Automation in commercial buildings has focused on four sectors: HVAC, lighting, access control, plus fire and life safety. Now, new applications in space management, environmental monitoring, asset management, and cleanliness & hygiene management are being offered to enhance existing building automation systems.
Together, these new smart building solutions will grow at a 32 percent CAGR over the next 8 years to create $2 billion in software and services revenues by 2026, according to the latest worldwide market study by ABI Research.
Smart Building Market Development
Space management solutions are being created and engineered with a variety of sensors, including contact, motion, and occupancy. Typically implemented into office buildings, new space management solutions are becoming more useful in significantly larger commercial buildings, such as airports or stadiums.
"Occupancy and motion sensors can be used to help improve the speed in which travelers can maneuver themselves through the airport. Real-time insights mean that managers can deploy staff as needed to relevant areas of the building," said Harriet Sumnall, research analyst at ABI Research.
Environmental monitoring consists of sensors that are monitoring noise levels, air quality, and natural lighting systems. These solutions enable the ability to see real-time conditions of areas within buildings and monitor the conditions in each room to improve overall occupant wellness and comfort.
Asset management solutions are becoming increasingly important within specific commercial buildings, especially healthcare entities. The use of asset management solutions helps hospitals improve their inventory management, lower operational costs, and automate the clinical inventory processes.
Cleanliness and hygiene management is a newer solution for the smart building market. Georgia Pacific (GP) and Kimberly Clarke offer intelligent systems to run restrooms more efficiently. For example, GP’s restocking solutions use sensors that send alerts when soap and paper dispensers are running low.
"Their biggest value comes from a reduction in labor costs through cleaning optimization and higher customer satisfaction by reducing stock-outs," says Ms. Sumnall.
The current HVAC, lighting, access control, and fire and life safety solutions combine to create the core applications of Building Management Systems (BMS) offered by market leaders, Honeywell, Schneider Electric, Signify, and Siemens.
However, as the smart building market evolves, the ecosystem is no longer limited to the traditional BMS vendors. Now it includes the OEMs of consumables and construction materials adding complementary IoT solutions.
Outlook for Smart Building Applications Growth
The more important competitive dynamic to recognize is that newer suppliers, most with wireless communication offerings, can more easily sell into the untapped market of older and smaller buildings. Smart building technology vendors are part of the Internet of Things (IoT) phenomena.
That said, this won’t necessarily change the focus of the traditional BMS vendors. However, their competitiveness will be greatly diminished if their systems are not interoperable with IoT-based solutions from these newer smart building technology suppliers.
"In this more complex supplier market with more applications, interoperability will be what differentiates all market participants, concludes Ms. Sumnall.
Technology | Media | Telecommunications
Monday, February 17, 2020
Friday, February 14, 2020
How Blockchain Enables Self-Sovereign Identity Apps
Many organizations need to verify your identity before you initiate an online transaction. But there are two issues: it's easy for fraudsters to exploit the system when all that's required is an email address and password. And, when the burden of proof is higher, this can be problematic for users.
The ability to either create or impersonate identities is a challenge for many businesses, particularly those processing financial data and associated payments. According to the latest worldwide market study by Juniper Research, in 2024 over $50 billion will likely be lost due to online payment fraud.
There are multiple points of potential failure in conventional identification and verification processes, particularly for online payment details. Passwords and centralized repositories are typically the core security issue in the growing problem of identity fraud.
Blockchain and SSI Market Development
Juniper analysts believe that one of the most promising approaches to improve online verification is Self-Sovereign Identity (SSI) solutions. This verification approach uses a secure blockchain to keep a record of who has validated an identity credential.
According to Juniper, the SSI movement which uses blockchain to give users direct control of who accesses their online credentials will reach annual revenue of $1.1 billion by 2024 -- that's up from an estimated $100 million by the end of 2020.
The latest research analysis uncovered that approximately 88 percent of revenue for SSI providers will likely come from businesses paying a subscription fee to access these verified identity services.
As SSI solutions are still in their early stages, early adopter companies require a consultancy approach to aid implementation, as well as the technical solution from emerging SSI market leaders, such as Evernym, Civic and Metadium.
Meanwhile, Juniper analysts also believe that the need for the continued use of third party blockchain servers will result in the continued dominance of the subscription services business model.
Juniper Research believes other business models -- such as billing per user or per request -- will grow slowly because of the many forms of competition that SSI faces, both from digital and traditional forms of identity verification.
This will result in about 32 million end-user apps being in use by the end of 2024.
Outlook for Blockchain and SSI Use Case Growth
The latest research shows how SSI will appeal to institutions that value secure and traceable identities in the long run, thanks to the immutability of blockchain records and the absence of large data repositories. However, there will be little differentiation of the user experience.
"Self-Sovereign Identity has high potential due to its security and data privacy credentials, but our report shows that, in order for it to succeed, businesses and governments need to take the lead and rule out the use of less secure, but easier to implement, alternatives," said James Moar, lead analyst at Juniper Research.
The ability to either create or impersonate identities is a challenge for many businesses, particularly those processing financial data and associated payments. According to the latest worldwide market study by Juniper Research, in 2024 over $50 billion will likely be lost due to online payment fraud.
There are multiple points of potential failure in conventional identification and verification processes, particularly for online payment details. Passwords and centralized repositories are typically the core security issue in the growing problem of identity fraud.
Blockchain and SSI Market Development
Juniper analysts believe that one of the most promising approaches to improve online verification is Self-Sovereign Identity (SSI) solutions. This verification approach uses a secure blockchain to keep a record of who has validated an identity credential.
According to Juniper, the SSI movement which uses blockchain to give users direct control of who accesses their online credentials will reach annual revenue of $1.1 billion by 2024 -- that's up from an estimated $100 million by the end of 2020.
The latest research analysis uncovered that approximately 88 percent of revenue for SSI providers will likely come from businesses paying a subscription fee to access these verified identity services.
As SSI solutions are still in their early stages, early adopter companies require a consultancy approach to aid implementation, as well as the technical solution from emerging SSI market leaders, such as Evernym, Civic and Metadium.
Meanwhile, Juniper analysts also believe that the need for the continued use of third party blockchain servers will result in the continued dominance of the subscription services business model.
Juniper Research believes other business models -- such as billing per user or per request -- will grow slowly because of the many forms of competition that SSI faces, both from digital and traditional forms of identity verification.
This will result in about 32 million end-user apps being in use by the end of 2024.
Outlook for Blockchain and SSI Use Case Growth
The latest research shows how SSI will appeal to institutions that value secure and traceable identities in the long run, thanks to the immutability of blockchain records and the absence of large data repositories. However, there will be little differentiation of the user experience.
"Self-Sovereign Identity has high potential due to its security and data privacy credentials, but our report shows that, in order for it to succeed, businesses and governments need to take the lead and rule out the use of less secure, but easier to implement, alternatives," said James Moar, lead analyst at Juniper Research.
Monday, February 10, 2020
Global Upside for Robotic Systems and Drones Market
Global spending on robotic systems and drones will reach $128.7 billion in 2020 -- that's an increase of 17.1 percent over 2019, according to the latest worldwide market study by International Data Corporation (IDC). By 2023, IDC expects the investment will reach $241.4 billion with a compound annual growth rate (CAGR) of 19.8 percent.
Robotic systems will be the larger of the two categories throughout the five-year forecast period with worldwide robotics spending forecast to be $112.4 billion in 2020. Spending on drones will total $16.3 billion in 2020 but is forecast to grow at a faster rate (33.3 percent CAGR) than robotics systems (17.8 percent CAGR).
Robotics and Drones Market Development
Hardware purchases will dominate the robotics market with 60 percent of all spending going toward robotic systems, after-market robotics hardware, and system hardware. Purchases of industrial robots and service robots will total more than $30 billion in 2020.
Meanwhile, robotics-related software spending will mostly go toward purchases of command and control applications and robotics-specific applications. Services spending will be spread across several segments, including systems integration, application management, and hardware deployment and support.
Services spending is forecast to grow at a slightly faster rate (21.3 percent CAGR) than software or hardware spending (21.2 percent CAGR and 15.5 percent CAGR, respectively).
"Software developments are among the most important trends currently shaping the robotics industry. Solution providers are progressively integrating additional software-based, often cloud-based, functionalities into robotics systems," said Remy Glaisner, research director at IDC.
Equally important is the early trend driven by burgeoning 'software-defined' capabilities for robotics and drone solutions. The purpose is to enable systems beyond some of the limitations imposed by hardware and to open up entirely new sets of commercially viable use-cases.
Discrete manufacturing will be responsible for nearly half of all robotics systems spending worldwide in 2020 with purchases totaling $53.8 billion. The next largest industries for robotics systems will be process manufacturing, resource industries, healthcare, and retail.
The industries that will see the fastest growth in robotics spending over the 2019-2023 forecast are wholesale (30.5 percent CAGR), retail (29.3 percent CAGR), and construction (25.2 percent CAGR).
Spending on drones will also be dominated by hardware purchases with more than 90 percent of the category total going toward consumer drones, after-market sensors, and service drones in 2020. Drone software spending will primarily go to command and control applications and drone-specific applications while services spending will be led by education and training.
Drone software will see the fastest growth (38.2 percent CAGR) over the five-year forecast, followed closely by services (37.6 percent CAGR) and hardware (32.8 percent CAGR).
Consumer spending on drones will total $6.5 billion in 2020 and will represent nearly 40 percent of the worldwide total throughout the forecast. Industry spending on drones will be led by utilities ($1.9 billion), construction ($1.4 billion), and the discrete manufacturing and resource industries ($1.2 billion each).
IDC expects the resource industry to move ahead of both construction and discrete manufacturing to become the second largest industry for drone spending in 2021. The fastest growth in drone spending over the five-year forecast period will come from the federal/central government (63.4 percent CAGR), education (55.9 percent CAGR), and state or local government (49.9 percent CAGR).
Outlook for Regional Growth in Technology Investment
On a geographic basis, China will be the largest region for drones and robotics systems with overall spending of $46.9 billion in 2020. Asia-Pacific (excluding Japan and China) will be the second largest region with $25.1 billion in spending, followed by the United States ($17.5 billion) and Western Europe ($14.4 billion).
China will also be the leading region for robotics systems with $43.4 billion in spending this year. The United States will be the largest region for drones in 2020 with spending of nearly $5.7 billion.
The fastest spending growth for robotics systems will be in the Middle East & Africa which will see a five-year CAGR of 24.9 percent. China will follow closely with a CAGR of 23.5 percent. The fastest growth in drone spending will be in APeJC, with a five-year CAGR of 78.5 percent, and Japan (63 percent CAGR).
Robotic systems will be the larger of the two categories throughout the five-year forecast period with worldwide robotics spending forecast to be $112.4 billion in 2020. Spending on drones will total $16.3 billion in 2020 but is forecast to grow at a faster rate (33.3 percent CAGR) than robotics systems (17.8 percent CAGR).
Robotics and Drones Market Development
Hardware purchases will dominate the robotics market with 60 percent of all spending going toward robotic systems, after-market robotics hardware, and system hardware. Purchases of industrial robots and service robots will total more than $30 billion in 2020.
Meanwhile, robotics-related software spending will mostly go toward purchases of command and control applications and robotics-specific applications. Services spending will be spread across several segments, including systems integration, application management, and hardware deployment and support.
Services spending is forecast to grow at a slightly faster rate (21.3 percent CAGR) than software or hardware spending (21.2 percent CAGR and 15.5 percent CAGR, respectively).
"Software developments are among the most important trends currently shaping the robotics industry. Solution providers are progressively integrating additional software-based, often cloud-based, functionalities into robotics systems," said Remy Glaisner, research director at IDC.
Equally important is the early trend driven by burgeoning 'software-defined' capabilities for robotics and drone solutions. The purpose is to enable systems beyond some of the limitations imposed by hardware and to open up entirely new sets of commercially viable use-cases.
Discrete manufacturing will be responsible for nearly half of all robotics systems spending worldwide in 2020 with purchases totaling $53.8 billion. The next largest industries for robotics systems will be process manufacturing, resource industries, healthcare, and retail.
The industries that will see the fastest growth in robotics spending over the 2019-2023 forecast are wholesale (30.5 percent CAGR), retail (29.3 percent CAGR), and construction (25.2 percent CAGR).
Spending on drones will also be dominated by hardware purchases with more than 90 percent of the category total going toward consumer drones, after-market sensors, and service drones in 2020. Drone software spending will primarily go to command and control applications and drone-specific applications while services spending will be led by education and training.
Drone software will see the fastest growth (38.2 percent CAGR) over the five-year forecast, followed closely by services (37.6 percent CAGR) and hardware (32.8 percent CAGR).
Consumer spending on drones will total $6.5 billion in 2020 and will represent nearly 40 percent of the worldwide total throughout the forecast. Industry spending on drones will be led by utilities ($1.9 billion), construction ($1.4 billion), and the discrete manufacturing and resource industries ($1.2 billion each).
IDC expects the resource industry to move ahead of both construction and discrete manufacturing to become the second largest industry for drone spending in 2021. The fastest growth in drone spending over the five-year forecast period will come from the federal/central government (63.4 percent CAGR), education (55.9 percent CAGR), and state or local government (49.9 percent CAGR).
Outlook for Regional Growth in Technology Investment
On a geographic basis, China will be the largest region for drones and robotics systems with overall spending of $46.9 billion in 2020. Asia-Pacific (excluding Japan and China) will be the second largest region with $25.1 billion in spending, followed by the United States ($17.5 billion) and Western Europe ($14.4 billion).
China will also be the leading region for robotics systems with $43.4 billion in spending this year. The United States will be the largest region for drones in 2020 with spending of nearly $5.7 billion.
The fastest spending growth for robotics systems will be in the Middle East & Africa which will see a five-year CAGR of 24.9 percent. China will follow closely with a CAGR of 23.5 percent. The fastest growth in drone spending will be in APeJC, with a five-year CAGR of 78.5 percent, and Japan (63 percent CAGR).
Friday, February 07, 2020
How Artificial Intelligence Enables a Diverse Workplace
While much of the prior interest in automation has focused on very limited worker categories and related tasks -- such as traditional manufacturing -- there's now a growing interest in exploring the potential to automate all types of repetitive work.
Artificial intelligence (AI) applications -- as an example, virtual personal assistants and chatbots -- are being adopted rapidly within the global workplace. By 2024, Gartner predicts that these technologies will replace almost 69 percent of the typical manager’s workload.
AI Applications Market Development
"The role of manager will see a complete overhaul in the next four years," said Helen Poitevin, vice president at Gartner. "Currently, managers often need to spend time filling in forms, updating information and approving workflows. By using AI to automate these tasks, they can spend less time managing transactions and can invest more time on learning, performance management and goal setting."
According to the Gartner assessment, AI and emerging technologies will likely transform the role of the manager and will allow employees to extend their degree of responsibility and influence, without taking on management tasks.
Gartner analysts believe that application leaders focused on innovation and AI are now accountable for improving their worker experience, developing worker skills and building organizational competence in the responsible use of AI.
"Application leaders will need to support a gradual transition to increased automation of management tasks as this functionality becomes increasingly available across more enterprise applications," said Ms. Poitevin.
Nearly 75 percent of heads of recruiting reported that talent shortages will have a major effect on their organizations. Enterprises have been experiencing a critical talent shortage for several years.
Organizations need to consider people with disabilities, an untapped pool of critically skilled talent. Today, AI and other emerging technologies are making work more accessible for employees with disabilities.
Gartner estimates that organizations actively employing people with disabilities have 89 percent higher retention rates, a 72 percent increase in employee productivity and a 29 percent increase in profitability.
In addition, Gartner said that by 2023, the number of people with disabilities employed will triple, due to AI and emerging technologies reducing barriers to access.
Outlook for New Diverse Workforce Applications
"Some organizations are successfully using AI to make work accessible for those with special needs," said Ms. Poitevin. "Restaurants are piloting AI robotics technology that enables paralyzed employees to control robotic waiters remotely. With technologies like braille-readers and virtual reality, organizations are more open to opportunities to employ a diverse workforce."
Applying AI for new employee diversity applications is likely to gain momentum in the years ahead. By 2022, organizations that do not employ people with disabilities will fall behind their competitors.
Artificial intelligence (AI) applications -- as an example, virtual personal assistants and chatbots -- are being adopted rapidly within the global workplace. By 2024, Gartner predicts that these technologies will replace almost 69 percent of the typical manager’s workload.
AI Applications Market Development
"The role of manager will see a complete overhaul in the next four years," said Helen Poitevin, vice president at Gartner. "Currently, managers often need to spend time filling in forms, updating information and approving workflows. By using AI to automate these tasks, they can spend less time managing transactions and can invest more time on learning, performance management and goal setting."
According to the Gartner assessment, AI and emerging technologies will likely transform the role of the manager and will allow employees to extend their degree of responsibility and influence, without taking on management tasks.
Gartner analysts believe that application leaders focused on innovation and AI are now accountable for improving their worker experience, developing worker skills and building organizational competence in the responsible use of AI.
"Application leaders will need to support a gradual transition to increased automation of management tasks as this functionality becomes increasingly available across more enterprise applications," said Ms. Poitevin.
Nearly 75 percent of heads of recruiting reported that talent shortages will have a major effect on their organizations. Enterprises have been experiencing a critical talent shortage for several years.
Organizations need to consider people with disabilities, an untapped pool of critically skilled talent. Today, AI and other emerging technologies are making work more accessible for employees with disabilities.
Gartner estimates that organizations actively employing people with disabilities have 89 percent higher retention rates, a 72 percent increase in employee productivity and a 29 percent increase in profitability.
In addition, Gartner said that by 2023, the number of people with disabilities employed will triple, due to AI and emerging technologies reducing barriers to access.
Outlook for New Diverse Workforce Applications
"Some organizations are successfully using AI to make work accessible for those with special needs," said Ms. Poitevin. "Restaurants are piloting AI robotics technology that enables paralyzed employees to control robotic waiters remotely. With technologies like braille-readers and virtual reality, organizations are more open to opportunities to employ a diverse workforce."
Applying AI for new employee diversity applications is likely to gain momentum in the years ahead. By 2022, organizations that do not employ people with disabilities will fall behind their competitors.
Monday, February 03, 2020
Wholesale Mobile Roaming Revenue will Reach $41B
Mobile roaming enables customers of one mobile provider to use the network of another when the subscriber’s 'home network' is unavailable. As a result, network operators acquired agility in releasing new mobile communication services.
Over the next five years, mobile network operators must ensure they can offer new 5G services to subscribers when roaming away from the home network. However, the majority of providers will launch offerings through alliances of sub-regional bilateral packages to gain access to other networks.
Global Wholesale Roaming Market Development
According to the latest worldwide market study by Juniper Research, the global number of roaming subscribers will reach 1.1 billion by 2024 -- that's rising from 900 million subscribers in 2020. This represents a growth of 28 percent over the next four years.
The new research forecasts that the wholesale roaming model will be crucial to mitigating threats from high data traffic generated by emerging technologies, such as 5G and Rich Communication Services (RCS).
Wholesale roaming involves operators forming bilateral agreements that secure the use of each other’s mobile networks for subscribers. These agreements include pre-agreed costs and fair usage of voice, text messaging and data services while roaming.
Juniper forecasts that existing wholesale roaming agreements will need to be amended in order to accommodate large amounts of data traffic generated by 5G connections.
Network operators must ensure that fair usage policies reflect the increase in cellular traffic, or risk a low quality of user experience on visited networks. RCS is also anticipated to place added pressure on operators that offer roaming services.
"By the end of 2020, there will be over 270 million RCS messaging users. In order to retain a high quality user experience, wholesale roaming agreements must be expanded to include RCS or operators risk losing traffic to OTT messaging applications," said Sam Barker, senior analyst at Juniper Research.
Outlook for 5G Mobile Roaming Growth
Juniper analysts also forecast that mobile network operators will increase adoption of the wholesale roaming model due to its ability to rapidly update usage policies and roaming capabilities.
By 2024, about 20 percent of mobile roaming connections will be attributable to 5G-capable smartphones. Subsequently, wholesale roaming revenue -- including voice, text messaging and data roaming -- will reach $41 billion by 2024, which will rise from $37 billion in 2019.
Over the next five years, mobile network operators must ensure they can offer new 5G services to subscribers when roaming away from the home network. However, the majority of providers will launch offerings through alliances of sub-regional bilateral packages to gain access to other networks.
Global Wholesale Roaming Market Development
According to the latest worldwide market study by Juniper Research, the global number of roaming subscribers will reach 1.1 billion by 2024 -- that's rising from 900 million subscribers in 2020. This represents a growth of 28 percent over the next four years.
The new research forecasts that the wholesale roaming model will be crucial to mitigating threats from high data traffic generated by emerging technologies, such as 5G and Rich Communication Services (RCS).
Wholesale roaming involves operators forming bilateral agreements that secure the use of each other’s mobile networks for subscribers. These agreements include pre-agreed costs and fair usage of voice, text messaging and data services while roaming.
Juniper forecasts that existing wholesale roaming agreements will need to be amended in order to accommodate large amounts of data traffic generated by 5G connections.
Network operators must ensure that fair usage policies reflect the increase in cellular traffic, or risk a low quality of user experience on visited networks. RCS is also anticipated to place added pressure on operators that offer roaming services.
"By the end of 2020, there will be over 270 million RCS messaging users. In order to retain a high quality user experience, wholesale roaming agreements must be expanded to include RCS or operators risk losing traffic to OTT messaging applications," said Sam Barker, senior analyst at Juniper Research.
Outlook for 5G Mobile Roaming Growth
Juniper analysts also forecast that mobile network operators will increase adoption of the wholesale roaming model due to its ability to rapidly update usage policies and roaming capabilities.
By 2024, about 20 percent of mobile roaming connections will be attributable to 5G-capable smartphones. Subsequently, wholesale roaming revenue -- including voice, text messaging and data roaming -- will reach $41 billion by 2024, which will rise from $37 billion in 2019.
Friday, January 31, 2020
Economic Impact of Automation and Big Data Analytics
When you think about the applications of big data and analytics, the industrial and manufacturing sector may not be top-of-mind. However, consider that every type of commercial enterprise will become a 'digital business' and it makes sense.
Automation and big data analytics will continue to transform key sectors of the global economy.
Today's factories run on data. To harness that data, manufacturers are turning to software applications such as Electronic Resource Planning (ERP), Manufacturing Execution Systems (MES), Manufacturing Operations Management (MOM), Product Lifecycle Management (PLM), Inventory Management, and CRM and Demand Planning.
Big Data Analytics App Market Development
The investment within the industrial and manufacturing sector on these applications is set to grow from $18 billion in 2019 to just over $27 billion in 2024, according to the latest worldwide market study by ABI Research.
"Data underpins activities such as onboarding raw materials, optimizing the production line, organizing the facility, and even to understand clients and the final customer," said Michael Larner, principal analyst at ABI Research.
ERP systems account for over fifty percent of the spend as they provide customers with a single solution to monitor activities on the production line, to understand the firm’s ability to fulfill orders as well as automate many back-office functions.
MES software is expected to be the highest growing segment as manufacturers look to optimize the performance of individual machines and the production line. The spending on MES is forecasted to grow by 13.5 percent CAGR and be worth $2.3 billion in 2024.
A diverse mix of vendors are targeting the industrial markets including software giants Oracle, Salesforce, and SAP, and those with a heritage in industrial manufacturing such as ABB, GE, and Honeywell.
The vendor mix includes others with an industrial-focused software portfolio, such as Dassault Systèmes and Siemens, and start-ups like Katana and Archdesk, which are helping smaller manufacturers scale.
"Supplier propositions are evolving. For example, ERP suppliers continue to add modules such as MES and MOM while inventory management providers are adding demand planning capabilities. Both are blurring segment definitions," Larner adds.
Outlook for AI Software Applications Growth
The software applications no longer just provide data regarding the current conditions. As a result of suppliers investing in artificial intelligence (AI) and machine learning, the applications’ analytical capabilities can help manufacturers plan for future scenarios in their facilities and the wider operating environment.
"Data now flows from the production line to the boardroom and, thanks to APIs, between the software applications. Manufacturers should partner with system integrators to design and assemble their data jigsaw," Larner concludes.
Automation and big data analytics will continue to transform key sectors of the global economy.
Today's factories run on data. To harness that data, manufacturers are turning to software applications such as Electronic Resource Planning (ERP), Manufacturing Execution Systems (MES), Manufacturing Operations Management (MOM), Product Lifecycle Management (PLM), Inventory Management, and CRM and Demand Planning.
Big Data Analytics App Market Development
The investment within the industrial and manufacturing sector on these applications is set to grow from $18 billion in 2019 to just over $27 billion in 2024, according to the latest worldwide market study by ABI Research.
"Data underpins activities such as onboarding raw materials, optimizing the production line, organizing the facility, and even to understand clients and the final customer," said Michael Larner, principal analyst at ABI Research.
ERP systems account for over fifty percent of the spend as they provide customers with a single solution to monitor activities on the production line, to understand the firm’s ability to fulfill orders as well as automate many back-office functions.
MES software is expected to be the highest growing segment as manufacturers look to optimize the performance of individual machines and the production line. The spending on MES is forecasted to grow by 13.5 percent CAGR and be worth $2.3 billion in 2024.
A diverse mix of vendors are targeting the industrial markets including software giants Oracle, Salesforce, and SAP, and those with a heritage in industrial manufacturing such as ABB, GE, and Honeywell.
The vendor mix includes others with an industrial-focused software portfolio, such as Dassault Systèmes and Siemens, and start-ups like Katana and Archdesk, which are helping smaller manufacturers scale.
"Supplier propositions are evolving. For example, ERP suppliers continue to add modules such as MES and MOM while inventory management providers are adding demand planning capabilities. Both are blurring segment definitions," Larner adds.
Outlook for AI Software Applications Growth
The software applications no longer just provide data regarding the current conditions. As a result of suppliers investing in artificial intelligence (AI) and machine learning, the applications’ analytical capabilities can help manufacturers plan for future scenarios in their facilities and the wider operating environment.
"Data now flows from the production line to the boardroom and, thanks to APIs, between the software applications. Manufacturers should partner with system integrators to design and assemble their data jigsaw," Larner concludes.
Monday, January 27, 2020
Upside for Smart City Device Management Solutions
Smart city projects will gain new momentum in 2020 as more municipal government leaders adopt new technologies, such as the Internet of Things (IoT) and Machine to Machine (M2M) communications.
Street lighting is the area where adoption is noteworthy. According to the latest worldwide market study by Berg Insight, the installed base of smart street lights was 10.4 million worldwide at the end of 2018.
Growing at a compound annual growth rate (CAGR) of 24.5 percent, the installed base will reach 31.2 million in 2023.
Smart City Market Development
Global market leadership continues to evolve as new projects are launched. Europe is the leading smart street lighting market accounting for nearly 40 percent of the installed base.
Characterized by a higher degree of utility ownership of street lighting assets, the North American market has seen a more scattered uptake of smart street lighting but is nevertheless home to several of the world’s largest deployments.
North America accounted for around 30 percent of the global installed base in 2018. The Rest of World accounted for 31 percent of the global installed base in 2018 and the Chinese market constitutes a large part of these installations.
The world’s leading smart street lighting vendor is UK-based Telensa which accounted for 14.4 percent of the global installed base of connected endpoints in the third quarter of 2019.
Included in the top three are also Signify and Sensus, of which the latter became a top player within the market in 2017 through its acquisition of the major smart street lighting vendor SELC.
Together, these three vendors account for a third of the global installed base of individually controlled smart street lights. US-based Itron is also a leading player in the networking segment, having acquired Silver Spring Networks in 2018.
Other important smart street lighting vendors include Rongwen Energy Technology Group from China; CIMCON Lighting, Acuity Brands, Current, LED Roadway Lighting and DimOnOff from North America; Lucy Zodion and SSE from the UK; Reverberi Enetec from Italy; Flashnet from Romania and Telematics Wireless from Israel.
"While various proprietary RF mesh or star networks today account for the majority of smart street lighting installations, the adoption of LPWA technologies such as NB-IoT and LoRa is now growing fast, particularly in the European and Asian markets," said Levi Ostling, IoT analyst at Berg Insight.
Outlook for Smart Lighting Deployment Growth
In line with this development, the smart street lighting market is currently undergoing significant transformation and is now entering a new era of competition where the success of vendors will be determined by their ability to establish themselves as competitive providers of communications and management platforms for smart city devices.
"Finding new ways to monetize data from a variety of smart city sensors and devices will be essential for smart street lighting vendors in the next couple of years to avoid becoming mere vendors of commoditized hardware," concluded Mr. Ostling.
Street lighting is the area where adoption is noteworthy. According to the latest worldwide market study by Berg Insight, the installed base of smart street lights was 10.4 million worldwide at the end of 2018.
Growing at a compound annual growth rate (CAGR) of 24.5 percent, the installed base will reach 31.2 million in 2023.
Smart City Market Development
Global market leadership continues to evolve as new projects are launched. Europe is the leading smart street lighting market accounting for nearly 40 percent of the installed base.
Characterized by a higher degree of utility ownership of street lighting assets, the North American market has seen a more scattered uptake of smart street lighting but is nevertheless home to several of the world’s largest deployments.
North America accounted for around 30 percent of the global installed base in 2018. The Rest of World accounted for 31 percent of the global installed base in 2018 and the Chinese market constitutes a large part of these installations.
The world’s leading smart street lighting vendor is UK-based Telensa which accounted for 14.4 percent of the global installed base of connected endpoints in the third quarter of 2019.
Included in the top three are also Signify and Sensus, of which the latter became a top player within the market in 2017 through its acquisition of the major smart street lighting vendor SELC.
Together, these three vendors account for a third of the global installed base of individually controlled smart street lights. US-based Itron is also a leading player in the networking segment, having acquired Silver Spring Networks in 2018.
Other important smart street lighting vendors include Rongwen Energy Technology Group from China; CIMCON Lighting, Acuity Brands, Current, LED Roadway Lighting and DimOnOff from North America; Lucy Zodion and SSE from the UK; Reverberi Enetec from Italy; Flashnet from Romania and Telematics Wireless from Israel.
"While various proprietary RF mesh or star networks today account for the majority of smart street lighting installations, the adoption of LPWA technologies such as NB-IoT and LoRa is now growing fast, particularly in the European and Asian markets," said Levi Ostling, IoT analyst at Berg Insight.
Outlook for Smart Lighting Deployment Growth
In line with this development, the smart street lighting market is currently undergoing significant transformation and is now entering a new era of competition where the success of vendors will be determined by their ability to establish themselves as competitive providers of communications and management platforms for smart city devices.
"Finding new ways to monetize data from a variety of smart city sensors and devices will be essential for smart street lighting vendors in the next couple of years to avoid becoming mere vendors of commoditized hardware," concluded Mr. Ostling.
Friday, January 24, 2020
How Digital Transformation Drives Demand for IT Talent
Talent development was a reoccurring topic at the WEF 2020 event in Davos this week. In related news, Information and Communications Technology (ICT) full-time employment (FTE) will reach 55.3 million worldwide in 2020 -- that's an increase of 3.9 percent over 2019, according to the latest market study by International Data Corporation (IDC).
Moreover, the global ICT FTE workforce will maintain this pace of growth over the 2019-2023 forecast period, reaching more than 62 million people in 2023, with a five-year compound annual growth rate (CAGR) of 3.8 percent.
ICT Talent and Emerging Staffing Trends
IDC believes a person can, as part of an occupation, perform several roles and split their time across those roles. The combination of roles for an occupation may vary over time between industries and organizations, even though the activities performed by a role remain relatively stable.
Within ICT job roles, activities are performed within projects, programs, and lines of business related to development of software, hardware, or related services. ICT job roles can be found in any industry, enterprise, or organization and are not related only to the ICT specific industries.
The largest role groups are the applications group, containing eight roles related to software development and management, the other IT technical group, which includes five graphic, multimedia, and Web design roles, and the technical support group with five roles.
Together, these three groups will account for roughly three quarters of all ICT FTEs throughout the forecast. The cybersecurity role group will see the fastest growth with a five-year CAGR of 9.6 percent while the other IT technical role group will remain essentially flat with a 0.1 percent CAGR.
Of the 40 technology job roles covered by IDC, three will account for nearly one-third of all ICT roles throughout the forecast period: software developer or engineer, user support specialist, and systems analyst. The fastest-growing roles will be a data scientist (13.7 percent CAGR), machine learning developer (13.6 percent CAGR), and data engineer (12.9 percent CAGR).
IDC explored the impact that Digital Transformation (DX) will have on job skills and emerging roles within an enterprise organization. DX-related job roles focus on extracting and developing the value and utility of information, making business operations more effective and accelerating workforce transformation.
Non-DX job roles typically focus on less strategic ICT activities and primarily help to support day-to-day operations. Today, DX roles make up 40 percent of technology FTEs, but IDC expects this share to reach 52 percent by 2023.
"Digital Transformation (DX) technology investment is the driving force behind IT investment. The IT skillset needed to deliver DX projects is changing, with some of the fastest-growing demand for IT roles centered around data and intelligence," said Craig Simpson, research manager at IDC.
According to the IDC assessment, we're moving away from IT employees being focused around basic IT installation and maintenance roles and shifting toward roles that can build database architecture and functionality to derive intelligence and insights from an organization's DX efforts.
Outlook for Digital Transformation Talent Demand
As industries fully embrace digital transformation, new skills and roles are needed to shape technology roadmaps, and support and implement these changes. Discrete manufacturing, process manufacturing and banking are expected to employ the most FTEs for digital transformation.
The impact of digital transformation on the structure and composition of an IT organization is significant – as DX and innovation become a larger part of everyday IT operations, the IT organization is going to adjust who it hires, how IT employees are developed, and the career progression of IT professionals.
"IT organizational change will be an organizational transformation as critical to the success of the enterprise as DX itself," said Cushing Anderson, program vice president, IT Education and Certification at IDC.
Moreover, the global ICT FTE workforce will maintain this pace of growth over the 2019-2023 forecast period, reaching more than 62 million people in 2023, with a five-year compound annual growth rate (CAGR) of 3.8 percent.
ICT Talent and Emerging Staffing Trends
IDC believes a person can, as part of an occupation, perform several roles and split their time across those roles. The combination of roles for an occupation may vary over time between industries and organizations, even though the activities performed by a role remain relatively stable.
Within ICT job roles, activities are performed within projects, programs, and lines of business related to development of software, hardware, or related services. ICT job roles can be found in any industry, enterprise, or organization and are not related only to the ICT specific industries.
The largest role groups are the applications group, containing eight roles related to software development and management, the other IT technical group, which includes five graphic, multimedia, and Web design roles, and the technical support group with five roles.
Together, these three groups will account for roughly three quarters of all ICT FTEs throughout the forecast. The cybersecurity role group will see the fastest growth with a five-year CAGR of 9.6 percent while the other IT technical role group will remain essentially flat with a 0.1 percent CAGR.
Of the 40 technology job roles covered by IDC, three will account for nearly one-third of all ICT roles throughout the forecast period: software developer or engineer, user support specialist, and systems analyst. The fastest-growing roles will be a data scientist (13.7 percent CAGR), machine learning developer (13.6 percent CAGR), and data engineer (12.9 percent CAGR).
IDC explored the impact that Digital Transformation (DX) will have on job skills and emerging roles within an enterprise organization. DX-related job roles focus on extracting and developing the value and utility of information, making business operations more effective and accelerating workforce transformation.
Non-DX job roles typically focus on less strategic ICT activities and primarily help to support day-to-day operations. Today, DX roles make up 40 percent of technology FTEs, but IDC expects this share to reach 52 percent by 2023.
"Digital Transformation (DX) technology investment is the driving force behind IT investment. The IT skillset needed to deliver DX projects is changing, with some of the fastest-growing demand for IT roles centered around data and intelligence," said Craig Simpson, research manager at IDC.
According to the IDC assessment, we're moving away from IT employees being focused around basic IT installation and maintenance roles and shifting toward roles that can build database architecture and functionality to derive intelligence and insights from an organization's DX efforts.
Outlook for Digital Transformation Talent Demand
As industries fully embrace digital transformation, new skills and roles are needed to shape technology roadmaps, and support and implement these changes. Discrete manufacturing, process manufacturing and banking are expected to employ the most FTEs for digital transformation.
The impact of digital transformation on the structure and composition of an IT organization is significant – as DX and innovation become a larger part of everyday IT operations, the IT organization is going to adjust who it hires, how IT employees are developed, and the career progression of IT professionals.
"IT organizational change will be an organizational transformation as critical to the success of the enterprise as DX itself," said Cushing Anderson, program vice president, IT Education and Certification at IDC.
Monday, January 20, 2020
How 5G Technology will Evolve Mobile Voice Services
The global mobile communication services market has always been prone to technological disruption and innovation. Over the past 10 years, however, the mobile voice services landscape has been profoundly affected by advances in new technology.
These include the penetration of artificial intelligence (AI) and machine learning in communication services, the rise of highly customized Over-the-Top (OTT) mobile voice and messaging applications, and the rollout of superior connectivity modes such as 4G LTE and 5G.
Mobile Voice Service Market Development
To adapt, mobile network operators are migrating their networks to an all-IP ecosystem. Focus has moved beyond Evolved Packet Core (EPC) frameworks to converge data and voice services on the same network.
In turn, this has created offerings such as Voice over LTE (VoLTE), Voice over Wi-Fi (VoWi-Fi) and HD Voice services. This has enabled mobile network operators to provide services that can compete directly with the OTT software app providers within the voice services marketplace.
According to the latest worldwide market study by Juniper Research, mobile network operator voice revenue will drop to $208 billion by 2024 from $381 billion in 2019, as users continue to prefer more flexible and free OTT voice services.
The new research forecasts that third-party OTT voice services will continue to grow -- nearing 4.5 billion users by 2024. The study found that while this trend will contribute to declining voice revenue for mobile network operators, 5G proliferation will propel a number of nascent mobile voice and video services.
Juniper now forecasts that incumbent mobile voice revenue could decline by 45 percent in 2024, due to an increase of 88 percent in third-party OTT mobile VoIP users over the next five years. That said, Juniper analysts urge telecom service providers to invest in AI-enabled communication platforms that facilitate competitive IP voice service delivery.
However, the research anticipates that improved 4G coverage and a growing number of capable devices will boost the number of mobile video call users; partially offsetting voice revenue losses. The study forecasts that Video over LTE (ViLTE) network operator revenue will exceed $33 billion by 2024.
Outlook for 5G Mobile Applications Growth
Moreover, Juniper anticipates that 5G deployment will generate new revenue streams for network operators by enabling innovative use cases for VoLTE and ViLTE. They believe that high data throughput and low latency will propel emerging services that have applications across a range of industries.
Additionally, network operators need to accelerate VoLTE launches, in order to benefit from emerging 5G services. The study notes that establishing a 5G-enabled IP Multimedia Subsystem (IMS) infrastructure for VoLTE will provide a foundation for future voice services rollouts, which network operators could monetize in the future.
These include the penetration of artificial intelligence (AI) and machine learning in communication services, the rise of highly customized Over-the-Top (OTT) mobile voice and messaging applications, and the rollout of superior connectivity modes such as 4G LTE and 5G.
Mobile Voice Service Market Development
To adapt, mobile network operators are migrating their networks to an all-IP ecosystem. Focus has moved beyond Evolved Packet Core (EPC) frameworks to converge data and voice services on the same network.
In turn, this has created offerings such as Voice over LTE (VoLTE), Voice over Wi-Fi (VoWi-Fi) and HD Voice services. This has enabled mobile network operators to provide services that can compete directly with the OTT software app providers within the voice services marketplace.
According to the latest worldwide market study by Juniper Research, mobile network operator voice revenue will drop to $208 billion by 2024 from $381 billion in 2019, as users continue to prefer more flexible and free OTT voice services.
The new research forecasts that third-party OTT voice services will continue to grow -- nearing 4.5 billion users by 2024. The study found that while this trend will contribute to declining voice revenue for mobile network operators, 5G proliferation will propel a number of nascent mobile voice and video services.
Juniper now forecasts that incumbent mobile voice revenue could decline by 45 percent in 2024, due to an increase of 88 percent in third-party OTT mobile VoIP users over the next five years. That said, Juniper analysts urge telecom service providers to invest in AI-enabled communication platforms that facilitate competitive IP voice service delivery.
However, the research anticipates that improved 4G coverage and a growing number of capable devices will boost the number of mobile video call users; partially offsetting voice revenue losses. The study forecasts that Video over LTE (ViLTE) network operator revenue will exceed $33 billion by 2024.
Outlook for 5G Mobile Applications Growth
Moreover, Juniper anticipates that 5G deployment will generate new revenue streams for network operators by enabling innovative use cases for VoLTE and ViLTE. They believe that high data throughput and low latency will propel emerging services that have applications across a range of industries.
Additionally, network operators need to accelerate VoLTE launches, in order to benefit from emerging 5G services. The study notes that establishing a 5G-enabled IP Multimedia Subsystem (IMS) infrastructure for VoLTE will provide a foundation for future voice services rollouts, which network operators could monetize in the future.
Friday, January 17, 2020
Digital Business Transformation Requires Collaboration
The evolution of information technology (IT) leadership -- sometimes driven by the line of business (LoB), sometimes by the legacy IT organization -- is reaching a state of balance where business-IT collaboration sets the stage for meaningful digital transformation.
Software application leaders must examine these predictions to learn how this equilibrium will take shape in their organization. Over the next two years, ~50 percent of organizations will experience increased collaboration between their business and IT teams, according to the latest worldwide market study by Gartner.
Gartner believes that the dispute between LoB leaders and traditional CIOs or CTOs over the control of enterprise technology deployment will lessen, as both sides learn that joint participation in the process is critical to the success of innovation within a digital workplace.
Application Leadership Market Development
"Business units and IT teams can no longer function in silos, as distant teams can cause chaos," said Keith Mann, senior research director at Gartner. "Traditionally, each business unit has had its own technology personnel, which has made businesses reluctant to follow the directive of central IT teams."
Increasingly, however, savvy organizations now understand that a unified objective is essential to ensure the integrity and stability of core business. As a result, individuals stay aligned with a common goal, work more collaboratively and implement new business technologies effectively.
The role of 'application leader' has changed significantly with the replacement of manual tasks by cloud-based applications in digital workplaces. According to the Gartner assessment, the application leader must ensure that this transition is supported by appropriate skills and talent.
As more and more organizations opt for cloud-based applications, artificial intelligence (AI) techniques such as machine learning, natural language processing, chatbots and virtual assistants are emerging as digital integrator technologies.
"While the choice of integration technologies continues to expand, the ability to use designed applications and data structures in an integrated manner remains a complex and growing challenge for businesses. In such scenarios, application leaders need to deliver the role of integration specialists in order to ensure that projects are completed faster and at a lower cost," said Mr. Mann.
Outlook for Application Development Collaboration
Enterprise application leaders will have to replace the command-and-control model with versatility, diversity and team engagement with key stakeholders. Application leaders must become more people-centric and provide critical support to digital transformation initiatives.
Additionally, in a digital workplace, it is the application leader’s responsibility to serve as the organizational 'nerve center' by quickly sensing, responding to, and provisioning applications or IT infrastructure.
"Application leaders will bring together business units and central IT teams to form the overall digital business team," said Mr. Mann. That said, in this environment, the successful IT vendors will learn to adapt to this procurement transition -- where a variety of buyers and influencers drive the discovery, consideration and ultimate solution selection process.
Software application leaders must examine these predictions to learn how this equilibrium will take shape in their organization. Over the next two years, ~50 percent of organizations will experience increased collaboration between their business and IT teams, according to the latest worldwide market study by Gartner.
Gartner believes that the dispute between LoB leaders and traditional CIOs or CTOs over the control of enterprise technology deployment will lessen, as both sides learn that joint participation in the process is critical to the success of innovation within a digital workplace.
Application Leadership Market Development
"Business units and IT teams can no longer function in silos, as distant teams can cause chaos," said Keith Mann, senior research director at Gartner. "Traditionally, each business unit has had its own technology personnel, which has made businesses reluctant to follow the directive of central IT teams."
Increasingly, however, savvy organizations now understand that a unified objective is essential to ensure the integrity and stability of core business. As a result, individuals stay aligned with a common goal, work more collaboratively and implement new business technologies effectively.
The role of 'application leader' has changed significantly with the replacement of manual tasks by cloud-based applications in digital workplaces. According to the Gartner assessment, the application leader must ensure that this transition is supported by appropriate skills and talent.
As more and more organizations opt for cloud-based applications, artificial intelligence (AI) techniques such as machine learning, natural language processing, chatbots and virtual assistants are emerging as digital integrator technologies.
"While the choice of integration technologies continues to expand, the ability to use designed applications and data structures in an integrated manner remains a complex and growing challenge for businesses. In such scenarios, application leaders need to deliver the role of integration specialists in order to ensure that projects are completed faster and at a lower cost," said Mr. Mann.
Outlook for Application Development Collaboration
Enterprise application leaders will have to replace the command-and-control model with versatility, diversity and team engagement with key stakeholders. Application leaders must become more people-centric and provide critical support to digital transformation initiatives.
Additionally, in a digital workplace, it is the application leader’s responsibility to serve as the organizational 'nerve center' by quickly sensing, responding to, and provisioning applications or IT infrastructure.
"Application leaders will bring together business units and central IT teams to form the overall digital business team," said Mr. Mann. That said, in this environment, the successful IT vendors will learn to adapt to this procurement transition -- where a variety of buyers and influencers drive the discovery, consideration and ultimate solution selection process.
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