In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Businesses today face a peculiar challenge, i.e., to understand the behavior of the customers through processing the data, that is infinitely pouring in from every electronic device with an internet connection, so as to remain sustainable, while the uncertainties such as COVID-19, lurks behind the shadows. So, the need for OI solutions/products have grown over the years to deliver smart and effective decisions with optimum resource utilization, reduction in delivery times and thus improve the overall performance of the organizations. The market for BAM – business activity monitoring, CEP – complex event processing, BPM – business process management, and others, which are integrated into the industry operational intelligence solutions, are the tools that companies are willing to buy to handle their businesses effectively. Such factors are promoting the growth of the global industrial operational intelligence solutions market. The market is further anticipated to record a significant CAGR over the forecast period of 2021-2029.
The global industrial operational intelligence solutions market is segmented by application into production optimization, maintenance, supply chain & logistics management, quality control systems and others. Among these segments, the supply chain & logistics management segment registered the largest market share in the year 2020. The growth of the segment can be attributed to the numerous benefits associated with the incorporation of industrial operational intelligence solutions in the supply chain processes, such as enhancing process optimization and shortening the delivery time of products, reducing inventory for a certain production unit, reducing overall cost of storage of inventory and others.
There is a growing need amongst organizations across all industries for reducing their operational costs, so as to increase their overall business profitability. Businesses are focusing on improving their process efficiency by adopting to real-time business analytics solutions, which when analyzed properly, improves the overall business performance. With the help of such industrial operational intelligence solutions, businesses are making optimum use of their resources and are also enabling them to reduce their delivery time. These tools also help businesses to understand their financial performance and further contributes to a strong decision making. The growing need amongst the organizations for enhancing their business processes by adopting such intelligence solutions are the factors anticipated to drive the growth of the global industrial operational intelligence solutions market during the forecast period.
Growing Adoption of Industrial IoT in Manufacturing Industries
The Organisation for Economic Co-operation and Development (OECD) stated in one of its statistics that in the European Union, labor productivity and utilization decreased to 0.73% in 2018 from 3.06% in 2010. On the other hand, in Germany, unit labor costs reached to 2.40% in 2018 from (-)1.60% in the year 2014, according to the statistics by the Federal Statistical Office of Germany.
Increasing labor costs and lower labor productivity has raised the need amongst business owners to adopt to process automation. The concept of industrial internet of things (IIoT) requires the deployment of automated sensors and equipment. The statistics recorded from these devices are then monitored for enhancing the process efficiency. With the growing adoption of IIoT by the manufacturing industries, the need for industrial operational intelligence solutions by these organizations is anticipated to grow significantly, and in turn drive the market growth during the forecast period.
High costs of Industrial Operational Intelligence Solutions
The potential factor that can affect the market of the industrial operational intelligence solutions is its price. Designing OI systems involves development of complex algorithms and infrastructure to support them, i.e., the capital investment is high. The SMEs and other small-scale businesses do not have the financial capability to neither develop nor purchase such technological solutions. Such a factor is anticipated to hamper the market growth.
There is a lack of skilled professionals who can effectively deploy these resources. Organizations have to spend a lot of time in overcoming the averse nature of the individuals and train them to understand these systems, which is both time consuming and resource consuming process. Hence, such a factor is anticipated to lower the growth of the global industrial operational intelligence solutions market.
Our in-depth analysis of the global industrial operational intelligence solutions market includes the following segments:
On the basis of regional analysis, the global industrial operational intelligence solutions market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market for industrial operational intelligence solutions in North America is anticipated to hold the largest share in the market on account of the presence of leading market players in the region which manufacture and market OI systems. The growing requirements for improving the overall process efficiency of the industries in this region is further anticipated to drive the demand for industrial operational intelligence solutions in the region. On the other hand, the market in Asia Pacific region is predicted to grow at the highest rate during the forecast period as a result of growth in digitalization, number of internet users, demand for analytics and business intelligence solutions in the region, particularly in countries such as China, India and Japan where a significant growth is expected in the number of internet users and IoT devices.
The global industrial operational intelligence solutions market is further classified on the basis of region as follows: