IoT, IIoT, connected industry and Industry 4.0 come together to create a new model for business

Industry 4.0 (I4.0) and Industrial Internet of Things (IIoT) are both terms describing potentially disruptive technology trends in industrial settings, writes Matt Wopata, a senior analyst at IoT Analytics in an excerpt from the firm’s upcoming ‘Connected Industry and Industry 4.0 Market Report 2018-2023’. Both terms get used often, without clear differentiation and sometimes even interchangeably, as they represent meta-terms for the ongoing innovation of the manufacturing sector as a whole – a sector that directly represents about 20% of all jobs in Europe and ~12% in the US

The concept of the IoT is about adopting the internet in almost all economic activities, and it focuses on the technology backend for cross category connectivity and interoperability. The Industrial IoT (IIoT) refers to heavy industries such as manufacturing, energy, oil and gas, and agriculture in which industrial assets are connected to the internet. Different segments are more industrial than others, and connected industry, which specifically focuses on manufacturing, is on the most industrial side of the spectrum, as shown in Figure 1.

Figure 1: IoT segments, from least to most industrial

Connected industry is the largest segment within IoT, comprising more than 30% of the market in 2017. It overlaps with the overall I4.0 market, however I4.0 has a broader scope, as it aims to optimise the entire manufacturing value chain and includes other supporting technologies such as additive manufacturing, augmented and virtual reality, and collaborative robotics. Figure 2 illustrates the overlap of I4.0 with IoT and highlights the other I4.0 supporting technologies.

Figure 2: Comparison of IoT and Industry 4.0 in terms of industry and technology scope (adapted from Plattform Industrie 4.0)

Elements of Industry 4.0

I4.0 can be viewed from five different perspectives:

1. IIoT building blocks: The technology elements which are necessary to connect and analyse data from machines and equipment, including:

 Hardware, such as chips, sensors or gateways
Connectivity protocols and services
Software components, including infrastructure, IoT Platforms, and analytics
Applications that are built on top of the software layer

Figure 3: The elements of Industry 4.0

2. Disrupted technologies: The technologies and standards (such as the traditional five-layer automation pyramid) which will be altered or replaced by I4.0 technologies.

3. Supporting technologies: Technologies that are not part of the IIoT stack but are frequently deployed alongside IIoT technologies and support the I4.0 key use cases.

4. Key use cases: Use cases implementing IIoT and supporting technologies to improve operations, realize new revenues, and better serve customers.

5. Disrupted stakeholders: Original equipment manufacturers (OEMs) factories, and industrial automation suppliers are all using I4.0 technologies to differentiate themselves in the market. Major industrial automation players like Siemens, Rockwell Automation, General Electric, ABB and Schneider Electric are creating strategies built around IIoT and I4.0, while forward thinking factories and OEMs are using I4.0 technologies to improve operations and create differentiated products and services.

I4.0 market

The addressable market for I4.0 can be thought of as the market for the building blocks that comprise the connected industry subset of IoT plus the market for I4.0 supporting technologies. These technologies enable the […]

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Original article: IoT, IIoT, connected industry and Industry 4.0 come together to create a new model for business
Author: IoT Now Magazine