Knowledge Center: Asset Optimization
Sustainable Demand for Plant Asset Management
Plant asset management growth surprises and is expected to continue despite the downturn, says ARC Advisory Group.
The worldwide 2008 market for plant asset management (PAM) systems has grown at an average of over 13 percent per year since 2006, eclipsing the previous forecast of nearly 11 percent, according to the 2009 ARC Advisory Group study, “Plant Asset Management Systems Worldwide Outlook”.
“PAM systems have been a bright spot for the automation industry for the past few years. End users purchased PAM systems in increasing numbers to improve production availability and profitability. The recent massive worker layoffs have thrust many organizations into precarious positions that threaten both the performance and the safety of their plants.
“Today, PAM systems can be just as important to the enterprise, but as dark clouds loom over the economy, PAM systems will continue to grow going forward, albeit at a slower rate,” commented ARC Research Director Wil Chin, the principal author of the study.
According to the study, the value proposition for PAM systems remains intact and – when combined with safety and other drivers associated with the decline in the workforce – PAM adoption will not fall-off nearly as much as other automation investments.
“Today’s PAM systems offer end users a solution appropriate for both good and bad times. End users understand that PAM can help them to predicatively diagnose the health of critical assets, but don’t always make the connection to how this can help improve profitability when resources are scarce and demand for their products is declining.
“Suppliers and end users alike need to educate themselves about the benefits that PAM systems offer to help them survive the economic contraction,” added Chin.
Complex marketDespite the ability to work as a niche solution for specific areas of the plant or be dedicated to certain asset classes, PAM systems require supplier domain and industry expertise to be successfully deployed. PAM also continues to evolve.
“Just when you thought you understood the capabilities, features, and benefits of the technology, PAM has evolved into offerings that were seemingly impossible just a year or two ago,” said Chin. Examples include new systems that are more intelligent with self-learning capabilities, deploy multiple diagnostic technologies for a greater number of assets, and employ enabling technologies for on-line communication and remote off-line analysis from anywhere in the world.
“Many deployment alternatives are available, including local, plantwide, and remote solutions. In addition, PAM suppliers offer pre-installation, operational, and optimization services for newcomers and experienced users alike. “It is clear that the market will continue to evolve in the coming years, and while change is good, innovation in the PAM system market can be hard to assimilate, especially given the changing economic landscape,” said Chin.
Navigate minefieldsKnowledge regarding PAM system suppliers, available solutions, and adoption and operational strategies is increasingly important for suppliers and end users alike. To be able to navigate the minefield-filled landscape, PAM suppliers need to fine-tune their solution offerings and delivery mechanisms; and end users need to understand how to get the most out of their capital assets.
The ARC PAM Worldwide Outlook study aims to combine this information in one place and serves as a reference manual before and after initiatives are deployed.
For more information Please visit Honeywell website at www.honeywell.com/ps/sea
Plant asset management growth surprises and is expected to continue despite the downturn, says ARC Advisory Group.
The worldwide 2008 market for plant asset management (PAM) systems has grown at an average of over 13 percent per year since 2006, eclipsing the previous forecast of nearly 11 percent, according to the 2009 ARC Advisory Group study, “Plant Asset Management Systems Worldwide Outlook”.
“PAM systems have been a bright spot for the automation industry for the past few years. End users purchased PAM systems in increasing numbers to improve production availability and profitability. The recent massive worker layoffs have thrust many organizations into precarious positions that threaten both the performance and the safety of their plants.
“Today, PAM systems can be just as important to the enterprise, but as dark clouds loom over the economy, PAM systems will continue to grow going forward, albeit at a slower rate,” commented ARC Research Director Wil Chin, the principal author of the study.
According to the study, the value proposition for PAM systems remains intact and – when combined with safety and other drivers associated with the decline in the workforce – PAM adoption will not fall-off nearly as much as other automation investments.
“Today’s PAM systems offer end users a solution appropriate for both good and bad times. End users understand that PAM can help them to predicatively diagnose the health of critical assets, but don’t always make the connection to how this can help improve profitability when resources are scarce and demand for their products is declining.
“Suppliers and end users alike need to educate themselves about the benefits that PAM systems offer to help them survive the economic contraction,” added Chin.
Complex marketDespite the ability to work as a niche solution for specific areas of the plant or be dedicated to certain asset classes, PAM systems require supplier domain and industry expertise to be successfully deployed. PAM also continues to evolve.
“Just when you thought you understood the capabilities, features, and benefits of the technology, PAM has evolved into offerings that were seemingly impossible just a year or two ago,” said Chin. Examples include new systems that are more intelligent with self-learning capabilities, deploy multiple diagnostic technologies for a greater number of assets, and employ enabling technologies for on-line communication and remote off-line analysis from anywhere in the world.
“Many deployment alternatives are available, including local, plantwide, and remote solutions. In addition, PAM suppliers offer pre-installation, operational, and optimization services for newcomers and experienced users alike. “It is clear that the market will continue to evolve in the coming years, and while change is good, innovation in the PAM system market can be hard to assimilate, especially given the changing economic landscape,” said Chin.
Navigate minefieldsKnowledge regarding PAM system suppliers, available solutions, and adoption and operational strategies is increasingly important for suppliers and end users alike. To be able to navigate the minefield-filled landscape, PAM suppliers need to fine-tune their solution offerings and delivery mechanisms; and end users need to understand how to get the most out of their capital assets.
The ARC PAM Worldwide Outlook study aims to combine this information in one place and serves as a reference manual before and after initiatives are deployed.
For more information Please visit Honeywell website at www.honeywell.com/ps/sea
