The global field device management market size was valued at USD 1.2 billion in 2018 and is anticipated to witness a CAGR of 6.8% from 2019 to 2025. The notable shift from traditional technologies to automated and smart technologies is the major factor influencing the growth of this FDM market. The digitalization implemented on the complete lifecycle of products allows organizations faster product improvements and the adoption of smart technology-enabled devices.
Increasing penetration of smart factories and implementation of industry 4.0 and IoT in several verticals has opened a huge opportunity for the FDM market, such as automotive and manufacturing industries require the FDM solutions due to mass production. Mass production leads to the need for field device management systems to reduce operational and maintenance costs.
The FDM solutions are being highly adopted for the development of smart factories and another industrial internet of things (IIoT) based applications, which is providing a huge scope for the growth of this market. IIoT assists manufacturers with efficient and high-speed systems at reduced prices, which influences the demand for these solutions/ services positively as it requires the integration of such advanced systems for enhanced automation. Automation companies are focusing on investments in IIoT applications development to implement industry 4.0 and support full automation in their industries. Thus, the surge in IIoT applications creates a huge demand for field device management solutions.
There has been a substantial rise in the investment among various industries in smart devices, which is influencing the need for FDM systems. To deal with bulk productions, smarter machines have been introduced to increase work flexibility and reduce manual tasks and complexities in the processes. Thus, FDM systems help with the minimization of manual tasks and configuration of smart devices and tools remotely, which complements the growing digitalization and usage of smart devices in manufacturing and other automation processes. These factors have fueled the growth of the field device management market across the globe with a healthy CAGR in the Asia-Pacific region.
Since connectivity among devices is an essential part of the manufacturing process, field/ site device management plays a vital role in industrial automation and smart factories. Growth in smart factories directly drives the growth of the FDM market, such as cyber-physical production systems are implemented in smart factories for providing management in real-time. Major companies working on automation are using FDM-based software for better software management and central management with reduced operational and maintenance costs. Companies get better business mobility and compliance with secure enterprise mobility and field device management.
The offering segment is classified into hardware and software. The software segment has been dominating among offerings. Major players, including Schneider Electric; ABB; Siemens; Mitsubishi Electric Corporation; Honeywell International Inc.; and FANUC Corporation, have developed their software for FDM solutions for better analysis of smart field devices. Since most of the FDM solutions require a configuration tool for the diagnosis and troubleshooting of smart field devices, the software segment holds the largest share in offerings. The software help accessing smart devices remotely and providing field data for predictive maintenance.
Some companies offer both software and hardware for field device management. For instance, Hamilton Company offers Hamilton Arc Sensors along with a device manager configuration tool for transmitter-free communication. PHOENIX CONTACT also offers its FDM solutions in the form of hardware, such as converters and isolators, gateways, extenders and repeaters, and multiplexers. Emerson Electric Co. offers asset management software and field communicators under its FDM solutions. However, the offerings in asset management software remain higher than field communicators. Since the major application area of field device management is industrial automation and IIoT, the software segment dominates against hardware and is expected to exhibit a healthy CAGR.
The deployment type segment is bifurcated into the cloud and on-premises. The on-premises segment holds the largest share among both deployment types owing to the increasing cybersecurity concerns. Deploying the field or site device management on-premise provides the complete control of the system at the data center with better integration capability and security. Companies prefer on-premise FDM solutions to address indemnification issues, legal liabilities, and technical limitations. Major companies have deployed their FDM solutions on-premise, to provide better visibility, stronger control, and security.
However, the cloud segment is expected to demonstrate a healthy CAGR owing to increasing investments in IoT-based applications. Since several FDM solutions providers are investing in cloud and IoT-based products and services through mergers and acquisitions, cloud-based FDM solutions are expected to grow in the future. However, on-premise FDM solutions are dominating the market and are anticipated to remain dominant soon.
Based on industry, the market has been segmented into discrete industries and process industries. Discrete industries have been further segmented into automotive, aerospace and defense, and manufacturing. Process industries have been further segmented into pharmaceuticals, metals and mining, oil and gas, chemicals, pulp and paper, water and wastewater, life sciences, energy and utilities, food and beverages, and others. The process industries cater to the highest share in the market owing to increasing opportunities with the emergence of big data and industry 4.0. Since process industries require critical monitoring and control systems, several smart field devices and sensors have been introduced for data analysis for process industries.
In process industries, FDM solutions are majorly used for prioritizing the operational and maintenance tasks, whereas, in discrete industries, it is used majorly for reducing the operational costs. Chemicals, oil and gas, energy and utilities, metals and mining, and pharmaceuticals are the major application areas of process industries, where field/site device management is required the most. Since FDM solutions provide an automation control platform to improve asset management and instrumentation maintenance, it is majorly used in process industries. More than one FDM platforms have been installed for many manufacturing plant environments, to support process automation.
The market for field device management in North America accounted for more than 25% share in 2018, owing to the leading industrial automation market in North America. The North America region is characterized by a large number of populations having improved purchasing power and continuous investments in automation. Further, governments’ increasing focus on having in-house field device management production is also helping in market growth. Also, considerably increasing investments in IIoT and industrial automation in this region is one of the major factors boosting the growth of the market in the North America region.
APAC region is expected to demonstrate the highest CAGR in the future. Rising infrastructural investments in the energy and utility industry owing to the growing demand for electricity; growing demand in food and beverages and oil and gas industries owing to the huge population; and consistent growth in industrial automation due to rapid industrialization and favorable government regulations are the prominent factors fueling the growth of the market in the APAC region. China is expected to dominate the Asia Pacific FDM market. The dominance can be accredited to its mass production in both processes and discrete industries, such as energy and utilities, automotive, and manufacturing.
The key industry participants in the market include ABB; Emerson Electric Co.; Siemens; Honeywell International Inc.; Rockwell Automation Inc.; Yokogawa; OMRON Corporation; Mitsubishi Electric Corporation; FANUC Corporation; Metso Corporation; Valmet; Schneider Electric; Azbil Corporation; Hamilton Company; and PHOENIX CONTACT.
Vendors in the market are focusing on increasing the customer base to gain a competitive edge in the market. Therefore, vendors are collaborating with various associations to increase the consumer base. For instance, in October 2018, Emerson Electric Co. acquired General Electric’s intelligent platform business, to expand its consumer base in industrial automation across process industries. Both Intelligent Platforms and Emerson have been focused on leverage automation technologies to drive digital transformation. In July 2018, ABB completed the acquisition of General Electric industrial solutions, to expand its access to the North American market.
Attribute |
Details |
The base year for estimation |
2018 |
Actual estimates/Historical data |
2014 - 2017 |
Forecast period |
2019 - 2025 |
Market representation |
Revenue in USD Million and CAGR from 2019 to 2025 |
Region scope |
North America, Europe, Asia Pacific, South America, MEA |
Country scope |
U.S., Canada, Mexico, Germany, U.K., France, China, Japan, India, and Brazil |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
15% free customization scope (equivalent to 5 analysts working days) |
If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global field device management market report based on offering, deployment type, industry, and region:
Offering Outlook (Revenue, USD Million, 2014 - 2025)
Hardware
Software
Deployment Type Outlook (Revenue, USD Million, 2014 - 2025)
Cloud
On-Premises
Industry Outlook (Revenue, USD Million, 2014 - 2025)
Discrete Industries
Automotive
Manufacturing
Aerospace & Defense
Process Industries
Energy & Utilities
Metals & Mining
Oil & Gas
Food & Beverages
Chemicals
Pharmaceuticals
Others
Regional Outlook (Revenue, USD Million, 2014 - 2025)
North America
The U.S.
Canada
Mexico
Europe
U.K.
Germany
France
Asia Pacific
China
Japan
India
South America
Brazil
The Middle East and Africa (MEA)
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities. Contact us now
ESOMAR & Great Work to Place Certified
ISO 9001:2015 & 27001:2022 Certified
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.
"The quality of research they have done for us has been excellent."
Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.