Mapping Market Trajectories: Where Sensors in the Industrial Internet Will Take Off
Published: November 18, 2014 Category: Emerging Electronics

In our previous article examining sensors and the Industrial Internet of Things (IIoT), we identified the key IIoT sensing requirements (e.g., cost, power consumption, reliability, security) and the companies we expect to assume leadership positions in delivering them, from today's big conglomerates to entrepreneurial sensor startups. Here we expand the view to examine the end markets in which these capabilities are coalescing, and thus define the real opportunities for the IIoT.

Defining IIoT End Markets: Who's In, Who's Out

We begin by narrowing the “Industrial Internet” to sectors that are specifically business-to-business plays: factory automation, electricity grid, building automation, oil and gas industry, and transportation encompassing rail, roads, and aerospace (but not general consumer automotive). At their core, they all share an increasing need for rugged networks that connect complex machines with the purpose of enhancing efficiency, profitability, and safety.

Not all those markets represent significant opportunities for sensor suppliers, however, most especially in the short-term view. Sensors are generally inexpensive devices, usually a few dollars except in rare specialized applications (an oil moisture sensor in the electricity grid can run in the thousands of dollars). Thus, for sensor revenue generation to add up to large amounts, three criteria must be met: a large addressable market, and openness to both deployment of advanced automation technology and Internet connectivity.

Download Full Article

Upcoming Reports