Traditionally, the Industrial sector has represented only a small portion of total semiconductor sales. According to SIA/WSTS End Use data, semiconductor sales to the Industrial market comprise only 12% of total semiconductor revenues. In addition, the Industrial sector traditionally grows at a comparably slow, steady rate. From 2010 to 2015, the Industrial sector experienced a 4.8% CAGR from $31.9 billion to $40.3 billion. But all that may change. Many futurists are espousing a worldwide transition into the Fourth Industrial Revolution. A new report from Semico Research, Industrial IoT: Smart Factories and Cities, identifies the Industrial Internet of Things (IIoT) as a major component of the Revolution and that it promises to stimulate a transformation in the way industry, business and local communities operate.
Semico Research segments the Industrial IoT into two distinct markets, smart manufacturing and infrastructure. The smart manufacturing segment includes Advanced Process Control, manufacturing process monitoring, supply chain management, ERP, and MRP.
"These pieces are all part of a sophisticated monitoring, data collection and evaluation process that have been used in manufacturing and industrial applications for decades IoT adds another layer to the current systems," according to Joanne Itow, Manager of Manufacturing Research. "The key ingredient for IIoT smart manufacturing differentiation is an integration layer which combines management services with the hardware that provides a more robust monitoring and response system, as well as more efficient use of existing plant operations. In addition to highly responsive feedback loops which improve the plant operations, data collection, and analysis, IIoT is expected to be more efficient, faster and more accurate."
As far as Infrastructure, it is usually associated with public community projects but also includes building systems. Some of the more obvious areas of impact are expected to be in the public infrastructure services such as public lighting.
Key findings in the report include:
In its recent report, Industrial IoT: Smart Factories and Cities, MP117-17, Semico Research provides 5-year revenue forecasts for each major semiconductor category in Industrial. Readers will see which segments of IIoT are growing fastest and what the latest trends are in the market, the growing ecosystem, and technical innovations, as well as a close look at security and standards for the IIoT market.
This report is part of Semico Research's Internet of Things portfolio, which also includes: