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.

09/16/2003


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.

Process recovery
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.

Suppliers agile
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
jmontague@reedbusiness.com





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.
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Integrated mobility; Artificial intelligence; Predictive motion control; Sensors and control system inputs; Asset Management; Cybersecurity
Big Data and IIoT value; Monitoring Big Data; Robotics safety standards and programming; Learning about PID
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

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

Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me