As per MarketsandMarkets’ analysis, based on its existing studies available on MarketsandMarkets™ Knowledge Store, Internet of Things (IoT) sensors, Artificial Intelligence (AI), and predictive maintenance are the top technologies (refer to Figure 1) that have the potential to change the future revenue mix of Baker Hughes (BHGE), a GE company. It is also evident from the recent joint venture agreement between BHGE and C3.ai, a California-based AI company.
On June 5, 2019, Amazon showcased the latest version of its Prime Air delivery drone—that is set to transform last mile package delivery—at the Mars Conference in Las Vegas, US. The Prime Air delivery drone is a hybrid aircraft equipped with optical, thermal, and ultrasonic sensors. Moreover, the drone is also capable of vertical takeoff and landing along with continuous forward flight.
Mercedes-Benz Cars, in association with telecommunications company Telefónica Deutschland and network supplier Ericsson, is setting up the world’s first 5G network for automobile production in its Factory 56 in Sindelfingen, Germany. This is the first time the 5G mobile communications standard is being implemented into the running production. The 5G technology can rapidly process huge data sets. The 5G standard allows fast data transmission rates, with extremely low latency and a high level of reliability. Mercedes-Benz Cars is planning to implement such innovation in its other plants as well.
Tyson Foods is headquartered in Arkansas, US, and is engaged in offering chicken, beef, and pork, as well as prepared foods. The company offers food products under Tyson, Jimmy Dean, Hillshire Farm, Sara Lee, Ball Park, Wright, Aidells, and State Fair brands. It has its presence in Central America, China, Canada, Japan, the Middle East, the European Union, South Korea, and Taiwan. On 13th June 2019, the company announced the launch of its first plant-based blended products under its new brand, Raised & Rooted, as part of its efforts to expand its protein offerings. Earlier, in April 2019, Tyson Foods ended its investment with Beyond Meat, which is engaged in manufacturing plant-based meat, to start its own brand of plant-based meat products. With the rising trend of healthy lifestyles, meat producers need to shift their offerings to products that have improved nutritional profiles. The belief among consumers that plant-based proteins are better for heart health, easier to digest, and better suited to aid weight loss than animal protein, will disrupt the animal meat market in the future. Since Tyson Foods has a major stake in traditional meat such as chicken, pork, and beef, it is more of a precautionary move rather than a strategic one to enter into the booming market of plant-based meat.
On May 28 Lunit Inc. announced an abstract presentation of its AI precision medicine research portfolio at the American Society of Clinical Oncology (ASCO) Annual Meeting 2019. The accepted abstract highlights the feasibility of AI-based biomarker in metastatic non-small cell lung cancer, based on the H&E analysis that predicts response to immune checkpoint inhibitors (ICI).
Many players from the semiconductor ecosystem had taken initiatives toward the development of Silicon-on-Insulator (SOI) wafers to fulfill the growing demand for cost-effective, high-performance, low power, and miniaturized electronic devices that find applications in computing and mobile, automotive, and telecom instruments. In addition, rapidly advancing technologies, such as 5G, IoT, and data centers, encourage companies to develop innovative and highly scalable products with improved performance. To gain a competitive edge over others, companies are adopting partnership and collaboration strategies. For example, GlobalFoundries, a leading semiconductor foundry, and Soitec, a specialized manufacturer of high-performance semiconductor materials, signed a long-term agreement to ensure the high-volume manufacturing and supply of 300 mm SOI wafers.
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As per a press release of the company, on April 30, 2019, John Bean Technology (JBT) acquired Proseal, a United Kingdom based, provider of tray sealing technology for the food industry, in a deal worth USD 246 million. JBT then acquired Prime Equipment Group, a US company dealing in primary and water re-use solutions for the poultry industry, for USD 65 million on June 5, 2019. Regarding these acquisitions, JBT CEO Tom Giacomini said, “The goal of JBT is to become full line solutions provider for poultry customers with the addition of the primary processing capabilities of Prime. The areas of automation and water re-use can be addressed by deep expertise, reputation, and high-quality products and services by Prime, combined with the strategy and winning culture at JBT.” Chicago-headquartered JBT expects that in 2019, both acquisitions would add anywhere between USD 80 million and USD 85 million to its revenue. The potential lies in leveraging JBT’s global reach as Prime’s annual revenue of USD 45 million is only from the US.
Raytheon and United Technologies are joining hands to further expand their aerospace & defense segment, making it the second-largest company in the US in the aerospace & defense segment, after Boeing in terms of revenue.
Topics: Aerospace and Defence
Future revenue mix of most of the global companies is going to change soon. One of the major driving factors would be the revenue shift of the clients that will push them to adopt innovative solutions relevant to the constantly evolving requirements. Companies who are preparing for their clients’ future revenue shift will ride the tide, while others might find it challenging to sustain. Salesforce has taken a similar strategic initiative to acquire Tableau recently, which might be primarily driven by future revenue shift of its clients.
The Indian Air Force (IAF) has once again sourced the highly advanced SPICE-2000 bomb from Israel to strengthen its arsenal. The SPICE-2000 bomb was earlier used in the Balakot airstrike conducted in February 2019, to neutralize Jaish-e-Mohammed (JeM) terrorists hiding in a building. The airstrike was a retaliation against a terror attack carried out by JeM in Jammu and Kashmir's Pulwama district on February 14, 2019, killing 40 Central Reserve Police Force (CRPF) soldiers. As part of a comprehensive defense strategy, the IAF awarded Israel’s Rafael Advanced Defense Systems a USD 40 million contract for the purchase of more than 100 SPICE-2000 bombs.