.”
Cisco infographic on The Internet of Things: