Process automation market to surpass $58 billion in 2007
Dedham, MA—Despite less than mediocre growth recently, the worldwide process automation market is projected to grow at a 4.7% compound annual growth rate (CAGR) over the next five years and exceed $58 billion in 2007, according to a new study, 'Total Automation Business for the Process Industries Worldwide Outlook,' released Sept. 10 by ARC Advisory Group.
Dedham, MA— Despite less than mediocre growth recently, the worldwide process automation market is projected to grow at a 4.7% compound annual growth rate (CAGR) over the next five years and exceed $58 billion in 2007, according to a new study, 'Total Automation Business for the Process Industries Worldwide Outlook,' released Sept. 10 by ARC Advisory Group .
The study adds that the process automation market's resilience is directly related to prosperity of the industry and the health of the economy, and that few manufacturers are building new plants because of excess capacity globally across many industries, though expected economic growth will absorb it.
'Although users will remain very conservative in their spending decisions for capital equipment, global competition will compel most manufacturers to improve their plant machinery and process to stay competitive,' says Himanshu Shah, ARC's senior analyst and the study's principal author.
ARC study found that there remain many pockets of reliable growth in the process automation field. A variety of process companies use legacy automation systems that don't measure up to process plants' current requirements, especially in this era of collaborative manufacturing. Process industries, such as chemical, pharmaceuticals, pulp and paper, and power, have aging plants and systems that are often obsolete by today's standards. Many process companies are severely challenged to improve their ROA, and must use plant equipment effectively with modern controls for automation. As suppliers offer migration strategies and provide better interoperability via open standards, many users will embrace newer solutions with current technologies to help them compete in the global marketplace.
To help manufacturers overcome their risk-aversion, suppliers are offering more services, broader solutions, and opportunities for revenue growth. ARC reports that suppliers are augmenting deliverables; enhancing product functionalities; and offering fieldbus and wireless technologies to meet
Asia, Latin America to grow
The study found that the economic slowdown in the U.S. is having a negative impact on worldwide markets. In Europe, manufacturers are continuing to be cautious as their economic strength declines. Japan continues to face the same weak economic conditions it has struggled with for several years. However, there are other opportunities. Latin America represents the highest growth area for total process automation, followed by developing regions of Asia. Meanwhile, the study adds that North America and the Europe, Middle East, and Africa (EMA) region will grow at about the same average annual rate, while Japan will likely see the least growth during the next five years.
For more information about the study, visit www.arcweb.com/research/auto/auto_proc.asp
Control Engineering Daily News Desk
Jim Montague, news editor