Digitalization of industry. TAdviser Overview

Global Market: Volumes, Forecasts

Research company MarketsandMarkets predicts that the global Industry 4.0 technology market will grow from $64.9 billion in 2021 to $165.5 billion in 2026. The average annual growth rate (CAGR) for the forecast period was 20.6%. The forecast was made on the basis of a study of 2020 data for the following segments of the IT market: industrial robots, blockchain, industrial sensors, industrial 3D printing, machine vision, human-machine interfaces (HMI), artificial intelligence in production (AI), digital twin, automatic-controlled vehicle (AGV, Automated Guided Vehicle), remote monitoring of the state of equipment.

The study examined the annual revenue reports of the 10 largest companies in the market of each individual technology, on the basis of which the total market size for this technology was calculated. In addition, a survey was conducted of both representatives of vendors and customers, the results of which were also taken into account. At the final stage, the market size of all technologies was calculated, in aggregate, and the total market size of Industry 4.0 was derived. The study took into account the indicators of 27 global companies from the USA, Germany, India, Japan, France, Canada, Taiwan, Switzerland, Israel, Denmark.

In terms of trends, MarketsandMarkets notes the growing demand for industrial robots in the pharmaceutical and medical device manufacturing sector. This is not surprising, because to whom the war, and to whom the mother is born, the pandemic has become a golden bottom for pharmaceutical companies. Demand for industrial robots is a major driver of market growth, the company said in a report. It is also expected that for the forecast period, the digital twin segment will record the highest annual growth in recent years.

Industry 4.0 Global Technology Market Estimates. MarketsandMarkets Data

The report focuses on Asia Pacific (APAC), which MarketsandMarkets predicts will be the largest market for Industry 4.0 technology adoption. This is facilitated, firstly, by the growth of adoption of robotics in the manufacturing sector of China, Japan, India and South Korea. Secondly, the low cost of production in the Asia-Pacific countries, which allows market participants to create large production capacities. And thirdly, financial support from the governments of the region is of great importance for the rapid growth of Industry 4.0 in the Asia-Pacific region. At the end of 2020, the APR countries in terms of the size of the Industry 4.0 market were located as follows: China, Japan, South Korea. It is predicted that by the end of 2021, India will overtake South Korea, but by 2026 South Korea will again occupy the third line.

Another forecast of MarketsandMarkets concerns the Smart Manufacturing Market, which will grow from $214.7 billion in 2020 to $384.8 billion by 2025 (an average annual increase of 12.4%).

This market naturally intersects with the Industry 4.0 technology market - it is also based on equipment health TECont, artificial intelligence, industrial Internet of Things (IIoT), digital twins, industrial 3D printing and human-machine interfaces (HMI). But in addition, it includes segments of the IT market such as warehouse systems (WMS ), MES- and PAM-solutions.

Factors driving the growth of the smart manufacturing market: growth in Industry 4.0 technology adoption, growing emphasis on industrial automation of manufacturing processes, active involvement of governments in supporting industrial automation, tighter compliance controls, more complex supply chains, and growing demand for software systems that reduce time and costs.

Intelligent Manufacturing Market by Region (US Billion dollars). MarketsandMarkets Data

The estimates of the volume of the global market of the Industry 4.0 differ by the estimates of the research company Fortune business insights - according to its data, the size in 2020 was at the level of $101.69 billion, and by 2028 it will reach $337.10 billion. The average annual growth in the forecast period is 16.4% (in 2020 - 14.5%). Fortune business insights calls the impact of the pandemic on demand growth for IT solutions and services "unprecedented and overwhelming." The study also states that recent advances in digital technology and industrial automation have greatly expanded the capabilities of enterprises in terms of changing the production value chain. With the onset of the fourth industrial revolution, companies received new opportunities to increase efficiency, reduce costs, increase production, develop new models for generating income and doing business. The report also emphasizes the importance of strategic government initiatives to digitize industry in countries such as Germany, the USA, France and Japan.

Our experts are also monitoring the situation with the introduction of digital technologies in the leading world economies. All experts recognize the leadership of the United States, which is being caught up with the ATOR countries - China, India, Japan and South Korea.

Andrey Krekhov, director of special programs, ICL Services, states that the United States dominates the global digital economy, and China is in the role of "stepping on the heels." The third model, alternative to the first two, is being implemented in India and the EU, the expert said. In this model, the public sector has a much more significant role than in the US model, but on the basis of tightly regulated rules, unlike China.

The United States and China are the two most successful models of the digital economy in the world. The US government's digital economy strategy focuses mainly on global dominance and the presence of its digital corporations in local markets. The Chinese model is, first of all, a focus on state capitalism and innovative adaptation of technologies, where their digital application has become unusually successful - adds Andrei Krekhov.

Dmitry Butorin, Head of the Directorate for Work with Industrial Enterprises, Group of company Systematica (Systematics Group JSC), focuses on the sectoral aspect of industrial digitalization in the world. According to him, the leaders of digital transformation in the global industry are automotive concerns. It is they who are actively developing automation and robotization, introducing technologies for the industrial Internet of Things, collecting and analyzing big data, digital twins, predictive analytics systems. The automotive market is an extremely highly competitive technological environment, the expert explains, and the competition is won by the one who quickly adapts to new technologies.

Market trends in the world

Among the global market trends in the use of IT in industry, our experts call the strengthening of the influence of in-depth data analysis and artificial intelligence on decision-making, the departure from flow production towards individual production, the desire of enterprises to integrate all solutions in order to create a single data space and a number of others.

Denis Khitrykh, MBA, Marketing Director, Director of the Center for Research and Development, CADFEM Si-I-Es JSC, states the active interaction of the IT industry with the leaders of national industry in the leading economies of the world. This is primarily due to the ongoing digital transformation of leading economies, he notes, the transition to high-tech industrial production as part of the fourth industrial revolution and the implementation in practice of the concept of "Industry 4.0." The world is undergoing a deep transformation of both production and other business processes: logistics, HR management, processes for servicing and operating material assets (MR, etc.). Another global trend of digitalization is the replacement of automated production with human participation with completely deserted, which is associated with the development of artificial intelligence, computer vision and the processing of huge amounts of data from sensors in real time.

To the main trends, potentially able to change the vector and speed of development of various industries,

Denis the Cunning relates:

• in-depth data analysis and artificial intelligence;
• cloud computing and open (public) data;
• robotization and new production technologies (first of all, additive production);
• New data visualization tools.

The expert emphasizes the strong influence of artificial intelligence and cloud computing.

Machine learning and artificial intelligence are already influencing how companies make decisions and will change the status quo for all supply chain participants in various industries in the future. Cloud computing and public data today play a critical role in building data-intensive analytics applications. In the context of the complication of the business environment and the pandemic, cloud computing has a favorable impact on business and simplifies the process of managing investment projects with the participation of a large number of stakeholders - adds Denis Khitrykh.

Dmitry Butorin (Systematics Group JSC) notes that today in world practice the most important technologies for working with data, ensuring instant interaction between machines and people, solutions for analyzing the situation using machine intelligence are the most important for gaining a competitive advantage.

Шаблон:Quote "These tools allow real-time monitoring, adjustment, planning of both business and production processes of the enterprise. This, in turn, reduces costs and increases the return on production capacity, he adds.

Vladimir Zakharov, CEO of Datana (part of the LANIT group of companies), notes that the global market is moving towards adaptive planning through end-to-end digitalization. In addition, an ESG trend appeared on the agenda, based, among other things, on the use of artificial intelligence technologies.

Valery Milykh, head of the IoT group, Softline, highlights the trend towards the transition from in-line to individual production, at the request of the client. At the same time, the task is to maintain the same efficiency as in the conveyor industry, or even higher. This requires a new level of IT based on a deep analysis of production conditions and product interaction with the user, and the role of artificial intelligence technologies is great here.

Modern technologies should play the role of not only an accurate "manager" of industrial processes, but also predict options for the development of the situation at the preparation stage, says Valery Milykh. - Artificial intelligence should help people make the right production decisions, help lead the process optimally, stop the negative development of the situation in advance and inform people in advance about potential problems

At the end of the topic of the global market, we note a curious and ambiguous study of digital technologies conducted recently by the Russian Institute for Statistical Research and Knowledge Economics (ISIEZ) of the Higher School of Economics. During the study, more than 180 thousand authoritative foreign sources were analyzed - scientific journals, industry media, for the frequency of references to various digital technologies (see table below, the value "1" was assigned to the most frequently mentioned technology).

The study is curious that smart factories, the industrial Internet of Things and digital twins were in last place. This is strange, since smart factories are actively created and developed around the world. MarketsandMarkets, as we mentioned above, even has a separate forecast dedicated to this topic, in which the volume of this market is estimated at an impressive $214.7 billion. Industrial Internet of Things (IIoT) has also entered the stage of application in production. Digital twins are recognized by our experts as one of the most promising technologies, also already used in practice - this will be said further. It can be assumed that this study reveals not so much the usability of the technology in practice as its discussion in special publications (or, as they say now, "hype"). It is also possible that the topic of smart production (as well as digital twins or IIoT) is too complex and not many experts are able to skillfully write about it. On the other hand, in the first places of the table are industrial robots, artificial intelligence and machine learning - technologies that cannot be doubted in demand. That is why the results of the study are perceived as ambiguous.

Source: Research on digital technologies conducted by the Russian Institute for Statistical Research and Economics of Knowledge (ISIEZ) HSE.

What the Russian market looks like against the global background

The context is always important for understanding, so we asked our experts how the Russian market looks against the global background. Most experts note a serious lag in Russia, insufficient investments in R&D, at the same time noting the great potential of Russian industry, reaching the world level in a number of sectors of the economy.

First, Andrey Krekhov (ICL Services) notes the small size of the Russian domestic market on a global scale and a serious lag behind the leaders. At the same time, the expert notes that in a number of industries Russia is at the world level. In sectors such as telecommunications, finance, education, Russia in terms of digitalization, according to McKinsey, is approaching the world level. Of the sectors of the economy where the Russian market has a good backlog, the expert names the public sector, banking, metallurgy, oil and gas and mining, transport, data centers, utilities and e-commerce. Nevertheless, the expert states, digitalization in Russia is much slower than in the USA, China, Japan, South Korea, as well as Germany, and today the contribution of the digital economy to the country's GDP remains modest.

Among the negative factors operating in Russia, the expert notes the low pace of development. Industry growth by the end of 2021 is about 1% of GDP, while, according to the Material Handling Industry of America (MHI) and European Machine Vision Association (EMVA), in the United States and EU countries - 3% or more. In addition, there is underfunding in companies developing new technologies. The expert also notes that only 1.1% is spent on R&D in the country, while Australia and the United States spend from 2 to 3%, and South Korea - more than 4%. Investment in IT accounts for only 6.5% of total private investment, which is about half the average in Western Europe and orders of magnitude lower than in the United States. At the same time, Russia accounts for 1% of global ICT consumption in the corporate sector, the UK - 7%, Germany - 5%, China - 6%. The volume of investments of private companies in digitalization in Russia is 2.2% of GDP, in Western Europe - 3.9%, in the United States - 5%.

The Russian approach with the figure is still being formed, "concludes Andrei Krekhov. - While this can be called an approach to digitalization with a mixed economy, where there are still questions about the need to regulate digital business, especially with monopolistic trends or critical for the economy, protection of state security and society

Using the example of the engineering segment ON as part of the IT market for industry, Pavel Shcherbinin, head of special projects, illustrates the situation. ASCON Referring to the data of the research company for CIMdata 2019, he states that the global software market for PLM the -connection (includes,,, CAD- CAE CAM PDM systems) is estimated at $32 billion. In addition, the design automation software (EDA) segment is estimated at another $10-11 billion electronic engineers. The expert estimated the Russian engineering software market at a modest 0.3-0.4% of the world.

In 2020-2021, the volume of the global engineering software market grew - the pandemic spurred digitalization in all areas, including industry. We estimate the Russian engineering software market (PLM + EDA) at about 12-15 billion rubles, explains Pavel Shcherbinin.

In developed countries, industrial companies have a high level of introduction of modern digital technologies, and in this they are ahead of domestic companies, says Denis Khitrykh (CADFEM Si-I-Es JSC). In foreign practice, the main factors of successful digitalization are the focus on changing the business model, organizational structure, and stimulating complex business transformations. Domestic companies often lack a strategic vision of digital transformation and change management mechanisms, many executives continue to emphasize traditional business processes.

The widespread introduction of robotics into production is another important point in the implementation of the process of digital transformation of enterprises, regardless of industry. And in this direction, Russia is also lagging behind, needing to introduce hundreds of thousands of industrial robots in order to approach developed countries in terms of robotization of production, the expert states.

At the same time, in general, the direction of digital development of Russian industrial companies corresponds to global trends, Denis Khitrykh notes. But the pace of implementation of digital initiatives is noticeably lagging behind the indicators of leading countries. The expert estimates Russia's lag in the development of digital technologies at 5-10 years, which is due, among other things, to the negative impact of sanctions that have hampered access to advanced foreign technologies, he states. The situation is also negatively affected by relatively low R&D costs. Despite the fact that spending on Russian science has increased 13 times since 2000, and today amounts to more than 1 trillion rubles. This area remains not productive enough and is slow to respond to the big challenges facing the state and various industries. However, niche IT companies appear in Russia offering promising solutions in the applied fields of Industry 4.0 technologies: artificial intelligence, the Internet of Things, and robotization, he notes.

Now it is especially important to independently create the technologies of the future, and our country has all the conditions for this: it is traditionally strong in the engineering school of designers, programmers and it has experience in solving unique technical problems. This is a good intellectual basis for developing new competencies in those areas where we are still lagging behind - adds Denis Tricky.

Dmitry Butorin (Systematics Group JSC), analyzing the state of affairs in the IT market for industry in Russia, states that the path to Industry 4.0 should be accompanied by the creation of a unified digital culture in the country, which implies legislation and industry standards, mature IT infrastructure, sufficient human resources and effective organization of workflows. The unified digital environment in the country is subsequently extrapolated to the level of companies, but at the same time an important factor is the interest of personnel.

Without the interested participation of all employees, from top management to line staff, the effect will be zero. Today, the staff of Russian enterprises is often not interested in digitalization, since it imposes increased requirements for detail, reliability and timeliness of information entry, reduces to zero the possibility of averaging production indicators, the expert explains.

Russia: statistics and research data

Firstly, we note that, according to Rosstat, the Russian industry has been slowly but constantly growing in recent years. In 2019, there was a natural decline associated with the pandemic, but since the second half of 2020, recovery has begun. It continued in 2021: the industrial production index for January - August 2021 amounted to 104.5%, compared to January - August 2020.

And what do Rosstat data say about the penetration of Industry 4.0 technologies into the Russian industry?

At the end of November 2021, the agency's website posted the results of federal statistical observation in form No. 3-inform under the title "Information on the use of digital technologies and the production of related goods and services." The summary table shows the share of organizations using digital technologies, in% of the total number of surveyed organizations in various sectors of the economy.

Source: Rosstat

For example, in the field of manufacturing, digital platforms are used by 16% of enterprises, big data technologies - 26.5%, and so on (see table). The list of technologies by which statistics are collected is very extensive: from such simple positions as "personal computers" to additive technologies. In total, there are 23 positions in the table, including even the presence of an account on the social network - about 25.7% of enterprises have it (according to the data on the collective classification grouping of economic activities "Industry").

Information on the use of digital technologies and the production of related goods and services

Industry	Digital platforms	Big data	Techno-logic AI	Cloud Services	IoT	Digital lookalike	Industrial-flax robots/auth. lines	Additive technologies
Добыча полезных fossil]	13.2	21.8	2.5	19.0	14.6	2.1	4.2	1.5
Обрабатывающие производства	16,0	26,5	3,6	27,1	15,8	3,3	17,2	5,2
Обеспечение энергией, газом и паром, кондиционирование воздуха	16,6	23,7	3,3	19,4	15,9	1,2	2,0	1,1
Собирательная классификационная группировка видов экономической деятельности "Промышленность" (на основе ОКВЭД2)	15,4	24,8	3,3	23,9	15,3	2,5	11.3	3,6

Source: Rosstat

If, on the basis of these data, we assess the level of penetration of digital technologies into the Russian industry, then we can state that the most popular technologies for collecting, processing and analyzing big data in the Russian industry today are. Cloud services are in second place, the third and fourth positions are shared by digital platforms and the Internet of Things (IoT). A good indicator - not in absolute, value, of course, but in relative terms - is demonstrated by industrial robots and automated lines. Additive technologies, digital twins and artificial intelligence have very low indicators so far. HSE ISIEZ analysts analyzed Rosstat data in the context of the use of certain artificial intelligence technologies - data intelligent analysis, natural language processing, computer vision, etc. (see Fig.).

Source: Rosstat data analyzed by ISIEZ HSE specialists

The level of penetration of digital technologies in the economy as a whole has to be characterized as insufficient - even the most popular technologies have barely reached a fourth of enterprises. And this is at a time when in countries - world leaders in industrial terms, technologies, for example, from the pool of artificial intelligence are being introduced most actively. In the world, cases using artificial intelligence at all levels are now at the peak of popularity, says Vladimir Zakharov (Datana, LANIT Group of Companies) - in the routine tasks of accountants, to form an order price, build a contact schedule, optimize technological operations, control industrial safety, and so on.

Dmitry Butorin (Systematics Group JSC) assesses the general level of use of digital technologies in the Russian industry as low, but notes significant potential. With reference to the HSE report "Investment activity of industrial enterprises in Russia: coronavirus crisis trends and prospects in 2021," he states that the overwhelming number of Russian organizations are provided with primary digital infrastructure, including broadband Internet and personal computers, but mainly this infrastructure is involved in solving office, management tasks.

The potential of the Russian industry is significant, and the infrastructure necessary for digitalization of technological processes can be deployed in a fairly short time, Dmitry Butorin is sure, but there are restrictions that slow down the process and prevent the wider introduction of "numbers" into production.

Organizational and legislative restrictions in their development do not keep up with digital technologies, the expert explains. - Examples include the absence of preferential taxation when introducing digital technologies and a regulatory framework for creating a digital enterprise. As a result, there is a gap between the availability of technology and the possibility of its implementation due to the resistance of existing approaches to the organization of work and non-compliance with the requirements of legislation

The largest IT suppliers in the Russian industry

Softline became the leader in the rating of the largest IT suppliers in industry according to the revenue from this area for 2020. Its result increased by 11% and exceeded 13.3 billion rubles. The top five largest IT suppliers for industrial enterprises also included IBS, CROC, Jet Infosystems and UTSB. The total revenue of all participants in the rating exceeded 62 billion rubles.

Revenue of Russian companies from IT projects in industry in 2019-2020

No. N/n	Company	'	Revenue from IT projects in industry for 2020, million rubles, incl. VAT	Revenue from IT projects in industry for 2019, million rubles, incl. VAT	Dynamics 2020/2019,%	Largest customers
1	Softline	Integrator	13327.3	12006.5	11	n/a
2	IBS Group	integrator	9502.2	n/a	n/a|Rosneft, Roscosmos, Norilsk Nickel, Segezha Group, Power Machines
3	CROC	integrator	6225.1	4272.6	45.7	n/a
4	Jet Infosystems	Integrator	3412.3	2489.2	37.1	Hyundai-KIA, Pipe Metallurgical Company (TMK), Rusagro, Segezha Group, NLMK
5	UTSB	integrator	3067.3	2862.8	7.1	Gazprom, Nipigaz, Gazprom Transgaz Surgut, Polyus Krasnoyarsk, Uralkali, Gazprom Transgaz Yugorsk, Gazprom Processing, MMC Norilsk Nickel, Gazprom Transgaz Tchaikovsky
6	Lanit	Integrator	2812.2	1751.2	60.6	n/a
7	Borlas Group	Integrator	2702	2270	n/a
8	Tegrus	integrator	2691	2730	-1.4	n/a
9	I-Teco	integrator	2555.3	3899.2	-34.5	n/a
10	Digital Economy League	Integrator	2230	1647	35.4	Norilsk Nickel, Fosagro, Uralchem, Polyus, Severstal, SEC, Almaz-Antey
11	ITPS Group	vendor and integrator	1815.5	1534.7	[[Lukoil NK	Lukoil Group]], Gazpromneft, TNG-Group
12	ASCON	vendor and integrator	1711	1411	21.3	UPKB "Detail," PO "Mayak," PO "Sevmash," Concern "Oceanpribor," NPK "KBM"
13	Prof-IT Group	Integrator	1251.4	1155.6	UAZ, SOLLERS, Mazda Sollers, ZMZ, UralAZ, Pacific Logistic, LORUS ES Em, Jokey Plastic, Russian Helicopters, Gulliver, RTI Group
14	AMT Group	integrator	1136	1033	10	Norilsk Nickel, Khundai, Rosneft, Gazpromneft, Russian Platinum, Lukoil, Chevron
15	Maxima Telecom	Integrator	954	904	5.5	n/a
16	Corus Consulting	Integrator	820	N/A	N/A	N/A
17	GMCS	integrator	733	633	15.8	Magnitogorsk Iron and Steel Works, ALROSA, SOKAR ENERGORESURS, Roscosmos, Center for Corporate Solutions
18	Sonnet	integrator	686.5	n/a	n/a	n/a
19	Company Fort Dialogue	integrator	620.4	nd	nd	Kamaz, Chromatek, NPO Sensor, NPO Polygon
20	Sail	vendor	569	434	31.1	Network Company, AK Rubin, SUEK
21	DCLogic	Integrator	547.4	648.2	-15.6	MMC Norilsk Nickel, Novolipetsk Metallurgical Plant, Norilsk Providing Complex
22	Galaktika Corporation	vendor	477	962	-50.4	Rosneft (ANHK JSC, AZP JSC, Achinsk Oil Refinery VNK JSC, SNPZ JSC), NPO Energomash, Bashkir Soda Company, Tupolev, HC SDS-Ugol, Design Bureau of Shipostroimeniya A.
23	Impulse Telecom	Integrator	421.7	N/A	N/A	N/A
24	RDTECH	integrator	352.3	309.9	13.7	SIBUR, Toyota Motor, Irkut Corporation, Volkov Belkamneft, Novatek-Transervice, Vyksa Metallurgical Plant, Vostibneftegaz
25	Hi-Tech	Integrator	285.4	598.7	-52.3	n/a
26	Trinities	Integrator	220	212	3.8	n/a
27	red mad robot	vendor	213.6	186.5	14.5	NLMK, Erraival Rus, Severstal-Infocom, MMK, Toyota Motor
28	Itransition	Integrator	N/A	N/A	N/A
29	Oberon	Integrator	197.2	150.6	31	n/a
30	Molga Consulting	integrator	122	n/a	n/a	n/a
31	Macroscop	vendor	84.1	42.9	96	n/a
32	Digital Design Group	vendor and integrator	73.7	0	-	n/a
33	Satel *	integrator	72.1	868	-91.7	Rusal, Rosneft, IDGC of Siberia, Novatek, Uralkali, Boksit Timana, MMC Norilsk Nickel, OKHK Uralchem, Beringpromugol
34	Servionica	Integrator	24	91	-73.6	Apatit, Sibur
35	K2RU	integrator	16.5	28.5	-42.1	MMC Norilsk Nickel, Russdragmet
36	Angara Group	Integrator	9	15	-40	n/a
37	Gandiva		7.2	3	144.3	INC, Composite Factory, Tico-Plastic, Transneft-Supply-Service

* - In January 2022, updated data on the company's revenue from IT projects in industry for 2020 were received. Adjusted revenue is 760.3 million rubles.	TAdviser 2021
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Current Production Challenges as Drivers of Market Development

Digital technologies provide new opportunities for industrial enterprises, but the goals of their implementation remain the same - improving operational efficiency and a number of others. Unless the establishment of deserted production for many enterprises is a fundamentally new task. The world has changed and new tools are required in order to quickly produce products, to remain competitive in the market.

Igor Zeldets, Director of Business Development in the Oil and Gas and Chemical Industry, CROC, believes that only those companies that are already beginning to more actively introduce digital formats into all business processes: production management, product quality, equipment reliability, transport logistics system, personnel service, document management and archives.

The world is changing, and with it - a business that operates according to new market rules: the tasks of creating added value at each production stage and increasing the speed of decision-making, ensuring the safety of employees and customers, protecting supply chains come to the fore - the expert states.

So, let's list the current tasks of a general nature, for the solution of which Russian industrial enterprises today are introducing digital technologies - the need of enterprises to solve these problems is the drivers of IT development in industry:

• increase operational efficiency, i.e. reduce costs, optimize business processes, increase the speed of launching new products on the market;
• improving safety of production, stability and continuity, reducing the risks of shutdown (one of the important tasks in this area is system monitoring of equipment, predictive diagnostics);
• exclusion from manual operations, automation of routine operations;
• new level of interaction with customers, suppliers;
• AR use/and VR robotics for complex, hazardous and high-load processes;
• transformation of management and corporate culture;
• Building a data-driven company
• creation of a digital model of the enterprise, from receipt of raw materials to delivery of products to the consumer;
• compliance with the principles of responsible business conduct (ESG agenda);
• creation of production that works without human participation.

Dmitry Butorin (Systematics Group JSC) notes the particular importance of such tasks as system monitoring of equipment, increasing labor productivity, transparency of technological processes and accounting, automated planning of work, control over their implementation, implementation of geo-positioning systems and ensuring information security. Pavel Shcherbinin (ASKON) draws attention to the tasks of the military-industrial complex (ASCON industry complex). He considers the need of defense industry enterprises to diversify production as a driver of IT development. The defense industry enterprises are tasked with bringing the volume of production of civilian products to 50%, he notes, and switch to market principles - to fight for the customer, to be competitive in quality, price and timing of launching new products on the market.

To solve this problem, IT solutions are needed to help reduce time and financial costs: PLM for paperless processes and end-to-end use of product engineering data in the design-process-production chain, a single MDM system with regulatory reference information of the enterprise, digital twins for conducting virtual tests, instead of long and more expensive field tests - adds Pavel Shcherbinin.

Valery Milykh (Softline) considers the most relevant the need to reduce costs, as well as the desire of enterprises to make the most of the capabilities of equipment and personnel to optimize unit costs. Vladimir Zakharov (Datana, LANIT Group of Companies) emphasizes the primary importance of business transparency. Information systems, digital solutions allow you to identify points of inefficiency, bottlenecks and take steps to correct the situation, he notes.

Current situation with digital maturity, trends

Our experts note the large spread of domestic enterprises on the scale of digital maturity. In some companies, the basic needs in the field of ERP and corporate governance are still not closed, and in others they solve the problems of digitalization of the upper level - compliance with the principles of ESG, the creation of a holistic digital model of the enterprise, the implementation of production that works without human participation.

The tasks of the top level are usually set by large companies that have reached a high level of digital maturity. Such companies have already introduced a digital platform, the task of creating a single IT ecosystem is being solved. Such companies are closely engaged in the digital transformation of the business. When new technologies are introduced, they move away from the outdated model of exclusive focus on the functional customer of the implementation, assessing such factors as:

• the impact of the digitalization project on the strategic goals of the company;
• cross-functional effects;
• transition from process management to data-based management;
• the state of the external competitive environment of the business.

Denis Khitrykh (CADFEM Si-Ai-Es JSC) states that industrial leaders with a high level of maturity are actively introducing big data technologies and artificial intelligence.

A unique feature of modern digital reality, created using various IT solutions, is that the digital environment itself is a driver of enterprise development and directly encourages them to transform, says Denis Khitrykh.

Vladimir Zakharov (Datana, LANIT Group of Companies), in addition to a large number of implementations in the production of solutions based on big data analysis and machine learning, notes a shift towards platform solutions, as well as the emergence of long-term IT strategies, the creation by enterprises of their own services for the development of digital products, in particular - digital advisers.

Sergei Popov, Deputy General Director of I-Teco, in his commentary speaks of the popularity in the production of mobile crawlers based on machine learning algorithms - they can reduce losses from equipment downtime and the cost of repairing it. And the most popular business applications in industrial enterprises today are MES and ERP, the expert says, especially new MES systems based on the creation of a digital twin of the production process. Digital twins give an economic effect by increasing manageability, reducing equipment downtime, optimizing the use of production capacity and raw materials, reducing subjective factors in management, says Sergei Popov. In addition, IT solutions for automated control over compliance with industrial safety and labor protection requirements, product quality control systems based on video analytics are in demand at production.

Note that the goal and condition for the introduction of digital technologies that unites all production companies - regardless of size and industry - is to obtain an economic effect. This condition becomes mandatory, and it also applies to import substitution when companies with state participation comply with the relevant regulatory requirements.

Large industrial companies have technologies such as the Internet of Things, digital twins, and industrial robots in a number of industries at the forefront of IT implementation. At the same time, Russian customers are trying to implement mature digital solutions, assessing maturity according to the following criteria: the presence of an ecosystem of partnerships, the vendor's support for the concept of the life cycle, the technology used, the completeness of functionality, the integrability of the solution, the attractiveness of the interface. The total cost of ownership of the product is also important.

Vendors of IT systems, most frequently implemented in the industry

According to the TAdviser project database, among the different classes of IT solutions in industrial companies, enterprise resource planning systems () ERP and systems () are most in demand electronic document management EDMS. It is these solutions in the TAdviser database that account for the largest number of projects completed in five key industrial industries - mechanical engineering, oil and gas, power and metallurgy.

For each class of IT systems implemented in certain industries, the TAdviser database allows you to identify the most popular solutions and vendors of these products. See the charts below for which companies are developing the systems most commonly deployed in key industries.

Innovations in Russian production

Which sectors of the Russian industry can be considered advanced in terms of digitalization - here the opinions of our experts differ. Vladimir Zakharov (Datana, LANIT Group of Companies) believes that advanced enterprises include oil and gas, petrochemical industries and ferrous metallurgy. Pavel Shcherbinin (ASCON) refers to the leaders of digitalization as the aircraft industry, engine building, rocket and space industry, shipbuilding, i.e. the industries that produce the most high-tech, complex products. Sergei Popov ("I-Teco") adds the nuclear industry to the listed industries.

But, answering the question about innovative technologies actively introduced at Russian industrial enterprises, our experts were unanimous, especially highlighting the technology of digital twins.

According to Dmitry Butorin (Systematics Group JSC), this technology helps to avoid patchwork automation, which is inevitable with the traditional approach of sequential automation of one division after another.

To provide an integrated approach, any automation project must be based on a digital model that takes into account all the data and parameters necessary for many services. This is a "digital twin" with a full display of the quality parameters, the amount of material and all data on the location and movement of people and equipment, the state of equipment, consumed resources - says Dmitry Butorin.

Vladimir Zakharov (Datana, LANIT Group of Companies) states that digital twins are just beginning to be introduced in production - several large factories have announced successful implementations of operational planning and dispatching systems, and control of technological operations based on digital twins.

This is the leading edge of digital transformation today, says the expert. - Using complex mathematics for simulation mode of operation, digital twins plan production, determine the actual state using IIoT, measure deviation and reduce it using machine learning, robotization or digital advisers.

Technologies for creating digital twins are effectively introduced to prevent accidents, modeling in the "what if" style to check boundary conditions, says Valery Milykh (Softline). The expert suggests that digital twins will become the driving force behind the development of a new type of industry.

Denis Khitrykh (CADFEM Si-I-Es JSC) also considers digital twins to be the most important element of the digital transformation of industry, and the development of digital twins was accelerated, according to him, by three factors:

• new capabilities of software products for design and computer engineering analysis based on mathematical and simulation modeling (CAD/CAM/CAE, etc.);
• new data sources: it became possible to load data received in real time from real objects into digital twins using technologies such as LiDAR (laser detection and range measurement system) or FLIR MSX (multispectral dynamic shooting), as well as using IoT sensors built into the equipment;
• Easy access to powerful computing resources, network, and data warehouses.

The leaders of the national industry a few years ago formed digitalization strategies and organizational units for digitalization, launched numerous projects. Some of them (Rosatom State Corporation, NLMK, PAO Severstal) completed the key stages of the developed digitalization strategies and introduced the corresponding technologies of Industry 4.0 into their operations - adds Denis Khitrykh.

The main problems of the IT market in Russian production

Problems can also be market drivers, or they can become barriers - if you do not try to solve them. Among the problems, our experts call the shortage of qualified specialists and the need to revise training programs in universities, the high cost of IT implementation projects, the dependence of the effectiveness of IT implementation on the level of knowledge of a particular manager, and a number of others.

Dmitry Butorin (Systematics Group JSC) draws attention to the disunity of interests of various services of enterprises, the dependence of quality and timeliness of decisions on the qualifications of a particular manager, his readiness to perceive a new one)

The need for education and professional retraining of staff is ripe and beyond doubt. When training personnel for the Russian industry in universities, it is necessary to adjust training plans and revise training programs towards the practical use of digital technologies in production - Dmitry Butorin is sure.

Denis Khitrykh (CADFEM Si-Ai-Es JSC) calls the high cost of IT implementation the most common problem, while stating that investments in advanced technologies pay off almost twice as fast as traditional investments in industry. On average, investments in digital twin, robot or [[3D printers|3D printers pay off in 1.5-2 years, and in development and implementation software technologies in 6-8 months, he explains. The expert also puts difficulties in selecting qualified specialists in a number of urgent problems.

Most domestic industrial enterprises already have a high degree of automation of production processes. Many of them have noticeably increased their level of manufacturing instrumentation in recent years, installing enough sensors and sensors to visualize technological processes in real time. For such companies, the very fact of data availability is not a problem, the main difficulty is to extract practical benefits from the huge amount of generated data. Therefore, the lack of competencies for systematic analysis of information is a key barrier to obtaining economic results from total automation, the expert explains.

Valery Milykh (Softline) draws attention to the high cost threshold for entering the new generation IT. This is not just a replacement of one technology with another, the expert emphasizes, but a fundamentally different class of systems, when each stage is observed and controlled as part of solving a common problem. This requires a serious rethinking of processes and equipping production with IoT tools, AI solutions and many other modern systems, he concludes.

Following colleagues, Sergei Popov ("I-Teco") also talks about the high price of the issue as the main problem. Projects for the digitalization of industrial enterprises are expensive, often require long-term investment, he states. Accordingly, the need for large-scale digital transformations at the enterprise can be difficult for management to justify economically.

About import substitution

On July 23, 2021, the Presidium of the Government Commission on Digital Development and the Use of Information Technologies approved the roadmap for the development of the high-tech field "New Production Technologies," developed by Rosatom and Rostec. It plans to create a single technological platform for interaction between customers and developers, set ambitious goals to increase the share of domestic industrial software in mechanical engineering, aircraft industry, defense industry and other industries - the technological independence index should grow to 60% by 2024.

We have asked our experts to rate comment on this document. Unfortunately, only one expert answered this question. In our opinion, this indicates the difficulty of achieving the goal, as well as some "tickiness" of the comment on this topic.

The real term for the country's industry to switch to Russian software depends on many factors, says Denis Khitrykh (CADFEM Si-I-Es JSC). The technological independence index specified in the roadmap refers primarily to software products for the automation of the production process and business management, including systems for automating the design of various industrial products, enterprise business management (ERP) and customer service (CRM ), etc. At the same time, it should be borne in mind that the import substitution process will cost companies a large amount, the expert emphasizes.

{{quote "The cost of a complete simultaneous transition to domestic analogues for large organizations can reach 3-4 billion rubles. Therefore, high-tech imports, including high-tech software, created by highly qualified personnel and provided with huge and long-term investments of large private business of the world's largest economies, will be needed by domestic industry for many more years. For comparison, the American company ANSYS, Inc. - the world leader in the development of software for computer engineering analysis and the creation of digital twins - over the past 10 years for R&D purposes has raised private capital in the amount of $2 billion. - Denis Khitrykh explains his point of view. }}

About the future: ESG, DNN, VR/AR, etc.

The question of the future is traditionally the most insidious, because it is not known when, where and what exactly the next "black swan" will come from, and, nevertheless, we will give some assessments of our experts.

Denis Khitrykh (CADFEM Si-Ai-Es JSC) believes that in the future, neurotechnology and artificial intelligence, wireless communications, 3D/4D printing, virtual and augmented reality (VR/AR) will remain the most in demand in the industry. Computer vision will revolutionize production in two areas: personnel control in terms of fulfilling safety requirements and adaptive control of robots and technological processes - both areas are already in development or operate at industrial enterprises, the expert explains.

In the future, artificial intelligence technologies will make it possible to turn industrial enterprises into automatic factories, fully automated and robotic, built in the form of production and economic chains to optimize industries. The use of deep neural networks (or, another variant of the term - artificial neural networks - DNN, Deep Neural Network) will allow you to find patterns in huge datasets that are not amenable to analytics and classification by any other means. Based on these patterns, expert systems will be developed to help predict future events, give probabilistic recommendations and provide more accurate personalization than classical technologies.

For example, the Novolipetsk Metallurgical Plant has identified dozens of production processes in which machine learning technologies can be used, and consistently works out each of them. The main financial effect is expected from such areas as saving materials purchased for production, optimizing production and increasing productivity, improving product quality, predicting defects, optimizing energy consumption and energy production - adds Denis Khitrykh.

Sergei Popov ("I-Teco") predicts that dedicated wireless LTE networks operating autonomously will be in demand, only in the enterprise circuit, as well as virtual and augmented reality technologies - in order to improve training of specialists. Video analytics, neural networks, artificial intelligence and the industrial Internet of Things will become widespread.

Igor Zeldets (CROC) draws attention to the fact that in recent years the trend towards compliance with the principles of responsible business conduct, that is, ESG, has intensified in Russia. A responsible attitude towards business has determined the growth points for the development of industrial enterprises for the next years, the expert states, including in the field of the introduction of digital technologies. A significant number of industrial enterprises today are undergoing a stage of digital transformation, as well as large-scale modernization of production facilities, and one should not ignore the ability to synchronize these processes with ESG transformation, immediately choosing the best available technologies that will allow the company to comply with the principles of responsible business conduct.

In the context of the ESG agenda in industry, the focus on the preservation of human capital is strengthening, Igor Zeldets adds, stimulating the introduction of technologies to reduce risks to the life and health of employees. Moreover, more and more managers see the advantages not so much in eliminating incidents after the fact as in preventing them, so more and more enterprises will rely on the technology of predictive analytics based on big data.

Conclusion

According to the results of our analytical review, I would like to say the following. Firstly, despite the relatively small size of the Russian IT market in industry and obvious significant problems, one should not be overly modest, much less self-deprecating. The country's potential is huge, perhaps even the largest in the world - simply due to the size of the country, its natural resources. In business, this is commonly called economies of scale. Secondly, as evidenced by global research, government support for digitalization is of great importance. The country's leadership has an understanding of the value of new technologies, as evidenced by a special program for the digitalization of the economy, measures to stimulate the development of new technologies (although insufficient), and the corresponding Decrees of the President of the Russian Federation. Among the recent documents indicative in this regard - Decree of 21.07.2020 No. 474 "On National Development Goals of the Russian Federation until 2030," in which the digital transformation of the economy and society, the achievement of digital maturity of key sectors of the economy are included in the list of strategic goals of the country.

And, thirdly, the main driver of the digitalization of the economy is not regulations, and not even technologies as such, but people, specialists, private business. That's where deserted production is impossible, and the exclusion of a person from the value chain will simply lead to a halt in production, business - in the IT industry. And despite the shortage of qualified personnel, the country has many smart and interested in the development of technologies of people, and many active, strong IT companies working on the front line IT-Innovations in all areas, including in industry. It is in people that the main hope is that the country will become one of the leading economies in the world, including with the help of digital technologies. In a number of areas of the economy and social sphere, Russia is already at the world level - this is stated not only by our experts, but also by international research companies. And there are reasonable reasons to assume that further progress with qualitatively new results at the exit is quite real in the Russian industry, and how everything will actually happen will show the future.

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