The Industrial Internet of Things (IIoT), sometimes called Industry 4.0, is the future of manufacturing. When production technology is merged with information technology, entirely new possibilities exist for improving output, maintenance and productivity.
Manufacturers in today’s environment are constantly searching for new smart components for intelligent motion control and more connected manufacturing processes. These same manufacturers are placing great challenges in front of suppliers, while simultaneously creating the conditions for incredible growth for smart components.
Huge Market Growth Expected for Smart Components in Manufacturing
A 2017 report from the Boston Consulting Group (BCG) outlines the enormous growth in IIoT that’s expected over the next few years. Few recent trends in manufacturing have been this consequential.
The report says that while today’s IIoT is driven by specific-use case scenarios, meaning there is no singular, omniscient IIoT, there will still be huge growth in IIoT spending. By 2020, IIoT spending is expected to reach $300 billion globally, which will be above spending levels for normal technology. Further, the IIoT technology market is expected to grow at a compound annual growth rate (CAGR) of at least 20% over the next two years, with certain types of technology expected to see even higher growth.
Top 3 Smart Component Trends to Keep an Eye On
The growth potential for smart components is huge, as outlined by the BCG report. Eventually, IIoT will transform manufacturing. Here are a few trends to watch in the smart component vertical.
- Predictive maintenance: IIoT technology will be able to monitor the health of manufacturing equipment, deciding when a machine needs maintenance before it breaks down, and determining the accuracy of set maintenance schedules. This will contribute greatly to uptime and overall productivity.
- Automated Inventory Management: Smart components will deliver much greater visibility and traceability into global supply chains. This not only allows companies to monitor the status of products for quality control, but can also help them perfect their just-in-time production processes to improve the quality of their service.
- Self-Optimizing Production: IIoT technology will connect factories and plants like never before to monitor and optimize production processes with little human input. This is the ultimate goal of IIoT, but smart components are helping manufacturers get there, step by step.
The market for smart components to fuel IIoT processes is set to explode. Few trends have the potential to impact the manufacturing sector like the IIoT, and smart components for intelligent motion control sit at the heart of the transformation.
To learn more about this trend, take a deep dive on the subject by reading our recent technical feature, “Smart Components For Smarter Production.”