Part VIII. Software for Plant Operations: A $377B Market by 2030! Software for plant operations plays a pivotal role in optimizing the efficiency and strategy of industrial plants, encompassing a broad range of solutions, including design & engineering software, enterprise resource planning (ERP), IoT-specific software, and supply chain management tools. The market, valued at ~$148B in 2023, is projected to grow to $377B by 2030, driven by a robust CAGR of ~14%. 🌍 Market Footprint: By 2030, the industry's footprint will shift significantly, with APAC capturing ~60% of the global market, while EMEA and the Americas are expected to decline. The rise of local solutions that cater to regional challenges will lead to higher usability and value delivery in APAC. Key trends driving this transformation include the rise of small, niche solutions, the convergence of IT and OT, and increasing low/no code platforms. However, the market faces challenges such as harmonizing new software with existing infrastructure. Top Segment: 💻 IoT Software: With a market size of ~$40B and an expected growth rate of ~21% through 2030, this segment stands out as a key player, offering a strong EBIT margin of ~12%. Key Stats: 📊 Market Value: ~$148B (2023), ~$377B by 2030 📈 Growth (CAGR): ~14% 💹 EBIT Margin: ~12-14% expected by 2030 Trends & Risks: 📈 Growing popularity of niche solutions and low/no code platforms ⚠️ Challenges in integrating software with existing infrastructure 🤝 IT and OT convergence driving innovation Stay tuned for Part IX on digital technologies transforming industries. For further details, connect with Jonathan Brown or Sebastian Heimbach. #IndustrialGoods #Greentech #Machinery #Automation #BCGInsights
BCG on Industrial Goods
Business Consulting and Services
Boston, MA 9,511 followers
Driving Excellence in Industrial Solutions | Explore Our Latest Thinking
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Companies throughout the industrial goods sector are confronting the need for change by redefining themselves, their offerings, and the way they do business. BCG’s industrial goods consulting teams have proven expertise in helping clients adapt, compete, and win. At BCG, out Industrial Goods consulting team partners with leading industrial product makers and service providers around the world to help them solve some of today’s most critical challenges. Our expertise spans across several sectors including Automotive & Mobility, Materials & Processes, Machinery & Automation, and Aerospace & Defense. Follow this page for a collection of latest thinking and news from BCG’s Industrial Goods Practice.
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https://www.bcg.com/industries/industrial-goods/insights
External link for BCG on Industrial Goods
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- 1963
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- Agribusiness , Chemicals, Machinery and Industrial Automation, Building Materials, Forest Products, Paper and Packaging, Aerospace and Defense, Greentech, Metal, Mining, and Automotive & Mobility
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🚗 Shaping the Future of Automotive Software | We are proud to support the World Economic Forum’s latest report on advancing industry collaboration in vehicle software. As the automotive sector increasingly relies on software innovations, the importance of cross-industry partnerships cannot be overstated. This comprehensive report outlines the key challenges and opportunities in vehicle software development and how collaboration will drive the industry forward. Discover how industry leaders are coming together to shape the future of mobility. Read the full report: https://on.bcg.com/4hbHzUM #AutomotiveSoftware #MobilitySolutions
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Great insights shared by Alex Koster, who hosted the recent World Economic Forum Workshop alongside our Boston Consulting Group (BCG) experts Nikolaus S. Lang, Dr. Markus Hagenmaier, and Paul Jordan on the future of autonomous driving. Exciting to see how these collaborations are driving innovation in autonomous mobility! #AutonomousDriving #FutureOfMobility #WEF
Global Leader – BCG Automotive Tech & Software; BCG Digital Ecosystems, Alliances, Joint Ventures; Managing Director & Senior Partner; TED Speaker
I had the privilege of hosting our World Economic Forum automotive executive community in Munich to discuss the evolution of the ADAS and AD markets, together with my Boston Consulting Group (BCG) colleagues Nikolaus S. Lang, Dr. Markus Hagenmaier and Paul Jordan. We focused especially on Level 4 autonomous private vehicles, trucks and robotaxis. Couple of key observations: //1 ADAS market is clearly polarizing on L2 ( ), especially in value terms (almost half of market in 2035); L4 still on the horizon also in private vehicles with 5-10% of vehicles in '35 //2 China is pulling ahead with strong L2 competition already today and most overall L4 invest, driving growth of strong local supplier base of SW upstarts //3 L3/4 technology shift towards AI becoming increasingly visible/accepted - although major barriers remain in scaled homologation/validation //4 The industry needs to urgently improve on consumer education/ assistance as well as on system quality & availability; L2( ) systems remain particularly prone to complex handovers, numerous unclear traffic situations and unpleasant paths, possible nullifying the convenience benefits We will summarize our views shortly - stay tuned. Special thanks to the entire WEF team around Sebastian Buckup, Maria J. Alonso Gonzalez, Witold Ladislao Kopytynski and Abhishek Gupta to make this joint workshop a great success! A big thank you to the participants who contributed to this insightful discussion: Amazon Web Services (AWS) Andrea Ketzer, Andreas Herrmann, Bosch Dr. Bernd Schmaul, TTTech Auto Dr. Dirk Linzmeier, Ford Otosan Erhan Koseoglu, Red Hat Francis Chow, Vitesco Technologies Gerd Roesel, Momenta Steiger Gerhard, CognizantJörg Ohlsen, Allianz Dr. Katharina Amann, KPIT Manaswini Rata, MTR Corporation Limited 香港鐵路有限公司 Michael T. B. Chan, and Shinpei Kato. Excited to keep pushing forward! #AutonomousDriving #AutonomousMobility #FutureofMobility #bcg #WEF
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International Security Space Week is here, and the landscape is evolving faster than ever. As the world transitions from peacetime to more dynamic environments, industries are adapting to shorter innovation cycles and rising competition. In a recent discussion, BCG's Diana Dimitrova, Fabio Dal Pan, and Brian Hirshman shared their insights on how the next 5-10 years will be defined by unprecedented innovation, supply chain resilience, and a fierce war for talent. Check out the full video to hear more about how these challenges are shaping the future of #aerospace and #defense. Explore more insights here: https://lnkd.in/efY2DpS9 #SecuritySpaceWeek #SpaceWeek National Security Space Association (NSSA)
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A fresh approach to rethinking manufacturing networks for cost and carbon reduction: Manufacturers can enhance both profitability and sustainability by rethinking their networks to reduce emissions and operational costs. Leveraging a data-driven, fact-based approach, companies can improve EBITDA by up to 3% while future-proofing their operations for resilience and long-term success. This strategy offers a forward-thinking solution for balancing financial and environmental goals in an increasingly complex landscape. Explore this new perspective: https://on.bcg.com/3NtOVVW #Sustainability #Cost #Decarbonization
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Fresh from her previous keynote at MIDREX® 2024, Nicole Voigt took the stage again at the “World Green Steel, Hydrogen, Energy Summit” in Düsseldorf to outline the next wave of sustainable #steelmaking. Here’s what you need to know: ➡ Breaking Boundaries: HBI (Hot Briquetted Iron) has revolutionized supply chains, removing the need for co-located iron and steel production. ➡ Cost vs. Emissions: Regions can now optimize HBI for cost-efficiency (natural gas) or low emissions (hydrogen), depending on their energy resources. ➡ CO2 Advantage: Countries rich in renewable energy sources are gaining a competitive edge in low-carbon steel production. ➡ Greener Future: As consumer demand grows for sustainable products, #GreenSteel is emerging as a competitive market differentiator. Reach out to Nicole for expert insights and tailored solutions. #NetZero #Sustainability
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Ever wondered how #AI is transforming #fleetmanagement? As the #mobility industry evolves, the integration of AI and data is becoming more essential than ever. In this video, Sherry Sanger, EVP of Strategy and Marketing at Penske Transportation Solutions, discusses how their team is using data-driven insights to tackle fleet management challenges and improve efficiency. At Boston Consulting Group (BCG), we’re excited to collaborate with leaders in the industry to explore how advanced technologies can shape the future of mobility and drive real business impact. Watch the full video to learn more: https://on.bcg.com/3ZQ3oDf
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📣 Join us at The Battery Show 2024 this week in Detroit! As the world accelerates towards electrification, how can we ensure that the battery recycling ecosystem evolves fast enough to meet the growing demand for sustainable energy? How can state and local level strategies help accelerate this transition? We'll be leading a series of important discussions on these topics, so don't miss out on them! Feel free to reach out to our experts on the ground Aakash Arora Jonathan Nipper Nathan Niese and Edward A.
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♻️ Did you know that 76% of household recyclables end up in the trash? Despite vast investments in circularity infrastructure, millions of tons of valuable materials still head to landfills each year. In our latest white paper, "Nudging the Loop Closed: A Behavioral Look at Consumer Circularity," we explore how innovative behavioral science techniques can transform consumer habits and close the loop on circularity. From simple nudges to cutting-edge interventions, this research reveals how companies can unlock the true potential of circularity and sustainability efforts. https://lnkd.in/dUvzy2gh A special thank you to the author team: Santosh Appathurai, Julia Dhar, Tian Feng, Janice Lee, Alexander Meyer zum Felde, Cass Sunstein, Lauren Taylor, and Shalini Unnikrishnan for their valuable insights. #CircularEconomy #Sustainability #BehavioralScience #Recycling
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Facing rising cost pressures, the automotive industry must innovate to stay competitive. Boston Consulting Group (BCG) partnered with FORVIA to create a groundbreaking "lighthouse" factory featuring full automation, digitization, and AI-driven insights. This factory boosts efficiency, reduces costs, and enhances sustainability—setting a new standard for the #FactoryoftheFuture. Discover how this transformation reshapes the future of manufacturing and drives tangible impact. Learn more: https://on.bcg.com/4h1bpLQ #Manufacturing #Automation #Sustainability #Productivity