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Digital transformation is forming a core part of organization strategy across industry verticals to survive economic headwinds, adapt to dynamic market conditions, and remain relevant in an increasingly competitive global environment. Global pandemic, oil price volatility, political tensions, and climate action have further accelerated the need to invest and integrate in Industrial Internet of Things (IIoT) technologies. End users’ pressing need to cut down total expenditure (TOTEX) and operational expenditure (OPEX) to navigate through these uncertain economic conditions and at the same time increase productivity of existing plants to meet global demand have bolstered the demand for digital services. Real-time visibility of equipment operations and actionable insights derived from AI-powered analytics platform are imperative for end users to ensure continued production without any interruption and transition toward predictive maintenance.

In this digital services playbook, new growth avenues with IIoT technologies are identified and analyzed. IIoT 1.0, which includes connected components, connected machines, connected plant, and connected enterprises, is gaining traction with growing interest from end users across process, discrete, and hybrid industries. An assessment of the adoption rate, impact level, and growth propensity is covered in this research. Yet another disruption identified is the transition from IIoT 1.0 to the IIoT 2.0 digital solution. IIoT 2.0 refers to the shift in business model that delivers IIoT-based products and services with a unique pay-per-performance concept, where customers pay based on the outcome achieved. In this study, three digital solutions, maintenance-as-a-service, infrastructure-as-a-service, and efficiency-as-a-service are identified and analyzed. Future of pump OEMs and other value-chain participants is expected to be influenced by IIoT 2.0. IIoT 2.0, an untapped area that is yet to be explored, and offers plethora of growth opportunities for OEMs to distinguish and cement their market position.

As the shift to IIoT 2.0 is bound to transpire in the long run, this study provides insights on the key growth drivers offered by capitalizing on this new range of digital solutions. This research also discussed the roadblocks that prevent IIoT 2.0 implementation in the short, medium, and long term. An overview on the end-user perception toward IIoT-based digital solutions is offered to gauge end-user preferences, expectations, and the current IIoT solutions adopted in plants.