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Industrial Machinery Faces a Decade of Disruption

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Industrial Machinery Faces a Decade of Disruption

Boston Consulting Group,

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In 2030, the industrial machinery industry will be unrecognizable.

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9

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Breaking into industrial machinery has traditionally been a struggle. The biggest companies already had the best engineers, they’d already scaled-up their operations and they had their physical channels nailed down. Smaller OEMs couldn’t compete in the face of these advantages, making existing companies seem unassailable. Things have changed. By capitalizing on current trends, smaller OEMs and third-party companies that provide digital solutions are on the scene. The Boston Consulting Group’s Brian Myerholtz, Simon Rees, David Benaiges and Markus Lorenz suggest that industrial machinery giants sit up and take notice.

Summary

Industrial machinery companies must digitize operations and assets to stay competitive.

Existing industrial machinery giants found their way to the top on the strength of their mechanical engineering skills, but future winners in every industry will need digital technology prowess to prevail in an increasingly digitalized world. Caterpillar and John Deere have already gotten started in the digital realm, providing productivity solutions and fleet management applications, but most of the companies providing digital solutions in machinery are new to the industry. These third-party companies don’t provide physical machinery, but give their customers tools to monitor, coordinate and optimize ...

About the Authors

Brian Myerholtz, Simon Rees, David Benaiges and Markus Lorenz are professionals with the Boston Consulting Group.

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