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Global SCADA market has reached $85 bn in 2020 with 5% YoY growth and will reach $173 bn in 2025

October 2021

Analytical Report (full version)

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Analytical Report (full version)

Global SCADA market has reached $85 bn in 2020 with 5% YoY growth and will reach $173 bn in 2025
Global SCADA market has reached $85 bn in 2020 with 5% YoY growth and will reach $173 bn in 2025
October 2021

Global SCADA market has reached $85 bn in 2020 with 5% YoY growth and will reach $173 bn in 2025

October 2021

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October 25th, 2021 — J’son & Partners Consulting has completed evaluation and forecasting of traditional and cloud components of global SCADA and PLC market. According to results, the estimated market has reached $85 bln. in 2020 with 5% YoY growth. It is expected that during the period of 2021-2025 the market will be growing faster – at 13% CAGR, while cloud SCADA growth will overpace those of traditional one.

 

The growth is relatively weak, because the estimated market is formed by traditional and new segments with quite different paces of growth: traditional segments are almost stagnating, while the cloud ones (IIoT) are quickly growing – refer to Fig. 1.

 

 

Global SCADA and MES markets are transformed to a cloud model, and the innovations are aimed on radicall extension of functionality and role of these systems:

 

- Self-learning capabilities of SCADA and MES, i.e. transition from rigid algorithms defined by humans to flexible self-modified ones based on AI for historical data simulation (Fig. 2).

 

- Autonomous multi-agent interaction, when each production or end-user asset actsas independent autonomous agent overseen by cross-agent autonomous orchestration without direct intervention from humans.

 

It will lead to a complete change of SCADA and MES architectures and their positioning in the structure of enterprise management systems. Instead of rigid hierarchical architecture characterized by the explicit level distribution of functionality, weak information flows between these levels, and hardware-dependent execution of functions, digitalization asks for flat (peer-to-peer) architecture with a flexible split of functionality, intensive information flows, and their hardware-independent execution.The broad range of hardware-independent functionality shall be formed within ecosystems of IIoT-platforms and applications, in combination with high-level automation. This range of functionality is to cover both the traditional part – visualization of production processes, such as sensors' data displaying and deterministic planning automation, and the digital one – digital twins and integrated models, self-learning closed-loop simulation, and autonomous stochastic planning.

 

It mens that cloud SCADA (IIoT) is a  completely new market, aimed to been replace the traditional one and extend its functional coverage to segments not yet covered by SCADA and MES. Therefore, quick growth this market will be provided by new functionality development, new segments coverage and replacement of traditional SCADA in the sphere of M2M data visualization and deterministic planning automation.

 

 

In this regard it should be noticed that at the first stage of development during the period of 2021-2025, this market will be growing mostly by developing new segment of end-users’ assets automation, while conservative existing segment of production assets automation will be less adoptive to the cloud concept. 

 

End-users’ assets automation segment is already larger than a production segment in terms of controllers consumption, but does not historically have a sophisticated automated management layer, so it is open to new players, including the largest spheres of controllers consumption – automotive transport and building engineering systems. Wider adoption of autonomous driving and smart home concept will lead to exploding growth of cloud SCADA consumption. 

 

Increase of cloud adoption in the production sphere will be driven by gradual replacement and upgrade of acting production assets with the smart ones. Another way  is to offer digital twins and stochastic analytics as an addition to the functionality of traditional SCADA and MES – this step demand almost no CAPEX and intervention to production processes automation. The next stage, expeted in 2025-2030, is a full-scale implementation of all cloud functionality including autonomous peer-to-peer agent interaction and multi-agent orchestration.

 

The cloud SCADA market will include:

 

- IIoT applications with self-learning functionality, including simulations and stochastic planning.



- Virtualized networking and computing infrastructure, able to be scaled on demand and/or migrate from one location to another.

 

- Virtualized services, including syber-secrutity, responsible for the availability, SLA and security metricts of an instance.

 

- Hardware part of PLC.

 

- Sensors and actuators – digital twins will need broader range of data sources, while the autonomy needs more actuators.

 

All the components are to be provided as a Service (aaS).

 

According to forecast by J’son & Partners Consulting it is expected that estimated global SCADA market will reach $173 bln. in 2025, with the CAGR at 13% due to rapid growth of the cloud SCADA – refer to Fig. 3.

 

 

The only decreasing segment is the software sold as perpetual licences. This model will be replaced by the consumption-based and outcome-based models used in major cases of SCADA deployment, including hybrid ones. Cloud-based models of SCADA market will grow with 23% CAGR during the period of 2018-2025. The major part of consumption during this period will be formed by the operation automation and end-use products maintenance.

 

Methodology 

 

Our methodology is based on more broader understanding of SCADA as system for automation of production processes, i.e. automation of technological processes on production phase of a product lifecycle, and covers automation of all phases including operation and maintenance of end-use products thanks to gradual implementation of autonomy consepts in transport, “smart homes” and other similar concepts. According to this approach, SCADA market prospectives are dependent mostly on readiness of manufacturing and other production industries to implement cyber-physical (“smart”) product-service concept, extending producers’ responsibility to operational phase of product lifecycle and provisioning functions of products instead or in addition to selling of products to end-customers (aaS business-model). 

 

Therefore the estimated SCADA and PLC market has three components: “traditional” market of proprietary hardware-dependent software, market of cloud industrial IoT-platforms and applications (“cloud” SCADA market), and market of hardware components of SCADA, including both industrial PLC, sensors and actuators, and “smart” controllers used in “smart” buildings, cars and other end-use products.

 

Deployment, integration and technical support services are not included in volume of estimated SCADA market.

 

Cloud industrial IoT-platforms and applications (IIoT-platforms) as key component of digital transformation of all industries are considered as replacement of some hardware-dependent functionality of “traditional” SCADA, and as an addition to their capabilities, first of all, in the sphere of ananytics and simulations. Also we consider IIoT-platforms as new business-model for developers and producers of SCADA, based on recurrent payments instead or in addition to one-time payments. We have estimated as well the influence of IIoT-platform on additional consumption of PLC. 

 

Due to explicit hierarchical difference between “traditional” SCADA and MES, we do not include MES functionality in estimation of “traditional” SCADA market, but we do include MES functionality in estimation of cloud IIoT-platforms market because of flat hierarchy of “cloud” SCADA. 

 

Sources of raw data for this research are: financial reports and technical descriptions of products and services of developers and producers of SCADA and IIoT-platforms, scientific publication regarding SCADA, PLC and MES and publicly available estimations of “traditional” SCADA and PLC markets.

 

 

 

 

 

The detailed results are represented in full version of the report:

 

«Cloud transformation of global SCADA market»

 

List of content

 

1.Methodology and definitions
2.Executive summary
3.Global SCADA and PLC markets
3.1.Estimation and forecasting of volume, structure and dynamics during the period of 2018-2025
3.2.Drivers and inhibitors
3.3.Key technological and business trends
3.4.Cyber-security aspects
4.Global market of IIoT platforms and aplications by spheres of use
4.1.General overview
4.2.Utilities
4.3.Construction and operation of buildings
4.4.Production
4.5.Transport and logistics
4.6.Agriculture


List of figures

 

Fig. 1. Volume, structure and dynamics of global SCADA market, fact for 2018-2020, forecast for 2021-2025, mln. USD
Fig. 2. Volume, structure and dynamics of global IIoT-platforms and applications market (“cloud” SCADA msrket), fact for 2018-2020, forecast for 2021-2025, mln. USD
Fig. 3. Volume, structure and dynamics of global PLC market, including controllers in automotive transport and “smart” buildings, fact for 2018-2020, forecast for 2021-2025, mln. USD
Fig. 4. Innovations in automation of manufacturing and operation processes
Fig. 5. Innovations in design of SCADA, MES and ERP systems
Fig. 6. Transformation of industrial automation as an element of digital transformation of enterprises
Fig. 7. Cyber-security architecture for distributed IIoT-systems (“cloud” SCADA)
Fig. 8. Cyber-security deployed over the top of software-defined network
Fig. 9. Concept of end-to-end networking and computing slice (distributed private networking-computing cloud)
Fig. 10. Cyber-security integrated into end-to-end networking and computing slice
Fig. 11. Pilot project for 5G RAN and end-to-end industrial slices deployment, China Southern Power Grid, China Mobile and Huawei, 2020
Fig. 12. Pilot project for 5G RAN, MEC and end-to-end industrial slices deployment, Saudi Aramco, Saudi Telecom Company and Huawei, 2020
Fig. 13. Global market of Managed NFV deployed in distributed clouds including edge, estimation for 2020, forecast for 2021-2025, mln. USD
Fig. 14. “Traditional” SCADA consumption structure by spheres of use, fact for 2020, forecast for 2030, %
Fig. 15. “Cloud” SCADA consumption structure by spheres of use, fact for 2020, forecast for 2030, %
Fig. 16. PLC consumption structure by spheres of use, fact for 2020, forecast for 2030, %
Fig. 17. End-to-end optimization of value chains of cyber-physical systems - role of IIoT-platforms and applications
Fig. 18. Vertical structure of global IIoT-platforms and applications market, fact for 2018-2020, forecast for 2021-2025, % and mln. USD
Fig. 19. Structure of global IIoT-platforms and applications market by type of platforms, fact for 2018-2020, forecast for 2021-2025, % and mln. USD
Fig. 20. Regional structure of global IIoT-platforms and applications market, fact for 2020, forecast for 2025, % and mln. USD
Fig. 21. Development of ecosystem of IIoT-platforms and applications for smartgrids monitoring and optimization management
Fig. 22. Development of ecosystem of IIoT-platforms and applications for buildings monitoring and optimization management – all phases of buildings lifecycle
Fig. 24. Development of ecosystem of IIoT-platforms and applications for production processes and assets monitoring and optimization management
Fig. 25. Development of ecosystem of IIoT-platforms and applications for “smart” agriculture

List of tables

 

Table 1. Difference in per-asset volume of payment for use of IIoT functionality by types of platforms and sheres of use
Table 2. Cloud IIoT-platforms for metering data collection, analysis, forecasting and smart grids automated management
Table 3. IIoT-plarforms for monitoring and automated optimization management of engineering systems of buildings
Table 4. Integration IIoT-platforms and services for industrial assets monitoring
Table 5. Estimation of volume of fleet management IIoT-platforms functionality consumption
Table 7. Fleet management IIoT-platforms
Table 8. The major IIoT-plafroms and cloud services for smart agriculture with ability to directly connect to IoT-devices

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