SMART MANUFACTURING: TECHNOLOGIES AND GLOBAL MARKETS

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1 SMART MANUFACTURING: TECHNOLOGIES AND GLOBAL MARKETS IFT126A June 2016 Nathalie Granato Project Analyst ISBN: BCC Research 49 Walnut Park, Building 2 Wellesley, MA USA (toll-free within the USA), or (+1) information@bccresearch.com

2 TABLE OF CONTENTS CHAPTER 1 INTRODUCTION 2 STUDY GOALS AND OBJECTIVES 2 REASONS FOR DOING THE STUDY 2 SCOPE 2 INTENDED AUDIENCE 3 INFORMATION SOURCES 3 ANALYST'S CREDENTIALS 3 RELATED BCC RESEARCH REPORTS 4 BCC RESEARCH WEBSITE 4 DISCLAIMER 4 CHAPTER 2 SUMMARY 6 SUMMARY TABLE GLOBAL MARKET FOR SMART MANUFACTURING, BY REGION, SUMMARY FIGURE GLOBAL MARKET FOR SMART MANUFACTURING, BY REGION, CHAPTER 3 SMART MANUFACTURING DEFINED 9 DEFINITIONS 9 SMART MANUFACTURING AND THE INDUSTRIAL IOT (IIOT) 10 SMART MANUFACTURING AND INDUSTY SMART MANUFACTURING AND THE INDUSTRIAL INTERNET 11 SMART MANUFACTURING AND ADVANCED MANUFACTURING 11 SMART MANUFACTURING AND M2M 12 TABLE 1 GLOBAL MARKET FOR SMART MANUFACTURING BY MAJOR COMPONENT, 13 CHAPTER 4 MARKET DRIVERS AND IMPLEMENTATION PHASES 15 DRIVERS 15 TECHNOLOGY 15 TABLE 2 INFORMATION TECHNOLOGY ENABLERS 15 PRODUCTIVITY 16 IMPLEMENTATION BY SPENDING AREA 17 TABLE 3 GLOBAL MARKET FOR SMART MANUFACTURING BY SEGMENT, THROUGH PREMISES MONITORING 18 PRODUCT DIFFERENTIATION 18 CUSTOMER CARE 18 TABLE 4 IOT IMPLEMENTATION BY APPLICATION 19 TIME FRAME 19 SHORT TERM 19 LONGER TERM 19 STEPS CHAPTER 5 SMART MANUFACTURING SEGMENTS 23

3 TABLE 5 GLOBAL MARKET FOR SMART MANUFACTURING BY INFORMATION TECHNOLOGY CATEGORY, NON-WEARABLE DEVICES 23 CHALLENGES 25 WEARABLE DEVICES 25 TABLE 6 GLOBAL MARKET FOR WEARABLES USED IN SMART MANUFACTURING BY TYPE, REQUIREMENTS 26 User Interface 26 Power Consumption 26 Connectivity 26 WEARABLE DEVICE DESIGN 26 FIGURE 1 BLOCK DIAGRAM OF A TYPICAL WEARABLE DEVICE 26 WEARABLE DEVICES USED IN MANUFACTURING 27 Wearable Watches 27 Smart Glasses 28 MANUFACTURING APPLICATIONS 28 STAKEHOLDERS 30 NETWORK, GATEWAYS AND SERVERS 30 CHALLENGES 31 POPULAR WIRELESS PROTOCOLS FOR IOT DEVICES 32 CHALLENGES 32 OPERATING SYSTEMS 33 MIDDLEWARE AND APPLICATION SOFTWARE 33 DATA 34 CHALLENGES 35 ANALYTICS 35 SECURITY AND PRIVACY 37 CHALLENGES 38 Security Checks CHAPTER 6 SMART MANUFACTURING BY INDUSTRY 41 TABLE 7 GLOBAL MARKET FOR SMART MANUFACTURING BY INDUSTRY, THROUGH TABLE 8 GLOBAL MARKET FOR SMART MANUFACTURING BY MANUFACTURING TYPE, CHEMICAL AND PETROLEUM 42 TABLE 9 GLOBAL MARKET FOR SMART MANUFACTURING FOR THE CHEMICAL AND PETROLEUM INDUSTRY BY REGION, CHEMICAL 42 OIL AND GAS 44 ROLE OF TECHNOLOGY 44 AEROSPACE AND DEFENSE 44 TABLE 10 GLOBAL MARKET FOR SMART MANUFACTURING FOR THE AEROSPACE AND DEFENSE INDUSTRY BY REGION, AUTOMOTIVE 46 TABLE 11 GLOBAL MARKET FOR SMART MANUFACTURING FOR AUTOMOTIVE INDUSTRY BY REGION, HIGH TECH

4 TABLE 12 GLOBAL MARKET FOR SMART MANUFACTURING FOR HIGH TECH INDUSTRY BY REGION, CONSUMER PACKAGING 48 TABLE 13 GLOBAL MARKET FOR SMART MANUFACTURING FOR CONSUMER PACKAGING INDUSTRY BY REGION, CHAPTER 7 SMART MANUFACTURING BY REGION 51 TABLE 14 GLOBAL MARKET FOR SMART MANUFACTURING BY REGION, THROUGH NORTH AMERICA 52 TABLE 15 NORTH AMERICAN MARKET FOR SMART MANUFACTURING BY INDUSTRY, TABLE 16 NORTH AMERICAN MARKET FOR SMART MANUFACTURING BY INFORMATION TECHNOLOGY CATEGORY, ASIA-PACIFIC 54 TABLE 17 ASIA-PACIFIC MARKET FOR SMART MANUFACTURING BY INDUSTRY, CHINA 55 SOUTH KOREA 56 INDIA 56 JAPAN 57 MALAYSIA 58 TABLE 18 ASIA-PACIFIC MARKET FOR SMART MANUFACTURING BY INFORMATION TECHNOLOGY CATEGORY, EUROPE 59 TABLE 19 EUROPEAN MARKET FOR SMART MANUFACTURING BY INDUSTRY, GERMANY 60 U.K. 61 TABLE 20 EUROPEAN MARKET FOR SMART MANUFACTURING BY INFORMATION TECHNOLOGY CATEGORY, REST OF THE WORLD 62 TABLE 21 REST OF THE WORLD MARKET FOR SMART MANUFACTURING BY INDUSTRY, TABLE 22 REST OF THE WORLD MARKET FOR SMART MANUFACTURING BY INFORMATION TECHNOLOGY CATEGORY, CHAPTER 8 COMPETITIVE LANDSCAPE 65 VALUE CHAIN 65 FIGURE 2 SMART MANUFACTURING VALUE CHAIN WITH EXAMPLES OF COMPANIES INVOLVED AT EACH STAGE DEVICES 66 NETWORKS/CONNECTIVITY 66 APPLICATIONS/SERVICE PROVIDERS 67 KEY INDUSTRY PARTICIPANTS 67 TABLE 23 SMART MANUFACTURING LEADERS BY INFORMATION TECHNOLOGY CATEGORY AMAZON 68 ARM 68 Strategy

5 Offerings 69 Partnerships 69 AT&T 69 Strategy 70 Offerings 70 Consulting 70 Partnerships 71 BOSCH 71 Strategy 71 Offerings 71 FIGURE 3 BOSCH IOT SUITE 72 Partnerships 72 CHINA MOBILE 73 Strategy 73 Offerings 73 CISCO 73 Strategy 73 Offerings 74 FIGURE 4 CISCO IOT SYSTEM 75 Partnerships 75 ERICSSON 75 Strategy 75 FIGURE 5 STATED SAVINGS FROM USING ERICSSON IOT 76 Partnerships 76 Cisco 76 SK Holdings 76 GE 77 Strategy 77 Offerings 77 FIGURE 6 IOT POTENTIAL GAINS IN KEY SECTORS 78 Partnerships 79 Infosys 79 Cisco 80 GOOGLE 80 Offerings 80 HUAWEI 81 Strategy 81 Offerings 81 Partnerships 81 IBM 82 Strategy 82 Offerings 82 Partnerships 83 INTEL 83 Strategy 83 Offerings 83 Hardware 83

6 Platform 84 Partnerships 84 MICROSOFT 85 Offerings 85 Windows Cortana Analytics Suite 86 ROCKWELL AUTOMATION 86 Strategy 86 Offerings 86 Partnerships 87 SAMSUNG 87 Strategy 87 Offerings 87 Hub 87 Devices 87 SAP 88 Strategy 88 Offerings 88 Partnerships 89 SIEMENS 89 Strategy 89 Offerings 90 Hardware 90 Platform 90 Services 90 Partnerships 91 CHAPTER 9 IMPLICATIONS FOR MANUFACTURERS 93 IMPLICATIONS FOR MANUFACTURING PROCESSES 93 DECENTRALIZATION AND VISIBILITY 93 EFFICIENCY 93 CONNECTED OPERATIONS AND SUPPLY CHAIN 93 Benefits 94 IMPROVED REMOTE DIAGNOSTICS 94 INCREASED AUTOMATION 94 OPTIMIZATION 95 INSIGHTS 95 INTELLIGENCE 95 IMPLICATIONS FOR THE TECHNOLOGY ORGANIZATION 95 INFRASTRUCTURE 96 CLOUD 96 CONNECTIVITY 96 DATA SOURCES 96 Data Robustness 97 Scalability 97 Insights 97 DATA ANALYTICS 98

7 SECURITY 98 SERVICES 99 IMPLICATIONS FOR THE "PRODUCT" 99 INCREASED CUSTOMIZATION 99 NEW SERVICES 100 OTHER IMPLICATIONS 100 EMPLOYMENT 100 C-SUITE 101 OPERATIONS/IT CONVERGENCE 101 CHAPTER 10 COMPANY PROFILES 103 AXEDA 103 CHINA TELECOM 103 DELL 103 HONEYWELL INTERNATIONAL 104 HP INC. 104 LANDIS+GYR 105 NXP/FREESCALE 105 ORACLE 106 QUALCOMM 106 SALESFORCE.COM 107 SILICON LABS 107 ZEBRA 108 CHAPTER 11 APPENDIX 110 LIST OF SOURCES 110

8 LIST OF TABLES TABLE HEADING SUMMARY TABLE GLOBAL MARKET FOR SMART MANUFACTURING, BY REGION, TABLE 1 GLOBAL MARKET FOR SMART MANUFACTURING BY MAJOR COMPONENT, TABLE 2 INFORMATION TECHNOLOGY ENABLERS 15 TABLE 3 GLOBAL MARKET FOR SMART MANUFACTURING BY SEGMENT, THROUGH TABLE 4 IOT IMPLEMENTATION BY APPLICATION 19 TABLE 5 GLOBAL MARKET FOR SMART MANUFACTURING BY INFORMATION TECHNOLOGY CATEGORY, TABLE 6 GLOBAL MARKET FOR WEARABLES USED IN SMART MANUFACTURING BY TYPE, TABLE 7 GLOBAL MARKET FOR SMART MANUFACTURING BY INDUSTRY, THROUGH TABLE 8 GLOBAL MARKET FOR SMART MANUFACTURING BY MANUFACTURING TYPE, TABLE 9 GLOBAL MARKET FOR SMART MANUFACTURING FOR THE CHEMICAL AND PETROLEUM INDUSTRY BY REGION, TABLE 10 GLOBAL MARKET FOR SMART MANUFACTURING FOR THE AEROSPACE AND DEFENSE INDUSTRY BY REGION, TABLE 11 GLOBAL MARKET FOR SMART MANUFACTURING FOR AUTOMOTIVE INDUSTRY BY REGION, TABLE 12 GLOBAL MARKET FOR SMART MANUFACTURING FOR HIGH TECH INDUSTRY BY REGION, TABLE 13 GLOBAL MARKET FOR SMART MANUFACTURING FOR CONSUMER PACKAGING INDUSTRY BY REGION, TABLE 14 GLOBAL MARKET FOR SMART MANUFACTURING BY REGION, THROUGH TABLE 15 NORTH AMERICAN MARKET FOR SMART MANUFACTURING BY INDUSTRY, TABLE 16 NORTH AMERICAN MARKET FOR SMART MANUFACTURING BY INFORMATION TECHNOLOGY CATEGORY, TABLE 17 ASIA-PACIFIC MARKET FOR SMART MANUFACTURING BY INDUSTRY, TABLE 18 ASIA-PACIFIC MARKET FOR SMART MANUFACTURING BY INFORMATION TECHNOLOGY CATEGORY, TABLE 19 EUROPEAN MARKET FOR SMART MANUFACTURING BY INDUSTRY, TABLE 20 EUROPEAN MARKET FOR SMART MANUFACTURING BY INFORMATION TECHNOLOGY CATEGORY, TABLE 21 REST OF THE WORLD MARKET FOR SMART MANUFACTURING BY INDUSTRY, TABLE 22 REST OF THE WORLD MARKET FOR SMART MANUFACTURING BY INFORMATION TECHNOLOGY CATEGORY, TABLE 23 SMART MANUFACTURING LEADERS BY INFORMATION TECHNOLOGY CATEGORY

9 LIST OF FIGURES FIGURE TITLE SUMMARY FIGURE GLOBAL MARKET FOR SMART MANUFACTURING, BY REGION, FIGURE 1 BLOCK DIAGRAM OF A TYPICAL WEARABLE DEVICE 26 FIGURE 2 SMART MANUFACTURING VALUE CHAIN WITH EXAMPLES OF COMPANIES INVOLVED AT EACH STAGE FIGURE 3 BOSCH IOT SUITE 72 FIGURE 4 CISCO IOT SYSTEM 75 FIGURE 5 STATED SAVINGS FROM USING ERICSSON IOT 76 FIGURE 6 IOT POTENTIAL GAINS IN KEY SECTORS

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