The automation industry has completed 3 transformations, and each transformation has created a new set of players. The market for business process software alone is > $60 Billion; it is dominated by established SW generalists, SW specialists and industrialist companies. Incumbent players have acquired to enter new market segments; will new standalone companies establish themselves in the Industry 4.0 category?

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WUNDERVC
Industrial Tech Software
- Market dynamics
Christian Dahlen, October 2023

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Agenda
• The 3 transformations of the automation industry and the new
sets of players each transformation has created
• The market size for business process software and the largest
players
• The acquisitions and the strategies of the incumbent players as
the markets have grown and matured

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WUNDERVC
The automation industry has completed 3 transformations
3

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Each transformation has birthed a new set of players
4
Industrialists SW Generalists SW Specialists
Siemens 1847
GE 1892
Schneider 1836
Rockwell 1903
Honeywell 1906
ABB 1883
SAP 1972
Oracle 1977
Epicor 1972
PTC 1982
Dassault 1981
Autodesk 1982
Ansys 1970
1870 1969
INDUSTRY 2.0
Mass production,
assembly line,
Electrical energy
INDUSTRY 3.0
Automation,
computers,
electronics

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These players – SW generalists, SW specialists, and
industrialists – own specific layers of the automation pyramid
5
SW Generalists
SW
Specialists
ERP
MES
SCADA/ DCS
PLC
SENSORS
LEVEL 4: ENTERPRISE
Business planning and
logistics
LEVEL 3: MANAGEMENT
Manufacturing operations
planning
LEVEL 2: OPERATIONS
Monitoring and
supervising
LEVEL 1: CONTROL
Sensing & manipulating the
physical production process
LEVEL 0: DEVICE
Physical production
process
Industrialists

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Design Plan Procure
Make –
sub-
assembly
Make –
finished
product
Deliver Operate
Industrial automation business processes span from
upstream ‘design’ to downstream ‘operate’
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CAD -
Computer
Aided Design
SCM –
Supply Chain
Management
Procurement MES/MOM –
Manufacturing Execution
System/ Manufacturing
Operating Management
TMS –
Transportation
Management
Systems
WMS -
Warehouse
Management
Systems
PLM –
Product
Lifecycle
Management
CMMS –
Maintenance
management
ERP –
Enterprise Resource Management
Field services

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19.0%
14.8%
12.9%
23.6%
11.1%
8.6%
6.7%
The market size for business process software in
manufacturing and industrial alone was >$60 Billion in 2022
$2.7
$8.4
$15.2
$0.8
$1.5
$21.9
$10.4
WMS
TMS
MES/MOM
Procurement Analytics
Supply Chain Analytics
PLM
CAD
2022 (USD Billion) 2022 – 2030 (%)
$61 Billion Market Size 11.6% CAGR

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SW generalists and industrialists are massive companies
$31.4
$96.2
$111.8
$129.0
$131.8
$15.5
$25.9
$42.3
$52.5
$4.7
$156.2
$263.1
$8.4
$32.7
$69.0
$77.3
$36.0
$2.0
$2.1
$5.0
$6.1
$1.1
$32.7
$48.0
Rockwell
Schneider
GE
Siemens
Honeywell
Ptc
Ansys
Autodesk
Dassault
Epicor
SAP
Oracle
Market cap (USD Billion)
Revenues (USD Billion)
SW
Generalists
Industrialists
SW
Specialists
(2020 trade sale)
May 2023

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WUNDERVC
Incumbents have spent $ Billions to enter new markets
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Acquirer Target Price Description Year
Dassault Medidata $5.8B SaaS-based clinical development solutions for
customers' clinical trials
2019
Rockwell Plex Systems $2.2B Smart manufacturing platform for making products 2021
PTC ServiceMax $1.5B Cloud platform that improves the productivity of
complex, equipment-centric service execution
2022
Autodesk Innovyze $1B Smart water infrastructure modeling and simulation
software solutions
2021
Autodesk PlanGrid $875M Cloud-based construction document collaboration
platform
2018
PTC Arena
Solutions
$715M Design, produce, and deliver innovative products to
market fast
2020
Siemens SupplyFrame $700M Industry Network for electronics design and
manufacturing
2021
Siemens Mendix $700M High-productivity platform to create and improve
multi-channel applications at scale
2018
Ansys Analytical
Graphics
$700M Modeling, analysis, and visualization software for
mission-level engineering applications
2020
PTC Onshape $470M Product development platform uniting CAD, data
management, collaboration tools, and analytics
2019
Price $M Description
$470
$700
$700
$700
$715
$875
$1,000
$1,500
$2,200
$5,800
May 2023

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Siemens, Ansys and Autodesk have been the most active
acquirers in the past 5 years
2
1
4
1
3
4
1
3
1
1
4
7
4
8
6
6
13
16
Epicor
Oracle
GE
SAP
Dassault
Schneider
Ptc
Rockwell
Honeywell
Autodesk
Ansys
Siemens
Software acquisitions*
Jan 2018 to July 2023 Other acquisitions
Acquisitions > $250M
Industrialist
SW Specialist
SW Specialist
Industrialist
Industrialist
SW Specialist
Industrialist
SW Specialist
SW Generalist
Industrialist
SW Generalist
SW Generalist
19
14
10
9
9
8
8
6
0
0

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Design Plan Procure
Make –
sub-
assembly
Make –
finished
product
Deliver Operate
The industry participants are increasingly encroaching on
each others territory
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Industrialists (Siemens,
Schneider, GE,
Rockwell, Honeywell)
Expanding from electro –
mechanical automation
into software
SW Generalists (Oracle, SAP, Epicor,…)
Started in ERP and moved top down into specific applications
SW Specialists (Autodesk,
Dassault, Ansys, PTC,…)
Moving downstream from CAD

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There have been only two IPOs in the industrial tech space
since the term Industry 4.0 was coined
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WUNDERVC
C3 AI
Enterprise AI software for accelerating digital
transformation
•Revenues: $269M (FY ‘22)
•Market cap: $3 B (Oct ’23)
•IPO in Dec 2020
•Founded in 2009
Samsara
Cloud platform to harness Internet of Things (IoT)
data for insights and improved operations
•Revenues: $780M (FY ‘22)
•Market cap: $12.6B (Oct ‘23)
•IPO in Dec 2021
•Founded in 2015

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WUNDERVC
Will new standalone companies establish themselves in the
Industry 4.0 category?
13
?
1784 1870 1969 2011 Today

14. Confidential
WUNDERVC
The automation industry has completed 3 transformations, and each
transformation has created a new set of players
The market for business process software alone is > $60 Billion; it is dominated
by established SW generalists, SW specialists and industrialist companies
Incumbent players have acquired to enter new market segments; will new
standalone companies establish themselves in the Industry 4.0 category?
14