Manufacturers are predicting smart, connected products launched will jump from 35% in 2017 to 47% in 2020, growing at a Compound Annual Growth Rate (CAGR) of 10.3% a year, up from just 14% in 2014. Given constrained engineering, R&D, and production schedule availability consumed supporting legacy products today, this jump in an entirely new product category is forcing manufacturers to reinvent themselves. Just 18% of manufacturers are planning to abandon transaction-based products and shift to an entirely service-based business. The
majority (54%) are planning to sell both legacy products and launch new smart, connected products that will be their platforms for services revenue formation generating new models, strategies and paradigms.