IIoT Edge Computing Outlook for Industrial Network Infrastructure

Industrial network edge infrastructure devices, such as gateways, switches, and routers, have emerged as crucial components of industrial internet-enabled strategies. These devices are increasingly used for purposes beyond simple data connectivity, performing tasks ranging from IT-OT-ET convergence and edge-to-cloud integration to edge computing.

Edge computing in network infrastructure solves the issue of overburdening enterprise applications and communication links by filtering, offloading, and storing asset and field data at the edge and identifying and flagging device and/or process anomalies. Edge computing also brings application execution traditionally associated with higher levels of the enterprise down to the device level, driving further distribution of the architecture. Industrial network infrastructure device suppliers are responding to these developments with ongoing price/performance improvements in both connectivity and compute capabilities, which in turn facilitates continued downward migration of edge computing capabilities.

As noted in separate ARC blogs, the IIoT edge device definition includes three characteristics: deploys standard microprocessors, incorporates standard operating systems/containers, and supports standard IP connectivity. This migration to use of standard microprocessors and operating systems, as well as more local storage capacity, is a core enabler of greater computing capacity at the IIoT edge.

Assessing the IIoT Edge Computing Opportunity

ARC believes that Linux and Windows-based devices, including those that support enterprise platform agents running on these operating systems or in containers, will emerge as the primary edge computing execution environments at the network infrastructure tier. Using these criteria, ARC has developed an analysis of the current and potential size of the edge computing market at the IIoT network infrastructure layer. This analysis begins by first quantifying the total number of Linux- or Windows-based industrial network edge infrastructure devices, a figure drawn from our ongoing in-depth primary research in this area, then applying an informed estimate as to what share will be used for edge computing.

This analysis reveals that hundreds of millions of dollars’ worth of industrial network edge infrastructure devices will be used for edge computing by 2022, representing some of the strongest average annual growth of any industrial segment. Edge computing prospects over time will vary by device type, with IIoT gateways in particular currently targeted for this purpose, but there is also activity in the switch and router segments due to the actions of specific competitors. Thanks to their computing power, memory capacity, and flexibility; IPCs are also being applied as gateways.

ARC’s latest research on the Total Available Market for Fixed Industrial Network Edge Infrastructure 2017-2022 quantifies these and related issues from the perspective of Industrial Ethernet Switches, Industrial Ethernet, wireless, and cellular routers, and Ethernet, wireless, cellular and IPC-based gateways. Issues related to the IIoT-driven transformation of the industrial network edge will also be highlighted during the IoT Network Edge Infrastructure sessions at ARC’s 22nd Annual Industry Forum, which takes place February 12-15, 2018 in Orlando.