Lifecycle Services: The Dawn of a New Era in Industrial Automation

Industrial history is replete with paradigm shifts that come about without much fanfare. Apart from Industry 4.0, which was an exception, many inflection points in manufacturing have transpired silently, for example, the invention and implementation of the initial programmable logic controller (PLC) in the 1970s. In a similar shift, the industry is currently witnessing a change in customer mindset driven by a confluence of multiple disruptive factors, including the COVID-19 pandemic, macroeconomic uncertainty, global competition, and rapidly changing consumer demands.

“Frost & Sullivan predicts that the global managed services market will reach $4 billion by 2022, while the connected services market is projected to reach $16.2 billion.”

Lifecycle services represent a fast-emerging industrial component that is proving integral in enabling customers to realize their plans and visions for the future. The objective of a lifecycle services approach is to meet customer needs and add value across the entire lifecycle of their plants. It also helps customers achieve their digital transformation goals, bridging context and complexity with ease.

The driving factor for lifecycle services is reflected sharply by the operational inefficiencies hindering the industrial space. Frost & Sullivan estimates that each year the industry suffers from operational losses of more than $1 trillion globally. Another visible shift has been from a CAPEX to an OPEX model among customers who are increasingly choosing performance or value over asset ownership. Moreover, a key concern that lifecycle services help customers address is the operational difficulty they encounter while managing a highly heterogeneous industrial environment composed of multi-vendor assets and legacy systems.

Considering the numerous aspects of lifecycle services, one prominent element stands out: consulting services. Industrial clients want to accelerate time-to-market, reduce costs, maximize asset utilization, and eliminate operational risks. As every client has a different set of needs, Frost & Sullivan is seeing a surge in demand for custom services. Consulting service will address this need. Vendors usually deliver on these customized services by formulating and implementing digital strategies, engineering design, data analytics, and enterprise integration.