Automation and information management are crucial to the success of process control automation markets

Sensor Review

ISSN: 0260-2288

Article publication date: 1 June 1999

119

Keywords

Citation

(1999), "Automation and information management are crucial to the success of process control automation markets", Sensor Review, Vol. 19 No. 2. https://doi.org/10.1108/sr.1999.08719bab.009

Publisher

:

Emerald Group Publishing Limited

Copyright © 1999, MCB UP Limited


Automation and information management are crucial to the success of process control automation markets

Automation and information management are crucial to the success of process control automation markets

Keywords Automation, Instrumentation

European industry has continued to automate its processes, particularly when dealing with toxic or hazardous materials and in order to find efficiency gains, end-users have looked to increasing the productivity of the plant through investment in automation and process control.

The increasing requirements for networked systems with more distributed structures has been led by the management requirement for easier access to process and plant information. Automation systems are being used in a wider range of process, and encompassing more parts of the process in order to provide greater levels of information and accountability.

The European process control instrumentation market is expected to remain in aperiod of sustained growth, although this is anticipated to slow down towards the end of the forecast period as the market continues to mature, and the impact of the competing technologies starts to increase on the market.

The market is expected to be further influenced by the changing attitudes of customers. This includes the increasing expectation from end-users for sophisticated control systems and instrument devices, both panel and field equipment, as customers become aware of the possible benefits that can be gained from using advanced technology.

Many of the large companies are continuing the trend for mergers and acquisitions, consolidating their market position as suppliers concentrate their efforts into other technologies to enhance their product range and services. This policy provides a "one stop shop" facility where customers can negotiate a contract for one company to supply all their needs and requirements.

Strategies to survive in the difficult trading conditions include the strengthening of product quality through product leadership, strategic mergers and take-overs, investment in research and development and the integration of new technologies, and price leadership.

According to Brian Flannery, research analyst at Frost & Sullivan, several issues are expected to affect the total European market in the next years. Drivers pushing revenue growth in the process control instrumentation market include information management, automation, innovative new product developments, the resumption of constructive investment, product life cycle, fieldbus communication and quality control.

"One of the most significant factors on the maturing process control instrumentation market is the increasing competition between rival technologies where many of the segments within the scope of this report will very often be in direct competition with each other, eroding each other's revenues through fierce price competition," Brian Flannery continues.

The market for distributed control systems holds second position, however, due to falling prices and the increased demand and popularity of other technologies, the share is expected to suffer a decline over the forecast period.

A potent element in this maturing market is the rising threat from hybrid networked programmable logic controllers that have enhanced features such as analogue functions and other PC based systems that will encroach on the established domains that once only distributed control systems could serve.

Programmable logic controllers, ranking third in terms of revenue-generating product types, are forecast to achieve further growth and perform the best out of the six constituent segments, which may in part be attributed to the increased demand in automation expected. Optimism from all the suppliers of these products is high as they see further developments to its technology being introduced making the product even more attractive.

Driven by advances in technology and pollution controls, sensors, transducers and transmitters represent the largest of the segments in terms of revenues. This segment comprises flow, pressure, temperature and level and is akin to all the process and manufacturing industries, ensuring this market to be in high demand for the foreseeable future.

Frost & Sullivan's study forecasts continued steady growth rates for this sector, as these products become even more accurate and sophisticated, providing the end-user with "intelligent" field equipment.

The three largest national markets, Germany, France and the UK, accounted for just under 60.0 per cent of total revenues in 1997, due to their maturity and size of their process and manufacturing industries.

The main suppliers in the market are ABB, Elsag Bailey Process Automation, Fisher Rosemount, Honeywell and Siemens. Many of these companies have implemented a number of acquisitions and mergers in recent years, particularly within the leading manufacturers, as suppliers look to increase their product ranges, improve their research and development capabilities, and to increase range and breadth of their after sales services.

For further information, contact Frost & Sullivan's Public Relations Department, Tel: +44 (0)171 915 7824; Fax: +44 (0)171 730 3343; E-mail: kristina.menzefricke@fs-europe.com or see the company's Website: http://www.frost.com for details on Frost & Sullivan's Media Service.

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