Frost & Sullivan: Emergence of Smart Manufacturing will Drive Demand for M2M Communication

Telcos expected to play an important role in ensuring a fully connected plant floor

LONDON – 18 February, 2014 – The manufacturing sector has traditionally implemented a range of wired networks to automate plant floor operations. However, emerging machine-to-machine (M2M) systems such as short-range wireless and long-range cellular networks are evolving into choice solutions for factories of the future. M2M systems can supplement or replace wired networks to enable advanced robotics and enterprise mobility on the plant floor, enabling convenient connectivity in inaccessible areas, communication across barriers, and simplified installation based on wireless local area, wide area, and sensor networks.

New analysis from Frost & Sullivan ( http://www.ict.frost.com), M2M Communication in Manufacturing, finds that telecommunication companies (telcos) will be an important stakeholder in the provision of M2M solutions and the growth of the Internet of Things in the manufacturing sector in Europe.

“Telcos’ ability to offer enterprise-grade communication services integrated with plant-level communications is critical to reliable plant-level operations,” said Frost & Sullivan Information and Communication Technologies Research Analyst Shuba Ramkumar. “Existing partner networks can also be leveraged to provide end-to-end services, including network implementation, provision of applications, and data analytics.”

The pace at which M2M communication is adopted may, however, be slow as the traditionally-conservative manufacturing sector will be apprehensive about potential downtime and the risk to the value and quality of their output. Security concerns are another reason manufacturers are reluctant to use wireless networks. Apart from these technical challenges, the relative inexperience of telcos in this market dissuades manufacturers from availing their services.

Educating manufacturers on the benefits of advanced M2M technologies, ensuring secure functioning of wireless networks, and consulting with manufacturers to tailor solutions to their unique requirements will make smart manufacturing a reality that much quicker.

“In areas where telcos do not have in-house expertise, there is room for partnerships with automation providers, system integrators, or data analytic providers,” recommended Ramkumar. “Acquiring smaller companies that specialise in innovative enterprise mobility applications and data analytics will help telcos capitalise on the immense potential available for M2M communications in the manufacturing sector.”

If you are interested in more information on this research, please send an e-mail to Julia Nikishkina, Corporate Communications, at Email Contact, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

M2M Communication in Manufacturing is part of the Connected Industries Growth Partnership Service program. Frost & Sullivan’s related studies include: Mobile Workforce Management Markets, US Machine-to-Machine (M2M) Communications Markets, and 2013 European ICT Vertical Market Model. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan Frost & Sullivan,

the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact us: Start the discussion
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