General Electric Co (www.ge.com) has announced its intention to become one of the top 10 global companies in software by the end of the decade. A spokesman said that the business — by using sensors and software — wants to boost the efficiency and reliability of its locomotives, oil-field equipment and other heavy-duty products.

The company recently opened its Predix software operating system to outside developers to use for non-GE applications, creating a potential new revenue stream. It has agreements with technology giants such as Intel Corp and Cisco to bolster development of ‘cloud’ capabilities, apps and other aspects of the Predix system.

GE executives met with investors in San Ramon, California, at the end of May to outline the future of the company’s digital operations, which it sees as an essential complement to its 124-year-old industrial manufacturing business.

GE generated about $5 billion in sales last year from ‘digital’, which includes software and related operations in each of the manufacturing divisions. The company, which had $115 billion in total 2015 revenues, has said that digital could become a $15 billion business by 2020.

Deane Dray, an analyst with RBC Capital Markets, said: “Digital orders are on pace to exceed $7 billion this year, with growth of 30-40% in almost all divisions. While many industrial companies are developing complementary analytics businesses, GE clearly has a head start in this sector-wide ‘gold rush’.

“Over the past year, it has become abundantly clear that boosting its digital/software capabilities is among GE’s highest priorities. With few exceptions, GE’s digital business strategy is the most ambitious among its industrial peers.”