SPS Is Still the Best Show for Discrete Automation

Overview

After a 3-year pandemic-induced hiatus, Germany’s SPS show (smart production solutions) opened its gates once again in November to an enthusiastic public thirsty to return to the way things used to be. In contrast to the Hanover Fair, SPS is focused purely on discrete manufacturing. Like all shows in recent years, the most interesting part is the participation of companies from the non-industrial IT world – a clear sign of the growing influence of IT on OT.

Trade Shows Are Back!

In 2021, the SPS show was cancelled just days before it was due to open as COVID-19 infection rates soared, despite the recent availability of vaccines. This year’s restart was highly anticipated. While the show was a third smaller than the last show in 2019, this point underscores a positive trend for trade shows in Germany: the Hanover Fair in May was two—thirds smaller and the ACHEMA show in August was half the size of the previous show. Clearly, 2022 was a year of recovery and rebuilding. Another positive development was the decision to move the show to early November, thus eliminating the conflict with the American Thanksgiving holiday and making SPS much more accessible to American visitors and exhibitors.

Chip Shortages and Long Lead Times

Most suppliers that ARC spoke with complained of the lack of availability of key semiconductors that has resulted in long lead times for automation products. While the semiconductor industry is well on its way to recovery after the disruptions of 2020, preference has been given to “modern” chips used in everything from automobiles to smart phones. Industrial products, on the other hand, often use chips produced with older wafer sizes, a segment that is now waiting at the back of the line as producers satisfy demand for the more lucrative chips first.

Platforms Everywhere

The hot trend in the automation world is “platform.” All major suppliers now offer a platform to help users bridge the worlds of IT and OT. For some (Siemens Industrial Edge, Lenze NUPANO), the platform is at the edge, close to the machine or process, while for others (Siemens MindSphere, Phoenix Contact Proficloud) the platform is the place in the cloud where non-time-critical information processing tasks such as analytics are executed, fed by raw data from the edge. In either case, platforms have become the IT-like environment designed to be managed with OT skills. It will be interesting in the future to see if multiple platforms can work together seamlessly in a single environment, or if the concept merely creates more administrative work for users.

Industrial PC Market Observations

• Suppliers continue to report lack of chips and electrical components.
• More suppliers are offering third party soft PLCs (Christ, Grossenbacher, Schubert), mostly Codesys.
• Acceptance of Linux as an alternative to Windows is growing.
• Fewer IPC suppliers from Taiwan exhibited than in previous years.
• Siemens is not just using Intel anymore, showcasing Blade Server with AMD chips.
• Kontron is now using Intel chips with integrated TSN.
• Popularity of Edge app shops is growing.

What Industry Consortia and Associations Are Saying

VDMA

The VDMA (English: Mechanical Engineering Industry Association) reported that, in the first nine months of the current year, incoming orders in the electrical automation sector increased by 12 percent in real terms compared to the previous year. Sales increased by 8 percent in the same period. Demand in the automation sector has been boosted by catch-up effects. For 2023, the VDMA expects an increase in sales of 10 percent compared to 2022. However, the industry continues to be concerned about the availability of materials for electronic components to complete orders.

ZVEI

The ZVEI (English: German Electro and Digital Industry Association) reported that from January to September 2022, automation sales in Germany amounted to €42.6 billion. This is an increase of 11.1 percent compared to the same period last year. In comparison, production increased by 2.8 percent in the same period. For 2022, sales growth in the high single-digit percentage range is expected. Incoming orders rose by 13.5 percent in the first nine months of this year.

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Keywords: SPS Trade Show, Nuremberg, Discrete Automation, IIoT, IT/OT Convergence, ARC Advisory Group.