Automation Markets Overview

Automation Markets OverviewAutomation Markets Overview

Craig ResnickDavid ClaytonLarry O’Brien

2© ARC Advisory Group

State of the Automation MarketsState of the Automation Markets

Well established supplier base High barriers to market entry Declining markets after realizing double digit

growth for three straight years Suppliers backlogs are shrinking as new

orders drop (have we bottomed out?) Customers focused on lower prices as they

see suppliers’ capacity utilization dwindling

There are signs that the recovery has begun but is it sustainable?

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Do You Feel the Current Manufacturing Recovery is Sustainable?Do You Feel the Current Manufacturing Recovery is Sustainable?

0%

0%

0%

Yes No Maybe

1. Yes2. No3. Maybe/Don’t Know

4© ARC Advisory Group

Automation Market DriversAutomation Market Drivers

Economic Uncertainty Changing Workforce Demographics Energy Management initiatives Asset Lifecycle Management initiatives Increasing importance of safety/security

Today’s Business Drivers Demand Rethinking

5© ARC Advisory Group

Short-Term Automation Market OutlookShort-Term Automation Market Outlook

Declining shipments to developed countries Slower growth from developing countries Ongoing price pressures Increasing focus on aftermarket services in

the developed countries Increasing focus on emerging markets

Suppliers Who Don’t Rethink Their Business Model are Going to be Left Behind

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Regional Market OverviewRegional Market Overview

The Middle East, China, & India Offer Suppliers the Greatest Opportunities for Growth

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Revenue Category OverviewRevenue Category Overview

Services Offer Suppliers the Greatest Opportunities for Growth

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Process Industry Market OutlookProcess Industry Market Outlook

Automation Expenditures will Return to Growth Across all the Major Process Industries Over the Next 5 Years

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Process Industry Market OpportunitiesProcess Industry Market Opportunities

The Electric Power, Upstream Oil & Gas, & Chemical Markets Provide Suppliers the Greatest Opportunites

Over the Next 5 Years

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Hybrid Industry Market OutlookHybrid Industry Market Outlook

Automation Expenditures will Return to Growth Across all the Hybrid Industries Over the Next 5 Years

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Hybrid Industry Market OpportunitiesHybrid Industry Market Opportunities

The Food & Beverage and Life Sciences Markets Both Provide Suppliers Significant Opportunities Over the

Next 5 Years

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Discrete Industry Market OutlookDiscrete Industry Market Outlook

Automation Expenditures will Return to Growth Across all the Major Discrete Industries Over the Next 5 Years

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Discrete Industry Market OpportunitiesDiscrete Industry Market Opportunities

The Machinery & Automotive Markets Provide Suppliers the Greatest Opportunities in the Discrete Industries

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Process & Hybrid Industry Market Outlook by TechnologyProcess & Hybrid Industry Market Outlook by Technology

Production Management Software Solutions will Lead the Growth in the Process & Hybrid Industries Over the Next

5 Years

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Process & Hybrid Industry Market Opportunities by TechnologyProcess & Hybrid Industry Market Opportunities by Technology

The DCS & Production Management Markets Provide Suppliers the Greatest Opportunities Over the Next 5

Years

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Discrete Industry Market Outlook by TechnologyDiscrete Industry Market Outlook by Technology

Production Management Software Solutions will Lead the Growth in the Discrete Industries Over the Next 5 Years

17© ARC Advisory Group

Discrete Industry Market Opportunities by TechnologyDiscrete Industry Market Opportunities by Technology

The PLM & CPM Markets Provide Suppliers the Greatest Opportunities Over the Next 5 Years in the Discrete

Industries

18© ARC Advisory Group

Thank You.Thank You.For more information, contact the author at

dclayton@arcweb.com or visit our web pages atwww.arcweb.com