Technological progressions have led to a conversion towards automation and digitalization to reduce human tasks and errors. Many regions such as North America, Europe, China, and Japan, among others incessantly focus on innovating the existing products and on implementing all technological advancements in their products to transit towards automation. The affluence in operation and user friendliness offered by such products results in an increased demand for the same. Cyber-physical systems promote the link between the cyber and physical, which is driven by the high demand for digitalization and automation.
The U.S. and European countries are presently projected to remain the important regions in the global cyber-physical system market, owing to the presence of advanced technologies and relevant skilled labor to implement CPS, and increasing adoption of CPS for applications such as smart factories and smart grids. Significant market potential exists in countries in the Asia Pacific, such as India, China, and Japan.
Among all the regions, North America is expected to be at the forefront
North America is always at the forefront when it comes to the adoption of any new or flourishing technology. The incorporation of cyber-physical systems in the region has enabled the introduction of automated products such as autonomous or self-driving cars, medical robots that are employed for complex surgeries, and industrial robots as a replacement for human labor, among others. Manufacturing industries in the region are continuously focusing on introducing a larger volume of such automated products, with the intention of offering a seamless experience to end users. As technology is expected to advance, and as artificial intelligence is expected to proliferate, the application of cyber-physical systems in the aforesaid products is expected to boom in North America. Moreover, the research and development initiatives in the region is further a much needed addition for market development. For instance, in 2014, the University of Pennsylvania participated with NSF (National Science Foundation) to advance cyber-physical systems with medical applications. NSF is continuously advancing its research on healthcare systems to introduce robotic surgery and interoperable personalized medical devices. The declining prices of sensors and other devices is also anticipated to have a positive impact on the growth of the market.
Western Europe is expected to slowly catch up with North America in terms of adoption
The European Commission is known for investing heavily on the research and development of new products and for the adoption of new products and services. Due to the benefits associated with cyber-physical systems and the intricacies associated with the employment of the same, initiatives have been taken by the governments of various nations by investing some sums of money for allowing the implementation of the same in their respective nations. This encourages the adoption of cyber-physical systems, which as a result boosts the growth of the cyber-physical system market in Europe. Western Europe is in the limelight in the global market because of the presence of leading players in the region who are constantly innovating in order to stay competitive in the market and also to retain their user base in both Western and Eastern Europe.
An outlook of the global cyber-physical system market with reference to the ICT sector
The global digital ecosystem has been continuously evolving over the last few years. The worldwide ICT sector has witnessed some key disruptions of late and governments of various economies are devising and implementing smart and inclusive regulations to govern sector penetration and facilitate technology connectivity to all parts of the world. Even as the world of technology prepares for a massive revolution with unimaginable advancements powered by machine intelligence, here are some of the key drifts presently trending the global ICT sector:
Mobile as the new internet accessibility engine: Currently, about three-fourths of internet usage is through mobile phones, with an increasing usage witnessed in low-income and middle-income countries. Yet, over half the world’s population is bereft of mobile broadband internet services. Mobile data providers have accepted this challenge and are targeting niche, unpenetrated markets with high-speed connectivity offerings to increase their customer base.
Cloud computing to shoot beyond the sky: Cloud is a potent catalyst in all technological advances of the 21st Cloud is transforming the way enterprises handle big data, and ICT companies are looking to deploy new mechanisms and tools to “speak to data” and acquire the relevant information capable of impacting cross sector business growth.
Swifter integration of networks and technologies: ICT will continue to disrupt industries and with an increasing shift in focus towards cross-functional platforms that integrate networks, devices, and technologies, a structured integration of communication applications and protocols is fueling new service offerings.
An app-led technology universe: If mobile is at the heart of the ICT revolution, mobile apps are the arteries that pump in the necessary innovation for survival. The rise of start-ups offering a plethora of mobile apps is set to revolutionize the entire paradigm of the global ICT sector.
Cyber readiness is the norm: A rapid digitalization has also upped the risk of cybercrimes and cyber-attacks. Mobile companies are working to build secure ICT servers and networks and cyber readiness is of paramount importance today while introducing new products and services in the global market.
FMI utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on 3 dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any. In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.
FMI collects data from secondary sources including company annual reports, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.
In this phase, FMI validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.
Data Analysis and Projection
Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.
For public companies we capture the data from company website, annual reports, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.
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