New study identifies distinct move towards open systems in SCADA market

Assembly Automation

ISSN: 0144-5154

Article publication date: 1 March 1998

139

Citation

(1998), "New study identifies distinct move towards open systems in SCADA market", Assembly Automation, Vol. 18 No. 1. https://doi.org/10.1108/aa.1998.03318aab.008

Publisher

:

Emerald Group Publishing Limited

Copyright © 1998, MCB UP Limited


New study identifies distinct move towards open systems in SCADA market

New study identifies distinct move towards open systems in SCADA market

The SCADA systems equipment market is experiencing a driving force that is not necessarily welcomed by the end-user, namely the emergence of the Windows NT 4.0 operating system as the de-facto standard. End-users are disquieted by the speed with which a business operating system is being promoted for use in control activities, some of them mission critical, says a new strategic study by international marketing consulting company Frost & Sullivan.

Many engineers, while bowing to the inevitable, feel that the pace of introduction is too rapid for an operating system that is known to crash (for whatever reasons) in the office environment. While this may just result in a revenue loss when a human-machine graphics interface crashes, the consequences could be far more severe when the Windows operating system is used to run a control computer, such as the new range of soft PLCs available on the market.

Mik Sabiers, industry manager at Frost & Sullivan, comments: "Although powerful, reliable operating systems exist, such as the compact QNX or the ubiquitous UNIX and its variants, none have the marketing strength of a multi-billion company behind them, more used to selling mass-market office and home products."

One of the most dominant changes to occur in the industry is the move to open systems; systems that can communicate with other manufacturer's software and equipment hardware. Part of this is an inevitable consequence of software that can run under "universal" operating systems such as UNIX and the Microsoft systems, and part is the very real demand by customers for interchangeability and true system integration at allhardware levels.

The total SCADA systems equipment market in Europe demonstrated sudden growth between the years 1994 and 1997 as projects that had been delayed by recessionary forces were fulfilled. The total 1997 market amounted to $731.4 million.

Although recessionary pressures are now lifting in the consumer market, many of the purchasers of SCADA systems equipment are large government-owned utilities and there has been a dampening of infrastructure spending across Europe. However, new technologies appearing on the market are forecast to lead to further growth in revenues around the years 2000 and 2001 and total revenues are expected to reach $1.12 billion in 2004. A compound annual growth rate of 6.3 per cent is forecast for the market between 1997 and 2004 (Table I).

The graphics workstations sector is exhibiting the fastest growth, expected to rise from its 1997 revenue share of 22.9 per cent to reach 28.0 per cent by the end of the forecast period in the year 2004. The main factor behind this growth is the continued move to SCADA applications using software running under the Windows NT 4.0 operating system, rather than under UNIX operating systems. This change will allow cheaper personal computer workstations to be used for many smaller SCADA applications.

This move towards PCs will have an adverse effect on the computer hosts sector and this sector is showing the lowest growth rate as a direct result. The growing use of fieldbus communications is expected to boost sales of lower priced data acquisition devices and PLCs for use in SCADA are forecast to have steady growth as they replace certain RTUs and even computer hosts.

Table 1 Total SCADA systems equipment market: percentage of revenues by product type (Europe) 1994-2004

Once the principal part of a SCADA system, computer hosts, representing 30.0 per cent of overall revenues in 1997, have seen their tasks distributed to some extent to intelligent field devices such as PLCs Part of their computing power has been transferred to graphic workstations in recent years as well. Their market share of revenues had declined considerably by 1997. and is forecast to fall even more steeply by 2004.

The market for PLCs for SCADA use held the largest share of overall revenues in the 1997 SCADA systems equipment market, accounting for a 31.9 per cent share. Revenue growth has, however, been affected by strong price competition, which is anticipated to continue in future years. PLC manufacturers are now offering open standards in a bid to make the product more attractive to customers and fight competition from alternatives, for example personal computers with open standards. The market is also currently assessing new products in the form of soft PLCs, which can be expected to see increased user interest, but also contribute to greater competitive pressures.

Market growth of SCADA systems equipment is highest in France, Germany, Scandinavia, and the Benelux countries. though the reasons for this higher growth rate differ from country to country. In Germany, for instance. the continued integration of utilities serving the former East Germany is a factor, whereas in Scandinavia demand from the oil and gas industry is the major factor.

The introduction of stricter environmental regulations is a major factor behind increased investment from water utilities. In Spain and Portugal, new industries such as pharmaceutical manufacturers are installing advanced automation. including small area SCADA systems.

The SCADA systems equipment market is expected to grow steadily in terms of revenues. There will be continued blurring of the distinctions between DCS, SCADA systems and PLC/MMI systems that will effectively mean that the use of SCADA systems will appear to spread. Opportunities for entering the market will be highest for firms who wish to supply intelligent field devices, communicating via a standard fieldbus or LAN.

For more information contact: Frost & Sullivan, Sullivan House, 4 Grosvenor Gardens, London SW1W 0DH, UK. Tel: 44 (171) 915 7824; Fax: 44 (171) 730 3343.

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