Robust growth ahead for automation systems market in process industries
Dedham, MA -- Process industry automation continues to experience solid worldwide growth as plants must continue to...
Dedham, MA — Process industry automation continues to experience solid worldwide growth as plants must continue to improve performance, according to a new study from the ARC Advisory Group.
End users facing globalization are driving plant performance at a level that would be inconceivable without modern process automation systems and business processes. As a result, automation systems for process industries will experience healthy growth, the study reports.
The worldwide market for process automation systems is expected to grow at a compounded annual growth rate (CAGR) of 9.6% over the next five years. The market was nearly $30 billion (in U.S. dollars) in 2006 and is forecasted to grow to over $47 billion in 2011, according to the study.
Process automation technologies help achieve industry business objectives for improved plant utilization, yields, product quality, availability, safety, flexibility and delivery performance. “Constant cost pressure in process industries leaves no alternative but to improve plant performance, and process automation technologies play a key role in achieving this,” according to senior analyst Himanshu Shah (email@example.com), the principal author of ARC’s ‘Automation Systems for Process Industries Worldwide Outlook’ study (www.arcweb.com/res/tapww ).
Many trends are emerging as a result of globalization, which means more markets, more products, and more partners. Opportunities expand, but so do the challenges for global manufacturers. Companies are selling their products around the world and they are facing competition from a growing number of global players.
One reason the automation systems business will do so well over the next few years is the huge list of challenges and changing conditions in the glob-al business environment that manufacturers must respond to. These challenges include globalization, the need to act quickly and with agility to emerging market opportunities, dealing with a shrinking base of educated and well trained personnel, and increasing pressure to improve financial performance. These challenges are driving a significant change in the way that end users approach everything they use to control production, engineering, operations, and maintenance across the manufacturing enterprise.
Automation is a ticket to be a participant in this flat world, and therefore, process automation products are expected to have robust growth as they are used across industrial segments, ranging from Food & Beverage and Metals & Mining to Chemical and Water & Waste industries.
ARC takes a look at the leading indicators shaping the growth of the global automation marketplace, from capacity utilization to productivity and indus-trial production, and how these will affect the market in the coming years. Despite troubles in the U.S. and Canadian economies, the global outlook for automation and manufacturing remains bright.
Higher energy prices continue to contribute to increased capital investments and large project backlogs for oil, gas and refining companies. The pharmaceutical and bio-tech industries remain strong, and growth in Asia and other developing regions remain high. Asia remains the center of growth, but the Middle East, Eastern Europe, and Latin America continue to show strong growth as well.
Further information can be obtained from ARC, Three Allied Drive, Dedham, MA 02026, 781-471-1000, Fax 781-471-1100, e-mail firstname.lastname@example.org, or visit www.arcweb.com.