At the recent Hanover Fair in Germany, ARC Advisory Group analysts were encouraged by the strong presence and clear messaging of companies actively driving the convergence of IT and OT. Industrie 4.0 and IIoT have moved beyond the hype phase and are being adopted with various degrees of success by industry suppliers. More importantly, end users are implementing digitization strategies and looking to suppliers, machine builders, and integrators for modern, competitive solutions.

The infrastructure in many developed countries is crumbling. As assets such as pipeline operations, power plants, refineries, and water & wastewater facilities age, the likelihood of a failure introducing potentially deadly toxic or combustible gases into the environment increases. piping in many of these facilities has aged to the point that it requires constant monitoring to ensure asset integrity and prevent a potentially catastrophic event.

The industrial network edge and the devices associated with it have emerged as a primary vehicle for delivering incremental business value via internet-enabled business strategies, such as the Industrial Internet of Things (IIoT) and Industrie 4.0 (I4.0). Digitization, IIoT, and I4.0 are increasingly seen as the means to reduce production downtime, increase production flexibility, and/or achieve a connected and secure infrastructure.