Predictive Maintenance on Cargo Ship Engines

Delivered July 27th, 2019. Contributors: Alexandra C., Edgar M., Angela J. and

Research Outline: Market research on companies that does...

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Predictive Maintenance on Cargo Ship Engines

Based on a ranked list provided by IoT-Analytics, and on the companies' revenue, the top companies that offer predictive maintenance on cargo ship engines are Schneider, ABB, GE, and SKF.

SCHNEIDER Estimated revenue: $28 billion
They claim to be one step ahead of the game with their "condition-based maintenance for ships." This means that "technical parameters of the equipment are measured and combined with environmental parameters relating to system usage."
According to the company's website, "the benefits of CBM for ship operators are multiple. First it will improve the overall system reliability and significantly reduce downtime. It will also make it possible to adjust and optimize the maintenance plan frequency based on actual figures. Therefore, it leads to significant cost reductions."

ABB Estimated revenue: $27.7 billion
They promise "up to 70% reduction of on-call service engineers and up to 50% reduction in maintenance through extended and predictive monitoring."
They have three service levels for the marine industry. Their prediction service includes Onshore Prediction Analytics to IOC, Onboard Edge Analytics, Fleet Portal, Data Transfer, Critical Trip notification, Connectivity & System Monitoring, Incident Report, and 24/7 Care—Remote Assistant.

GE Estimated revenue: $27.3 billion
GE offers "fleet data analytics and predictive maintenance through advanced digital platforms."
They also offer customized services for a wide array of industries, including the marine industry.
GE advertises that their solutions can "drive up energy efficiency and better return on assets."

SKF  Estimated revenue: $9.7 billion
SKF offers monitoring and predictive maintenance solutions for all auxiliary equipment: motors, pumps, fans, compressors, purifiers, electric motors, generators, turbines rotary dryers, transmissions, centrifuges, and gearboxes.
Their purpose is to "maximize the reliability and availability" of all auxiliary equipment.
SKF representatives believe that their solutions can "extend the time between repairs, eliminate machine problems on time, allow spare part optimization, track ship and leet condition and reduce maintenance costs. The system furthermore facilitates ease of use and communication, crew involvement and team work."

RESEARCH STRATEGY:We started by searching for predictive maintenance market leaders that offer predictive maintenance to start-up companies, and that focus on predictive maintenance solutions for cargo ship two-stroke engines. We explored market report collections from reputable financial research databases, as well as business publications. Then, we closely investigated tech publications. We especially focused on those tech publications that concentrate on analytics, and the Internet of Things, such as IoT-Analytics. Furthermore, we looked at maritime news magazines. However, despite our thorough research, it appears that our topic has yet to be explored by leading industry experts or market researchers. We came across recent scientific articles that look into predictive maintenance for cargo ship two-stroke engines. However, while they discussed the topic in depth, there was no mention of the main market players in the sector. 
 
Therefore, we abandoned this strategy and continued our project by expanding the scope of our research. Thus, we started looking for leading companies that offer predictive maintenance solutions for cargo ship two-stroke engines. As a result, we were able to identify cargo ship two-stroke engine manufacturers that also offer predictive maintenance for their own products. Such manufacturers include MAN Diesel SE, and Winterthur Gas & Diesel Ltd. We were also able to identify companies that specialize in creating smart technology solutions that offer predictive maintenance for cargo ship two-stroke engines, such as Wärtsilä. Furthermore, we found data analytics companies that channel their efforts into creating predictive energy solutions for cargo ship components, including two-stroke engines; Qvartz Analytics is an example of this. Parker Kittiwake offers predictive maintenance systems designed for various industries. They advertise predictive maintenance solutions for cargo ship two-stroke engines. However, despite our efforts, we were not able to determine whether these companies are some of the biggest competitors in the sector. Although these are public companies and their annual revenue is publicly available, we were not able to find any market reports, statistics, or estimations to help us determine the cargo ship predictive maintenance market size. 

However, we were able to find several market reports that include data regarding the predictive maintenance market size as well as the names of some of the key competitors in the market. Unfortunately, each report mentioned different key competitors. Although some of the competitors were mentioned by several reports, not all of those competitors offered predictive maintenance for cargo ship engines. We continued our research by looking for predictive maintenance key competitors and we came across an IoT-Analytics report that included a top 20 predictive maintenance company ranking. However, this top 20 list was not created based on sales or revenue. It was created based on "Google searches in conjunction with 'predictive maintenance'," media mentions in the context of "predictive maintenance," and the number of employees that tag themselves with "predictive maintenance" on social media. It is important to note that not all of these companies offer predictive maintenance for cargo ship engines. Therefore, we investigated each of these companies' offerings in order to find out which ones design predictive maintenance solutions for cargo ship engines. Regarding revenue, after investigating the available financial statements, we concluded that the data regarding the revenue generated from the companies' predictive maintenance solutions sales, and even more so from the predictive maintenance solutions designed for cargo ship engines, was not publicly available. Based on the ranking provided by IoT-Analytics. Therefore, based on our efforts to find out which companies offered predictive maintenance on cargo ship engines, the top companies in the sector are GE, SKF, ABB, and Schneider. 

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Predictive Maintenance on Cargo Ship Engines: Competitive Landscape (Part 1)

Schneider Electric and ABB have a competitive advantage due to their availability globally and they also have a wide range of products and services. Propulsion Analytics is an innovative firm that is focused on the maritime industry.
SCHNEIDER ELECTRIC
PRODUCTS/SERVICES
Products offered by Schneider Electric include electrical devices for residential and small business, Building Automation and Control, Low Voltage Products and Systems, Solar and Energy Storage, Access to Energy, Medium Voltage Distribution and Grid Automation, Critical Power, Cooling and Racks, Industrial Automation and Control, and all Software for energy management and industrial automation. 
This includes products such as 9 Series, Pact Series, TeSys, PowerLogic, Set Series, Uniflair, Galaxy, Altivar, Lexium, Preventa, Harmony, Zelio, Modicon, SpaceLogic, Actassi, Exiway, Esmi, Easy Series, and APC Connected Products: SurgeArrest, Smart-UPS, and NetShelter.
Services offered are energy and sustainability services, field and automation services, training, and facility services.
 Schneider Electric's estimated revenue is $28 billion 

COMPETITIVE ADVANTAGE
The company has a global presence in more than 100 countries. It is a leader in automation systems and power management.
The company combines "world-leading energy technologies, real-time automation, software and services into integrated solutions for homes, buildings, data centers, infrastructure, and industries". It makes energy reliable, safe, efficient and sustainable.

COST OF SERVICES AND PRICE 
The price of switches is below AED 500, the most expensive ones are waterproof that cost more than AED 100. Motion sensors cost between AED 157.92 to AED 1,614.03.
ABBPRODUCTS/SERVICES
Services offered by ABB include Lifecycle management, Performance improvement, and operational excellence.
In addition, the company also offers advanced services, engineering and consulting, extensions, upgrades and retrofits, installation and commissioning, maintenance, replacement, spares and consumables, technical support and repairs, training
For Products and Systems, ABB offers Control systems, drives, electric vehicle, charging infrastructure, enterprise software, high voltage products, HVDC, low voltage products and systems, measurement and analytics, medium voltage products and systems, motors and generators, network management, power converters and converters, power electronics, robotics, substation automation, protection and control, substations and electrification, transformers, turbocharging, UPS and Power Conditioning.
Their prediction services include Onshore Prediction Analytics to IOC, Onboard Edge Analytics, Fleet Portal, Data Transfer, Critical Trip notification, Connectivity & System Monitoring, and Incident Report.
ABB's estimated revenue is $27.7 billion 

COMPETITIVE ADVANTAGE
The company promises "up to 70% reduction of on-call service engineers and up to 50% reduction in maintenance through extended and predictive monitoring."
The company operates in four regions in approximately 100 countries. It offers a variety of products, technologies, solutions, and services. It concentrates on power transmission, distribution and automation of power plants, serving electrical, gas and water services as well as industrial and commercial clients. It serves a variety of sectors with apps for measuring, controlling, protecting and process optimization.

COST OF SERVICES AND PRICE 
Price for devices such as block contactors cost between £27.20 and £13753.00 depending on the type. Manual starters cost between £8.56 and £441. Price for pilot devices is below £100.
PROPULSION ANALYTICSThe company offers consulting and outsourcing services. They help their clients resolve vessel/engine issues. It also helps "define performance monitoring strategy and process".
The company offers Engine Hyper Cube as a product for decision support and status assessment.

COMPETITIVE ADVANTAGE
It is an innovative firm for the maritime industry in performance management and energy efficiency, set up with the vision of applying state-of-the-art technology to the shipping community worldwide. 
Products and services offered focus "on vessel/engine performance management and have pioneered the use of thermo-fluid dynamic simulation models in conjunction with machine learning techniques, for performance assessment, fault diagnosis and optimization in service".
The company's revenue for the third quarter of 2019 was 7.4million.
RESEARCH STRATEGY
We began by looking for data on the websites of these companies. We were able to find their products and services. We looked in databases such as Crunchbase and Zoominfo to find their average revenue. We were able to find a price list for ABB and Schneider but since these companies have so many products at different prices, we were unable to list all the prices. Unfortunately, we were unable to provide pricing for services and products of Propulsion Analytics. We looked into the company's website with the hope that we will find this information but there was no page directly quoting prices.

We proceeded to research credible websites and publications such as Live Mint, Tech Circle and others in search of articles revealing the price of services offered by the company. This too failed as the information was not available. We went ahead and tried to find some clients of Propulsion Analytics with the hope that they made public the prices they paid but we did not manage to find its clients. We came to the conclusion that the company does not make public the prices of services they offer because services offered differ depending on the client.

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Predictive Maintenance on Cargo Ship Engines: Competitive Landscape (Part 2)

GE's fulfillment of the naval needs of more than 33 navies around the globe speaks to their competitive advantage in using predictive maintenance and propulsion analytics for ship engines. SKF's competitive advantage involves their motivation to seek environmentally sound solutions integrated with their cloud-based and predictive analytic technology that is specifically useful in rotating devices and vibrations. 

GE's Overview of Products and Services GE's Marine Solutions meet the ever-changing needs of the worldwide naval customers and at the 31st Annual Symposium of the Surface Navy Association highlight their capabilities that apply to the two new US Navy programs, the FFGX frigate and the Large Surface Combatant to keep them "Ready, Agile, and Focused to Own the Fight". 
GE provides 97% of the US Navy's propulsion gas turbines, proven with 99% reliability and 98% availability, and more than 1,200 GE LM2500 operate globally for over 16 million hours for 33 navies. They boast to save navies millions of dollars a year and up to months of unavailability due to their split casing compressor and power turbine which allow for in-suite maintenance.
They offer power-dense gas turbines and HED solutions, and fully integrated power and propulsion systems to navies. 
 GE's digital solutions and Asset Performance Management software provide prognostics and is used by NAVSEA and Military Sealift Command for condition-based maintenance programs.
GE's RevenueRevenue for GE Transportation division, which includes Marine and digital solutions, was $3,898 million in 2018. However, another report puts their sector of Diversified Industrials, to include their predictive maintenance software, revenue in 2017 as $122.1 billion. 

GE's Competitive Advantage GE's power and propulsion solutions are equipped to provide fast fleet speed for next generation ships that have increased capabilities for onboard power and defense systems, and they continue to invest to meet the needs of naval fleets in the future. GE's HED is onboard the US Navy's first hybrid-propelled ship saved more than 4 million gallons of fuel over 7 months, saving an estimated $15 million, and their power system helps propel the first all-electric warship. They also have the only commercial land-based facility capable of full-scale testing.
GE's Marine Solutions' SeaStream Insight was awarded recognition by ABS for its data-analytics solution that provides health and performance monitoring of rig equipment and works towards prediction of anomalies or degradation of equipment installed on marine vessels. 

SKF's Overview of Products and ServicesSKF is located in Göteborg, Sweden, is one of the largest public companies in the world and have over 48,000 employees and has more than 140 manufacturing and operational sites. The focus of SKF technology is to reduce the environmental impact of an asset during its life cycle and their solutions must provide significant environmental benefits without trade-offs and address at least one environmental concern.
Their digitization and IoT solutions helps them to provide analytics, reports, and recommendations to increase reliability and efficiency. Their predictive maintenance programs detect a machine's condition and estimate the time before failure, and their Proactive Reliability Maintenance includes service contracts that applies best practice predictive maintenance activities and then takes steps to prevent eliminate re-occurrences.

SKF's RevenueAB SKF revenue in reference to predictive maintenance was given to be $81.29 billion.

SKF's Competitive AdvantageSKF collects data from a range of rotating equipment although they also supply "non-routine" services such as electric motor monitoring or dynamic balancing of rotating equipment. Using the cloud-computing infrastructure they give companies 24/7 access to their expertise and condition data to increase machine reliability, lower operating and maintenance costs, and reduce capital and IT investments. 

RESEARCH STRATEGYWe began this research by looking through credible industry reports, relevant journal articles, and market analyses from experts in this industry for the requested information on GE and SKF's competitive advantages and propulsion analytics. Given the wide range of products and services these companies provide to numerous industries outside of cargo ships, there was not enough information available via journal articles, reports, or analytics/statistics to determine their market share regarding predictive maintenance as a category or about ship engines alone.

As a second strategy, we looked through GE and SKF's company websites for the requested information. However, neither company lists the prices of its products and services on their websites or through other sources. Instead, they each require that businesses request quotes to get an accurate estimate of the cost of necessary services and/or products tailored for each request. The unavailability of their cost of services is likely due to the individual nature of each project that they assist with and the services and products required for the desired outcomes.

Finally, we searched through industry-specific and business databases, GE and SKF's social media accounts, and general news sources that publish financial records in hopes of finding any information on each company's allocations for predictive maintenance for cargo ship or marine engines. However, there was also a lack of information regarding the costs spent by companies for predictive maintenance for cargo ship or marine engines by articles, statistics, and social media mentions. The lack of information regarding their market share and costs of services and costs of products makes it impossible to triangulate the information. Therefore, we provided the reported revenue for each company, GE Marine Solutions, and SKF group, as their narrow focus on predictive analytics is not widespread for their industries and thus unique to their companies making their revenue streams unique enough to provide some insight for the predictive maintenance market. 