Cambridge, UK, July 9th, 2019 – Cambashi, a leading global industry analyst and market consulting firm, specializing in the engineering and industrial software space, today announced that the inaugural Cambashi Industrial IoT (‘IIoT’) Observatory has been released. This important global sizing study focuses on the emergence of Connected Applications, relying on critical industry input from leading providers to define the scope and segmentation of the market.
- Connected Applications are gaining traction in several key Market Areas.
- The global 2018 figures indicate major changes compared with 2017, our base year, such as a leap of 42% in total revenues and radical changes in the relative positions of leading providers. This points to the success of robust, packaged software over pilot projects and initiatives.
- There is a clear distinction between IT/Enterprise and OT/Industrial providers, and we are observing the formation of new relationships and ecosystems. We expect further significant changes and consolidation in the next few years.
- The Asset Management and Performance Monitoring use cases have the most published case studies. The top ten use cases all strongly feature in the Connected Production and Connected Asset Market Areas (See Chart 2 below).
About the Cambashi IIoT Observatory
The Cambashi IIoT Observatory is based on several years of research and industry collaboration through the IIoT Charter Program. The first global market-sizing details nine Connected Application Market Areas across three major regions by provider. For each provider, the Observatory lists the Connected Applications they offer, categorized by Market Area. This first release provides 2017 and 2018 estimates of the global market which already highlights significant changes in the industry. Future versions will provide 3-year growth projections, industry and country segmentation – the precise scope will be validated by Charter members.
An analysis of Use Cases and Case Studies is also included in the Observatory. Use Cases show where providers are developing Connected Applications and in which Market Areas. This is valuable for product planning and sales focus. Case Studies, and interviews with actual users, show the business value, budget process and benefits by analyzing how the money flows in IIoT deals. Use Cases and Case Studies will be available as custom data sets with analytics.
On July 10th, Cambashi will present an on-demand webinar that introduces the new Observatory and shows how clients can use the data for strategic planning and competitive analysis. The webinar will include a summary of Cambashi’s World Update from COFES – Cambashi’s Annual market update to the COFES conference. Register here for access to the webinar. The webinar will remain available for on-demand access for a limited time.
There are more details about the Observatory on Cambashi’s website – see https://cambashi.com/our-services/market-data/industrial-iot-connected-applications/
Chart 1, OT/Industrial vs. IT/Enterprise provider revenue below shows the relative growth of global IT/Enterprise software providers revenue compared with that of the OT/Industrial providers from 2017 (our base year) to 2018 (the most recent year for which figures are available). This analysis shows that IT/Enterprise is growing faster – by 65% – in Connected Applications than OT/Industrial – 29%. This is partly because OT/Industrial has a higher base value. However, it is still true to say that IT/Enterprise is making great strides. The picture will become more complicated in the future as consolidation and partnerships change the shape of the ecosystem.
The Cambashi IIoT Observatory also includes analysis of published case studies by use case (industry application) for which the initial findings are:
- Asset Management and Performance Monitoring are the most popular use cases. They have the highest number of case studies in the Process manufacturing and Machinery industry sectors.
- Connected Production and Connected Assets have the most case studies for almost all the top ten use cases (see Chart 2 below). The exceptions are field service Management, where Connected Product is the biggest area; and Environmental Monitoring, where Connected City comes in second.
- Most projects have been in the Machinery and Process Manufacturing industries (based on case study analysis). Automotive comes in third, with a significant number of Connected Transportation case studies. The High-Tech industry has the most Connected Supply Chain and Connected Worker case studies.
These results will be enhanced, and the scope extended through continuous validation from Cambashi IIoT Charter members’ and key providers’ input.
The Cambashi IIoT Observatory has been designed to address some of the ‘hard to solve” industry problems that IIoT software vendors are encountering, including:
- Manufacturers are confused by all the different “IIoT” offerings
- Which are the “hot” IIoT market areas to go for?
- Are the IIoT projections we are hearing just ‘hype’?
- Where are examples of the business value case for IIoT – based on actual Use Cases?
A more comprehensive selection of the issues that Cambashi has been hearing from the IIoT market are detailed on the website: https://cambashi.com/industrial-iot-market-issues/
What Cambashi customers are saying
Will Kohler, Senior Vice President of Corporate Strategy Research at PTC, an IoT Charter founder and one of the leaders in IoT with its ThingWorx technology, said, “The competitive and industry intelligence received from Cambashi enables PTC to make the most-sound market decisions possible.”
Another Charter founder member, RTI, provides secure connectivity frameworks for industrial IoT systems. David Barnett, Vice President of Products and Markets at RTI, said, “We decided to take part in the IoT Charter Program because the research deliverables were just what we needed to inform our sales and marketing planning, and Cambashi’s knowledge and data assets are most pertinent to our area of interest, namely the industrial IoT.”
In 2016 Cambashi surveyed the IIoT market, concluding that there were no reliable and authoritative sources for segmentation, size or growth estimates. In 2017, Cambashi therefore undertook a self-financed research project, interviewing senior people among the major providers to create a market landscape report; ‘The Industrial Internet of Things and Digital Transformation; Market Landscape and Trends,’ delivered in January 2018. This provided a perspective onto the market from both technical and commercial viewpoints and an understanding of the market, main players and trends. Feedback from the main players suggested that an industry-led program was needed to define the market, segmentation and key issues, and then to measure the market with appropriate granularity.
Cambashi is a market research, industry analysis and consulting firm doing business from its global HQ in Cambridge, UK. Its independent research and analysis delivers compelling insights on the use of IT to address business issues in the manufacturing, process, distribution, energy, utilities and construction industries. The Cambashi Market Observatories provide global companies with the objective information needed to clarify decisions assess trends and develop effective marketing strategies.
Executives rely on Cambashi for:
- Qualified, impartial intelligence for better plans & strategies
- Trusted global forecasts to align internal resources, capabilities, and product planning
- Insights on TAM (Total Available Market) size and the main growth areas.
The Cambashi Market Observatories are a set of consistent and multi-perspective datasets for the industrial and engineering software market. They provide detailed information on software spend by country, industry and product and the size of user communities, for a range of technical software application types.
In addition to delivering global market data and related consulting services, Cambashi offers a unique web-based industry training curriculum.
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