IIoT combines Big Data technology and machine learning; connecting the sensor data, machine-to-machine (M2M) communication, and robotics; in industrial manufacturing.

Increasing focus on OPEX

As an impact of IIoT, customers are  focusing more on operating expenditure (OPEX), than capital expenditure (CAPEX).  For example, in oil and gas and chemical and petrochemical plants, customers shift to emerging technologies, such as the tunable diode laser spectroscopy (TDLS) technique to reduce the total operating costs. TDLS analyzers are replacing traditional solutions, such as zirconia and paramagnetic, for oxygen measurement and process gas chromatographs for light hydrocarbon measurement.

Thermo Fisher Scientific increased the productivity of the product, Vanquish Ultra High-Performance Liquid Chromatography (UHPLC) system. Waters Corporation declares that, “The throughput, selectivity, and specificity achieved with the ACQUITY UPLC® System provides improved chromatographic results while consuming less solvent than traditional HPLC – for more efficient laboratory operations.” Productivity is critical for quantitative and qualitative analyses in areas such as pharmaceutical drug analysis, environmental monitoring, food testing, and water quality monitoring. Analytical equipment manufacturers should increasingly work with their customers and innovate products that will improve the productivity of customers’ processes, and reduce overall operational costs so customers can increase profit margins.

Demand for Product and Process Innovation

Industrial transformation has driven customers to call for simplified processes and analytical equipment that can reduce manual intervention and simplify the entire process. As an example of product innovation, Laser Ablation Electrospray Ionization Mass Spectrometry (LAESI) is an advanced ionization technique that allows the analysis of biological samples without the need for sample preparation. Sample preparation is found challenging by customers due to the time-consuming process and the lack of skilled human labor. The LAESI technique is advantageous to customers because it resolves their challenges. As an example of process innovation, in process industries, measuring oxygen in the process is the key to ensuring safety of the environment. Extractive measurement of gas can be challenging because it causes frequent maintenance requirements, lower response times, and frequent line clogging. Hence, customers are shifting to inline processing as it reduces cost of ownership, gives faster payback, reduces maintenance, and enables continuous usage (even in most harsh environments).

As an impact of process and product innovation of IIoT, or Industry 4.0, on the analytical instrumentation market, customers are implementing process analyzers to combine manufacturing and quality control in some applications. Process analyzers can help users immediately rectify any mistakes in the production and cut down costs involved in a separate laboratory analysis. Traditional analytical testing in a laboratory is not required in certain applications as the analysis was performed at the production stage. For example, in food testing analysis, customers are shifting to an online/process near-infrared analyzer because they can reduce operating costs by eliminating quality control analysis performed separately at a laboratory. Buchi Corporation acquired a company called NIR- Online to provide online NIR analyzer.


These are a few examples of the impact of IIoT and the resulting 360-degree shift in customer requirements. Manufacturers are working with customers to cater to the change in their requirements. A significant change has occurred in the business models of key manufacturers. More importance is given to the services part of the business. This kind of industry transformation has resulted in growth and decline in different market segments.

Frost & Sullivan, global research and growth consulting company also covers various trends in the analytical instrumentation market. We have published several research studies in this area including global laboratory analytical instrumentation market, global process analytical instrumentation market, global analytical x-ray instrumentation market, global analytical instrumentation market in food testing, global analysis of the oil and gas analytical instrumentation market, global analysis of mass spectrometry market, and global analysis of the water and wastewater analytical instrumentation market.

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