As global consumption increases, Industrial Software is the only way to increase productivity, lower inputs and achieve environmental sustainability. Eleven years after prominent venture capitalist Marc Andreesen wrote his op-ed “Why Software Is Eating the World” in The Wall Street Journal, the digital revolution has struck industrial markets by storm. At the center of Industry 4.0 is the software that now plays an increasingly important role in automation, optimization and business growth. What continues to drive software adoption across asset-intensive and legacy industries? One factor is the immense growth in the volume of data; previously unconnected assets are coming online and processes are being digitized and automated. Another driver is the growing softwarization and virtualization of hardware, both from a technology and a budget and procurement standpoint. And last but not least, software today is only getting smarter and more integrated, easier to deploy and at a much lower cost. A report by IoT Analytics says 2022 marks the first time the average manufacturer will spend more on Industrial Software than on industrial automation hardware. And they estimate that five years from now the Industrial Software market will be twice as big as the OT hardware market.
Software is here, and it is now eating the industrial world. 2022 marks the first time the average manufacturer will spend more on Industrial Software than on industrial automation hardware.