The worldwide market for discrete automation systems is expected to grow at a compounded annual growth rate (CAGR) of 6.8 percent over the next five years, according to a ARC Advisory Group study. The market was nearly US$17 billion in 2006 and is forecast to grow to over $23 billion in 2011. ARC says manufacturing plants’ and OEM machine builders’ continued investment worldwide is driving the discrete industry automation’s growth.“One reason the automation business is doing so well today is the huge list of challenges and changing conditions in the global business environment that manufacturers must respond to.“These challenges include globalization, the need to react quickly and with agility to emerging market opportunities, and increasing pressure to improve financial performance,” said Senior Analyst Himanshu Shah, the principal author of ARC’s “Automation Systems for Discrete Industries Worldwide Outlook”.And process … Meanwhile, the process industry automation systems market also continues to experience solid worldwide growth, as the market was nearly US$30 billion in 2006 and is forecast to grow to over US$47 billion in 2011, according to ARC. This equates to a compounded annual growth rate (CAGR) of 9.6 percent.“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,” remarked Himanshu Shah, who authored ARC’s “Automation Systems for Process Industries Worldwide Outlook”.According to the ARC study, higher energy prices continue to contribute to increased capital investments and large project backlogs for oil, gas and refining companies. The pharmaceutical and biotech industries are also expected to remain strong, and growth in Asia and other developing regions remains high.
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