Industrial Internet of Things in Russia. Research of TAdviser and Rostec Group

Purposes and research problems

The purpose of joint survey of TAdviser and State Corporation Rostec was to determine the current and perspective size of the market of IIoT in Russia, including key players, techniques and the most perspective methods of application of these technologies on industrial enterprises.

Technique of carrying out research

Works within this research were carried out by TAdviser and State Corporation Rostec in room and field formats.

Within a room part of a research reports of the different analytical agencies (IDC, Accenture, Global Market Insights, J'son & Partners and so forth), the consulting companies and vendors (PwC, IBM, Cisco, SAP and so forth) representing the estimates of volume, dynamics and trends of the market in the world and in Russia were analyzed.

Within a field part survey in a format of telephone interviews was conducted, each of which took on average 20 minutes.

When forming selection manufacturing enterprises from different sectors of the industry were considered.

The following representatives of the companies respondents participated in poll:

• IT heads (CIO), their deputies,
• The heads of departments of digital services / digital transformation influencing decision making in the field of IT.

In total 100 companies working in Russia were polled.

Overview of the market of IIoT

Industrial Internet of Things (Industrial Internet of Things, IIoT) – or Internet of Things for corporate/industry application - the system of the integrated computer networks and the connected production facilities with the built-in sensors and software for collecting and data exchange, with a possibility of remote control and management in the automated mode, without participation of the person. An ecosystem of industrial IIoT all components, necessary for ensuring its functioning, and players – producers of sensors and other devices, developers of the application software and platforms create, system integrators, telecom operators and customers (consumers) of solutions.

The key driver of implementation of the concept of IIoT - a possibility of increase in efficiency of production and technology processes, against the background of reduction of capital costs. Technologies allow the enterprises to reduce idle times (to 10%), to reduce costs for maintenance and also to improve procedures of forecasting and failure prevention of the equipment (for 10%). Finally implementation of IIoT promotes performance improvement of work and GDP growth, having significant effect on economy. The Rostelecom company counted that by 2020-2021 the effect of implementation of Internet of Things in the real sector of economy can be up to 0.8-1.4 trillion rub, thanks to performance improvement of work for 10-25% and to reduction of expenses on 10-20%.

Under the influence of IIoT are transformed, including, all business cases of creation of interaction "supplier consumer". As result, effective selfoptimizing chains from the enterprises suppliers to companies-pointed consumers can be organized, be started sharing models and so forth. Control functions and decision makings pass from the person to intelligent systems that leads to change of the "paradigm" of technology development called also by "the fourth industrial revolution". Integration of operating rooms and information technologies will allow to pass to new business and service models – such as "digital doubles" (Digital Twins), "repair on a status" and "the equipment as service". In parallel demand for complete solutions - on the basis of IIoT, predictive analytics, cloud computing (Cloud Computing) and "boundary calculations" (Edge Computing) forms.

World market of IIoT

According to Global Market Insights the world market of IIoT (including the equipment, sensors, sensors, the robotic systems, platforms, software and services) in 2017 reached 312.79 billion dollars (for comparison, in 2015 – 113.71 billion). During the period from 2017 to 2023 will grow with annual average rates (CAGR) in 14.36%. By 2023 its volume will be 700.38 billion dollars.

According to forecasts of other agency, Machina Research, by 2025 the world market of industrial Internet of Things (the equipment, including sensors, software and platforms, services) will reach 484 billion euros (for comparison, the total amount of the market of Internet of Things of Machina Research estimates at 4.3 trillion dollars by 2025). Transport, the industry, housing and public utilities, health care and also a segment of smart buildings and smart cities will become primary branches where revenue will form. Analysts expect the greatest dynamics of implementation of IIoT-solutions in agriculture, power, health care, mineral extraction and industrial production.

In return analysts of ABI Research note that the basis for the set IIoT connections is the share of fixed connection today (DSL, a cable, Ethernet). The share of wireless connections in 2017 made about 25% of new IIoT-connections. However operators of mobile networks continue transfer of the equipment for rendering IIoT-services in 4G of LTE range. Connections in industrial production increase use of networks of a distant range with low power consumption (LPWA). On LPWA in the next four years also the greatest part of connections is necessary. In 2017 the total quantity of wire and wireless IIoT-connections was estimated at 66 million worldwide.

According to Honeywell company, one more trend connected with development of ecosystems of industrial Internet of Things is a growing involvement of licensors and producers of the industrial equipment in development of customized applications based on the existing IIoT-infrastructure which can be published afterwards, for example, in application store/marketplaces. Such applications will increase mobility and labor productivity of personnel of the enterprise and also will promote the solution of highly specialized problems of increase in efficiency (for example, specific installation of cracking or a node and so forth).

According to poll of Accenture in which 1,400 heads of business around the world participated, by 2030 the contribution of industrial Internet of Things to world economy in a cash equivalent will be more than $14 trillion. At the same time implementation of similar technologies for the same period can introduce up to $6 trillion in GDP of the USA and more than $70 billion - in economy of Germany. However the research Accenture also shows that perspectives of return and effects of industrial Internet of Things are still unevident to large business. The lack of plans for use of similar technologies is in many respects connected with their complexity and misunderstanding of possible income.

Volume of the Russian market of IIoT

By estimates of TAdviser the Russian market of IIoT (the equipment, the robotic systems, sensors, software and platforms, infrastructure and networks, integration and other services) made 93 billion rubles in 2017 and according to forecasts will grow to 270 billion by 2020. A share of expenses of the industry - about 20% (will grow to 25% by 2020). Activation of the market of IIoT will be defined substantially by support of the state. The backlog is already designated here – in 2017 at the government level are approved the road map Tekhnet (within the NTI project) devoted to implementation of IT systems for management of industrial production during creation of "factories of the future"; and the Digital Economy of the Russian Federation program which assumes development of industrial secsorics and the industrial Internet. Continues to constrain development of this direction obsolescence of production assets, lack of standards and irrelevance of regulatory requirements so far. Besides, it is difficult to business to invest in long-term hi-tech projects, in view of the remaining budget restrictions.

According to joint survey of iKS-Consulting and Orange Business Services the volume of expenses only of business (the large companies, without state projects and SMB) on IIoT in Russia in 2017 was 20.8 billion rubles. The main revenue was generated by the transport industry, with a capacity of 13.1 billion rubles. In the industry the indicator reached 3.6 billion rubles, in the real estate ("smart buildings") — 2.1 billion, in the financial sphere — 1.16 billion, in retail trade — 0.7 billion rubles. Agriculture (0.1 billion rubles) became the outsider on implementation of IoT-solutions.

The Russian base of the installed IoT/M2M devices for the end of 2017 was 15.9 million, by estimates of J'son & Partners Consulting. 2016-2017 are considered as the period of formation of IIOT in Russia, including, thanks to the measures of support of implementation of innovations in HSC taken by the state. During the same period a significant amount of IIoT-projects in different industrial segments – metallurgy, mechanical engineering and chemical industry started. Customers begin to count possible effect of full-scale implementation of technology and also estimate its advantages in comparison with classical an APCS. In 2018 the Association of Internet of Things expects growth of pilot implementations of Internet of Things on production and critical infrastructure facilities with essentially new security level.

Extent of penetration of industrial Internet of Things in Russia in many respects depends on the level of the state support. Technological solutions fill up the market, and both from international, and from the Russian suppliers, but customers lack scenarios of use of the technologies yeilding tangible results yet. Besides, the concerns concerning security issues remain. The agency of the European Union on networks and information security (ENISA) notes that incidents with devices of Internet of Things are included into the three of threats with the greatest financial damage. According to Kaspersky Lab, the lack of uniform standards remains one of the main problems in the field of cyber security of industrial IoT-devices. On the other hand, requirements of cyber security of solutions for IIoT already form, examples of transition to the entrusted platform appear (including, are tested solutions based on KasperskyOS). Permanent search of vulnerabilities, cooperation of industrial developers and IT companies, state regulation — three main methods to avoid serious losses at cyber attacks to crucial objects.

Perspective methods of application of IIoT on industrial enterprises

Today the industry of the different countries endures processes of digital transformation. A necessary condition is implementation in production of a common information space within which enterprise management systems and industrial equipment can timely exchange data. According to the experts the Moscow school of management Skolkovo, projects in the field of production digitalization cost by 10-100 times cheaper already today, than five-ten years ago. Exponential falling of cost of means of production from a digital component is observed. Thanks to the forming ecosystem any partner enterprises ready to provide the capacities for order fulfillment and also customers who in real time will be able to select where and in what volume to order goods will be able to be connected to the IIoT platform. According to Cisco company, in the world today all big distribution is purchased by sale not of IIoT-products, and services in the field of IIoT. In other words, consumers even more often pay for time of operation of the equipment or its resource.

Studying of methods of application of Internet of Things will help the global organizations to prevent incidents and to increase safety of employees, consider in IBM. The data collected from sensors integrate with the innovation cognitive opportunities and indicators received from other external sources (for example, meteorology).

The analysis of world practices of implementation of IIoT shows that the main scopes of solutions are the productions which are characterized by existence of one or several following conditions:

• release of the wide product range, use of the considerable list of component parts;
• need for quality improvement of products and decrease in extent of defects;
• the need for ensuring effective service maintenance of earlier delivered products;
• need for decrease in operating costs of production;
• considerable power consumption of production;
• difficult working conditions;
• the need for operational diagnostics of faults of technology equipment for decrease in unplanned stops of production;
• need for ensuring high performance of personnel;
• need for security of personnel;
• need of system integration of a broad spectrum.

1. End-to-end automation

Transition to IIoT allows to implement more quickly difficult end-to-end, completely automated, business processes. Such processes cover a set of different ACS of the enterprises and also various devices. Such level of automation cannot be implemented, using traditional approaches. Using IIoT the end-to-end automated processes can cover all types of interactions of producers of goods and services and their consumers. The connected enterprises from the closed self-sufficient "black boxes" are transformed to elements of open ecosystems.

2. Remote monitoring and predicative diagnostics

Use of sensors of control of operation of the equipment with access to the network allows the producer of a message remote monitoring and to timely carry out scheduled works, to predict accidents or in advance to prepare necessary parts on replacement, etc. Thus, IIoT becomes the effective management tool product lifecycle. And knowledge of the actual and planned loading of the production equipment connected to network allows to organize automatic network of orders between different productions in a long chain from suppliers of materials to consumers of end products. It is reached by connection of all production sites to a single software platform, and legally different companies can be its participants. Such model cardinally optimizes transaction costs.

3. New service business models

Service sale "on demand" – key characteristic of cloud model. Internet of Things acts as necessary technical components for its expansion for an IT industry framework, starting transition from model of sale of the devices measured by the number of the supplied equipment to model of sale of functionality of the equipment "on demand". For example, when the company sells not just compressors, and compressed air with accurately determined and guaranteed parameters. Thus, in the most advanced cases the speech can go not just about new quality of technical support (using means of telemetry), but also about other business model of operation when the equipment is not transferred to the possession of the customer, and is paid with it upon use of its functions. By such principle work, for example, the largest supplier of Kaeser commercial compressors (payment of the compressor equipment happens on the volume of the compressed air produced by it) or the producer of John Deere agricultural machinery (payment of the actual usage time of agricultural machinery - tractors).

Among public cases of implementation of the industrial Internet in world practice it is possible to select the project of the producer of the Harley Davidson motorcycles. The company too slowly reacted to requests of consumers in the conditions of the increased competition and had limited opportunities of customization of 5 produced models on the party of dealers. From 2009 to 2011 large-scale reconstruction of industrial platforms therefore the uniform assembly pad releasing any type of the motorcycle with a possibility of customization from more than 1300 options was created was carried out. Throughout all production process the sensors managed by the system of the class MES (SAP Connected Manufacturing) are used. Each machine and each part have a radio-tag which unambiguously identifies a product and its production cycle. Data from sensors are transferred to the SAP HANA Cloud for IoT platform performing function of an integration bus for data collection from sensors and different information systems, both internal production and business systems of Harley Davidson company, and information systems of partners of the company. As a result the production cycle was reduced from 21 days till 6 o'clock (the motorcycle which is completely configured under future owner rolls each 89 seconds off the production line). Besides, end-to-end management of a product (motorcycle) on all its lifecycle is implemented.

One more case - the Italian company Breton releasing machines for cutting and processing of a stone which unrolled the intelligent system of IIoT based on an ecosystem of Microsoft. Machines can be connected to remote servers of command center in which data on production and inventory information are stored. Machines are controlled programmable logic controllers (PLC) connected to HMI (human-computer interface). HMI using ASEM Ubiquity is connected to PLC of Breton company. The operator can connect to the web using HMI, select the necessary specification, use the scanner of barcodes for data scanning. All data required for production of a specific sample automatically are loaded into PLC. Process does not require paper instructions, manual adjustments, manual start of the machine for cutting on a stone. The solution allows not only to manage and configure operation of machines, but also to perform technical support in the form of a real-time chat. Breton is going to cut down considerably expenses on trips of the experts due to remote service: 85% of clients of the company are out of Italy. The company estimates economy volume at 400 thousand euros. Also clients are the winner. So, the Taiwanese company of Lido Stone Works, producer of products from a stone under the order installed 3 machines of Breton company and passed to automated production. The solution connected division of design with production workshop, as a result of implementation of a new system, Lido Stone Works received growth of revenue by 70% and performance improvement by 30%.

An example of effective application of IIoT was set by the American producer of gas turbines General Electric: the company implemented the system of remote monitoring of a condition of equipment. It is controlled in a continuous duty worldwide to avoid unplanned stops and in time to collect information on the forthcoming repair. Under these purposes GE developed a system which processes a huge array of information of about tens of hundreds of working turbines. As a result benefit total volume for the enterprises operating the equipment is estimated at 100 billion dollars every year.

In the Russian market by this moment three main directions for IIoT application are noticeable:

1. Production management – for the remote analysis of a status of a production equipment, control and management of production operations, performing diagnostics for prevention of malfunctions.
2. Monitoring of transport – for creation of the intelligent transport systems performing monitoring of location, routes, conditions of transportation of goods in real time using wireless, satellite or other communication channels, using technologies of radio frequency identification (RFID), GPS, GPRS and the geographic information system (GIS).
3. Intelligent power supply systems (Smart Grid) – for increase in efficiency, security and reliability of power supply, constructed on the principles of the active decentralized interaction between different elements of network in real time.

The greatest distribution in Russia was gained until recently by activities in the direction of transport telematics, however steady interest and in the systems of predictive diagnostics of technical condition of the equipment forms today. Here the solutions which are not requiring development of models, long training and work of analysts are demanded.

Devices which are engaged in the automated data collection become one of the most popular "smart" components on the Russian industrial enterprises (that is the good launch pad to go to IIoT). Here it is important to consider also analytical opportunities of IIoT technologies – for transition from simple data collection to their processing, with conclusions and recommendations. For example, in Rosenergoatom Concern on blocks 1 and 2 of the Smolensk NPP function of operation of the equipment is in the last two years upgraded. The eSOMS system (producer – ABB) which assumes issue to employees of the terminals prompting optimal routes of a bypass and allowing to transfer in real time information on observations to the Central Information System was implemented. There all information integrates, analyzed and transferred to operators of the station together with recommendations, in case of identification of deviations. System implementation allowed to reduce almost by 20 times time spent for bypasses to considerably reduce paper document flow and to increase quality of observations. Economic effect of reduction of labor costs is estimated about 45 million rubles a year.

Other example - the plant of radio-electronic products "Tekhninzhiniring" implemented wireless control (the developer - "MARTIN"), having installed more than 550 sensors and devices (power meters, sensors of a leakage, temperature, heat meters and so forth). In 4 months of operation economy on heating (due to reduction of losses of heat and more accurate accounting of utility resources) made 48%.

Most industrial enterprises in Russia started not so much until recently full IIoT-projects how many certain pilots. A number of innovators began to create in parallel laboratories and the centers for approbation and implementation of IIoT. The joint innovation laboratory was opened, for example, NLMK and SAP for development of scenarios using new technologies, including, by IoT. As a result of this work the first projects on production sites of NLMK already appeared. In particular, the 3D system prototype - positioning of personnel in production premises was developed.

In return, Siemens opened research laboratory together with division "Industrial systems of artificial intelligence" of SPbPU. The concern invested 21 million rubles in development of researches for the purpose of solving of tasks for needs of the industry using Big Data and also conducting monitoring and diagnostics of the industrial systems and devices.

General Electric signed with Rosneft (its child structure – Sibintek) the agreement on creation of the joint venture focused on implementation of the industrial Internet. It is expected that implementation of digital solutions on the basis of the Prediks and Meridium platforms will allow to optimize the systems of collecting, processing and the analysis of industrial data "from the well to a gun at gas station". It will be possible to predict more precisely technical condition of the equipment of the enterprises, to prevent emergency situations and to reduce risks of unplanned idle time of production facilities.

Elements of "smart" production based on the industrial Internet are applied also at the enterprises of Rostec.

For example, on KAMAZ computer design aids (CAD) and the system of simulation modeling of technology processes are already implemented, active distribution was gained in recent years by robotic industrial complexes, the corporate data warehouse for formation of descriptive analytics is created. For the purpose of increase in flexibility of production all key processes of financial and economic activity are covered by information systems between which system integration is configured. At the moment the company develops the card of projects for implementation of the full digital transition including creation of new business models which are based on technologies of the digital double of a product. Further increase in process performance of engineering and productive activity include virtualization of tests, deployment of management systems for production processes (MES), widespread introduction of the recommendatory systems which are practical application of tools machine training and artificial intelligence.

UEC Saturn, the producer of gazotrubinny engines for aircraft and power, works on digitalization of directly production chain. It is about creation of the digital double of production workshop taking into account the used equipment, its arrangement in workshop, accounting of features of the automated and manual transactions. Such digital double provides a possibility of control of the planned values (the nomenclature plan, capacity, a production cycle, costs) to actual state. The digital double of production gives the chance to model changes (improvement) and to count their effect close to real. At the same time the quantity of options for the analysis can be any, and the choice implemented in workshop can be determined by an optimal combination of necessary target values. Maintenance of the digital double of production in current status through implementation of a direct connection with the equipment, production posts, repartitions, the accomplishment facts is important (or non-performance). For the solution of this task industrial Internet of Things which provides communication of sensors, sensors and other equipment of data collection with production management systems and the digital double of workshop just is also used.

Moreover, the UEC considers need of real maintenance of product lifecycle for operation. Now the system of automated management provides a set of information on operation in actual practice. However obtaining this information which is of high interest to developers as a feedback of a mathematical model of the engine and its real behavior in actual practice, also is a problem of formation and the analysis of the Big Data created using the industrial Internet. The company goes delivering digital services to the operators who allow to select more effective modes of operation and also to pass from service according to regulations to service on a status.

In Helicopters of Russia holding projects on system implementation of monitoring of loading of a production equipment are implemented that is also one of examples of application of industrial Internet of Things. At the first stage to equipment a system plans CNC machines on machining, further is going to expand monitoring of operation of the equipment on other transaction types including to assembly which is going to be equipped with robotization elements.

In general by the beginning of 2018 the few Russian customers are ready to deployment of the complex IIoT projects, preferring to implement intelligent systems pointwise. At the same time the large industrial and energy companies are more and more interested in the technologies promoting decrease in OPEX. IIoT can provide necessary optimization here, doing the enterprise more predictable, safe and effective.

IIoT-projects: approaches to implementation

Implementation of IIoT requires change of approaches to creation and use of automated information systems of management (ASU) and the general approaches to management of the enterprises. Outdated production lines which cannot be automated, as a rule, any more are replaced with new, automated and robotized, the equipment. In addition, transition to an ecosystem of IIoT means transformation of the enterprises from the isolated systems, in which all are implemented necessary for production of goods or service production and business processes, in opened (in horizontal direction and verticals), the cross-industrial systems, on model of cloud services.

1. Migration in a cloud and creation of an ecosystem

For success of the IIoT projects it is necessary to create the working ecosystems which would cover not only upgrade or retrofitting of the equipment and deployment of new management systems, but also optimization of production processes, preparation and personnel training, close work with suppliers of the enterprise, his customers and other concerned parties.

For implementation of such approach it is required that all necessary information on actual state of resources (raw materials and materials, the electric power, machines and industrial equipment, vehicles, production, marketing, sales) was available, both in one, and at the different enterprises, to management systems of different levels. This communication is provided by a cloud – connection to it of any devices and systems is implemented due to use of the mechanism of open applied interfaces (Application Programming Interface, API).

2. Data management and implementation of artificial intelligence

The effective strategy of IIoT is based on consolidation of the data arriving from a set of the separate systems in the cloud storage, using analytics of the high level. The decisions made on the basis of predictive analytics allow to transform workflow (for example, to replace manual start which is performed upon emergence of problems, with automatic, warning about a dangerous situation). Such approach helps to avoid idle times, increases performance and safety of production. Besides, there is an opportunity to trace that happens on production sites even in the most remote places.

When implementing IIoT first of all centralization of data is performed, then — application integration for information processing. At the same time applications can be located in a cloud that opens access to the optional data arriving from several production sites or separate productions. After consolidation of data from different sources of the company will be able to apply intellectual analytics to extraction of significant information. Thanks to a wide data set of the company will be able to develop and use more and more perfect analytical models in a cloud.

Recommendations of practicians

Blake Burnette, the director of division of Equipment Research and Development of Baker Hughes company, from a presentation at the conference of IoT World 2016:

Google git hub, Connect the Dots and Windows IOT. You will get on the website, execute the offered steps, at you one evening will leave to create IOT hub on Microsoft Azure, to connect Raspberry Pi. For one evening you will be able to create Internet of Things since the beginning and up to the end. It was the most painless installation from Microsoft in my life. Create events in your data as often as possible, do what creates events. When you reach a phase of machine learning, you will need as much as possible things which the machine will be able to recognize and use. Create barcodes that it was possible to recognize devices in a data structure. We also spoke about use of ID sensors and the readers ID. During creation as it is possible bigger number of events, it is necessary to create a basic point for carrying out analytics of data. It will pay off.

Michael McEnery, the president of the McEnery Automation company which is engaged in system integration recommends:

Devices with sensors and monitoring systems collect a set of data. Before a project startup be convinced that your company or the end user undertook the obligation to use data. Information processing and determination of its cost can take some time. Further study the general principles applications of IIoT among which: Preventive maintenance: ensuring routine inspection of the equipment after a certain quantity of hours/cycles of work; Preventive maintenance: warning of users of an expected hardware failure; Energy consumption: providing the minimum energy consumption for creation of the maximum energy efficiency and avoiding of sanctions for an excessive consumption of energy resources; Built-in sensors of quality: providing data in real time in department of quality assurance for reduction of labor costs when sampling that will allow to react to problems with quality of raw materials or finished goods quickly; Package optimization: providing packet data for the analysis which will allow to optimize production; Planning: providing information on inventory in real time for improvement of planning, delivery and the order of raw materials and finished goods. Stable and secure access to network is important for successful integration of the IIoT system. The outdated network can interfere with growth of business because of a large number of the collected data and increase in number of users in network. For a start focus on segmentation of network and protection of its borders. Focus on development of the basic systems and implementation of sensors prior to use of cloud servers and calculations. Closely cooperate with solution providers for IIoT. It is the growing business, and there are several options and implementation methods of technologies which can complicate considerably process making decision on implementation of a new system or technology. The software solution which addresses the field device directly and bypasses your automatic control system can provide advantage if it is required to process large volumes of data. Data can be processed outside your management system that will allow to reduce loading. Connection to the Internet can wait. At start of the IIoT system connection of your annex to the Internet is not a priority. Many producers still work in the closed networked environment as use own protocols of security. Besides, many production applications do not need access to network. At first focus on process of exchange of important data in the corporate network. Later you will find the best solution for safe data transmission on the Internet. Rapprochement of information and operational technologies has fundamental value for the IIoT systems. This convergence will provide safe and reliable data movement of users outside the plant. Search of methods of correlation of information from different business systems with production process can be more difficult, than signaling monitoring, but he is capable to bring big benefits. For example, consolidation of cost data on raw materials to help to plan more effectively production or to change technologies with the maximum economy. Make sure that you provide to users up-to-date and exact data. Besides, find time to train users in how to customize a system for satisfaction of their requirements on the basis of information which constantly will change in real time. Training and simplicity of an information access simplify work of personnel and reduce an error probability. Ultimate goal of any IIoT-system is the leading position of the company in the market. Calculate pecuniary benefits and share this information with those who supported initial financing of your project – so you will show that initial investments were not spent for nothing. It will also help to provide investments for development of your IIoT-system in the future.

The leading suppliers of IIoT-solutions on world and on Russian the markets

Among leaders of the world market of IIoT – such companies, as AT&T, Cisco, GE, IBM, Intel, Qualcomm, Atos, Bosch, Broadcom, Infosys, Google, Microsoft, SAP, Siemens, Honeywell, Zebra Technologies and ZTE. All of them make a noticeable contribution to development and market research of IIoT. General Electric, including, provides integrated solutions for diagnostics of health and remote condition monitoring of health of patients using sensors and wireless IIoT technologies. The platforms under IIoT actively implement large corporations - the German promgruppa of Bosch, Swedish of Ericsson, the Japanese company Mitsubishi Electric, etc. The German concern Siemens became the noticeable player in the market of IIoT-platforms. One of products of the company ― cloud platform of MindSphere. This operating system connects different objects: plants, infrastructure, devices and so forth, allowing to create digital services and new business models.

The American software developer of PTC is among prime vendors of IIoT-platforms. Its product ― the ThingWorx platform - includes technologies of rapid application development of Internet of Things and also projects of augmented reality (AR). The partners cooperating with these or those plants create based on ThingWorx the set of focal services for a wide range of clients (according to the scheme OEM). For example, optimization of energy consumption is important also for network of fast food, both for port, and for industrial enterprise. ThingWorx is used for fast adaptation to each specific project of implementation in respect of a data model, contact with devices, the user interface and so forth. The second format of application of the platform ― so-called SCO (Smart Connected Operations) which is used directly on production. The user involves, in addition to the platform, previously configured ThingWorx Manufacturing Applications tools which provide already ready applications for increase in operational efficiency of the enterprise and quickly (for several days) are integrated from 80-90% of the equipment and IT systems of the enterprises. Today the ThingWorx platform manages 5 million devices, from sensors to the complex industrial systems on 75 thousand industrial platforms in the world.

The Japanese telecommunication corporation SoftBank works on creation of inexpensive IIoT-networks on the basis of LPWA. In 2017 Softbank started LoRaWAN network. The Japanese company Hitachi announced creation of the IoT-division (Hitachi Insight Group) and investment into this direction of 2.8 billion dollars of IoT already brings the companies to 6% of revenue – for the project account in the field of public security, "the smart city", power, the transport industry, agriculture and development of fields. In this market Hitachi cooperates with SAP, PTC, AT&T, Ericsson, Eurotech, Intel, Microsoft, etc. Together with Vodafone of Hitachi developed the system of preventive maintenance of trains which collects data from numerous sensors.

At Russia there are not only international vendors, but also it is a lot of local producers, for example, of devices of remote monitoring of transport – Omnicomm, "AUTOGRAPH System of satellite monitoring and control of transport", Galileoskay, Fort, Naviset, Incotex, "the Stroke - TaxoRUS", Granite of Navigator, M2M Cyber, etc. In the market there are also a lot of software products allowing to analyze the obtained data and to optimize costs and processes. In 2017 Mail.Ru Group provided the distributed software platform of Tarantool IIoT developed for industrial Internet of Things. This platform allows to collect data from millions of sensors located on production sites, transport, agricultural fields and to send them to data centers for the online analysis.

The base under the IIoT projects in Russia is prepared, in return, by the telecom companies. So, Mobile TeleSystems (MTS) at the end of 2017 opened the first permanent laboratory of Internet of Things in Russia, together with Nokia. On the platform pilot solutions are presented and also it is possible to get acquainted with commercial IoT-services and to jointly create new. Since 2015 the industrial Internet became one of strategic directions of development of Rostelecom company. The Restream IIoT platform developed by "subsidiary" of Rostelecom is a transport platform with the guaranteed SLA and is provided to clients on the PaaS model (the platform as service — Platform as a Service). By data Rostelecom, developments in the field of the industrial Internet occupy 60% of the Russian market of IoT.

Poll of TAdviser: Level of penetration of IIoT technologies on industrial enterprises

The possibility of use of IIoT technologies for tasks of the industry is discussed long ago, however until recently there were a few real examples of use of technologies even in world practice. At the moment IIoT penetration quickly grows. According to survey of TAdviser conducted in 1 sq. 2018, about 60% of the respondents representing different spheres of the industry confirm use or piloting of the IIoT projects.

According to poll of TAdviser, 75% of the enterprises select at the moment a priority of problems of security, 70% - monitoring and diagnostics of a condition of equipment.

Level of readiness of industrial enterprises for project implementation of IIoT can be estimated as initial. Sensors of the industrial Internet cover less than a third of the equipment at more than 60% of respondents. At the same time plans for increase in this share in the next 1-2 years designated about a third of respondents.

The enterprises begin to experiment more and more actively with the solutions IIoT, such pilots can be carried out in limited scale, but anyway mean increasing financing year-on-year. Respectively, almost at a half of respondents of investment into initiatives of IIoT grew for the last year. Most of those players who already began similar projects, investments into IIoT and in 2018-2019 – at least are going to increase by 15-20%.

From enough wide range of possibilities of IIoT (from robotics to "digital doubles") the Russian enterprises first of all are guided by cost optimization. A business task today – to reduce CAPEX, to lower operating costs and, it is desirable, to reduce process automation cost. In focus – everything that can increase efficiency (71% of respondents). Application at the Russian plants of the diverse equipment - from legacy Soviet machines to the latest domestic and import devices - complicates processes of monitoring and service. Equipment of devices sensors and formation of a single system of reliability control allows to reduce many times housekeeping overheads and to avoid idle times of the crucial equipment.

There is a lot of spheres for use of technologies of Internet of Things on the Russian plants. However real projects require, as a rule, individual approach, taking into account specifics of the specific enterprise. Respectively, meanwhile each IIoT project – is unique. The main restriction – budget as any large-scale implementation of IIoT requires big financing. 76% of respondents of TAdviser note the high cost of projects as the pacing restraining factor for penetration expansion.

The dominating approach to project implementation of IIoT on industrial enterprises is a participation of mixed crews, external contractors and own specialists (more than 80% of respondents). Such situation is caused by the fact that until now only presence of "evangelists" in the customer allows to drayvit and start such initiatives. Most the companies are for the same reason focused also on cultivation of internal examination in the IIoT direction, expecting to minimize thus in the future dependence on provider. At the same time at the moment such examination only forms (49% of the enterprises), and nearly a quarter of respondents note that they in principle do not own it yet.

In addition to immaturity - on average in the industry - customers, the polled companies note also the low level of a maturity of the solutions IIoT proposed to industrial enterprises in Russia. The overall level of immaturity of the market confirms also lack of the regulatory base, uniform requirements and standards, respondents of TAdviser note. According to them, appears more and more companies which are "selling" actually the road-mepy, but not having a specific set of the solutions which already underwent approbation during a number of implementations today. Many providers are focused to attract thus investments for development of ready-made products. The lack of enough industrial solutions confuses customers who, in turn, slow down investments into IIoT.

Most the polled enterprises are at a loss, owing to insufficient study of an initiative of IIoT at the strategic level, in determination of the most perspective solutions with a backlog on the future. It is noted that today there are not enough telemetric solutions and also solutions for mass volume control of resources – for example, electricity or heat. The main thing that is selected by the polled players - it is the need for completely automated chain and the single platform integrating all solutions and the IIoT elements in a single system of the enterprise. In this case more obvious aggregate economic effect as a result of project implementation which, thus, will be simpler be "protected" at the management is supposed.

Main outputs

• The Russian market of IIoT is on initial stage of development. It is characterized by insufficiently high level of awareness of business customers on technologies which also lacks understanding how to provide economic effect of their implementation.
• Low level of penetration of the solutions IIoT is caused, including, the considerable cost and duration of such initiatives at their high resursozatratnost for the customer.
• In process of accumulation of base of projects and increase in a maturity of solutions acceleration of implementation of the industrial Internet in production and management processes is expected. In Russia necessary infrastructure is already created, the sufficient base for processing and storage of Big Data is saved up, technologies of the intercomputer interaction are used, and based on GLONASS geoinformation business services can develop.
• Production companies show big openness to new IIoT technologies against the background of gain of a trend of digitalization of national economy in general. Interest in boxed solutions and solutions of the Russian development grows.
• Among the advantages expected from IIoT, the polled enterprises specify an opportunity to increase process performance, including due to ensuring their transparency and also to reduce risks, idle times and costs of productions.