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German Enterprises Adopt the IoT for Industrial Manufacturing

Enterprises in Germany are embracing the Internet of Things (IoT) in the industrial manufacturing sector, and the number of connected devices in the country is growing rapidly, according to a new report published by Information Services Group (ISG), a leading global technology research and advisory firm.

The 2020 ISG Provider Lens IoT – Services and Platforms Report for Germany finds IoT providers are offering deep manufacturing and sector expertise to Germany’s industrial manufacturers.

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“IoT service providers working with industrial manufacturing companies in Germany have a strong focus on the overall product development and production lifecycle,” said Christian Decker, partner and Smart Manufacturing lead for ISG in EMEA. “These providers offer expertise on product design, manufacturing and factory floor optimization, storage, logistics, maintenance services and other key areas of the value chain.”

The report finds that, due to the COVID-19 pandemic, most companies in Germany have canceled IT-related projects that do not have a direct and measurable impact on revenue streams, although it’s unclear whether companies are delaying IoT projects. Delivery of IoT devices from China has come to a halt, however, and caused a shortage in a market that was growing rapidly.

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Meanwhile, IoT solutions in Germany are becoming more complex, especially for predictive maintenance and resource management, the report says. These solutions require deep technical and organizational expertise and extended data analytics to deliver increased productivity, greater optimization of resources and reduced operating costs.

In addition, security requirements for IoT solutions are coming to the forefront because IoT data has an extensive impact on business processes, product development and factory operations, the report adds. Problems of inadequate standards, security lapses and changing network infrastructures are obstacles to the expansion of the IoT in Germany.

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The 2020 ISG Provider IoT – Services and Platforms Report for Germany evaluates the capabilities of 41 providers across six quadrants: Consulting and Integration, Managed Services, Connected Vehicles, Manufacturing, Smart Buildings and IoT Platforms.

The report names Capgemini and Deutsche Telekom (TSI) as leaders in all six quadrants and Bosch.IO, IBM and Siemens as leaders in five. Accenture, Atos and Cognizant are named leaders in four quadrants, and Device Insight and HCL are named leaders in two. AWS, DXC Technology, Microsoft, PTC, Software AG and Vodafone are all named leaders in one quadrant.

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