Using IIoT to Turn Challenges into Opportunities: Aftermarket Is the Real Winner

Deployment of IIoT will most likely improve operational efficiency by 45%- Frost & Sullivan analysis

Published: 15 Jun 2017

Introduction

The pumps market currently has been experiencing a difficult phase, with dwindling investments in new projects and existing projects getting deferred or cancelled. End users are hesitant to invest in greenfield projects and the common trend is to focus on maintenance of existing assets in the plant. According to Frost & Sullivan research, Europe accounts for 29.2% of total new pumps sales and has a high potential for aftermarket sales. During times of reducing project sales, one of the ways to compensate revenue for Original Equipment Manufacturers (OEMs) is by providing a prompt aftermarket sales. Most OEMs can provide acceptable aftermarket service, which makes the market highly competitive. The way to optimize the aftermarket service cost along with providing a valuable service is to adopt IIoT technology, Big data analytics to perform prescriptive maintenance by sensorization of system, and so on. Basic mechanical seals can be purchased almost immediately, but customized/specific spare parts are not readily available and usually have a long lead time. In order to maintain revenue generation, OEMs have to take a creative approach to supply parts to the end users within a few days of being ordered. This can be accomplished by supply chain management and asset tracking that are key features of IIoT.This article gives some thoughts about how these challenges could be addressed through IIoT.

Sign in to read the rest of this article

Not signed up? Register now Forgot your password?

Help Desk

Full list of offices


For more information and general enquiries, contact Frost & Sullivan near you.

North America
tel: +1.877.463.7678

Select a location near you..