NEWS RELEASE                                                                            March 2017

$20 Billion Filtration and Separation IIoT and Remote O&M Market by 2026

Filtration and separation involves many variables. The applications are frequently critical to successful manufacturing of products and delivery of clean water. The Industrial Internet of Things (IIoT) empowered by the Industrial Internet of Wisdom (IIoW) will have a $10 billion impact on the market size by 2026 and will divert another $10 billion through different market routes. Sales of filtration and separation equipment and consumables will exceed $95 billion in 2026. Of this total $20 billion will be attributable to the impact of IIoT and Remote O&M. This is the latest forecast in the McIlvaine publication IIoT and Remote O&M.

Filtration & Separation IIoT & Remote O&M Market

Segment $ Billions
Traditional Route to Market 75
New Route to Market 10
New Smart Revenues 10
Total 95
IIoT Impacted Market 20

There is already a substantial market in certain industries such as oil and gas, pulp and paper, and food processing. The IIoT & Remote O&M segment of the market will be growing by 13% per year over the next decade compared to just 3% for the rest of the industry.

There has been a great deal of analysis relative to the convergence of information technology and operations technology. Smart sensors, open platforms and improved data analytics are creating the equivalent of millions of continually updated white papers on the performance of individual components, sub systems, and systems. The use of subject matter experts has typically been addressed without regard to the importance of innovation.

This avalanche of white papers is going to justify an army of experts each able to focus on a very narrow niche. It is also going to dictate interconnection between individuals at each plant within the organization operating the filtration and separation systems. It is going to dictate interconnection between the end users, associations, and suppliers to an extent commensurate with the increase in available knowledge.

This interconnection is occurring partly through acquisitions. Suez is purchasing GE Water. It has a remote monitoring center in France. It also owns and operates municipal water and wastewater plants throughout the world. It is operating 40% of the municipal plants in Chile. It can monitor centrifuge performance and then add GE Betz chemicals to improve dewatering from the remote monitoring center.

Some industries can light the way for others. Andritz automation has created FiberVision and can remotely measure particle size of the fibers in the pulp slurry in a pulp and paper mill. The system measures other parameters in all the processes and provides guidance for the operators. Andritz is also offering predictive control algorithms to better operate thickeners, flotation devices, and filters in mining applications.

A number of centrifuge suppliers have comprehensive monitoring and control systems. GEA has Wewatch®. Centrisys remotely monitors 32 key operating parameters and offers to log in and make non-critical adjustments to help optimize the process. Alfa Laval Octopus monitors and controls all aspects of the dewatering process.

A number of the filter vendors are moving forward aggressively in the IIoT space. Mann & Hummel has a new IIoT laboratory in Singapore where it has 10 projects in the pipeline.  Donaldson remotely monitors bulk filtration systems for fuel. Restaurant Technologies monitors fryer filter health in restaurants. Aqua Clear monitors RO and nanofilter systems for industrial and commercial facilities. The Evoqua Wallace & Tiernan division has extensive process monitoring systems with intelligent visualization.

There has been a move to higher efficiency filters for gas turbines. The increased filter cost is justified by lower maintenance. AAF combines remote monitoring with a maintenance package including inventory management. This comprehensive approach provides an opportunity to provide the lowest total cost of ownership.

There are some power generation companies operating hundreds of gas turbines. One company with a large number of gas turbines is BHE Energy. McIlvaine has created a beta site to demonstrate the value of IIoW to empower IIoT. BHE also has coal-fired power plants and wind turbines. So it would have thousands of lubrication systems. A new kidney shaped filter at one of their plants has proved superior in a pulverizer application. Cuno string-wound filters are specified at most of their plants but due to particulate contamination related to air cooling the condensate filter needed to be replaced at one plant with a Pall 25-micron filter. When case histories and the knowledge of the plant operators and suppliers are pooled for a company such as BHE, the impact of IIoT becomes more cost effective.

The IIoT forecasts for filtration along with strategies to help filter companies collaborate with other players are provided at: N031 Industrial IOT and Remote O&M

This opportunity will be discussed in an hour long webinar on March 30. To register click on Weekly IIoT Webinars

Market reports on individual filtration and separation subjects are found at: Markets

Decision systems to support filter IIoW are found at

4S01 Berkshire Hathaway Energy Supplier and Utility Connect
44I Coal Fired Power Plant Decisions

59D Gas Turbine and Reciprocating Engine Decisions

NEWS RELEASE                                                                          March 2017

$168 Billion Oil and Gas IIoT and Remote O&M Market by 2030

The oil and gas market opportunity for IIoT & Remote O&M will rise to $168 billion in 2030.  $110 billion will be onsite expenditures by the oil and gas companies but $58 billion will be for remote monitoring and support including Software as a Service (SaaS) and data analytics. Data analytics in turn will include IIoW (Industrial Internet of Wisdom). This in turn will foster Sourcing as a Service activities.

NAFTA will be the largest segment with oil and gas IIoT & Remote O&M revenues rising from $13 billion in 2016 to $83 billion by 2030.

The NAFTA projections are based on the 2017 EIA reference forecast predictions for energy pricing and consumption. Key assumptions are:

EIA Assumptions for the Year 2040
  Reference High Low
Oil Price $/bbl. 109 226 49
N.G. Henry Hub $/million BTU 5 10 3
U.S. GDP % CAGR 2.2 2.6 1.6
Energy Net Trade BTU Quads 2 25 -11

Since July 2016, there has been a 20% increase in oil rig counts. Oil producers have also increased their exports to India. These trends are showing the rejuvenation of U.S. shale oil. The shale oil market is expected to gain momentum from mid-2017.

Tight oil makes the biggest contribution to crude oil production with a 50% growth from 4 million bbl./day now to 6 million bbl./d by 2040.

The oil and gas industry is already ahead of other industries in the use of IIoT. More than half of the oil and gas companies are deploying IIoT-enabled technology for remote monitoring. Asset reliability and energy efficiency round out the top three non-product use cases (LNS Research).

Some of the biggest opportunities will be created by regulations restricting flaring in the U.S. Honeywell and Aereon will collaborate on solutions to help industrial customers boost the safety, efficiency and reliability of their operations by leveraging Honeywell's Industrial Internet of Things (IIOT) ecosystem.

Aereon provides air emissions solutions for the complete oil and gas sector, from the wellhead to the gas station. It offers products for flare systems, enclosed combustion systems, high efficiency thermal oxidizers and vapor/gas recovery units. "Aereon's fundamental strength is its wide array of fit-for-purpose combustion and vapor recovery products supported by in-house expertise to design, manufacture and support its field-installed base," said Mark Zyskowski, Senior Global Vice President, Aereon. "We are pleased to be able to bring our expertise to the IIoT ecosystem that Honeywell is developing to help customers around the globe maximize value from their operations by tapping into the power of the IIoT."

There will be a high ROI from automating remote operations. Well drilling and completion is becoming increasingly complex while the reservoir of field expertise is not growing to keep pace. Automation and monitoring of remote operations leverages the expertise of the industry, decreases on site personnel time and improves safety.

The complete analysis of IIoT & Remote O&M opportunities is provided in N031 Industrial IoT and Remote O&M

Details on the markets and project in oil and gas are found in N049 Oil, Gas, Shale and Refining Markets and Projects

Various IIoW support activities offered by McIlvaine include

High Performance Valves and IIoT

4S01 Berkshire Hathaway Energy Supplier and Utility Connect

44I Coal Fired Power Plant Decisions

59D Gas Turbine and Reciprocating Engine Decisions

NEWS RELEASE                                                                            March 2017

IIoT and FGD Control:  The Opportunity and the Challenge

The industrial internet of things (IIoT) combined with remote operations and maintenance promise to make the reduction of SO2 from power plants much more cost effective. Flue gas desulfurization systems are costly to operate. The reagent consumption can be as high as 4 percent of the total coal consumption. The fans and pumps consume several percent of the plant’s electrical output. Large wastewater treatment systems separate gypsum, flyash and toxic metals. Due to tough emission limits around the world the performance of the FGD system is essential to operation.

Most of the new FGD systems are being built in countries without the mechanical and chemical engineering FGD experience which has accumulated over decades in the U.S., Europe, and Japan. With cost effective sensors and wireless technology this experience can be utilized throughout the world.

IIoT is already being modestly applied to coal-fired power plants. With new open platform cloud-based programs, a number of separate initiatives can be integrated and leveraged.

Luminant and Duke Energy already have remote centers monitoring the rotating parts at all their plants. Lhoist is monitoring liquid lime levels and controlling reagent inventory in wastewater applications. Monitor Technologies has radar-based level measurement for remote monitoring of bulk lime and limestone levels as well as flow measurement for pneumatic conveying of reagents. Thermo Fisher has a remote center monitoring the SO2 and other emissions. Nalco has a remote center operating day and night to monitor water quality.

MHPS has a remote center in the Philippines and is expanding into monitoring of combustion in coal-fired power plants. Flowserve has remote monitoring of valves and pumps. Howden has remote monitoring of fan and compressor operations. These systems can reduce the cost of SO2 control maintenance by being proactive as opposed to predictive or reactive. Several companies offer remote monitoring of coal flow and ensure that the correct weight (not volume) is introduced into the boiler.

With new open access platforms and the cloud, it is now possible for operators and their suppliers to view all the relevant information at any location. Furthermore, impacts on the balance-of-plant can be constantly included in the decision making with inclusion of other centers such as the one created by Nalco to measure water quality impacts.

The integration of this information for the plant operator is only the first step. Remote monitoring will enable remote operations and maintenance. This means that a plant in a developing country can be operated with the same expertise as one in a country steeped in FGD control experience. Uniper (the large German utility) and India Power have a joint venture to provide O&M services to Indian power plants. Luminant is offering to use its remote center to provide monitoring activities for industrial plants in Texas and other areas.

The cost of sensors is falling while the ability to measure critical parameters is expanding. Wireless telemetry makes possible communication of vast amounts of information at low cost. So how does the FGD industry take advantage of this opportunity. The answer lies in climbing the pyramid.

Emerson calls the decision pyramid DIKW. At the bottom you have data. Next is information, followed by knowledge. At the top is wisdom. Here is how that pyramid can be applied to FGD.

nr2329

  Means Parameter
Data Sensors, Instruments, Wireless Telemetry Vibration, temperature, pressure, SO2, HCl, pH, Hg.
Information Historian, Edge Computing, Permitted NOx and NH3 Emissions Flow of coal, reagent, flue gas, air emissions
Knowledge Data Analytics Empirical knowledge of the unexpected such as scaling, chloride saturation, mist carryover.
Wisdom Remote Monitoring, Subject Matter Expertise, Knowledge Systems Upgrading pumps, and valves, changing operations to meet new regulations, adjusting to reagent price changes

Worldwide companies such as Lhoist and Lafarge are well positioned to lead the way. Lafarge has digital services in many developing countries to help small calcium products sellers inventory their goods. They also have IIoT experience at their plants. They have teamed with Schneider Electric at their Dujiangyan cement plant in China which has three cement lines with a production capacity of over 5 million metric tons per year. The IIoT program has provided: 

  • Kiln operation optimization
  • Monitoring clinker over-burning
  • Over-cooling improvements in the cement finish grinding operation
  • Maximizing efficiencies in the operating hours within cement mills
  • Air compressor optimization, with a centralized control system avoiding idle running of air compressors
  • Enhancements in crew performance with "Kiln Coach Report”
  • A project payback period of two years
  • Valuable energy improvements by reducing power consumption by 0.8kWh/t cement
  • Production cost and CO2 emissions have been reduced
  • Remote access of the system also facilitates technical support when required, as well as access for ongoing energy analysis consulting and support.

The success of IIoT and Remote O&M for FGD and other coal-fired power plant operations will be greatly enhanced by capturing the experience of other industries and forming collaborative ventures with large numbers of suppliers. McIlvaine has both the technical and market decision systems to aid these groups.

The market opportunities for IIoT are analyzed in N031 Industrial IoT and Remote O&M

The FGD market opportunities are analyzed in N027 FGD Market and Strategies

Knowledge support is provided in 44I Coal-fired Power Plant Decisions

NEWS RELEASE                                                                            March 2017

$11.5 Billion Opportunity for High Performance Valves in IIoT and Remote O&M

The Industrial Internet of Things (IIoT) is a powerful new force shaping the way valves will be purchased. The demand for valve automation and communication of valve health and performance will be driven by IIoT advances. With the rapid reduction in the cost of high quality sensors and the introduction of wireless technology smart valves will be communicating with remote operators on an accelerated basis.

Emerson, Flowserve, Pentair, GE and other valve companies are already pursuing this market and generating revenues of $7 billion. This includes smart valve revenues plus valves sold through IIoT decision makers. Some are third party operators. In other cases, they are corporate entities with many plants and centralized IIoT based valve selection. One important segment is repair part inventory and replacement.

The world industrial valve revenues will grow from $62 billion in 2017 to $88 billion in 2025.

World Industrial Valve Revenues $ billions
Segment 2017 2025
Traditional route to market 55 71
New route to market 4 10
New smart revenues 3 7
Total 62 88
IIoT Impacted Market 7 17

The traditional market will grow at 3% per year. However, the new route to market through remote O&M will grow at 13%/yr. as will the additional revenues generated by smarter valves.

World High Performance Valve Revenues $ billions
Segment 2017 2025
Traditional route to market 30 42
New route to market 2 5
New smart revenues 1.5 6.5
Total 33.5 53.5
IIoT Impacted Market 3.5 11.5

High performance valves comprise 55% of the total market today but with IIoT and remote O&M will represent 60% of the market in 2025. High performance valves include those in

  • severe service
  • critical service
  • unique service

If general purpose valves are the foot soldiers of IIoT then high performance valves belong in the armoured division. Their performance is much more critical to the outcome of the battle to improve plant performance.

Not only can valve companies boost Capex revenues for smart valves and Opex revenues for service and parts but they can acquire process data to help them design better valve products for specific applications. This proliferation of information about valve performance will serve as a giant resource of valve white papers. Proof of lowest total cost of ownership will be automatic.

The valve companies who best leverage this process and valve performance knowledge will be the most profitable. Those focused on IIoT will achieve profit gains of 45% in the high-performance segment and 32% overall. While those who miss the boat will suffer profit decreases of 10%.

Valve % Profit in 2025 due to the Impact of IIoT and Remote O&M
 

High Performance Segment

Total
(general and high performance)

Factor IIoT focused Valve Companies Others IIoT focused Valve Companies Others
Increased Market Share 15 -15 10 -10
Smart Revenues 10 0 7 0
Increased Base Prices with Better Products 20 0 15 0
Profitability Impact 45 -15 32 -10

McIlvaine has coined the term Industrial Internet of Wisdom (IIoW). The rate of progress can be viewed as 1 x IIoT + 2 x IIoW.  Transmitting all this data to better manage assets is only 1/3 of the opportunity. 2/3 of the opportunity is the improvement of assets and operations. Valve companies will be the source of Valve IIoW but only if they understand the new market paths.

IIoT promises to revolutionize industry but only if it is accompanied by IIoW (Industrial Internet of Wisdom). Decisive classification of high performance valve applications, designs, and materials is critical to IIoT success. Analysis of performance and comparison of results is important.  Mcilvaine has four services to support Valve IIOW.

N031 Industrial IOT and Remote O&M

High Performance Valve Decisions

4S01 Berkshire Hathaway Energy Supplier and Utility Connect

N028 Industrial Valves: World Market

NEWS RELEASE                                                                  February 2017

Coal-fired Boiler IIoT needs to draw on Accumulated Materials Wisdom

IIoT promises to deliver higher efficiencies and lower operating costs to coal-fired boiler operators around the world. Much of the progress will be dependent on better choices of existing materials and development of new ones.

When linked to remote O&M centers coal-fired boilers in developing countries can perform to the same high levels as units in countries with the greatest reservoir of materials knowledge.

Low cost sensors and wireless transmission will instantly generate huge amounts of data which is analyzed and acted upon by digital process management programs. All the programs need to incorporate a succession of data to information, to knowledge, to wisdom. The digital management from data to knowledge is well advanced, but the digital management to move from knowledge to wisdom is in its infancy. There needs to be a major effort to develop the Industrial Internet of Wisdom (IIoW) to interconnect the expertise of suppliers of materials, products, processes and plants. There needs to be interconnection between plants within a utility as well as with associations, research institutions, and the media. Materials suppliers do not generally deal directly with the end users, so interconnection of this group will be the most challenging.

With IIoT the corrosion rates of materials in the high temperature and pressure regimes created by ultra-supercritical operation will be comprehensively and continuously analyzed. There have been new alloys and new coatings created to deal with temperatures above 1000°F in the steam cycle. There are multiple coating materials and multiple means of application to a range of products from piping to valves.

In the McIlvaine service 44I Coal-fired Power Plant Decisions (formerly PPAQD), there is an ongoing evaluation of high performance valves for temperatures in excess of 750°F. This includes the coatings and other materials but also the valve design (ball, valve, gate) and the seal and component design (trunnion vs. ball etc.). This is just one of the many in depth studies related to coal-fired boilers that the McIlvaine Company has conducted over the years.

McIlvaine has taken the further step of compiling information on all plants within a utility organization. In 4S01 Berkshire Hathaway Energy Supplier and Utility Connect, McIlvaine is gathering information on the high efficiency condensate filter media at one plant vs. the lower efficiency media at another. For each of the boiler baghouses McIlvaine has surveyed the media material (fiberglass vs. PPS vs, P84) media construction (membrane laminate vs. multi nonwoven vs. woven) weight of material, and bag life.

All of these details become important in optimizing plant performance. McIlvaine conducted nine hours of webinars for BHE on reducing NOx at three units. Combustion optimization strategies offered by GE, Siemens, and Emerson had to be tailored to the temperature limitations of the filter media. A new catalytic high temperature filter media offered great promise but was eventually determined to be too costly a process modification.

In IIoT the first principle is to provide structure. This is equally true for IIoW. Among the initiatives already undertaken by McIlvaine to provide part of the structural foundation are the Decision Guides.

IIoW is in its infancy and needs to keep pace with the IIoT progress. McIlvaine will be reaching out to all interested parties. On Thursday, March 2, there will be a webinar on IIoT and Remote O&M for coal-fired boilers. Weekly webinars on products, processes and industries will identify opportunities.

For more information on the weekly webinars click on Weekly IIoT Webinars

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