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Investing in Internet of Things (IoT)? Which is Better: ABB vs. Eaton?

Mike Jeffries | May 31, 2017

Abb vs. Eaton IoTThe Internet of Things, or IoT, is a growing field of interconnected machines and devices designed to automate processes. As this field grows, investment potential increases as well. Today, the two major competitors in industrial automation are ABB Ltd., and the Eaton Corporation. Before making an investment, it is helpful to look at how the two stack up.

Related Blog: ABB and the Internet of Things, Services and People

ABB and IoT

ABB has an impressive stake in IoT development, including monitoring, control, and power management devices. As a whole, their IoT products are designed to monitor systems and provide integrated automation and collaborative business processes.

Four of their five business operations are involved in IoT development and integration:

  1. Automation

  2. Low Voltage Systems

  3. Power Distribution

  4. Process Automation

ABB focuses on utilities, industrial applications, and infrastructure. Since each of these fields, and their relationship to IoT, is expected to show substantial growth over the next decade, putting your money into them is probably a wise investment.

Eaton and IoT

Eaton is more involved in power management and smart grid technology. For example, two popular Eaton products, the Yukon Advanced Energy Services platform and GridAdvisor smart metering, are being integrated into both grid technologies and structure oriented optimization. The company estimates that 34% of their recent revenue comes from IoT related technologies, and indicates this number is expected to increase.

Their focus on IoT related technologies is primarily in 3 areas:

  1. Electrical Products

  2. Business and Industrial Automation

  3. Integrated Lighting Solutions

Eaton is well-positioned in a market that is estimated to exceed $86 billion over the next 6 years. While they may not be targeting as many industrial fields, they are providing an impressive amount of R&D in the emerging IoT field.

Both Companies Are Attractive

Both companies offer very similar growth and ROI possibilities. ABB offers a wider range of products and integrated solutions, while Eaton is aiming at industrial and municipal solutions that are almost certain to increase.

While ABB can provide lower power consumption controls, other differences, including panels, contactors, and output capabilities relate more to personal and economic preference than to any specific advantage of one company over the other. 

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Topics: ABB vs. Eaton, internet of things, ABB, SCADA

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