Manufacturing Trends

Machine Vision

Satish Lele

Vice President, Frost & Sullivan

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Agenda

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2

3

Manufacturing Trends

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5

Machine vision trends

Trends in the machine tool industry

Frost & Sullivan

Growth Strategies & Opportunities

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The CEO’s Top Objective is Growth

• 93% consider “Growth” the top objective for the next five years

• 63% are dissatisfied with the level of growth their organization is achieving

• 56% feel internal challenges to growth are greater than external challenges

• 82% feel it is tougher each year to hit their growth plan

• 80% do not have confidence in their organization’s abilities to conduct a growth analysis

Source: CEO Choice Growth Survey Results

CEO dissatisfaction with level of company’s growth

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Frost & Sullivan

• The Growth Partnership Company

• Founded in 1961

• Over 1,700 employees across 31 global locations

• 10,000+ clients worldwide including emerging companies, the Global 1000, and the investment community

• Offer the exclusive Growth System including:

• Growth Partnership Services

• Growth Consulting

• Growth Team Membership

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Frost & Sullivan

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Thailand

Indonesia

Hong Kong

Australia

Japan

Korea

China

India

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A 360 degree view of Business

•Economic•Competitive•Customer•Technology• Integrated Industry•Best Practices

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AEROSPACE & DEFENSE

HEALTHCARE ICTAUTOMATION & ELECTRONICS

AUTOMOTIVE & TRANSPORTATION

CHEMICALS, MATERIALS &

FOOD

ENERGY & POWER

SYSTEMS

ENVIRONMENTAL & BUILDING

TECHNOLOGIES

Cross Vertical Industry Expertise

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Growth Acceleration System

AcceleratingGrowth

CEO’s GrowthTeam

Growth Workshop

Improving FGP 8 Growth Careers

GrowthModel

Generate, Evaluate, Implement

Growth Excellence Matrix

Future Growth Potential (FGP)

7 Growth Perspectives

CEO’s 360 Degree Perspective

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Manufacturing Trends

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Global Economy

• Economy continues to expand but at a slower rate

• Recovery losing momentum

• Concerns about US recovery

• Downside risks are rising

Manufacturing index at a nine month low

IMF Staff estimates

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Global Economy

Industrial Output – marginal growth 0.2%Ford – same vehicles in Q4

China :Manufacturing – down to 17 month low

• Effect of stimulus spending wearing off• New normal?

India :robust growth continues

SEAsia:Still robustSingapore fastest growing

Europe:- Debt crisis- Germany only driver- Confidence returning

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Manufacturing trends

Tata Nano• ~ US$2500 price tag

• Clean slate approach to making a car

• Extensive use of advanced computing

to design and develop the car

• Distributed manufacturing and

assembly

• Collaborative engineering and design

The shape of global manufacturing is changing

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Manufacturing trends

Operate Green

Invest Green

Produce Green

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Trends shaping the M&E Industry

TECHNOLOGY

Connectivity – wireless communication, M2M

Knowledge driven automation

Simulation, virtual reality,

Rapid prototyping

Modularization, standardization and reuse

Reconfigurable manufacturing systems

High speed machining system technology

Energy saving

ECONOMETRIC

Global focus on growth zones – China, India,

Eastern Europe, Russia. Emerging markets will

have 86% of global population in 2022

Shift in global manufacturing locations

Rising levels of income in developing countries

Favorable tax and duties regimes

Environment focus will drive efficiencies

INDUSTRY

M&E is and will remain a growth Industry

Industry Structure – domination of medium size

companies

Consolidation – will continue

Relentless pressure on margins and

productivity – rising input costs

Intense product and price competition

MARKET

Shorter development cycles

Growing market – 3-5% in near future

Favorable climate for investment in the short

term

Demand for quality, precision and safety

Mass customization

Green manufacturing

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Machine Vision

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Background

Machine VisionRobitic Guidance

Factory Automation

• Gigabit Ethernet (GigE)• Firewire (1394b)• CameraLink• USB 2.0• Other

• Gigabit Ethernet (GigE)• Firewire (1394b)• CameraLink• USB 2.0• Other

• CMOS• CCD• CMOS/CCD• Other

• CMOS• CCD• CMOS/CCD• Other

• Analog• Digital

• Analog• Digital

• FPGA (Field Programmable Gatr Array)

• DSP (Digital Signal Processor)

• RISC(Reconfigurable Instruction Set Computer)• Frame Grabbers

• FPGA (Field Programmable Gatr Array)

• DSP (Digital Signal Processor)

• RISC(Reconfigurable Instruction Set Computer)• Frame Grabbers

• Visible• Infrared (IR)• Ultraviolet (UV)

• Visible• Infrared (IR)• Ultraviolet (UV)

• PC + Camera• Embedded Vision• Smart Cameras• PC + Smart Camera

• PC + Camera• Embedded Vision• Smart Cameras• PC + Smart Camera

• Lenses• Prisms & Beam Splitters• Color Filters• Polarizers

• Lenses• Prisms & Beam Splitters• Color Filters• Polarizers

• Identification• Measurement• Guidance• Other

• Identification• Measurement• Guidance• Other

Architectures

Sensors

Data Capture

Spectrum / Illumination

Interfaces

Processors

Optics

Software

Industrial vision systems require expertise in multiple fields as they are compositions of different technologies

• LED•

Halogen

• Other

• LED•

Halogen

• Other

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Major Drivers

Backed by Robust Academic and Corporate Research Outcomes and Initiatives

Applicable to Industrial, Agricultural, Homeland Security, Infrastructure,

and Entertainment Sectors. Addresses Challenges of the

Automation Industry

Regulatory Factors are a Major Driver in Food, Pharmaceutical

and Certain Automotive Sectors

The Aerospace & Defense Sector is a Major Technology Incubator for Machine Vision

Benefits from Miniaturization, Cost

Reduction and Increase in Capability of Electronics

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Industry Challenges

Expectation of Customers is High Especially in Developing Markets

Key Challenges

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Level of Customization Required is Quite High With Market Shares of Such Vision Systems Remaining High

Availability of “Off-the-Shelf” Components Help in DIY projects – Lesser Opportunities for System Integrators

Lack of Training & Knowledge on Machine Vision Systems for Operators

Low Volumes Have an Impact on Turnover and Margins

Large Number of Applications to Cater To

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3

46 5

7

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Lack of Standardization Across Markets and Application Sectors

Significant Challenge for Vision System Integrators in Current Economic Scenario

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Expensive for Small Manufacturers in Developing Economies

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Companies Analysis - Sectors

MARKET FOCUS

20.0%

15.8%

13.3%

10.0%

10.0%

7.5%

6.7%

5.0%

5.0%

4.2%

4.2%

2.5%

14.2%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

%

Automotive

P har maceutical

Food & Bever age

P ackaging

Semiconductor s

E lectr onics

P r int, P aper

Glass

P lastics

Medical

Aer ospace

Wood

Other s

Target Markets

• Automotive, Pharmaceutical and Food & Beverage are most often addressed markets by recently established machine vision companies

Others include: Foundry, Cosmetics, R&D, Ceramics, Recycling, Mining

Food & beverage sector requires identification and simple quality inspection solutions, but also advanced systems for instance to deal with operations such as sorting

Pharmaceutical market requires solutions mostly for identification and quality inspection; often smart camera-based

Semiconductors and electronics markets require high resolution and high-speed systems to deal with inspection of smaller and smaller pixels and electronic components

Print & paper sector demands very high-speeds and color inspections

Recycling market need advanced software and hardware vision solutions to meet sector’s sorting challenges

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Market & Technology Trends

• The Machine Vision Industry is reviving again with Asia leading the Rebound

• Low-Cost Vision Systems – Vision Sensors, Smart Cameras and Software are Expected to See the Highest Volume of Sales

• Generally Vision Systems That can be Configured in-house by End-User Will Be More Attractive for the Buyer Due to Cost Advantage

• Digital Cameras, Gig-E Cameras, IP-Cameras Sales to Increase Due to Usage in Surveillance, Traffic Management. Analog Cameras May Find Applications in Cost-Sensitive Nascent Markets Such As India

• 3D Vision Will Continue to Be a Growth Area As it Overcomes Challenges in Inspection, Robotic Guidance, and Non-Industrial Applications

• MV Equipment Sold As Off-the-Shelf Components (Cameras, Lighting, Optics, Software) As Opposed to Fully Integrated MV Systems Contribute to a Major Portion of the Turnover in Machine Vision Industry

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Industry Participants in Key Growth Segments

SICK IVP AB, LMI Technologies, Inc., Canesta, Inc., Phase Vision LtdSICK IVP AB, LMI Technologies, Inc., Canesta, Inc., Phase Vision Ltd

JAI, Sensors Unlimited (Goodrich), LOT Oriel JAI, Sensors Unlimited (Goodrich), LOT Oriel

Braintech Inc., Adept Technologies, Inc., Radix Controls Braintech Inc., Adept Technologies, Inc., Radix Controls

OMRON, MVTec Software GmbHOMRON, MVTec Software GmbH

BASLER AG, DALSA, Sony Electronics, PixeLINK, JAIBASLER AG, DALSA, Sony Electronics, PixeLINK, JAI

DALSA, SICK Inc, DVT Corporation, Cognex, LMI Technologies IncDALSA, SICK Inc, DVT Corporation, Cognex, LMI Technologies Inc

3-D Vision Systems3-D Vision Systems

NIR/SWIR/Multispectral Imaging Cameras

NIR/SWIR/Multispectral Imaging Cameras

Vision Based Robotic GuidanceVision Based Robotic Guidance

MV Software / Video Analytics MV Software / Video Analytics

Digital Cameras for Machine VisionDigital Cameras for Machine Vision

Vision Sensors / Smart CamerasVision Sensors / Smart Cameras

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Business Potential for Non-Industrial Applications in Current Scenario

Automated Guidance of Farm Equipment, Assessing Internal Quality of Fruits, Robotic Guidance for Dairying, Hatcheries/Fish Farm

Automated Guidance of Farm Equipment, Assessing Internal Quality of Fruits, Robotic Guidance for Dairying, Hatcheries/Fish Farm

Unmanned Aerial Vehicles, Unmanned Land Vehicles, Drones, Remote Sensing & Surveying

Unmanned Aerial Vehicles, Unmanned Land Vehicles, Drones, Remote Sensing & Surveying

Gesture control, Gaming, Background Substitution in an ImageGesture control, Gaming, Background Substitution in an Image

Vision based facial recognition, Number Plate Recognition, Screening passengers for illness with thermal imaging cameras

Vision based facial recognition, Number Plate Recognition, Screening passengers for illness with thermal imaging cameras

Intruder Detection, Threat Detection, Video Analytics based Business Intelligence, Congestion Management

Intruder Detection, Threat Detection, Video Analytics based Business Intelligence, Congestion Management

AgricultureAgriculture

Aerospace & DefenceAerospace & Defence

Consumer Electronics & Gaming

Consumer Electronics & Gaming

Biometrics/SecurityBiometrics/Security

Video Surveillance Video Surveillance

Key: ***** High Potential *** Medium Potential * Low Potential

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Applications for 3-D Vision Systems

Semiconductor Industry

3-D Machine Vision

Automotive Occupant Safety

Advanced Robotic Guidance Applications – Bin Picking, Assembly

Consumer Electronics &

Entertainment

Eye Tracking for Automotive &

Medical Applications

Inspection of Highly Reflective

Surfaces and Complex Defects

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Vision Based Robotic Guidance

• 2-D (Two-Dimensional) Vision Systems Have Created More Applications for Robots

• Used for Automated Guided Vehicles (AGV) - Now Being Used for Mobile Robots

• 3-D Vision Has Enabled Bin Picking and Eliminates the Difficulties Faced with 2-D Vision

• Robotic Guidance Quickly Progressing to Visual Servoing

• Japan, North America, Germany, Korea, Italy, France Have High Numbers of Operational Robots – Offer Opportunities for Vision Based Guidance

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Technology Progression

2007

2010

2013

EMERGENCE OF 3-D VISION; APPLICABILITY OF 3-D VISION IN

ROBOTIC GUIDANCE, AUTOMOTIVE, AND ADVANCED INSPECTION

HIGHER DATA RATES AND GREATERREAL TIME IMAGE PROCESSING, GREATER

USE OF IMAGING BEYOND THE VISIBLE LIGHT RANGE

MACHINE VISION SYSTEMSENABLE GREATER

ROBOTIC AND AUTONOMOUS VEHICLE CAPABILITIES

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Technology Roadmap

2009 20142009 2014

• Dynamically Reconfigurable Processors will displace FPGAs

• Multi-spectral (UV to short IR) sensors will gain industrial interest and applications

• Analogue camera systems will be replaced with digital cameras

• The need for frame grabbers will decrease• CMOS sensors will gain advantage over

CCDs due to lower power consumption, lower price and higher speed

20152020

20152020

• Old-to-new technology replacements (higher sensor resolution and capture speed)

• Embedded, industry-oriented systems will replace PC-based systems in the replacement wave

• Multi-spectral sensors will go closer to long IR wavelengths (close to 8 microns) and will be limited by lens material

• Machine vision will be an integral control and guidance solution of rapid manufacturing systems

2021 & Beyond

Com

ponents

Influence

on

manufa

cturi

ng

Roboti

csO

ther

• High accuracy measurements in 3D and real time will be possible

• Machine vision will aid statistical analysis, diagnostics and maintenance in factories

• Remote control and monitoring of machine vision systems will be common

• Vision guided robots will decrease cycle time

• 10 GigE standard will become common• Adaptive algorithms will be applied for

demanding inspection tasks• Camera calibration procedures for 3D

systems will be simplified

• Industrial vision systems will become indispensable part of flexible automation systems

• Machine vision systems will aid rapid manufacturing

• Vision systems will find safety application in factories

• Cycle time of vision guided robots shall fall below 1 second enabling flexible and fast robot operation

• Visual servoing will enable robots to aid flexible precision machining and other operations

• Vision technologies for effective simultaneous localization and mapping will be implemented

• 100 GigE will become common• Wireless smart camera-based systems will be

implemented• No-calibration 3D camera systems will appear

• Autonomous robots will use vision systems for human and obstacle detection, object tracking, navigation and localization

• Robots will be ready to intelligently pick different objects from a moving line, perform certain machining operations and place objects in a given location

• Adaptive algorithms will be used to visually guide and teach robots

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Growth Strategies & Opportunities

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Enter into partnerships with

industry and academic research

organisations to develop

technology

Enter into partnerships with

industry and academic research

organisations to develop

technology

Focus on short-term and long-

term opportunities in emerging

markets such as India and China

Focus on short-term and long-

term opportunities in emerging

markets such as India and China

Diversifying into multiple industrial applications and

non-industrial applications

Diversifying into multiple industrial applications and

non-industrial applications

Development of low cost vision systems and

components that be deployed and operated cost-effectively by end-

users

Development of low cost vision systems and

components that be deployed and operated cost-effectively by end-

users

Opportunities & Strategies

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Market Trends - India & China

Economic Forecast II % Change in GDP II Source: IMF World Economic Outlook II

Key PlayersChina: All major multinational machine vision component sellers and system

integratorsIndia: Soliton Technologies, Global

machine vision majors have distributors and dealers

Current Key Application SectorsChina: Semiconductor Inspection, Flat Panel Displays, Printed Circuit Board,

Biometrics/SecurityIndia: Textiles – Spinning Mills,

Automotive, Manufacturing, Pharmaceuticals

INDIA &

CHINA

Market Dynamics & Potential• Growing Quality Standards & increasing Competition, Need to Increase Share of Exports

• Growing Labor Costs & Labor Union Issues

• Avoiding Unreliability of Human Operator

• Cost Sensitive Markets with Certain Sectors Demanding Quick ROI, low COO

• Immense Potential Due to Healthy Economic Trends

• MV Markets Likely to Grow on Economic Revival

• Reducing Costs of Machine Vision

Components Will be Conducive to Greater Adoption

2007 2008 2009 2010China 13 9 6.7 8

India 9.3 7.3 5.1 6.5

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Conclusion

• Economy – Mixed Signals

• Manufacturing – evolving and dynamic

• Reduction of Total Cost of Vision Systems - Essential for Sales Growth

• Immense Future Potential in Asia, as Wages Increase

• Tremendous Opportunities in New Sectors Such as Solar, Security

• 3-D Vision Likely to Increase the Applicability of Vision Systems and Robots

• Intensifying Competition and Consolidation Will Drive the Market

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Thank You