The Industrial Internet: Towards the 4th Industrial Revolution
This report describes the phenomenon of the Industrial Internet.
It provides a general analysis of the trend and specific examples of recent developments in various verticals.
This analysis focuses on the impacts of integrating IoT technologies into industrial assets (the ‘smart factory’), as well as into end products: impacts on the value chain, on existing business models and in new monetisation opportunities.
The report also describes the main drivers and barriers for the take-off of the Industrial Internet market and provides market sizing.
It provides a general analysis of the trend and specific examples of recent developments in various verticals.
This analysis focuses on the impacts of integrating IoT technologies into industrial assets (the ‘smart factory’), as well as into end products: impacts on the value chain, on existing business models and in new monetisation opportunities.
The report also describes the main drivers and barriers for the take-off of the Industrial Internet market and provides market sizing.
1. EXECUTIVE SUMMARY
2. METHODOLOGY
3. VISIONS OF THE INDUSTRIAL INTERNET
3.1. The Industrial Internet: how industry uses connected objects
3.1.1. A key enabler of the digital transformation strategy
3.1.2. Production optimisation: Smart Factory
3.1.3. Selling connected objects: towards servicisation
3.2. Key enabling technologies
3.2.1. Connectivity technologies for the Industrial Internet
3.2.2. Connecting tools of production
3.2.3. Connecting the employees
3.2.4. Making sense of connectivity: Data analytics
3.3. Key trends supporting the vision of an Industrial Internet
3.3.1. National and international initiatives
3.3.2. Anticipated societal impacts
4. VALUE CHAIN AND KEY PLAYERS
4.1. Value chain overview
4.2. Smart Factory solution providers
4.2.1. Sensor and actuator providers
4.2.2. Industrial solution providers
4.3. Implementations in selected industries
4.3.1. Aeronautics
4.3.2. Automotive
4.3.3. Energy
4.3.4. Transportation
4.4. Connected end product
4.4.1. Aviation
4.4.2. Automotive
4.4.3. Heavy equipment
4.5. Evolution of customer relationship
4.5.1. Transportation
4.5.2. Healthcare
4.6. The roles of telcos, platforms and IT service providers
4.6.1. Telcos
4.6.2. Platform providers
4.6.3. Service providers and IT players
5. IMPACTS OF THE INDUSTRIAL INTERNET ON INDUSTRIES
5.1. Evolution of value chains
5.1.1. Transformation of the manufacturing ecosystem
5.1.2. Evolution of connectivity value chain
5.2. Business model evolutions
5.2.1. Manufacturing platforms and manufacturing-as-a-service
5.2.2. Smaller, local, production units for personalised products
5.2.3. Product as a service
5.2.4. Data monetisation
5.3. Connected objects as part of digital transformation of industry
5.3.1. Needs of manufacturing domain
5.3.2. Constraints of manufacturing domain
5.3.3. Vision of potential adoption of connected objects by vertical industries
6. MARKETS AND FORECASTS
6.1. Market development factors
6.1.1. Drivers
6.1.2. Barriers
6.2. Market sizing and forecast
2. METHODOLOGY
3. VISIONS OF THE INDUSTRIAL INTERNET
3.1. The Industrial Internet: how industry uses connected objects
3.1.1. A key enabler of the digital transformation strategy
3.1.2. Production optimisation: Smart Factory
3.1.3. Selling connected objects: towards servicisation
3.2. Key enabling technologies
3.2.1. Connectivity technologies for the Industrial Internet
3.2.2. Connecting tools of production
3.2.3. Connecting the employees
3.2.4. Making sense of connectivity: Data analytics
3.3. Key trends supporting the vision of an Industrial Internet
3.3.1. National and international initiatives
3.3.2. Anticipated societal impacts
4. VALUE CHAIN AND KEY PLAYERS
4.1. Value chain overview
4.2. Smart Factory solution providers
4.2.1. Sensor and actuator providers
4.2.2. Industrial solution providers
4.3. Implementations in selected industries
4.3.1. Aeronautics
4.3.2. Automotive
4.3.3. Energy
4.3.4. Transportation
4.4. Connected end product
4.4.1. Aviation
4.4.2. Automotive
4.4.3. Heavy equipment
4.5. Evolution of customer relationship
4.5.1. Transportation
4.5.2. Healthcare
4.6. The roles of telcos, platforms and IT service providers
4.6.1. Telcos
4.6.2. Platform providers
4.6.3. Service providers and IT players
5. IMPACTS OF THE INDUSTRIAL INTERNET ON INDUSTRIES
5.1. Evolution of value chains
5.1.1. Transformation of the manufacturing ecosystem
5.1.2. Evolution of connectivity value chain
5.2. Business model evolutions
5.2.1. Manufacturing platforms and manufacturing-as-a-service
5.2.2. Smaller, local, production units for personalised products
5.2.3. Product as a service
5.2.4. Data monetisation
5.3. Connected objects as part of digital transformation of industry
5.3.1. Needs of manufacturing domain
5.3.2. Constraints of manufacturing domain
5.3.3. Vision of potential adoption of connected objects by vertical industries
6. MARKETS AND FORECASTS
6.1. Market development factors
6.1.1. Drivers
6.1.2. Barriers
6.2. Market sizing and forecast
TABLES
Table 1: Mobile technologies specifications
Table 2: Key 5G applications on IoT/M2M
Table 3: ISM bands sample
Table 4: ISM bands analysis (for European region)
Table 5: Features of main short-range technologies
Table 6: Connecting production tools: technological requirements
Table 7: Connecting employees: technological requirements
Table 8: Main providers of smart factory solutions
Table 9: Main initiatives around the smart factory
Table 10: Main initiatives around connected end products
Table 11: Main initiatives around innovative pricing schemes
Table 12: Main initiatives of Medtronic in connected health market
Table 13: MaaS new roles value propositions
Table 14: Value propositions, from mass production to personalised product
Table 15: Use cases of factors in adoption
Table 16: Factors of adoption across industries
Table 17: Timeline for adoption in selected vertical industries
Table 1: Mobile technologies specifications
Table 2: Key 5G applications on IoT/M2M
Table 3: ISM bands sample
Table 4: ISM bands analysis (for European region)
Table 5: Features of main short-range technologies
Table 6: Connecting production tools: technological requirements
Table 7: Connecting employees: technological requirements
Table 8: Main providers of smart factory solutions
Table 9: Main initiatives around the smart factory
Table 10: Main initiatives around connected end products
Table 11: Main initiatives around innovative pricing schemes
Table 12: Main initiatives of Medtronic in connected health market
Table 13: MaaS new roles value propositions
Table 14: Value propositions, from mass production to personalised product
Table 15: Use cases of factors in adoption
Table 16: Factors of adoption across industries
Table 17: Timeline for adoption in selected vertical industries
FIGURES
Figure 1: The IDATE framework for digital transformation
Figure 2: Technologies of third wave of digital transformation
Figure 3: Smart factory use case
Figure 4: Architecture of an M2M solution
Figure 5: Landscape of IoT/M2M networking technologies
Figure 6: LTE developments to address M2M and IoT
Figure 7: Different specifications of LTE versions focused on IoT
Figure 8: Scope of 5G
Figure 9: Siemens automated factory, in Amberg, Germany
Figure 10: The Siemens vision of smart factory convergence
Figure 11: Track and Trace IIC Testbed
Figure 12: Baxter uncaged robot
Figure 13: New Balance shoes with 3D-printed midsoles presented at CES 2016
Figure 14: ABB control rooms
Figure 15: HTC Vive virtual reality headset
Figure 16: Optis HIM VR solution used to validate assembly movements in aerospace industry
Figure 17: Augmented Reality deployment at Bechtle
Figure 18: Use of big-data analytics in manufacturing
Figure 19: Intel production line data analytics setup
Figure 20: Overview of European initiatives on digitising industry
Figure 21: Increases in productivity in component manufacturing
Figure 22: INDUSTRY 4.0 to generate significant productivity gains in Germany
Figure 23: Expected gains of digitising industry
Figure 24: Impact of automation on the job market
Figure 25: Shifts in demand of skills in future manufacturing industries
Figure 26: Industrial Internet value chain
Figure 27: 2014 ranking of MEMS players
Figure 28: TE connectivity positioning in sensors
Figure 29: Dassault Systèmes 3DExperience platform
Figure 30: Siemens digitisation
Figure 31: Siemens Digital Factory portfolio, compared with Industry 4.0 plans
Figure 32: Kuka divisions and offerings
Figure 33: Kuka future vision integrating moving and fixed robots in a uniform factory platform
Figure 34: National Instruments vision as a provider of data analytics for the Internet of Things
Figure 35: Typical aircraft assembly environment
Figure 36: Smart glasses usage within factory
Figure 37: Use of uncaged robot at Audi
Figure 38: Competence islands at Audi
Figure 39: A centre to pilot the production and consumption of energy
Figure 40: Monitoring production by layers
Figure 41: Industrial Internet strategy at SNCF
Figure 42: Direct operating costs of an airline company
Figure 43: Rolls-Royce engines equipped with sensors
Figure 44: The Industrial Internet applied to aviation industry
Figure 45: The Predix platform
Figure 46: Value proposition evolution, GE Aviation
Figure 47: Connected car service roadmap
Figure 48: Key services in the automotive sector for major stakeholders
Figure 49: Willingness to pay for connected car services
Figure 50: 17-inch Touch screen features
Figure 51: Supercharger network plan in the US and in Europe for 2016
Figure 52: Autopilot feature setting, by Tesla
Figure 53: Ford SYNC AppLink applications
Figure 54: GoRide experience
Figure 55: Use of drones at Caterpillar
Figure 56: Driverless truck, by Komatsu
Figure 57: Evolution of Michelin’s commercial offering
Figure 58: EFFIFUEL solution principle
Figure 59: Continuous Glucose Monitoring (CGM) systems
Figure 60: Key positioning differentiation among carriers in the Industrial Internet market
Figure 61: Connected Industry Platform showcased at the CEBIT 2015
Figure 62: Taleris home page
Figure 63: SMILE distribution of value added, by manufacturing activity
Figure 64: Survey by Citigroup linking smart factory development and reshoring
Figure 65: Manufacturing-as-a-service reorganisation of the value chain
Figure 66: Volume variety relationship in manufacturing
Figure 67: Personalised production
Figure 68: Effects of servicisation on customer relationship
Figure 69: Roadmap of different services offered by industrial players
Figure 70: Data resale to service company
Figure 71: Data resale to a third-party service company
Figure 72: EU manufacturing sector, activity breakdown and share in EU economy
Figure 73: Evolution of manufacturing domain
Figure 74: Michelin Solutions architecture
Figure 75: Use cases adoption over time
Figure 76: European industrial players invest €140 billion p.a. in Industrial Internet applications, to 2020
Figure 77: Compared adoption readiness of Industrial Internet (USA – Germany)
Figure 78: New business model opportunities
Figure 79: Industries naming ‘security’ as top challenge in implementation of big data
Figure 80: Greatest challenges to progress toward Industry 4.0 (survey)
Figure 81: World installed base of manufacturing and logistics connected objects
Figure 82: World installed base of manufacturing and logistics, by region
Figure 1: The IDATE framework for digital transformation
Figure 2: Technologies of third wave of digital transformation
Figure 3: Smart factory use case
Figure 4: Architecture of an M2M solution
Figure 5: Landscape of IoT/M2M networking technologies
Figure 6: LTE developments to address M2M and IoT
Figure 7: Different specifications of LTE versions focused on IoT
Figure 8: Scope of 5G
Figure 9: Siemens automated factory, in Amberg, Germany
Figure 10: The Siemens vision of smart factory convergence
Figure 11: Track and Trace IIC Testbed
Figure 12: Baxter uncaged robot
Figure 13: New Balance shoes with 3D-printed midsoles presented at CES 2016
Figure 14: ABB control rooms
Figure 15: HTC Vive virtual reality headset
Figure 16: Optis HIM VR solution used to validate assembly movements in aerospace industry
Figure 17: Augmented Reality deployment at Bechtle
Figure 18: Use of big-data analytics in manufacturing
Figure 19: Intel production line data analytics setup
Figure 20: Overview of European initiatives on digitising industry
Figure 21: Increases in productivity in component manufacturing
Figure 22: INDUSTRY 4.0 to generate significant productivity gains in Germany
Figure 23: Expected gains of digitising industry
Figure 24: Impact of automation on the job market
Figure 25: Shifts in demand of skills in future manufacturing industries
Figure 26: Industrial Internet value chain
Figure 27: 2014 ranking of MEMS players
Figure 28: TE connectivity positioning in sensors
Figure 29: Dassault Systèmes 3DExperience platform
Figure 30: Siemens digitisation
Figure 31: Siemens Digital Factory portfolio, compared with Industry 4.0 plans
Figure 32: Kuka divisions and offerings
Figure 33: Kuka future vision integrating moving and fixed robots in a uniform factory platform
Figure 34: National Instruments vision as a provider of data analytics for the Internet of Things
Figure 35: Typical aircraft assembly environment
Figure 36: Smart glasses usage within factory
Figure 37: Use of uncaged robot at Audi
Figure 38: Competence islands at Audi
Figure 39: A centre to pilot the production and consumption of energy
Figure 40: Monitoring production by layers
Figure 41: Industrial Internet strategy at SNCF
Figure 42: Direct operating costs of an airline company
Figure 43: Rolls-Royce engines equipped with sensors
Figure 44: The Industrial Internet applied to aviation industry
Figure 45: The Predix platform
Figure 46: Value proposition evolution, GE Aviation
Figure 47: Connected car service roadmap
Figure 48: Key services in the automotive sector for major stakeholders
Figure 49: Willingness to pay for connected car services
Figure 50: 17-inch Touch screen features
Figure 51: Supercharger network plan in the US and in Europe for 2016
Figure 52: Autopilot feature setting, by Tesla
Figure 53: Ford SYNC AppLink applications
Figure 54: GoRide experience
Figure 55: Use of drones at Caterpillar
Figure 56: Driverless truck, by Komatsu
Figure 57: Evolution of Michelin’s commercial offering
Figure 58: EFFIFUEL solution principle
Figure 59: Continuous Glucose Monitoring (CGM) systems
Figure 60: Key positioning differentiation among carriers in the Industrial Internet market
Figure 61: Connected Industry Platform showcased at the CEBIT 2015
Figure 62: Taleris home page
Figure 63: SMILE distribution of value added, by manufacturing activity
Figure 64: Survey by Citigroup linking smart factory development and reshoring
Figure 65: Manufacturing-as-a-service reorganisation of the value chain
Figure 66: Volume variety relationship in manufacturing
Figure 67: Personalised production
Figure 68: Effects of servicisation on customer relationship
Figure 69: Roadmap of different services offered by industrial players
Figure 70: Data resale to service company
Figure 71: Data resale to a third-party service company
Figure 72: EU manufacturing sector, activity breakdown and share in EU economy
Figure 73: Evolution of manufacturing domain
Figure 74: Michelin Solutions architecture
Figure 75: Use cases adoption over time
Figure 76: European industrial players invest €140 billion p.a. in Industrial Internet applications, to 2020
Figure 77: Compared adoption readiness of Industrial Internet (USA – Germany)
Figure 78: New business model opportunities
Figure 79: Industries naming ‘security’ as top challenge in implementation of big data
Figure 80: Greatest challenges to progress toward Industry 4.0 (survey)
Figure 81: World installed base of manufacturing and logistics connected objects
Figure 82: World installed base of manufacturing and logistics, by region
