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Manufacturing companies continue to increase investments in capital expenditures for automation equipment as they clearly recognize the role of automation in the fierce globalmarket.
As a result, the worldwide market for total process automation will grow robustly, with ARC Advisory Group (www.arcweb. com) expecting a compounded annual growth rate (CAGR) of 6.4% over the next five years. The market was nearly $58 billion in 2005 and is forecasted to reach nearly $79 billion in 2010,according to the latest ARC study.
The process automation market experienced strong growth during the past two years, and this trend appears to be continuing. Users and suppliers alike began to rethink the role of automation and its contribution to the profitability and successof manufacturing.
“Modern process automation plays a key role in enabling integration of real-time visibility, agility, and speed into the performance management system so that the enterprise remains on course in improving business performance,” according to senior analyst Himanshu Shah, the principal author of ARC’s “Automation for the Process Industries Worldwide Outlook”.
Firing on all cylinders
The global market for automation is still in a growth phase that is expected to last through the next several years. China, India, and the rest of Asia are firing on all cylinders, booking large infrastructural and grassroots projects. The Middle East also continues its capital investment boom, with opportunities not just limited to the oil, gas and refining industries.
Japan, North America and Western Europe, the most developed economies when it comes to automation and manufacturing, are experiencing less growth, but are driven significantly by the need to modernize a rapidly aging automation infrastructure.
Manufacturers continue to look at ways that provide greater efficiency, cost reductions, and improved productivity in the global competitive arena. To satisfy this underlying demand, suppliers continue to make investments for greater market penetration and product development.
The report identifies a number of issues suppliers face in this market where users demand increasing operational efficiency and rely on automation products for real-time operation intelligence to measure key performance indicators.
Discrete automation suppliers are also striving to increase their solution’s capabilities and reach more hybrid and process markets. Many discrete automation suppliers are offering process solutions and increasing their presence in process industries. Suppliers are augmenting their deliverables and enhancing functionality to meet the expanding needs of users.
