Drives & Controls April 2022

NEWS n 5 Industrial software will overtake hardware for the first time in 2022 THIS YEARWILL BE “a turning point” for industrial automation with the average manufacturer spending more on industrial software than on automation hardware for the first time ever, according to new research by IoT Analytics. It says that just five years ago, the industrial software market was about 40% smaller than the hardware OT (operational technology) market, but manufacturing is increasingly becoming software-based and five years from now, the industrial software market will be twiceas big as the hardware market. According to the analyst, the market was worth $109bn last year, but will expand at a CAGR of 18% over the coming five years to be worth an estimated $288bn by 2027. The changes are also affecting the shape of the vendor market, with four of the five biggest suppliers of industrial software now coming from the IT sector, rather than being automation specialists. The only traditional automation supplier in the top five is Siemens, in third position, with an estimated 5.3% of the industrial software market. Last year, Microsoft overtook SAP to become the world’s largest vendor of industrial software, with 10.4% of the market, according to IoT Analytics. Microsoft, it says, has gained significant market share due to its “dedicated focus on, and value proposition for, manufacturers”, most notably through its Microsoft Dynamics and Azure products. The analyst adds that Microsoft is among the top five suppliers in six of the 14 industrial software categories that it analysed – namely, cloud infrastructure and services, cybersecurity, data and analytics, field service, IIoT platforms and virtualisation. In a new report, Industrial Software Landscape 2022–2027 , IoT Analytics identifies several key factors driving the wider adoption of industrial software, including: n The digitisation of information flows and data Many previously unconnected assets are coming online, workers’ instructions are being digitised, and processes such as KPI measurement are being automated. n Softwarisation/virtualisation of hardware Hardware budgets are becoming software budgets – for example, companies are spending their money on public cloud software instead of operating their own servers. n Integration of systems and processes More APIs, interfaces and connectors are being built, tying in suppliers or customers. n More capable and efficient software Software is starting to replace humans in some tasks, or providing significant support. IoT Analytics compares the limited CAD tools of 20 years ago with the powerful capabilities of real-time 3D simulation and other tools today. n Systems and data need more efficient protection As system complexity grows, cyber-threats are driving the need for more protection and detection. n Manufacturers reacting to short-term changes and new requirements Market needs are changing, and transparency, flexibility, and the ability to react quickly, are becoming critical. Software can often offer this and allows manufacturers to monitor new KPIs, such as tracking CO 2 emissions. IoT Analytics reports that the industrial software market is relatively fragmented, with some high-growth categories, such as cloud infrastructure and services, cybersecurity, and data analytics. As more companies digitise and modernise their software set-ups, those suppliers with a large involvement in these segments will gain a bigger share of industrial software budgets. The growth rates of the top 10 industrial software suppliers vary widely. In five years’ time, the top 10 will almost certainly not be the same as today, the analyst predicts. Factors that will determine future success will include suppliers’ ability to: n differentiate themselves in new edge-to-cloud set-ups; n transition to SaaS (software as a service); and n offer new capabilities, such as AI or low-code technologies. www.iot-analytics.com “The only traditional automation supplier in the top five is Siemens, in third position, with 5.3% of the industrial software market.” www.drivesncontrols.com April 2022 SIEMENS HAS JOINED forces with two UK engineering companies, Parmley Graham and AR Controls, to produce bespoke AGVs (automated guided vehicles) for a variety of industries. The alliance hopes to tap into the rapidly expanding global AGV market, which is expected to almost double in size to $3.72bn by 2028. The new venture builds on an earlier joint project, under which the partners supplied hundreds of AGVs to a car plant in the North of England. Siemens is providing the AGVs in a kit form, including a safety-related servodrive system for extra-low voltage (24-48V DC) applications. Sunderland-based AR Controls will design and build the vehicles, while Gateshead-based Parmley Graham is drawing up the hardware specifications, organising kit-based bills of material, and sourcing third-party products for the AGVs. The collaboration comes at a time when the demand for AGVs is rising rapidly. Following the Covid pandemic, many manufacturers have rethought the processes they use in their warehouses, how they move goods in their factories, and how they deal with labour shortages. The partners say that AGVs bring benefits including improved warehouse efficiencies, streamlined logistics management, lower labour costs, faster delivery, and a reduced risk of injuries. Siemens teams up with UK firms to offer bespoke AGVs The ten largest industrial software suppliers in 2021 were dominated by traditional IT vendors rather than automation specialists. Source: IoT Analytics