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Weekly selected highlights in flow control, treatment and combustion from the many McIlvaine publications.
The IIoT Market Size and Structure
The investor community is challenged by company presentations which calculate market share based on widely different definitions of the total market. In most cases the company is using a “served market” definition.
A webinar to review and debate the market definition and size on January 9, 2019 will compare McIlvaine market figures to the various figures used by major automation companies. In the intervening months companies will have a chance to review data as we add it to the analysis below. They can then add comments. The January webinar will be free and will be an open discussion of this analysis. The segmentation definitions and forecasts will all be subject to debate and discussion. Automation suppliers and investors are invited to submit comments and participate.
The analysis displayed below presents data relative to those companies which comprise more than 30 percent of this market. This data with revisions and expansions will be used as a basis for discussion of the market. The discussion will also address the impact of the Industrial Internet of Wisdom (IIoW) to empower this market and impact the market shares of participants.
Detailed background information is contained in a series of YouTube presentations by product and industry. These can be accessed at Free Market Webinars
This analysis is focused on process and hybrid automaton and does not include discrete automation. It includes utility and industrial but not commercial and residential automation. The major categories of guide, control, and measure have been utilized and were selected because at least one of the top world automation suppliers uses this segmentation.
Guide: includes process management, data analytics and subject matter expertise. McIlvaine has introduced a new category-subject matter ultra-expertise and subject matter ultra-experts (SMUES)
Control: includes SCADA, PLCs, wireless transmission, and cloud hardware (not software)
Measure: includes sensors, analyzers, and edge computing technology to measure parameters relative to liquids, gases, and free flowing solids. Since fans and pumps are used in the pertinent processes, the category also includes vibration measurement, corrosion and other measurements used in combustion, separation, transport, heat exchange, evaporation etc.
The McIlvaine services include one on Industrial Valves. Since some of the automation suppliers also have valve divisions, we have included some figures from the valve report.
The following rough aggregations of revenues of leaders will be the basis for input and discussion over the next two months. In all cases the leaders have published financial statements. So, debate will be regarding the allocation of those revenues based on the definitions we have selected.
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IIoT Revenues - $ millions - 2018
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Company
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$ or
Share
|
Guide
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Control
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Measure
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Total
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|
All
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$
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50,000
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103,000
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46,000
|
199,000
|
|
|
%
|
100
|
100
|
100
|
100
|
|
ABB
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$
|
1000
|
8000
|
1000
|
10,000
|
|
|
%
|
2
|
7.8
|
2.2
|
5
|
|
Emerson
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$
|
5,000
|
5,000
|
3,000
|
13,000
|
|
|
%
|
10
|
4.9
|
6.5
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6.5
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Endress
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$
|
300
|
100
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2,200
|
2600
|
|
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%
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0.6
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0.1
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4.8
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1.3
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GE
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$
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1000
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2500
|
500
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4,000
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|
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%
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2
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2.4
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1.1
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2
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Hach
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$
|
100
|
100
|
800
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1,000
|
|
|
%
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0.2
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0.1
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1.7
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0.5
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Honeywell
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$
|
1200
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2300
|
100
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3600
|
|
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%
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2.4
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2.2
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0.2
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1.8
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Mettler
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$
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200
|
100
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1000
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1300
|
|
|
%
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0.4
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0.1
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2.2
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0.7
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Rockwell
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$
|
800
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2500
|
200
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3500
|
|
|
%
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1.6
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2.4
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0.4
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1.8
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Schneider
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$
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700
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3,000
|
200
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3,900
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|
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%
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1.4
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2.9
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0.4
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1.9
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Siemens
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$
|
2000
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10,500
|
500
|
13,000
|
|
|
%
|
4
|
10.2
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1.1
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6.5
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Thermo
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$
|
200
|
100
|
700
|
1000
|
|
|
%
|
0.4
|
0.1
|
1.5
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0.5
|
|
Yokogawa
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$
|
1000
|
2100
|
200
|
3300
|
|
|
%
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2
|
2
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0.4
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1.7
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Leaders
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$
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13,500
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36,300
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10,400
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60,200
|
|
|
%
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27
|
35.2
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22.6
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30.2
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Unidentified
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$
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36,500
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66,700
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35,600
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138,800
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|
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%
|
73
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64.7
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77.4
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69.7
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The guide section includes what the industry classifies as subject matter expertise along with process management and data analytics. Part of the discussion will be about the growth potential in this sector. McIlvaine will argue that the Industrial Internet of Wisdom (IIoW) will empower IIoT and will result in high growth rates for the guide segment. How much of this market will be captured by the leaders? This will also be a subject of debate.
Siemens, GE, and Emerson all made presentations and participated in a series of McIlvaine webinars to help BHE select a more cost effective approach to an air pollution problem. The application of IIoW with interconnection of 80 people resulted in a path which would save hundreds of millions of dollars for BHE. The solution included not only process optimization but insights on chemicals and hardware. This broader knowledge grasp can be labeled subject matter ultra-expertise.
Several of the leaders have subject matter ultra-experts by virtue of their multi division structure. The question is how effectively will this knowledge be leveraged. GE and Siemens have deep power plant knowledge. Honeywell leads the world in refining knowledge. All of the other leaders have designated industry and product specialists. Danaher combines the instrumentation expertise of Hach with the process knowledge of Pall, and the chemicals knowledge of Chemtreat. Harnessing all this expertise represents a very significant route to high profitability.
The latest version of this analysis is shown at N031 Industrial IOT and Remote O&M
Comments and proposed additions to this analysis will be welcomed by Bob Mcilvaine. You can submit them to him at rmcilvaine@mcilvainecompany.com or call Bob at 847 784 0012 ext. 122.
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