The increasing demand for predictive maintenance and the rise of digital factories is affecting all players within the drive technology chain. Especially on SMEs, the impact is significant; to survive, they are increasingly forced to join ecosystems of global players.
This reports ABN AMRO in its report 'Power transmission: digitalisation is driving chain consolidation'. The Dutch electric drive systems market comprises more than 300 companies. Together, these parties account for an annual turnover of EUR 1.5 billion.
Predictive maintenance
Sensors and data are playing an increasing role in drive technology. Thus, major customers such as industrial manufacturers and machine builders are striving for ever higher efficiency, less downtime and lower maintenance costs. In practice, this means that maintenance is preferably carried out only when it is really needed, instead of periodically. This is also known as predictive maintenance.
What is fuelling the demand for predictive maintenance is the shortage of technical staff and the high cost of good maintenance engineers. Due to a lack of skilled workers, factories are increasingly shedding their own technical services. Machinery maintenance is also becoming increasingly complex due to the presence of many electronics and IT components. By embracing predictive maintenance, maintenance can be better planned, making it easier to outsource to specialised parties.
Sensors and data
Enabling this kind of maintenance requires smart drive systems that collect, analyse and interpret data via sensors. ABN AMRO warns that many SMEs lack this usage data. At the same time, large international manufacturers are investing heavily in sensors, simulation software and big data analytics. They are increasingly ahead of smaller players in the industry, according to ABN AMRO.
For players in the rest of the chain such as wholesalers, drive specialists, system integrators and maintenance companies, this shift means tasks are falling away or the nature of their activities is changing. ABN AMRO says that to survive, many parties will have to merge with parties within and outside their own industry. At the same time, it will become necessary to enter into 'intensive partnerships' with large drive manufacturers.
'Linking up with global players'
David Kemps, Sector banker Industry at ABN AMRO points to the high costs for SMEs, saying they will have to join the ecosystem of global players to survive. "For large international players, consolidation will accelerate further, resulting in the market being dominated by a small number of very large players. Forward integration, on the other hand, is very costly for SMEs. To survive, they need to join the ecosystem of global players," Kemps said.
"Thus, the industry is evolving from a chain of independent companies to an ecosystem around international manufacturers. Wholesalers, drive specialists, system integrators and maintenance companies can thus hitch a ride on usage data, digital technologies and systems from major players. This will give them the knowledge, experience and technical support to deliver customer-specific solutions with more added value."
The report 'Power transmission: digitalisation is driving chain consolidation' is available on ABN AMRO's website.
Author: Wouter Hoeffnagel
