Study shows growth ahead for discrete industries automation products

Dedham, Mass. - The worldwide market for automation products and services for discrete industries, nearly $25 billion in 2001, is expected to grow at a healthy compound annual growth rate (CAGR) of 7.9 percent over the next five years, reaching over $36 billion, according to a new ARC Advisory Group study.

02/06/2002


Dedham, Mass. - The worldwide market for automation products and services for discrete industries, nearly $25 billion in 2001, is expected to grow at a healthy compound annual growth rate (CAGR) of 7.9 percent over the next five years, reaching over $36 billion, according to a new ARC Advisory Group study.

The economy ran out of steam during the latter part of 2000, continued to decline during most of 2001, and is expected to struggle through the first half of 2002. 'In spite of this dismal economic scenario, overall, the future of automation products serving discrete industries looks bright during the next five-year period. More capital spending is projected in electronics, semiconductors, building automation, and machinery industries,' according to ARC Senior Analyst Himanshu Shah ( hshah@arcweb.com ), the principal author of ARC's 'Automation for Discrete Industries Worldwide Outlook, Market Analysis & Forecast Through 2006.'

Several factors are cited in the study. Advancements in technology bring more functionality, ease of use, and lower cost to automation products. Wide acceptance of the PC as an integration platform for HMI, logic solving, motion control, and vision systems makes the use of automation easier across the plant floor. Progress in establishing networking standards, a single programming and diagnostic environment, and standards for data exchange facilitates integration of various automation elements in a consistent manner, further fueling the growth.

Users strongly believe that leading edge automation is the key to staying competitive. They continue to demand better quality products, with more variety, faster delivery, and at a lower cost. This will propel growth for automation products and services in all five regions of the world.

Automation suppliers are facing special challenges to keep revenue growing while maintaining profit margins. The marketplace is global and fiercely competitive with declining margins as prices are lowered. To succeed in this environment, small and large suppliers need to form joint ventures and alliances with overseas companies to battle against competition, penetrate new markets, or increase presence in new regions. This study recommends strategies to remain successful in this tough economic climate.

The study analyzes market data for a broad spectrum of automation products, such as Programmable Logic Controller (PLC), General Motion Control (GMC), Computer Numeric Control (CNC), AC Drives, Human Machine Interface (HMI), Operator Interface Terminal (OIT), Material Handling Control Systems Software (MHCS), and Collaborative Production Management (CPM).





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.
Motor specification guidelines; Understanding multivariable control; Improving a safety instrumented system; 2017 Engineers' Choice Award Winners
Selecting the best controller from several viewpoints; System integrator advice for the IIoT; TSN and real-time Ethernet; Questions to ask when selecting a VFD; Action items for an aging PLC/DCS
Robot advances in connectivity, collaboration, and programming; Advanced process control; Industrial wireless developments; Multiplatform system integration
Motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
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!

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
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
click me