How big is the economic power of the Industrial Internet?
Consider one analysis that places a conservative estimate of worldwide spending at $500 billion by 2020, and which then points to more optimistic forecasts ranging as high as $15 trillion of global GDP by 2030.
The Industrial Internet—the combination of Big Data analytics with the Internet of Things is producing huge opportunities for companies in all industries, but especially in areas such as Aviation, Oil and Gas, Transportation, Power Generation and Distribution, Manufacturing, Healthcare and Mining. Why? Because, as one recent analysis has it, “Not all Big Data is created equal.”
The Industrial Internet can be described as a source of both operational efficiency and innovation that is the outcome of a compelling recipe of technology developments:
• Take the exponential growth in data volumes—that is, “Big Data”— available to companies in almost every industrial sector, primarily the ability to add sensors and data collection mechanisms to industrial equipment. • Add to that the Internet of Things, which provides even more data—in this case about equipment, products, factories, supply chains, hospital equipment and much more. (Cisco predicts that by 2020 there will be 50 billion “things” connected to the Internet, up from 25 billion in 2015.3) With new technologies such as data lakes, the ability to capture and process such data is now a reality.
• Then add the growing technology capabilities in the area of analytics—the ability to mine and analyze data for insights into the status of equipment as part of Asset Performance Management (APM), or the delivery of healthcare, and then even to predict breakdowns or other kinds of occurrences.
• Finally, add in the context of industries where equipment itself or patient outcomes are at the heart of the business—where the ability to monitor equipment or monitor patient services can have significant economic impact and in some cases literally save lives. The resulting sum of those parts gives you the Industrial Internet—the tight integration of the physical and digital worlds.
The Industrial Internet enables companies to use sensors, software, machine-to-machine learning and other technologies to gather and analyze data from physical objects or other large data streams—and then use those analyses to manage operations and in some cases to offer new, value-added services.
Report: Industrial Internet Insights Report 2015