Virtual Sensors Market

Virtual Sensors Market by Component (Solutions and Services), Deployment Mode (Cloud and On-Premises), End User (Process Industry - Manufacturing and Utilities, Automotive and Transportation, and Oil and Gas), and Region - Global Forecast to 2023

Report Code: TC 7041 Apr, 2019, by marketsandmarkets.com

[97 Pages Report] MarketsandMarkets expects the global virtual sensors market size to grow from USD 235 million in 2018 to USD 910 million by 2023, at a Compound Annual Growth Rate (CAGR) of 31.1% during the forecast period. The major growth drivers for the market, include predictive maintenance and potential reduction in the time and cost compared to physical sensors, and rising adoption of the IoT cloud platforms.

Virtual Sensors Market

Solutions to hold the largest market size during the forecast period

Virtual sensor solutions help organizations to estimate product properties or process conditions based on mathematical models. The mathematical models estimate the desired values based on the inputs from the multiple physical sensors. Organizations use virtual sensors mainly to achieve efficiency and in geographic locations where physical sensors cannot be implemented Vendors in the market offer virtual sensor solution as standalone software or integrated with comprehensive solutions to provide an advanced feature. The solution helps enterprises estimate accurate measures when the physical sensor is too slow. Virtual sensors enable organizations to reduce operational expenses as the implementation and maintenance of physical sensors are expensive.

Cloud segment to grow at a higher CAGR rate during the forecast period

The cloud segment is expected to grow at the highest CAGR during the forecast period. Cloud deployment has enabled businesses to operate without a server infrastructure or office location, thus, enabling employees to work remotely. Cloud deployment of virtual sensors helps cut down the total cost of ownership and increase data storage capabilities for organizations. Organizations use the cloud-based virtual sensor, as it is easy to deploy, offers agility, and provides more scalability than on-premises software at an affordable cost. These factors are supporting the growth of the cloud-based virtual sensor. Cloud-based deployment also offers use-based pricing models, which enables organizations to pay cloud service vendors only when the services are used, which further reduces upfront capital expenditure related to hardware, software, storage, and technical staff.

Process industry – manufacturing and utilities segment to hold the largest market size during the forecast period

In the process industry, mainly manufacturing and utilities segment, industrial digitalization is one of the important criteria for optimizing the manufacturing processes of robots, industrial machines, and processing set-ups. However, virtual sensors along with AI and IoT have been adopted by process industry-manufacturers or Original Equipment Manufacturers (OEMs) as the use of these technologies collectively enables machinery designing without using design prototypes, process optimization, remote monitoring, and timely data delivery in the manufacturing plants, which is an important factor that drives the virtual sensors market for discrete industries. Virtual sensor solutions are used to implement an enterprise asset management and life cycle service strategy, which has been majorly beneficial for both the OEMs and the owner-operators.

Virtual Sensors Market

North America to account for the largest market size during the forecast period

North America is expected to hold the largest market size and dominate the global virtual sensors market from 2018 to 2023. The region majorly has a high concentration of large multinational companies, which largely contribute to the growth of the market. APAC is expected to provide lucrative opportunities for the virtual sensor solutions vendors, owing to the increasing demand for the virtual sensor solutions among enterprises in the region. The increasing number of government regulations and compliances in various regions could affect the adoption of virtual sensor solutions.

Key Market Players

Major vendors offering virtual sensor solution and services across the globe, include GE(US), Cisco (US), Honeywell (US), Siemens (Germany), Schneider Electric (France), Elliptic Labs (Norway), Algorithmica technologies (Germany), EXPUTEC (Austria), TACTILE MOBILITY (Israel), IntelliDynamics (US), ANDATA (Austria), Aspen Technology (US), OSIsoft (US), Modelway (Italy), and LMI Technologies (Canada)

GE has established itself as a strong brand among the leading players in the virtual sensor market by launching innovative solutions required for various industries. The company offers virtual sensors in a digital twin that works on the Predix platform to provide asset and system intelligence. Predix is a cloud-based platform which is used to power industrial apps. This platform also derives outcomes ranging from the reduction of unplanned downtime to improved asset output and operational efficiency. The company keenly focuses on developing cost-effective and easy-to-deploy innovative technology solutions and adopts both organic and inorganic growth strategies. For instance, in January 2019, the company launched Digital Ghost, an active cyber-defense solution for industrial control systems. Digital Ghost helps organizations protect critical infrastructure and systems network by creating an additional layer of security and combines GE’s Digital Twin and edge computing technologies to monitor systems. Furthermore, in November 2018, launched Predix Edge to help businesses simplify edge-to-cloud computing and enable them to secure the progress of their Industrial Internet of Things (IIoT) initiatives from pilot to production.

Scope of the Report

Report Metrics

Details

Market size available for years

2016–2023

Base year considered

2017

Forecast period

2018–2023

Forecast units

Value (USD)

Segments covered

Component, Deployment Type, End User, and Region

Geographies covered

North America, Europe, APAC, and RoW

Companies covered

General Electric (US), Cisco (US), Honeywell (US), Siemens (Germany), Schneider Electric (France), Elliptic Labs (Norway), Algorithmica technologies (Germany), EXPUTEC (Austria), TACTILE MOBILITY (Israel), IntelliDynamics (US), ANDATA (Austria), Aspen Technology (US), OSIsoft (US), Modelway (Italy), and LMI Technologies (Canada)

This research report categorizes the virtual sensors market to forecast revenues and analyze trends in each of the following submarkets:

On the basis of Component, the market has been segmented as follows:

  • Solutions
  • Services

On the basis of Deployment Types, the market has been segmented as follows:

  • Cloud
  • On-premises

On the basis of Verticals, the market has been segmented as follows:

  • Oil and Gas
  • Automotive
  • Process Industry - Manufacturing and Utilities
  • Electrical, Electronics and Consumer technology
  • Healthcare
  • Chemical
  • Others (Home Automation, Retail, and Consumer Goods)

On the basis of Regions, the virtual sensors market has been segmented as follows:

  • North America
    • US
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Rest of Europe
  • APAC
    • China
    • India
    • Rest of APAC
  • RoW
    • Middle East and Africa (MEA)
    • Latin America

Recent Developments

  • In January 2019, GE launched Digital Ghost, an active cyber-defense solution for industrial control systems. Digital Ghost helps organizations protect critical infrastructure and systems network by creating an additional layer of security and combines GE’s Digital Twin and edge computing technologies to monitor systems.
  • In March 2019, Honeywell launched Honeywell Marketplace to help organizations find and purchase innovative software solutions, technologies, and services and, enable them to improve productivity and increase efficiency.

Key questions addressed by the report

  • What are the major challenges faced while deploying virtual sensor solutions in different application area?
  • Where and to what extent organizations need virtual sensor solutions?
  • What are key industry trends in virtual sensor market?
  • What is the level of preparedness of enterprises to deal with unforeseen business risks?
  • What are the challenges faced by virtual sensor solutions providers while integrating innovative technologies with a client’s existing IT infrastructure?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

Table of Contents

1 Introduction (Page No. - 13)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Market Segmentation
           1.3.2 Regions Covered
    1.4 Years Considered for the Study
    1.5 Stakeholders

2 Research Methodology (Page No. - 16)
    2.1 Research Data
                    2.1.1.1 Breakup of Primary Profiles
                    2.1.1.2 Key Industry Insights
    2.2 Market Size Estimation
    2.3 Market Forecast
    2.4 Assumptions for the Study

3 Executive Summary (Page No. - 22)

4 Premium Insights (Page No. - 26)
    4.1 Attractive Opportunities in the Virtual Sensors Market
    4.2 Market, By Component, 2018–2023
    4.3 Market, By Deployment Mode, 2018 & 2023
    4.4 Market, By End User, 2018
    4.5 Market Investment Scenario

5 Market Overview and Industry Trends (Page No. - 29)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Predictive Maintenance and Potential Reduction in the Time and Cost Compared to Physical Sensors is Driving the Virtual Sensors Market
                    5.2.1.2 Rising Adoption of IoT and Cloud Platforms
                    5.2.1.3 Predominant Use of IIoT for Design and Manufacturing
           5.2.2 Restraints
                    5.2.2.1 Risks Associated With Data Security Due to the Use of IoT and Cloud Platforms
           5.2.3 Opportunities
                    5.2.3.1 Promising Prospects for the Virtual Sensor Technology in the Automobile and Aerospace Industries
           5.2.4 Challenges
                    5.2.4.1 Lack of Awareness of the Benefits of Adopting Virtual Sensors
                    5.2.4.2 Lack of Skilled Workforce and Technical Knowledge
    5.3 Industry Trends
           5.3.1 Use Case 1: SmartuqLLC: Virtual Sensor for the Fortune 500 Heavy-Duty Engine
           5.3.2 Use Case 2: Algorithmica Technologies: Virtual Sensor for Smart Condition Monitoring
           5.3.3 Use Case 3: Honeywell: Virtual Sensor to Solve Powertrain Challenges
           5.3.4 Use Case 4: Osisoft: Smart Sensors for Process Monitoring and Fault Detection
           5.3.5 Use Case 5: Modelway: Fault-Tolerant Control of Unmanned Aerial Vehicles (UAV)

6 Virtual Sensors Market, By Component (Page No. - 35)
    6.1 Introduction
    6.2 Solutions
           6.2.1 Ability to Reduce Operational Expenses and Time is Driving the Virtual Sensor Solutions Market
    6.3 Services
           6.3.1 Implementation, Training and Consulting Services are Playing A Vital Role in Effective Functioning of Virtual Sensors

7 Market, By Deployment Mode (Page No. - 39)
    7.1 Introduction
    7.2 Cloud
           7.2.1 Ability to Scale Up the Data Storage and Agility is Driving the Cloud Deployment Mode in Market
    7.3 On-Premises
           7.3.1 Ability to Have Total Control Over Sensitive Data is Driving the On-Premises Deployment Mode in Market

8 Market, By End User (Page No. - 43)
    8.1 Introduction
    8.2 Oil and Gas
           8.2.1 Oil and Gas Companies Use Virtual Sensors to Enhance Process Efficiencies and Workflows at A Lower Cost
    8.3 Automotive and Transportation
           8.3.1 Enhancing Safety of the Passengers and Reducing the Cost of Sensors to Drive the Adoption of Virtual Sensors
    8.4 Process Industry - Manufacturing and Utilities
           8.4.1 Industry 4.0 to Drive Virtual Sensors in the Process Industry - Manufacturing and Utilities Segment
    8.5 Electrical, Electronics, and Consumer Technology
           8.5.1 Adoption of Virtual Sensors to Support Process Automation and Improve Production Efficiency
    8.6 Healthcare
           8.6.1 Virtual Sensors Help Healthcare Providers in Providing Enhanced Medical Services to In-Hospital and Remotely Located Patients
    8.7 Chemical
           8.7.1 Virtual Sensor Solutions to Help Enhance Process Efficiency and Product Development Process in Chemical Companies
    8.8 Aeronautics and Defense
           8.8.1 Virtual Sensors to Help Minimize Cost of Production, Optimize Processing, and Reduce Production Time
    8.9 Others

9 Virtual Sensors Market, By Region (Page No. - 53)
    9.1 Introduction
    9.2 North America
           9.2.1 United States
                    9.2.1.1 Increasing Demand for Home Automation to Drive the Market in the Us
           9.2.2 Canada
                    9.2.2.1 Digital Technologies to Drive the Market in Canada
    9.3 Europe
           9.3.1 United Kingdom
                    9.3.1.1 Growing Need to Estimate Flow Volume, Pressure, Composition and Fluid Properties in Oil and Gas Industry to Drive the UK Market
           9.3.2 Germany
                    9.3.2.1 Increasing Use of Virtual Sensors in Industrial Robots to Propel the Growth of the Market
           9.3.3 France
                    9.3.3.1 Virtual Sensors in Active Safety Applications in Automotive to Fuel the Growth of the Market
           9.3.4 Rest of Europe
    9.4 Asia Pacific
           9.4.1 China
                    9.4.1.1 Increasing Demand for the Virtual Sensing Technology in Consumer Electronics to Drive the Virtual Sensors Market
           9.4.2 Japan
                    9.4.2.1 Need to Reduce Investments in Physical Sensors Across Industries to Drive the Market in Japan
           9.4.3 India
                    9.4.3.1 Increasing Use of Virtual Sensors in Health Monitoring Devices to Propel the Adoption of Virtual Sensor Solutions
           9.4.4 Rest of Asia Pacific
    9.5 Rest of the World

10 Competitive Landscape (Page No. - 68)
     10.1 Competitive Leadership Mapping
             10.1.1 Visionary Leaders
             10.1.2 Innovators
             10.1.3 Dynamic Differentiators
             10.1.4 Emerging Companies

11 Company Profiles (Page No. - 70)
(Business Overview, Solutions Offered, Recent Developments, SWOT Analysis, and MnM View)*
     11.1 General Electric
     11.2 Cisco
     11.3 Honeywell
     11.4 Siemens
     11.5 Schneider Electric
     11.6 Elliptic Labs
     11.7 Algorithmica Technologies
     11.8 Exputec
     11.9 Tactile Mobility
     11.10 Intellidynamics
     11.11 Andata
     11.12 Aspen Technology
     11.13 Osisoft
     11.14 Modelway
     11.15 LMI Technologies

*Details on Business Overview, Solutions Offered, Recent Developments, SWOT Analysis, and MnM View Might Not Be Captured in Case of Unlisted Companies.

12 Appendix (Page No. - 91)
     12.1 Discussion Guide
     12.2 Knowledge Store: Marketsandmarkets’ Subscription Portal
     12.3 Available Customizations
     12.4 Related Reports
     12.5 Author Details


List of Tables (33 Tables)

Table 1 Factor Analysis
Table 2 Virtual Sensors Market Size, By Component, 2016–2023 (USD Million)
Table 3 Solutions: Market Size, By Region, 2016–2023 (USD Million)
Table 4 Services: Market Size, By Region, 2016–2023 (USD Million)
Table 5 Market Size, By Deployment Mode, 2016–2023 (USD Million)
Table 6 Cloud: Virtual Sensormarket Size, By Region, 2016–2023 (USD Million)
Table 7 On-Premises: Market Size, By Region, 2016–2023 (USD Million)
Table 8 Market Size, By End User, 2016–2023 (USD Million)
Table 9 Oil and Gas: Virtual Sensors Market Size, By Region, 2016–2023 (USD Million)
Table 10 Automotive and Transportation: Market Size, By Region, 2016–2023 (USD Million)
Table 11 Process Industry - Manufacturing and Utilities: Market Size, By Region, 2016–2023 (USD Million)
Table 12 Electrical, Electronics, and Consumer Technology: Market Size, By Region, 2016–2023 (USD Million)
Table 13 Healthcare: Market Size, By Region, 2016–2023 (USD Million)
Table 14 Chemicals: Market Size, By Region, 2016–2023 (USD Million)
Table 15 Aeronautics and Defense: Market Size, By Region, 2016–2023 (USD Million)
Table 16 Others: Market Size, By Region, 2016–2023 (USD Million)
Table 17 Market Size, By Region, 2016–2023 (USD Million)
Table 18 North America: Virtual Sensors Market Size, By Component, 2016–2023 (USD Million)
Table 19 North America: Market Size, By Deployment Type, 2016–2023 (USD Million)
Table 20 North America: Market Size, By End User, 2016–2023 (USD Million)
Table 21 North America: Market Size, By Country, 2016–2023 (USD Million)
Table 22 Europe: Virtual Sensors Market Size, By Component, 2016–2023 (USD Million)
Table 23 Europe: Market Size, By Deployment Type, 2016–2023 (USD Million)
Table 24 Europe: Market Size, By End User, 2016–2023 (USD Million)
Table 25 Europe: Market Size, By Country, 2016–2023 (USD Million)
Table 26 Asia Pacific: Virtual Sensors Market Size, By Component, 2016–2023 (USD Million)
Table 27 Asia Pacific: Market Size, By Deployment Type, 2016–2023 (USD Million)
Table 28 Asia Pacific: Market Size, By Vertical, 2016–2023 (USD Million)
Table 29 Asia Pacific: Market Size, By Country, 2016–2023 (USD Million)
Table 30 RoW: Market Size, By Component, 2016–2023 (USD Million)
Table 31 RoW: Market Size, By Deployment Type, 2016–2023 (USD Million)
Table 32 RoW: Virtual Sensors Market Size, By Vertical, 2016–2023 (USD Million)
Table 33 RoW: Market Size, By Country, 2016–2023 (USD Million)


List of Figures (31 Figures)

Figure 1 Virtual Sensors Market: Research Design
Figure 2 Research Methodology
Figure 3 Market Breakup and Data Triangulation
Figure 4 Limitations of the Study
Figure 5 Market Size, 2016–2023 (USD Million)
Figure 6 Market Analysis
Figure 7 Fastest-Growing Segments in the Market, 2018–2023
Figure 8 Increasing Use of Predictive Maintenance Techniques to Drive the Market Growth During the Forecast Period
Figure 9 Solutions Segment to Lead the Virtual Sensors Market During the Forecast Period
Figure 10 On-Premises Segment to Lead the Market During the Forecast Period
Figure 11 Process Industry-Manufacturing and Utilities Segment to Be the Leading End User for the Market in 2018
Figure 12 Market: Market Investment Scenario
Figure 13 Virtual Sensors: Drivers, Restraints, Opportunities, and Challenges
Figure 14 Services Segment to Grow at A Higher CAGR During the Forecast Period
Figure 15 On-Premises Segment to Lead the Market in 2018
Figure 16 Process Industry - Manufacturing and Utilities Segment to Dominate the Virtual Sensors Market in 2018
Figure 17 North America to Hold the Highest Market Share in 2018
Figure 18 Asia Pacific to Grow at the Highest CAGR During the Forecast Period
Figure 19 North America: Market Snapshot
Figure 20 Asia Pacific: Market Snapshot
Figure 21 Virtual Sensors Market, Competitive Leadership Mapping, 2019
Figure 22 General Electric: Company Snapshot
Figure 23 SWOT Analysis: General Electric
Figure 24 Cisco: Company Snapshot
Figure 25 SWOT Analysis: Cisco
Figure 26 Honeywell: Company Snapshot
Figure 27 SWOT Analysis: Honeywell
Figure 28 Siemens: Company Snapshot
Figure 29 SWOT Analysis: Siemens
Figure 30 Schneider Electric: Company Snapshot
Figure 31 SWOT Analysis: Schneider Electric

The study involved 4 major activities to estimate the current market size for virtual sensors market. Exhaustive secondary research was done to collect information on the market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakup and data triangulation procedures were used to estimate the market size of the segments and sub segments of the market.

Secondary Research

In the secondary research process, various secondary sources, such as D&B Hoovers, Bloomberg BusinessWeek, and Factiva, have been referred to, for identifying and collecting information for this study. Secondary sources included annual reports, press releases, and investor presentations of companies; whitepapers, certified publications, and articles by recognized authors; gold standard and silver standard websites; regulatory bodies; trade directories; and databases.

Primary Research

The virtual sensors market comprises several stakeholders, such as virtual sensor vendors, end-user companies, digital twin software vendors, software providers, system integrators, compliance and regulatory authorities, cloud service providers, resellers and distributors, research organizations, government agencies, enterprise users, technology providers, venture capitalists, private equity firms, and startup companies. The demand side of the market consists of enterprises across various end users comprising oil and gas, automotive and transportation, process industry - manufacturing and utilities, electrical, electronics and consumer technology, healthcare, chemical, and aeronautics and defense. The supply side includes virtual sensor software providers offering virtual sensor solutions and services. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information.

Following is the breakup of the primary respondents’ profiles:

Virtual Sensors Market

To know about the assumptions considered for the study, download the pdf brochure

Market Size Estimation

Both top-down and bottom-up approaches were used to estimate and validate the total size of the virtual sensors market. These methods were also used extensively to estimate the size of various sub segments in the market. The research methodology used to estimate the market size includes the following:

  • The key players in the industry and markets have been identified through extensive secondary research.
  • The industry’s supply chain and market size, in terms of value, have been determined through primary and secondary research processes.
  • All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.

Data Triangulation

After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and sub segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and sub segment, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying several factors and trends from both the demand and supply sides.

Report Objectives

  • To define, describe, and forecast the virtual sensors market by component (solutions and services), deployment mode, end user (oil and gas, automotive and transportation; process industry-manufacturing and utilities; electrical, electronics and consumer technology; healthcare; chemical; aeronautics and defense; and others), and region
  • To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market
  • To analyze the sub-segments with respect to individual growth trends, prospects, and contributions to the total market
  • To analyze opportunities in the market for stakeholders and provide the competitive landscape of the market
  • To forecast the revenues of the market segments with respect to the major regions, such as North America, Europe, Asia Pacific (APAC), and RoW
  • To profile the key players and comprehensively analyze their recent developments and positioning in the virtual sensors market
  • To analyze competitive developments, such as mergers and acquisitions, new product developments, and Research and Development (R&D) activities, in the market

Available Customizations

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis

  • Product matrix gives a detailed comparison of the product portfolio of each company

Geographic Analysis

  • Further breakup of the North American market into countries
  • Further breakup of the European market into countries
  • Further breakup of the APAC market into countries
  • Further breakup of the Row virtual sensors market into countries

Company Information

  • Detailed analysis and profiling of additional market players

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Report Code
TC 7041
Published ON
Apr, 2019
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