Megatrends

Digitalization

Demand for Ependion’s products is driven by global megatrends, the most important being digitalization, which is akin to an industrial revolution. One aspect of this megatrend is basically all electronic devices interconnecting, so they can be monitored and controlled over the Internet.

Estimates indicate that in 2022, there were nearly 30 billion connected devices worldwide. A connected world offers substantial rationalization gains when, for example, the machinery in a manufacturing process can communicate, or when filters in a purification plant are nearing capacity and need changing. Operators can monitor processes on their mobiles instead of needing to stay on site.

Digitalization generates enormous data volumes that need transporting, which is where Ependion’s products come in. Its offering is firstly about secure data communication in harsh environments where functionality is critical, for example between trains and stations on a subway system, and secondly on making data available for monitoring, control and analysis. Ependion’s business entities offer network solutions and products like switches, routers and access points, but also HMIs like operator panels, where data is presented for control and monitoring by people or other equipment. The traditional focus was on hardware, but software now represents 60% of development expenses. Software enables functionality to be tailored to specific customer needs.

As more functionality is interconnected, vulnerabilities increase. The number of cyberattacks is constantly increasing, so cybersecurity is becoming more crucial. Ependion’s business entities build their market positioning on quality and reliability, which creates demands for offerings that involve secure solutions. Simultaneously, cyberthreats create the opportunity to develop our service offering with regular software updates to maintain complete security.

Sustainability

Sustainability is another megatrend, where the business community and large global corporations are driving the alignment to a more sustainable society. Because investments in more resource-efficient machinery and processes, smarter energy solutions and more efficient transportation almost invariably involve a need for digital solutions for management and control, this is another demand driver. Examples of segments where Ependion products are contributors to sustainability are sectors including real estate automation, the control of heating and cooling systems, new trains, vehicle charging infrastructure and improved exhaust purification on ships.

Electrification means electric vehicles are replacing their fossil fuel-driven predecessors, both cars and trucks. New electrical technology is also being developed in the marine and aviation sectors. A similar process is ongoing in manufacturing. There is a common perception that batteries are the limiting factor, but technological progress means new solutions are emerging. The International Energy Agency estimates that 13% of all cars sold worldwide in 2022 were electric, with the corresponding number in Sweden being 27%. This means substantial demand for the build-out of charging infrastructure. This greater need for electricity is a contributor to major investments in new power generation, distribution and storage, but also monitoring and control. Ependion has an attractive offering of robust solutions in data communication, control and monitoring in this segment.