Automation market for discrete industries to exceed $30 billion

Dedham, MA—The total automation business to the world’s discrete industries is expected to grow at a 6.1% compound annual growth rate (CAGR) over the next five years, surpassing $30 billion in 2007, according to ARC Advisory Group’s latest study


Dedham, MA— Despite the recent global economic tailspin, the overall future of automation products serving the discrete industries looks bright over a five-year period, according to ARC Advisory Group . The total automation business to the world's discrete industries is expected to grow at a 6.1% compound annual growth rate (CAGR) over the next five years, surpassing $30 billion in 2007, according to ARC's latest study, 'Total Automation Business for the Discrete Industries Worldwide Outlook.'

'There are still many pockets of reliable growth in the discrete automation business. Industries such as building automation, electronics and semiconductor, automotive, and plastics machinery will continue to perform well,' says Himanshu Shah, ARC's senior analyst and principal author of the study.

The study found several factors that will drive growth in the discrete industries. For instance, the average performance for manufacturing plants across many industries can be raised to a much higher level using better controls. Effective use of modern automation technology presents a major opportunity for manufacturers to increase productivity and reduce costs to stay competitive. Consequently, this also becomes a growth opportunity for the discrete automation products.

Likewise, continuous advancements in semiconductor and electronic products will likely fuel revenue growth for automation products. Additionally, automotive manufacturers, facing fierce global competition, will expand adoption of advanced automation technologies in more areas to reduce unit cost and increase quality. The high cost of energy will also drive increased use of automation products in building automation and manufacturing plants.

Suppliers respond
ARC's report adds that major automation suppliers have been battered lately as global competition and downward pricing pressures have eroded margins and reduced revenues. However, progressive suppliers are offering more services and broader solutions to offset declining revenues. Top tier companies are developing facilities outside their home countries. Besides global sales and support capabilities, these foreign facilities typically include technical staff to support new projects, local industry expertise, trainers, logistic and customer service centers, and web-enabled support structures.

Asian, Latin American
Demand-side indicators for manufacturing remain weak in both North America and Europe during the earlier part of the forecast period. In Europe, economists are cutting their growth figures for the European Union during the earlier period. The North American region expects to grow at a faster rate compared with the Europe, Middle East and Africa region, while Japan will see the least growth during the next five years. Latin America represents the highest growth area for total process automation, followed by the developing regions of Asia.

For more information, visit .

Control Engineering Daily News Desk
Jim Montague, news editor

No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Make Big Data and Industrial Internet of Things work for you, 2017 Engineers' Choice Finalists, Avoid control design pitfalls, Managing IIoT processes
Engineering Leaders Under 40; System integration improving packaging operation; Process sensing; PID velocity; Cybersecurity and functional safety
Mobile HMI; PID tuning tips; Mechatronics; Intelligent project management; Cybersecurity in Russia; Engineering education; Road to IANA
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
click me