Discrete automation products have strong potential for IIoT applications

A report from ARC Advisory Group suggests that discrete automation exhibits larger potential over process automation for the Industrial Internet of Things (IIoT) in terms of the number of connected devices deployed.


ARC Advisory Group completed a project devoted to sizing the total available market (TAM) for industrial automation devices that can potentially be used in the Industrial Internet of Things (IIoT). The project assessed the value of connectable devices used in manufacturing production with the potential to be included in IIoT applications. It yielded a 2014 TAM of over 120 million devices worth over $210 billion.

The report's findings stated that discrete automation products exhibit larger potential over process automation for the IIoT in terms of the number of connected devices deployed. This is largely because more connectable discrete automation products are sold each year and a faster rate of change inherent in more frequent changeovers of OEM machinery and discrete production lines. The IIoT value proposition appears to be more clear and better understood among the discrete customer base, along with the realistic prospect that they may soon produce their own connected end products.

Connected automation devices currently represent a small, but growing, share of the total market and there is significant room for growth across all industries as more and more manufacturers realize the value proposition for connected production assets. The market will also grow as more and more devices become interconnected and as efficiency grows.

ARC Advisory Group


- Edited by CFE Media. See more Control Engineering industrial networking stories.

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