Global revenue for digital technologies in the industrial equipment market is estimated to reach $4.19 billion by 2027.
The convergence of information technology (IT) and operational technology (OT) is rapidly transforming the global industrial equipment market landscape and providing actionable intelligence to decision-makers. The Internet of Things (IoT), big data analytics, sensorization, artificial intelligence (AI), and machine learning (ML) are ushering changes in various industries, including oil and gas, mining, chemicals, food and beverages, power, and water and wastewater.
According to Frost & Sullivan, global revenue for digital technologies in the industrial equipment market is estimated to reach $4.19 billion by 2027 from $1.5 billion in 2020 at a 15.8% CAGR. The Americas lead the industrial equipment innovation, with many digital solution providers headquartered in North America. The region will attain $1.7 billion in revenues by 2027, followed by Europe, the Middle East and Africa (EMEA), and Asia-Pacific (APAC). The water and wastewater sector is expected to top investments in digital solutions with $2.2 billion by 2027, followed by the chemicals industry with $667.6 million.
“Rapid urbanization and the explosive rise in water consumption make efficient water management systems critical,” said Anand Gnanamoorthy, Industry Principal, Industrial Practice at Frost & Sullivan. “Water enterprises and government bodies are pushing for modernization of water infrastructure by using IIoT-based technologies that help ensure zero wastage and unplanned plant maintenance. This has led to a surge in demand for asset monitoring solutions, including pumps, compressors, and mixers used in fundamental processes.”
Gnanamoorthy added that access to low-cost feedstock from shale reserves is also expected to fuel investments in the chemical industry to meet global demand. “End users want to monitor their plant but do not want the data to be stored/shared beyond the plant due to concerns of loss of intellectual property (IP). The need to avoid unexpected asset downtime and production delays caused by a dependency on manual inspection is likely to promote the use of component monitoring solutions that allow data sharing only within the plant,” Gnanamoorthy said.
To increase growth opportunities, stakeholders should explore these strategic recommendations: