Rapid Development and Deployment of Augmented Reality and Industrial IoT is a Key Finding in New Release of PTC’s Industrial Innovation Series.
PTC today announced the mid-year release of its State of Industrial Innovation report series, which portrays the development and adoption trends of innovative companies that are building Industrial IoT and augmented reality experiences for their end customers.
The inaugural ‘State of Industrial Innovation’ research report was released earlier this year as part of an ongoing series of market research and analysis conducted by PTC. These reports explore the robust and increasingly complex opportunities presented by the Industrial Internet of Things (IoT) and augmented reality (AR) markets. Tapping into PTC’s 30 years of technology expertise, 30,000 global customers, and 1,000 technology and service partners, the series delivers actionable trends and insights across the entire Industrial IoT ecosystem.
Following the inaugural reports and building on findings from recent quarters, the new version includes the following major insights:
- There is a significant market opportunity for companies looking to build Industrial IoT capabilities into their physical products or to provide Industrial IoT solutions to their end customers through new offerings, product interfaces, and service models.
- Industrial enterprises are keen to improve customer experiences, open up new revenue streams, and disrupt competition by leveraging new augmented reality capabilities for product and service differentiation.
From Pilot to Production, Augmented Reality is Being Adopted Faster than Ever
With a significant increase in AR technology adoption, enterprises undergoing digital transformation cannot afford to wait. Whether for enhancing products, services, and solutions offered to customers or to drive operational excellence within the enterprise, AR has the potential to create significant economic disruption and impact.
“The State of Industrial Augmented Reality: A Spotlight on Industrial Innovation” focuses on the primary use case of strategic differentiation, which means companies who identified that they are offering augmented reality experiences to their customers through innovative products, services, and solutions to differentiate from competitors. Data collected for the report showed the majority of enterprises pursuing augmented reality are standing up projects and experiencing ROI within 12 months. This high pace of adoption represents both an opportunity and a disruptive threat.
Mike Campbell, executive vice president, Augmented Reality Products, PTC, said:
“Augmented reality is happening now. Organizations are starting to jump in with both feet, knowing that ROI can be realized quickly and the window to leverage AR to differentiate is limited, as more companies add AR to physical products.”
“In compiling this report, we observed that pilots start with internal proofs of concept and quickly become deployed across multiple areas, including customer-facing product and service initiatives. Enterprises and consumers alike are on the verge of truly experiencing the transformative power of augmented reality.”
Remote Monitoring and Maintenance and Service Build Strongest Use Cases for the Industrial IoT
“The State of the Industrial Internet of Things: A Spotlight on Industrial Innovation” focuses on development and adoption trends for companies building Industrial IoT experiences to enhance customer-facing products, services, and solutions. Companies pursuing Industrial IoT primarily for external use tend to be much smaller in size. Large enterprises typically have large service networks and want to improve efficiency and productivity, where smaller companies are driven to increase market share and are hyper-focused on product and service differentiation required to attract and retain new customers.
Looking for early value, enterprises often pursue remote monitoring while innovating in parallel, utilizing this new capability as the foundation to then develop or identify new and unique use cases. The next step is typically to layer on machine learning and predictive analytics. This enables companies to predict failures before they happen and help customers optimize their use of a product. These service-oriented applications also enable discrete manufacturers to identify service opportunities that may otherwise be directed to a third party, conducted in-house by the customer, or addressed through emergency customer calls and escalations.
One such example is Varian, a global manufacturer of radiation oncology equipment, which leveraged IoT technology to increase the uptime of their machines in the field, while greatly reducing the cost associated with service. By deploying predictive maintenance, Varian reduced the number of service visits per machine by 42 percent. This increased their service margins, while guaranteeing greater up-time and higher quality experiences for their customers.
Joe Biron, chief technology officer, Internet of Things, PTC, said:
“IoT technologies can mean the difference between success and failure for industrial enterprises.”
“Ultimately, companies of all sizes are finding real business value in their IoT implementations, whether it be internally like in manufacturing operations or externally with service and maintenance. It is clear that enterprises must start their business model transformation today — preempting the agility and speed of market disruption.”