The challenge facing industries is to be as efficient as possible whilst responding to the evolving issues of their sectors. This includes global competition, custom production, flexible industrial facilities, issues with raw material procurement and distribution, the need to reduce carbon footprints and also appealing to the workforce. It is now possible to improve the performance of industrial facilities by leveraging new technologies such as the internet of things and giving employees modern working facilities.
The business sector most involved in IoT-related projects in recent years is the industrial sector. According to Mordor Intelligence's Global Data Forecast, the global IoT market was valued at €740 billion in 2020 and should reach €1.3 trillion by 2026.
Bearing Point’s study “IOT France 2021, Pas de crise pour l’IoT [No crisis for IoT]” explains that in 2020, there were more than 9 billion connected objects worldwide, and it believes that this number will exceed 25 billion by 2030.
According to a Eurostat study presented in Xerfi’s analysis “les marchés de l’IoT professionnel à l’heure de la maturité [professional IoT markets reaching maturity]”, 10% of French companies have invested in IoT, and they believe that this figure will reach 20% by 2025.
For Bearing Point, the automotive, transport and logistics sectors, a key part of the industrial sector, are experiencing significant expansion. Still according to Bearing Point, in the automotive, transport and logistics industrial sectors, the global market was valued at €333 billion in 2021, and should reach €606 billion in the next 5 years.
Finally, we note that in France, the automotive, transport and logistics industrial market accounts for 42% of IoT vertical players.
Optimising production methods
IoT helps optimize certain production methods and the supply chain. This includes predictive maintenance systems, geolocation systems and remote alert and control systems. Real-time information made available from industrial facilities helps improve resource management and offers greater operational flexibility. It enables operators to be allocated to added-value tasks.
Predictive maintenance anticipates potential problems and acts accordingly
Industrial IoT plays an important role in data collection and processing to measure efficiency, improvement or maintenance Data from machines and sensors is analysed using Data Science and machine learning systems to reveal operating deviations and anticipate fault fixing before these faults impact production.
Transitioning from regular systematic maintenance to predictive information-based tailored maintenance reduces both direct and indirect maintenance costs. These systems help improve machine reliability by identifying fault phenomena and their reasons for occurring.
Creating new jobs linked to data processing and governance
With the use of IoT, one of the problems facing industrial companies is the use of data for decision-making purposes, as there are different problems ranging from the quality and categorisation of available data to the large amount to store securely, classify and then analyse before obtaining useful information. New jobs focused on data processing and governance are emerging in industry, with the introduction of tailored processing platforms. Some businesses will acquire these new skills and will train employees, and others will resort to experts available on the market. In this regard, Orange is able to support its clients with all their needs.
Creating a partner ecosystem
Orange’s ambition is to create a partner ecosystem to cater to the needs of industrial companies. There are several types of partner, with tried-and-tested IT solutions, innovative solutions from start-ups and also suppliers of equipment (modems, gateways, IoT sensors, etc.), or even communication components.
A dedicated catalogue presents equipment and sensors whose use has been approved on the Orange network by our systems qualification experts. Different labels indicate the scope of this qualification, from simple network compatibility through to more advanced tests.
If an industrial company wants to develop a new IoT device (or have it developed), Orange also offers specific manufacturer support as part of the IoT Continuum program, which offers expertise and the necessary qualification for communication components.
The industrial company can also use IoT to develop their business model, e.g. by promoting services to their customer in addition to the product sold. This might include maintenance or consumable management services in addition to the machine sold. These highly visible public services will develop more in the B2B world, and it is possible that data from IoT will also be directly promoted.
The automotive sector uses this model intensively to offer more custom or even on-demand services and functions.
Vehicles can now connect to smart cities
IoT in the automotive sector drives the concept of a car towards the autonomous vehicle. The internet of things offers a multitude of services linked to vehicles that can interact with external elements: other vehicles, infrastructure and users. In the transport sector, IoT solutions offer uses relating to the safety of people and property, analysis, planning and anticipation of object movements.
Boxes in the vehicle can track itineraries and enable vehicle energy savings.
There are also solutions to optimize itineraries to make the journey as quickly as possible and encourage eco-driving. The solutions can also offer greater security and traceability or automation of processes through video, with number plate recognition at crossings or (un)loading points.
Geolocation beacons in vehicles can track progress in real time
This includes asset tracking solutions comprising sensors and geolocation beacons that can track the journey of the vehicle, goods or high-value assets in real time, both indoors and outdoors, and additional information such as temperature, humidity and impact detection.
Drivers can thus optimize their journeys and limit the cost of transport
In addition to having a positive impact on transport, IoT plays a role in industry logistics. IoT can be used to manage stock, inventories, monitor storage conditions or monitor warehouses using sensors and cameras.
The assistance offered to operators ensures more efficient work, avoiding manual input, saving time and finding items more quickly. In terms of safety, detecting isolated workers and managing the risks of collision are options also enabled by IoT.
The first element is the direct impact of IoT solutions on improved factory process efficacy reflected in productivity gains.
The return on investment can be calculated by including other elements. Technological progress has helped reduce the energy consumption of connected objects by reducing battery change requirements. Adapted to these objects, which should be used for a long period of time, the use of a low consumption LPWAN network could be considered. Overall, this can lead to lower solution maintenance and operation costs.
The development of cloud services also allows a reduction in usage costs by saving on the creation of a local dedicated infrastructure to store, process and use data.
The last element that allows a fast return on investment is the size of the IoT solution itself. It is possible to study and deploy the system as closely as possible to the target, for an equipment sub-assembly. For example, for machine fleets or standard machinery, sampling of a panel of representative equipment could offer the intended value and limit the costs of implementing the IoT solution.
Investing well in IoT helps optimise business resources. To succeed in digitalization and transformation projects, it is necessary to secure the contribution of business lines and accurately identify needs to choose the best solution. An IoT project can use turnkey solutions, but it is often also carried out by assembling different technology components that must then be incorporated into the client environment. The ergonomics of solutions, change management and user training is essential for successful adoption and maximum efficacy.
Got another question? We’re here to help.
Source of figures in part 1:
IOT France 2021, Pas de crise pour l’IoT by Bearing Point page 8 and 9
Mordor Intelligence’s Global Data Forecast in the analysis “IOT France 2021, Pas de crise pour l’IoT” by Bearing Point page 4
A Eurostat study in Xerfi’s analysis “les marchés de l’IoT professionnel à l’heure de la maturité” page 61
Discover the 4 golden rules of an IoT project... minimize field interventions and favor remote interventions.