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This study investigates the worldwide market for wireless M2M applications in industrial automation. The installed base of active cellular M2M devices in the industrial automation industry is forecasted to grow at a compound annual growth rate of 23.2 percent from 2.5 million units at the end of 2013 to 7.1 million units by 2018. Get up to date with the latest information about vendors, products and markets.
Highlights from this report:
360-degree overview of the M2M ecosystem in the
industrial automation industry.
Insights from numerous executive interviews with market
Comprehensive overview of key applications for wireless
M2M in industrial automation.
In-depth analysis of market trends and key developments.
Detailed profiles of of 50 key players in this market.
Market forecasts by region, market vertical and device
segment lasting until 2018.
M2M is an abbreviation for machine-to-machine, or technology that supports wired or
wireless communication between devices. Industrial automation systems utilize M2M
communication to monitor and control remote and local facilities and equipment to increase
operational efficiency. A wireless automation system contains a mix of network technologies
and equipment including a backoffice solution, network equipment, control devices and field
devices. The combination of wireless technologies such as Wi-Fi, cellular, WirelessHART,
ISA100 and Bluetooth can provide ubiquitous online connectivity at reasonable cost and
deliver very high performance, as well as excellent availability.
Berg Insight estimates that shipments of industrial automation M2M devices with cellular
communication capabilities reached 760,000 worldwide in 2013. Growing at a compound
annual growth rate of 22.5 percent, the shipments are expected to reach 2.1 million by 2018.
Network equipment in industrial automation applications including gateways, switches,
connectors, routers and wireless access points featuring embedded cellular connectivity is
the largest industrial automation M2M device segment. Berg Insight estimates that shipments
of cellular network equipment reached 530,000 worldwide in 2013. Shipments of automation
equipment featuring embedded cellular connectivity including machinery, industrial robots,
RTUs, PLCs, DCSs, sensors, I/O modules and operator terminals reached 230,000 devices in
2013. The number of cellular M2M connections in industrial automation applications is
forecasted to grow at a compound annual growth rate of 23.2 percent from 2.5 million
connections at the end of 2013 to 7.1 million connections by 2018. Backbone network
communication is the largest application for cellular M2M within both factory and process
automation. It is also increasingly common to use wireless communication in monitoring
applications. Remote service maintenance and diagnostics of machinery and industrial robots
is a major application within factory automation and real-time monitoring of remote facilities
and equipment are one of the most common applications within process automation.
Eaton, Phoenix Contact, Advantech and Kontron are major providers of industrial automation
equipment and solutions which also offer products and solutions featuring embedded cellular
connectivity. Moxa, Red Lion, HMS Industrial Networks, B&B Electronics, Westermo and
Insys Microelectronics specialise in industrial network equipment including routers, gateways
and switches and also provide products featuring embedded cellular connectivity. Digi
International, Teltonika, Calamp, Eurotech, Hongdian, Multi-Tech Systems, Maestro Wireless
Solutions, Erco & Gener and Robustel Technologies are examples of cellular M2M specialists
offering solutions for a wide range of applications such as fleet management, retail, security
as well as industrial automation. eWon, Netmodule, and Viola Systems are examples of
vendors which are specialised in M2M solutions for industrial applications. The worldwide
market for wireless M2M applications in industrial automation are also populated by global
industrial automation and engineering companies including ABB, Emerson, Honeywell,
Schneider Electric, Siemens and Yokogawa. These companies are all major SCADA and
automation vendors with thousands to several hundreds of thousands employees, delivering
solutions for automation and control to all major industry segments.
Industrial automation is an essential part of most manufacturing activities and market
pressure to reduce costs and improve efficiency are important drivers for adoption. Wireless
automation solutions are required when wired communications are too hazardous or
impractical. Wireless solutions are also often faster and more cost effective to deploy and
maintain which increase the flexibility and scalability of factory plant layouts. A new
generation of high capacity LTE cellular networks will address the growth in demand for data
hungry applications such as video monitoring as well as spur innovation of new applications.
Furthermore, LTE will increase the usage of cellular communication in industrial backbone
networks even further. Remote monitoring are already today a key driver for cellular M2M and
LTE network’s shorter latency times will also enable cellular connectivity to be used in an
increasing number of remote control applications. However, requirements vary depending on
the application and cellular is part of a mix together with other technologies such as Wi-Fi,
Bluetooth, Zigbee, WirelessHART and ISA100.