[Editor's Note] Embedded systems have grown rapidly thanks to the advancement of Internet of Things (IoT) technology. Today's embedded systems are not limited to scalability through network connections, but are also enhancing platform functionality through additional scalability, such as moving between on-premise and the cloud and providing intelligence at the edge (edge AI).

As the world's major embedded computing and IoT companies are strengthening their ecosystems through strategic alliances and partnerships between necessary companies, we asked Steve Chen, Vice President of Kontron AG, a global company based in Germany, about his market response strategy and perspective on the Korean market.

■ Introduction to Contron

Kontron, a German company founded in 1959, has been active in the IoT and embedded computing space for decades. Headquartered in Austria and listed on the German Stock Exchange Prime Standard, the multinational company employs approximately 4,400 people in 24 countries around the world, including Europe, Asia, and North America.

Contron has established a strong position in markets encompassing the entire industrial IoT ecosystem, including industrial automation, medical technology, public transportation, communications, energy, aviation, and public institutions.

■ Contron's perspective on the IoT market and the reason for its market concentration strategy

The IoT market is growing at a rapid rate of more than 15% per year. It is expected that 50 billion devices will be connected to networks worldwide by 2025.

Contron has established itself as one of the top three suppliers in the global IoT market. Over the past 20 years, we have grown into the world's largest manufacturer of embedded computing technologies. Over the past few years, we have implemented an IoT-focused strategy, and the majority of our revenues are already coming from Industrial IoT (IIoT) products.

In particular, we are accelerating the acquisition of exclusive technologies in the fields of 5G, smart factories, and artificial intelligence (AI) to strengthen intelligence in edge networks, especially in the IoT field.

■ Recently, we joined hands with congatec to standardize COM-HPC. What benefits does this standard provide?

Both companies are members of the committee that develops the COM-HPC standard for the PCI Industrial Computer Manufacturing Group (PICMG).

Despite the introduction of the COM-HPC module specification and carrier board design guide by the PICMG, little effort has been made to ensure actual interoperability at the evaluation carrier board level.

The carrier board standardization agreement for joint COM-HPC evaluation can address the aforementioned issues by enabling cross-compatibility between the two companies' COM-HPC modules via a standardized and interoperable carrier board.

Plug-and-play capabilities enable both companies' customers to reduce non-recurring engineering (NRE) costs and accelerate time to market.

■ The demand for AI is increasing in IIoT and industrial automation. Contron’s response to this is

As mentioned earlier, AI is one of the technologies that Kontron is continuously working on to deploy intelligence to the edge. Kontron has been an NVIDIA Preferred Partner since 2019 and uses NVIDIA GPUs in its edge AI platforms and applications.

The GPUs are integrated into Kontron’s scalable edge systems, which include industrial-grade rackmount systems that can cover most levels of inference. It is also partnering with Israeli startup Hailo and Google to integrate AI accelerators and edge TPUs into its Kontron compact edge system, respectively.

We are implementing and integrating AI, and it is being applied in various industries such as communications, energy, industrial automation, and healthcare.

■ In the IoT field, ‘cost-effectiveness’ is very important. Does Contron have an advantage in terms of cost?

△Contron has strengths over its competitors in terms of cost, quality, and after-sales service.

First, we have two core component supply chains, one in Asia and one in Europe. By leveraging manufacturing in both continents, we can meet global customer demands in terms of cost and delivery. By leveraging these supply chains flexibly, we can provide customers with benefits in terms of lead time and long-term availability, as well as cost.

Combining add-on services for hardware, middleware and software integration can help reduce unnecessary costs and time while shortening time to market. We work with semiconductor and key component supply chains to ensure reliable long-term availability for a minimum of 7 years and up to 15 years or more. This can extend the life of your product or system.

Secondly, the brand spirit rooted in German engineering excellence differentiates Kontron from other brands by manufacturing and designing products with the highest level of technology and skills to provide customers with the best quality, safety and performance.

In addition, industrial computers may require partial or complete customization to suit the application plan or user requirements. Kontron provides flexibility by responding to customer requests and requirements quickly and cost-effectively through a pool of engineers.

We have skilled engineers who can address a variety of vertical markets. 55% of our staff are in R&D and engineering, which means we provide a wide range of technical support, including support for rapid project development and system integration for our customers.

■ There is no branch in the Korean market yet. How does Contron view the Korean market and what is its strategy for the APAC market?

The Korean market has strengths in advanced technology and industrial sectors.

Contron currently does not have a branch in Korea, but this does not mean that we are not interested in the Korean market. On the contrary, we see the Korean market as a significant market and are looking for opportunities to create.

Our strategy is to focus on working closely with partners who can better understand the needs of the market, rather than establishing a physical presence in every region. Through these partnerships, we can effectively navigate the cultural, business, and regulatory environments and work harder to precisely match our products and services to the needs of customers in that market.

Given the rapid industrial growth and increasing acceptance of IoT solutions in the APAC region, we are focusing on Korea, Japan, India, and Southeast Asia. In these markets, we are working with local partners to focus on industries such as industrial automation, mass transit, and medical technology.

■ Lastly, a word to e4ds news readers

Contron is a traditional company that is characterized by excellent engineering and design. We provide products that meet the diverse needs of our customers and we continue to strive to satisfy customer needs through partnerships with international technology suppliers that we work with.

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