Another excerpt from the market report, Internet of Things in the industrial sector has given rise to a new concept known as the Industrial Internet of Things also known as the Industrial Internet. Also known as Industry 4.0. IIoT refers to the devices, sensors, and actuators, and software that enable connectivity between machines. Industrial Internet of Things consists of a large number of components ranging from sensors to micro-controllers and network devices. These components are now being manufactured using advanced technologies allowing them to be continuously and wirelessly connected to the Internet. Internet of Things market in the industrial sector is expected to grow at an exponential rate as well, and this can be gauged in the fact that these previously mentioned companies GE, AT&T, and Cisco, Intel and, IBM collectively form the Industrial Internet Consortium in 2014, and according to each of these previously mentioned companies, IoT in the industrial sector presents an even bigger marketing growth opportunity in that in the consumer sector space, and that is why this class exists because the consumer space gets all the press in it, gets all the cool sexy products ever. There's a tremendously a larger space in the industrial sector. They form this open Internet. I can't remember what it stands for now. OIC, sorry. Open Internet Consortium. What it stands for and there was another consortium that was listed between another set of companies that we saw last week. So, these companies are banding together to try to define standards, to try to find commonality, define interoperability. Well, my products interplay and interwork with your products, what issues are there, in driving towards standardization, and the lack of standards we saw was one of the restraints retarding growth in this space. So, defining common specifications agreed upon protocols is important. IoT technology market for industrial mode application, remote application. Didn't notice that before. There's a handful of typos and here. Again, you can see platform software and services is where the money is at with hardware broken out down here. These are in billions of dollars. So, this is the projecting growth to 112 almost $113 billion in 2022. Almost 33 percent compound annual growth rate, and our hardware down here is making slow but steady progress. So, they say, they believe that the time of the writing that processors had the highest growth rate. Here in the industrial sector, we see that sensors are the big player in the big component. First week of class, I showed you the power plant example that had 15,000 sensors monitoring just one of the coal-fired units there and they're producing all of this data, and monitoring all the processes pumps, and ash production, and water supply, et cetera. Thousands of sensors and actuators in that particular deployment. So, this shouldn't come as a big surprise. Connectivity, of course, then how do we get the data collected by the sensors to the application, to a database, to analytics or can be analyzed. Connectivity plays a big part here as well. Here, they have these connectivity technologies and we will look at these in greater detail later and US millions of dollars, ZigBee, who's heard of ZigBee? Raise your hand if you've heard of these. How about wireless heart. Okay. Wi-Fi, I've never heard of WI-FI? Bluetooth, same thing, and then there's a whole bunch of others and they're all vying for a place in this space. I believe I mentioned before, we'll probably see this collapse down over time and congeal into a lower number of total protocols. Just economically not feasible over the long term to support a dozen or two dozen different wireless protocols. It doesn't make sense. I'd been in the business for a long time and I've seen a bunch of technologies be introduced and they vie for position in the marketplace and then overtime they call us down to one or two that end up winning, and then a few years later some new technologies will come out and see the same expansion and then this consolidation again down to a smaller set that is repeated over the 30 years that I've been in the business. It'll say. We think the main technologies that contribute to the factory of the future could yield over $0.5 trillion of savings which partly will be split between consumers and partly with equipment manufacturers. There are three characteristics that will define the factory of the future. The first one is a lot more things will be done virtually. Today, you still prototype a lot of things and sometimes when you're going to production, you're still trying out layouts which means, from when a product gets first designed to when it finally gets to its end version that will be commercialized, you have a long lead time which will be significantly reduced with new technology. So, product simulation, assembly line, configuration, optimization, a lot of those things would start to be done in the virtual world. The second key characteristic of the factory of the future is the fact that it allows more human to machine collaboration. So, for example, today industrial robots work completely separate from human operators. With collaborative robots commonly known has Cobots, you will be able to allow the operator to work alongside the robots and each other to adapt these tasks accordingly, and the third thing is there will be more real time communication between enterprise systems and the factory floor and a two-way flow of information which will allow for real time optimization of the factory, remote control and monitoring and from anywhere within the enterprise not necessarily from the factory floor. Naturally, with all the focus on automation and cost savings that comes with the factory of the future, there are increasing questions about what this means for labor. We think what it means is that manufacturers will be more location agnostic in where they locate their capacity. They will be more focused on where demand is and where the best supply chains are rather than on labor costs necessarily. We think what the factory of the future will result in is a very significant change in business models for both manufacturers and equipment makers for decades to come. What do we hear there and what did we learn there? Half a trillion US dollars in savings can be realized. Split between consumers and equipment manufacturers. Three characteristics were mentioned. Virtualization of a product or process, and we'll study that more later in the semester and we will take a look at how we can use system C to create a model of a physical system or a manufacturing process. This is one I'm really interested in right now, industrial robots are cordoned off from humans because they're just running a program to grab apart and hold it in place while a welder welds it, it moves again and it has no sensors on it today to sense that there is human being present off. A human being happens to walk up and get in the way and they can be seriously injured. Cobots, on the other hand, will be highly instrumented and be very aware of their surroundings and be designed to work collaboratively with human beings like, from sci-fi movies that we've seen robot. So, who has seen next Mock Anna. Raise your hand. Yeah okay. That there's tremendous opportunity in the space. I believe has my personal opinion. I think, and I think it's pretty cool also. It's very interesting stuff. Real-time communications between enterprise systems and the factory floor. Again, this is what this merging of the historical manufacturing technology called operational technology has been around for a long time, several decades, but it was isolated and cut off from the internet and from what we think about in terms of IT today. The Industrial Internet of Things merges these to operate. These two things together operational technology with the Internet and traditional IT as we understand in our laptops or smartphones' databases to create the systems that can produce operational efficiency gains for organizations. Impacts to labor: location agnostic. Companies for years would build a facility where there were workers and workforce available to draw upon to fill out their employees staff. These virtual systems are distributed systems now, might really disrupt that and shift at the location of where they need labor to focus more on the supply chain and it might not matter that there's highly skilled workforce in a particular area. So, to be this, focus on the supply chain rather than on specific labor costs or skill sets in particular geographic the area. Building automation
