By 2025, most industrial companies are likely to have automated their supply chains and assembly lines and be employing big data. There will also be a degree of artificial intelligence, adaptive manufacturing, and/or potentially demand-driven production. The benefits will be better operating margins and asset utilization, and increased productivity. SaaS and data analytics are likely to enhance service offerings through additions such as predictive maintenance. Urbanization, climate change, and rising pollution will also play a role and in particular increase the demand for innovative water technologies.
Company specific thoughts:
GE stands out for its sophisticated SaaS capabilities and for its industrial internet-of-things Predix platform. It has also embraced predictive maintenance, Digital Twins, Brilliant Factory, and outcome-based performance contracts. Similarly, Honeywell is a technology visionary and aims to become a software-industrial company by pursuing mergers and acquisitions. Roper is another company with large SaaS capabilities, and when it comes to automation, Emerson is best-placed to be the North American market leader in process automation. As for the global water sector, Xylem is one of the leaders in SaaS and data analytics and provides smart water networks.
Industrials: Up close
The future will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.