Market segmentation and potential of the COMPOSITION in European Industry

Summary

This deliverable describes the segments of the primary markets for the COMPOSITION exploitable assets and their exploitation potential, providing an overview of the different market segments that COMPOSITION can address, thus allowing partners to make an informed decision on how to define their own individual exploitation plans.

The market description and analysis focuses on two primary markets

1) the market for the COMPOSITION solution as a whole based on user applications explored in the project pilots and

2) the market for software development tools for those that develop, deploy, and maintain IIoT(industrial Internet of Things) applications for industrial customers.

At this point in the project, the understanding of the final industrial applications for the Smart Manufacturing industry is still limited. Several use cases have been defined which will eventually be developed and evaluated by the end users in the pilots. Therefore, mainly the market for development tools has been addressed.

By building on well-known paradigms, such as marketplace emulation, the intention is that COMPOSITION will extend manufacturing execution systems to provide a holistic and collaborative integrated information management system (IIMS). The aim is that the IIMS will incorporate the entire Supply and Value Chain, providing the necessary tools to compare production indicators within and between manufacturing facilities.

The development work in COMPOSITION has two main goals:

The first goal is to integrate data along the value chain inside a factory into one integrated information management system,combining physical world, simulation, planning and forecasting data to enhance re-configurability, scalability and optimisation of resources and processes inside the factory.

The second goal is to create a (semi-)automatic ecosystem, which extends the local IIMS concept to a collaborative system incorporating and interlinking both the supply and value chains. At this point in the COMPOSITIONproject, eight exploitable assets have been identified:

  1. Asset and Component Tracker Components
  2. Blockchain Components
  3. Security Enhancing Components
  4. Decision Support System for Optimising Manufacturing Processes
  5. Digital Platform for Smart Environments for Factories
  6. Digital Factory Modelling Components
  7. Deep Learning Toolkit
  8. The Virtual Agent-based Marketplace

Looking at the exploitable assets for COMPOSITION it is clear that not only is the research and development in COMPOSITION part of the fourth industrial revolution, also the potential for the COMPOSITION market place is both present and growing. Based on the market information obtained, two broad market segments have been identified, with substantially different market actors and interactions, buying motives and market price mechanisms, distribution channels and clusters etc.:

  1. Smart Factory Software Components and Subsystems for suppliers of completesoftware solutions to industry actors in both the intra-and Inter-Factoryecosystems. Technology segments include:
  • Integrated information management system for manufacturing
  • Collaborative ecosystem frameworksoIntra-Factory automation solutionsoLifecycle management.

      2.Stand-alone Smart Factory solutions for industry based on theCOMPOSITION user applications deployed at the pilot sites. Technology segments include:

  • Specific Intra-Factory automationsolutions, e.g. using deep learning methods
  • Waste management solutionsusing IIoT integration
  • Open market place for Inter-Factory integration.

In the present deliverable, a full market analysis for the first segment:‘Smart Factory Software Componentsand Subsystems and subsystems’ is presented-The understanding of the industrial applications for the manufacturing industry is still limited at this point in the project. Once the pilot applications have been deployed and evaluated the market for Stand-alone Smart Factory solutions will be revisited and reported in D9.10 Exploitation Planning Framework and First Draft of Exploitation Plans (February 2018).A full market analysis for the segment Smart Factory Software Components and Subsystems has been undertaken, including market description, market size, Unique Selling Points and SWOT analysis.

Three main market drivers (Expanded internet connectivity, high mobile adoption& change from IoT sensors and solutions) and three barriers have been identified (Security concerns, technological fragmentation& implementation).

The COMPOSITION IIMS will be used to optimise the manufacturing processes by exploiting existing data, knowledge, and tools to increase productivity and dynamically adapt to changing market requirementswith the following Unique Selling Points (USP) and features:

  • Real-time information about actual performance and historical data of past performance is captured at machine level using state-of-the-art IIoT components
  • Machine-learning-based prediction of machine or part failure and replacement eliminates unnecessary costs of production process interruption
  • Improved material management by keeping track of various aspects of the material flow through the factory, analysing the flow and presenting the results for operators on dashboards in real time and in the form of periodic or on-demand reports
  • A Batch Tracking System where operators can tag each tray or reel with products in progress when they are manually transferred from oneProduction Unitto another. The data can be shown to users on a Material Management Dashboard
  • A Material Management Dashboard is the key interface between operators and the IIMS,providing information details as necessary for decision support.

The COMPOSITION component specific strengths, weaknesses, opportunities, and threats have been analysed and the results presented in the SWOT matrix shown below. Such analysis requires substantial more clarity as to the products that will be exploited and on which markets. Hence, it will be postponed until the future deliverables D9.10 Exploitation Planning Framework and First Draft of Exploitation Plans and D9.11 Final Exploitation Strategy and Business Plans.

Meanwhile, we will provide an initial market positioning strategy based on the general knowledge of the market needs and the USP elaborated above. Based on the market information, segmentation, competition, USP,and SWOT analysis. the final step is to position the components on the market in relation to both market needs and their competitive strengths. The products are analysed relative to their position in each market segments and conclusions are arrived with respect to the exploitation potential and associated strategy.

The COMPOSITION products that have initially been grouped into the identified market segments are:

  • Components and Tools for the Integrated Information Management Systems for Manufacturing
  • Components and Tools for Collaborative Ecosystem Framework
  • Components and Tools for Intra-Factory Automation

In conclusion, the prioritisation of the COMPOSITION solutions is assessed as follows: The most attractive market segment is the Intra-Factory Automation. This segment has a high demand and established suppliers. The market is best serviced with strong partnerships with an established knowledge base of issues and solutions in factory automation.

Another attractive market is the Collaborative Ecosystem Framework. The market growth is high for solutions for supply chain and product lifecycle management, partly driven by technology push and regulatory and business pulls. The market is not fully developed yet, which leaves good openings for newcomers with novel solutions, A partnership with a renowned actor in the field will be instrumental for the trust that buyers will place in the COMPOSITION solution.

Finally, the market for Integrated Information Management Systems for Manufacturing may turn out to be slightly less attractive with the present status of the project. This market is by far the largest in terms of volume and actors. However, to be a credible player, it is not enough to deliver integration tools –a solid command and experience in the applications and services that are to be integrated is also required. The only conceivable way at this point is to team up with an existing system integrator or solution provider in the market, and deliver total solutions in partnerships.