Cloud and M2M implementation will be central to the development of fully automated plants

September 4, 2015, Republic of Korea – As information and communication technology (ICT) is being implemented in the manufacturing industry, it has recently limited sporadic use of M2M communications and cloud solutions. However, cloud adoption is important for developing fully automated factories, particularly for critical processes, cybersecurity efforts, and implementing advanced robotics and artificial intelligence. Accordingly, strong long-term possibilities in the industrial automation sector are emerging from IT service providers, telecommunications equipment suppliers, fixed network providers, and wireless network providers.

According to a report released by Frost & Sullivan Korea, 'Connected Industry Insight Series: ICT Opportunities in the Global Smart Plants Market (https://www.frost.com/mafc)', ICT spending by the manufacturing, energy, and public sectors is projected to reach a combined total of 206.51 billion euros by 2019.

Shubha Ramkumar, Senior Research Analyst in the ICT Industry division at Frost & Sullivan, stated: "Production facilities are dominated by fixed networks installed using industrial Ethernet for field networks or fieldbus protocols. Accordingly, ICT vendors can collaborate with automation vendors and contribute to the development of improved production floor communication systems."

On the other hand, compared to wired and short-range M2M services, demand for mobile connectivity services is expected to be lower, which will present limitations for mobile network operators.

For designing, integrating, and implementing fully automated plants tailored to manufacturer requirements, collaboration with industrial automation providers will be a critical step in realizing the smart plant concept. ICT vendors must work with other providers to develop end-to-end services including network equipment, connectivity, virtualization, cloud-based software, data analytics, and cybersecurity in the IT ecosystem.

Senior Research Analyst Ramkumar explained: "Telecommunications equipment vendors must develop comprehensive services that take into account the perspectives of all stakeholders in the production process. Mobile network operators can also expand their relationships with manufacturers by leveraging partnerships with fixed-line suppliers and IT solution providers, enabling them to offer integrated solutions for production floors and branch operations beyond just network provision."

The enabling of collaborative production between end customers and manufacturers, as well as real-time connectivity, will accelerate factory automation and help ICT vendors establish a foothold in the global smart plant sector.