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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?
3© ARC Advisory Group
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
6© ARC Advisory Group
Regional Market OverviewRegional Market Overview
The Middle East, China, & India Offer Suppliers the Greatest Opportunities for Growth
7© ARC Advisory Group
Revenue Category OverviewRevenue Category Overview
Services Offer Suppliers the Greatest Opportunities for Growth
8© ARC Advisory Group
Process Industry Market OutlookProcess Industry Market Outlook
Automation Expenditures will Return to Growth Across all the Major Process Industries Over the Next 5 Years
9© ARC Advisory Group
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
10© ARC Advisory Group
Hybrid Industry Market OutlookHybrid Industry Market Outlook
Automation Expenditures will Return to Growth Across all the Hybrid Industries Over the Next 5 Years
11© ARC Advisory Group
Hybrid Industry Market OpportunitiesHybrid Industry Market Opportunities
The Food & Beverage and Life Sciences Markets Both Provide Suppliers Significant Opportunities Over the
Next 5 Years
12© ARC Advisory Group
Discrete Industry Market OutlookDiscrete Industry Market Outlook
Automation Expenditures will Return to Growth Across all the Major Discrete Industries Over the Next 5 Years
13© ARC Advisory Group
Discrete Industry Market OpportunitiesDiscrete Industry Market Opportunities
The Machinery & Automotive Markets Provide Suppliers the Greatest Opportunities in the Discrete Industries
14© ARC Advisory Group
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
15© ARC Advisory Group
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
16© ARC Advisory Group
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
[email protected] or visit our web pages atwww.arcweb.com
