Industrial IoT ushering in changes in predictive maintenance

The rapid development of the industrial Internet of Things (IoT) is ushering in the next generation of predictive maintenance (PdM) solutions for the world’s industrial equipment, according to Lux Research. Along the way, it is driving new business models and creating massive opportunities for vendors and operators, it added.

With advances in sensors, connectivity and analytics, PdM - one of the coveted use cases of industrial IoT - is poised for a massive overhaul that will improve asset uptimes and decrease costs, forcing many industrial organisations still living in the maintenance ‘dark ages’ to rapidly embrace change. 

“Remote diagnostics and maintenance solutions are a key factor in enabling OEMs to offer equipment-as-a-service (XaaS) models. To fully benefit from the new technology, industrial organisations need to rapidly move away from the current practice of fixing equipment only after failure, or at pre-determined intervals,” said Isaac Brown, Lux Research analyst and lead author of the report titled, ‘Predictive maintenance: The art of uptime’.

PdM programs require vast resources but can be tailored to specific needs to increase uptime and drive down costs. For instance, Monsanto gained $1 million by deploying integrated wireless gateways and failure ratings to 14,000 plant components. Leading vendors include Emerson Electric, GE and Schneider Electric.

According to Lux Research, varied business models are emerging. Gas compressor maker Kaeser installed processing and communications capabilities on its compressors and uses data to performs predictive maintenance analytics - but also charges a monthly service fee. Caterpillar, ThysenKrupp and Tennant, among others, are also experimenting with new business models that could eliminate capex, providing ‘equipment as a service’.

Despite proven performance benefits, adoption of predictive maintenance is slow in some industries. Organisation size and region play important roles in the adoption of predictive maintenance and connected solutions. Among industries, energy and heavy industries are much further along than others, Lux Research added.