Total Available Market for the Industrial Internet of Things Global Market Research Study FIVE-YEAR MARKET ANALYSIS AND TECHNOLOGY FORECAST THROUGH 2019 HOW MANY INDUSTRIAL AUTOMATION DEVICES ARE AVAILABLE FOR CONNECTION TO THE INDUSTRIAL INTERNET OF THINGS? The Industrial Internet of Things (IIoT) and its potential to transform production operations is one of the hottest current topics in manufacturing. Along with Industrie 4.0, IT/OT convergence, and Smart Manufacturing, the IIoT is cited as the latest means for making manufacturing production more flexible, more cost effective, and more responsive to changes in market demand. Not surprisingly, numerous market forecasts attempt to quantify the potential inherent in the Internet of Things (IoT), promising that billions of “things” or devices, worth trillions of dollars, will soon be connected. This report answers a different but equally important question: how many industrial automation devices are and will be available for incorporation into the IIoT? Drawing on ARC’s 30 years of quantifying the market for industrial control devices, this research assesses the potential IIoT market from the realistic perspective of the number of installed and shipped devices that can potentially connect to the IIoT. This study specifically focuses on connected devices used in manufacturing production, and excludes connected end devices such as automobiles, jet engines, or televisions. For more information, please visit us at www.arcweb.com/market-studies/. STUDY EXECUTIVE SUMMARY Major Trends Strategies for Success SCOPE MARKET FORECAST LIST OF FIGURES Total Available Market (TAM) of Connectable Devices ($s and Units) TAM for Discrete Automation Devices by Device Type ($s and Units) PLCs GMCs, Servo/Stepper Drives CNCs AC Drives Industrial PCs Operator Interface Panels Industrial UPS Machine Vision Safety PLCs 3D Laser Scanners Additive Manufacturing Systems Discrete I/O Autonomous Mobile Robots Wind Turbine Control Systems STRATEGIC ISSUES Migration toward the IIoT represents the next step in a connectivity evolution that has been taking place in manufacturing for decades. What new challenges will suppliers face as the IIoT takes hold? • Will the IIoT generate absolute growth in shipments of automation devices? • What is the size of the potential retrofit market vs. new product shipments? • Which market segments represent the largest available market? • Which specific device types within each segment represent the most potential? • What single category of automation products will be the earliest adopter? CONTENTS Single and Multiloop Controllers Smart Pressure/Flow, Temperature, and Level Transmitters Electronic Flowmeters Process I/O Digital Control Valve Positioners Intelligent Electric Actuators Process Safety Systems Smart Toxic Gas Detectors Intelligent Pumps TAM for Discrete Automation Devices by Retrofits versus Connected Shipments TAM for Process Automation Devices by Retrofits versus Connected Shipments TAM for Network Infrastructure by Device Type ($s and Units) Industrial Ethernet Switches Industrial Ethernet Gateways Wireless Access Points Shipments of Connectable Devices by Type ($s, Units, ASP) Shipments of Discrete Automation Devices by Device Type Shipments of Process Automation Devices by Device Type Shipments of Network Infrastructure Devices by Device Type ($s and Units) Total Available Market for the Industrial Internet of Things (IIoT) TAM for Process Automation Devices by Device Type ($s and Units) DCS Systems SCADA Systems 2014 2015 2016 Millions of Units 3 ALLIED DRIVE DEDHAM MA 02026 USA 2017 2018 2019 Billions of Dollars T: 781-471-1000 F: 781-394-0094 arcweb.com