IoT in Manufacturing Market to See Major Growth!
In 2015, the global automation solutions (PLC) market in bottling industry alone was valued at a whopping 335.6 million($USD). This is further expected to growth at a CAGR of 7% until 2020.
The industrial environment is rapidly adopting Internet-of-things (IoT) installing new technology in current sites and equipment. In fact, it is redefining the entire supply chain right from sourcing of raw materials, manufacturing of products and delivering them to end users.
Internet-of-things can be particularly beneficial to beverage companies to monitor end-to-end manufacturing process and meet compliance standards of authoritative regulatory bodies such as HACCP and FSMA.
Manufacturing Execution Systems (MES)
The global Manufacturing Execution Systems (MES) market in the bottling industry was valued at 189.5 million in 2015. MES forms an important link between manufacturing automation and Enterprise Resource Planning or ERP. These highly efficient systems take into account customer orders and manufacture products accordingly. They also track production data and generate reports in real-time. MES streamlines the entire process based on priority, required resources, time, etc.
Motion Control Market
The motion control market for the same industry was valued at 423.7 million in 2015. These are mainly used for labeling and packaging of beverages both of which are very important to facilitate transportation, storage and promotion of finished products. They provide useful information for the end-user such as price, year and place of manufacturing, package contents, trademarks, information on company and point of contact to redress grievances. Motion control equipment is extremely crucial for the labeling and packaging machinery.
How IoT is set to transform manufacturing sector?
Industry leaders and research experts state that Internet-of-things is ushering a fourth wave of the industrial revolution. Particularly in manufacturing, IoT will make the production process more inter-connected and therefore more efficient.
As independent machines become connected to specific software, company personnel and decision makers can have remote access to real-time data. They can also compare it with historical data reports to check for inaccuracies and variances. The comprehensive dashboards provide an analytical overview of the production process. The resulting information can be used to improve asset utilization, speed to market, reduce ownership cost, reduce risk and expenditures, replenish parts and supplies as and when needed and improve efficiency of workforce.
Since IoT makes remote access possible, companies are free to set up plants anywhere in the world and monitor them in real time. This helps them to source talent not found locally, manage asset performance, expand their manufacturing footprint and leverage resources and raw materials available in the target location.
Barriers to IoT
All manufacturers, large and small, can be expected to warm up to IoT technology eventually. However, there are certain challenges that will need to be resolved before this widespread adoption begins:
- Cyber Attack
One of the biggest challenges to IoT is the threat of a cyber attack. Since all devices and operations are connected, any form of hacking will result in the breach of security and corruption of the entire system. Being an emerging technology, cyber laws with regard to IoT are not consolidated and concrete enough to take any punitive action against miscreants.
- Difficulty in determining return-on-investment
As an emerging technology, it is difficult to track long-term return on investment of IoT. The criteria and metrics to measure short- and long-term return on investment varies across industry types and sizes and so far, there has been less clarity on ROI.
- Integrating IoT into a plant or factory
There are several technical difficulties in integrating IoT into a manufacturing plant. If the new technology is introduced in existing sites, it may run into various compatibility issues. Accordingly, the machines will need to be upgraded or replaced altogether which may come at a cost.
- Reluctance to automate
Manufacturing automation is likely to result in widespread job losses. As one study highlights, nearly five million jobs in the manufacturing sector have vanished from the U.S. labor force in past three decades. On the other hand, manufacturers are unable to find skilled talent such as PLC programmers, Robot Technicians, etc. to operate this new technology.
The Internet of things is set to revolutionize the manufacturing industry. In keeping with this trend, companies will need to reassess their priorities and implement strategies that inhibit challenges and maximize benefits derived from this technology.