ABI Research says there are plentiful opportunities for the manufacturing sector and technology vendors: if hardware is included in the total, it rises to $1 trillion.
Technology investments in the industrial and manufacturing sector are expected to rise rapidly, from $59 billion in 2019 to $375 billion in 2030, according to a new report.
Manufacturing is undergoing a digital revolution, investing in Industrial Internet of Things (IIoT) technologies like artificial intelligence (AI), augmented reality (AR), robotics and cloud-based simulation and modeling.
“The transformative shift toward Industry 4.0 technologies and the broader field of software-defined manufacturing presents a massive opportunity for a wide range of technology providers and implementers,” says Ryan Martin, Principal Analyst, Industrial & Manufacturing, at ABI Research.
Intelligently connected hardware will contribute the largest share of revenue, growing from $200 billion in 2019 to $800 billion in 2030, but will diminish proportionately as associated software and services take hold.
After hardware, data and analytic services is the fastest-growing segment in terms of revenue generation, reaching more than $185 billion in 2030, up from $11 billion in 2019.
“As the amount of custom code required to deploy new solutions on the factory floor drops, data and analytic service revenue growth in smart manufacturing will accelerate,” Martin explains.
Connected service revenue
Machine tools, asset tracking, and connected programmable logic controllers will experience the most growth in terms of connected service revenue over the next 10 years.
By 2030, machine tools such as 3D printers, computer numerical control machines, lathes, mills and industrial drills, will grow in revenues to $134 billion; asset tracking will reach $78 billion and PLCs $40 billion.
According to Martin, “Industry 4.0 is creating millions of new end points that need to be interconnected. However, the existing infrastructure can’t support it, which is creating an opportunity for connectivity experts and providers to step in.”