M2M Technologies Multiply IIoT Growth Opportunities in SEA, Australia and New Zealand
January 17, 2017 | Frost & SullivanEstimated reading time: 2 minutes
The manufacturing value chain in Southeast Asia (SEA) and Australia and New Zealand (ANZ) is experiencing increasing collaboration between developers of machine-to-machine (M2M) technologies and automation systems. Currently, Australia and Singapore lead in the adoption of industrial Internet of Things (IIoT) for efficient mass production. In other countries, M2M deployment is at an early stage. This will change as automation and electronic systems suppliers realize the potential of IoT, where future machines will organise themselves more independently than they do today.
“The spate of mergers and acquisitions over the past four to five years will continue in the manufacturing software and hardware sectors,” said Industrial Automation & Process Control Industry Analyst Krishnan Ramanathan. “The IIoT environment has many complexities as it involves connecting and securing millions of devices, and analysing the explosive amounts of data generated. Strategic acquisitions could simplify these challenges.”
M2M Software and Services Market in IIoT in SEA and ANZ, new analysis from Frost & Sullivan’s Industrial Automation & Process Control Growth Partnership Service program, reveals that the automotive vertical contributes the highest to M2M software and services market revenues at 35%, while another 10% is from the foods/beverages and chemicals/petrochemicals segments. Distributors and value-added resellers will soon replace direct sales and dominate the value chain to ensure end-to-end service delivery, steering the market towards a compounded annual growth rate (CAGR) of 17.2% during 2015-2020.
As factories see benefits in terms of savings, improved transparency and control over processes, and higher resource optimization, IIoT will gain traction and universal standards will be put in place. In the automotive industry, there is high demand for M2M technologies that will alert emergency services in the event of an accident. Such trends will garner interest from connectivity service providers, encouraging collaboration.
“Innovation and foresight will be vital while developing technologies as success requires that systems be easily deployable and yield a reasonable return on investment,” noted Ramanathan. “Data analytics, which is integral to M2M, will be a game changer in the industry to generate high stakeholder value through improved inventory management and asset monitoring.
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