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The Internet of Things (IoT) in Discrete Parts ManufacturingThe global market for IoT discrete parts manufacturing was valued at $643.9 million in 2016. This market will grow from $862.6 million in 2017 to $2.8 billion by 2022 with a compound annual growth rate (CAGR) of 26.7% for the period of 2017-2022. Report Includes -An overview of the global market for Internet of Things solutions in discrete parts manufacturing -Analyses of global market trends, with data from 2016, estimates for 2017, and projections of compound annual growth rates (CAGRs) through 2022 -Insight into how new technology shaped by requirements for IoT applications will create new product categories or bring new life to existing products -A look at factors driving the market, such as lower power and longer battery life, improved networking capability, advanced software solutions, and increased access to real-time data -Coverage of applications, including automotive and transportation, aerospace and defense, consumer goods, electronics, heavy machinery, high technology, and power plants -Profiles of major players in the industry Study Goals and Objectives This report characterizes and quantifies the global market for Internet of Things (IoT) solutions for discrete parts manufacturers. Historically, factories have relied on autonomous, proprietary solutions to create goods. Rather than view the enterprise operation as a whole, managers were only able to see part of the whole. Information was locked away in a variety of systems that did not communicate, leading to inefficiencies in product design, production and customer service. Managers have been searching for more integrated approaches to creating, delivering and servicing their wares to customers. IoT technology has the potential to tie all of the different elements into a cohesive whole. The technology’s potential impact is significant and game changing. The goal of this report is to provide an understanding of the market factors, state-of-the-art developments, economic influences, and deployment challenges driving the IoT market. The report analyzes the major components (hardware, software and networking), their potential influence of discrete parts suppliers. The report contains information useful for planning production and targeting market efforts for delivery of IoT solutions. Trends in IoT automation are investigated, particularly the rise of intelligent sensors, which are pushing intelligence to the network edge; the challenges in connecting different systems; and the managerial hurdles companies need to clear in order to deploy the technology. Projections are provided for the total market through 2022, along with estimates of the market in terms of dollar revenue for vertical sectors alone and the cumulative totals for the market overall. The report quantifies the difference in revenue for equipment in three major categories: hardware, software and networking. Reasons for Doing This Study Several forces are driving trends toward increasing levels of automation of the systems that provide essential discrete parts manufacturing services. Higher levels of automation are becoming available, which enable suppliers to control their operating costs, enhance productivity, improve product quality, develop new services, and ensuring competitiveness in a global, dynamical, highly competitive market. The development, proliferation and flexibility of small new microprocessor-based sensors along with the emergence of standard network protocols has presented manufacturers with an opportunity to gather more performance information and automate manual processes. Traditionally, pricing constraints limited visibility into the performance of elements, like sensors and Programmable Logic Control systems, in the manufacturing process. Smaller, smarter, less expensive sensors; standardized network protocols and increasingly sophisticated software are coalescing and providing manufacturers with new ways to dramatically improve their business processes. IoT systems are a great fit with greenfield manufacturing plants. Integrating these solutions into existing facilities promises significant returns but also can be challenging. Discrete parts manufacturers need to deploy a complex infrastructure and retrain employees who might resist change. This study explores the technology trends prompting this new era of factory automation, the major manufacturers of these solutions, and the challenges and opportunities that they present to manufacturers. The expansion of the overall global IoT discrete part manufacturing market relies on the health of local and international markets. Consequently, sales of these products have been largely seen in the world’s more advanced business epicenters: Europe, the U.S., China and Japan. This study analyzes the different sectors in the manufacturing market: automotive, aerospace and defense; consumer goods; heavy machinery. Extensive investigation has also been carried out to quantify the size of the market in the three segments to aid marketers, manufacturers, system integrators, contractors and other parties involved in the building automation industry to better present their products and services to the most promising markets. Scope of Report The building of IoT solutions include three main components: hardware, software and networking. The markets are broken down into subsets. Hardware consists of sensors, programmable logic controllers, and distributed control systems. Software involves IoT platforms, big data, and security solutions. Networking is available in wired or wireless configurations. This report examines the technologies, markets and factors influencing the markets for IoT systems. Markets are forecast based on historical activity and current opportunities; technical advances and challenges; and five subsets of the discrete parts market: automotive and transportation; electronics and computer; consumer goods; aerospace, aviation and defense; and machinery and heavy equipment. The forecasts presented are for the total available markets. Some discussion is provided that compares actual revenues with market potential. Markets are broken down by technology and sector, and then discussed within the context of technology trends. A detailed analysis of the technology and market potential is used as a basis for estimating world markets for these products. Thorough analyses are carried out of IoT practices, along with trends toward the uptake of solution costs, emerging standards and common practices. Identification has also been made of the prime decision-maker in the project chain who selects the type and scope of IoT project. Factors influencing the requirements and purchases for the systems are examined, as are national and international responses to global challenges. Information Sources This report was prepared based on information gleaned from a variety of sources, including interviews with IoT manufacturing executives, engineers and marketers; standards body representatives; purchasing officers; information technology and operations technology representatives; vendor spokespersons; and national and international government organizations. Much of the market research numbers came from company financial reports; interviews with suppliers who outlined various market trends and company initiatives, and various industry experts. Extensive use was made of the internet, company information and case studies, industry consortiums, industry trade publications and various media outlets. Digital and printed statistics were gathered to quantify and help verify trends in the level of activity in the various market sectors. The approach taken to quantify the world markets for IoT systems involved several steps. Primary among these was delineating the technologies involved in IoT systems and the companies that produce them. Because the market is evolving, clear boundaries among various categories can be difficult to discern. Autonomous product categories have been shifting as suppliers have been trying to deliver a more cohesive and integrated IoT solution. In addition, vendors have been broadening their product lines, so many offer products in numerous categories. Increasingly, they bundle these systems together to entice potential developers, so divvying up the revenue from different types of products can be difficult. Consultations with various vendors and industry experts helped to break those categories down as finely as possible. A quantitative understanding was then developed for the characteristics of various industries. In addition, assessments were made of regulatory policies governing with respect to IoT requirements— this step was done with varying degrees of granularity. A summary understanding of the markets was developed for component systems of IoT solutions. With this information in hand, trade publications and internet searches were performed, along with concurrent interviews with industry representatives, regulators and vendors to discern trends in the extent of implementation of fully deployed IoT systems. This report also focused on activities in specific markets for systems that integrate disparate component systems. Revenue from the various IoT products comes from two sources, new deployments and factory owners’ decisions to upgrade their plants to become more efficient. Revenue was divided into different equipment sales associated with these projects. These numbers and market drivers were generated from public information based on a variety of sources, including vendor product and company information. Public information from Gartner Inc., Industrial Internet Consortium, International Data Corp., and Wikipedia supplied some of the background material used in the discussion. The world economy has become increasing complex, volatile and difficult to forecast. The projection numbers used in this report are from various economic monitoring groups, including the International Monetary Fund, the World Bank, the CIA World Fact Book, the United States Bureau of Labor and Statistics, and the United Nations. Input from these sectors was used to complete the five-year market projections. All revenues are expressed in U.S. dollars. Methodology Manufacturing represents a large and vital sector of the world economy. In 2016, global activities generated $75.2 trillion, with the bulk of that revenue coming from three regions: the U.S. ($18.6 trillion); the E.U. ($16.0 trillion) and China ($11.1 trillion), according to the International Monetary Foundation. The IMF expects the global economy to increase at modest rates, about 3.0%, in the next five years. China is seeing achieving growth of around 6% and more, while the U.S., E.U. and Japan are reaching increases of only about 1% to 2%. The world economy is quite volatile. In Europe, Great Britain’s decision to exit the E.U. has created repercussions that are expected to impact there soon. In the U.S., the election of President Donald Trump in 2016 and the administration’s decision to pull out of the Trans-Pacific Partnership will impact manufacturing markets. The projections in this report are based on modest world revenue growth and no disruptive events. A major negative event, like the economic downturn in 2008, will lower the growth numbers. Manufacturing generates $11.1 trillion, accounting for a large percentage of the overall world revenue (14.7%). The majority of the manufacturing income is concentrated in four countries: China ($2.9 trillion), the U.S. ($2.2 trillion), Japan ($1.3 trillion) and Germany ($1.1 trillion), according to the United Nations. Markets have been growing—the United Nations World Manufacturing Report reported growth of 2.6% in 2016 and expect even higher numbers in 2017. Developing countries have small manufacturing bases but are investing in infrastructure as well as education and changing regulations in order to spur economic growth. Consequently, their manufacturing output is increasing at high rates. Developed nations with larger bases and mature markets are seeing slower growth. The Internet of Things is game-changing technology, one that will dramatically impact the industrial automation market. The potential is enormous as technology has driven change in many markets. However, IoT technology is extremely complex and in a nascent stage of development. Consequently, it will make its impact slowly. First, IoT will be implemented in greenfield operations. As the benefits are seen and technology improves, it will then be used in existing plants. Product Breakdown In this report, the IoT market is categorized into three product areas (hardware, software and networking) and five vertical markets (automotive and transportation; electronics and computers; consumer goods; aerospace, aviation and defense; and heavy machinery). Hardware includes three types of factory floor devices: sensors, programmable logic controllers and distributed system controllers. Software consists of IoT platforms, big data and security. Networking comprises wired and wireless connections. The revenue numbers are for worldwide sales. 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