There has been a flurry of early-stage M&A activity in the industrial analytics space as predictive analytics becomes an increasingly effective way to help reduce operating costs. We look at the strategies behind recent purchases and what might be next.
Analytics has long been used in manufacturing settings, but artificial intelligence (AI) has emerged as a potential game changer. By incorporating pattern recognition capabilities, analytics products are now able to make connections that might otherwise be missed by human operators or traditional software.
Startups in the industrial analytics space are using AI to help provide forward looking insights on challenges such as machine maintenance, energy optimization, and inventory management. Recommendations from these platforms can help reduce unplanned downtime and cut inefficiencies in variable costs like energy usage.