Third party suppliers muscle in on I/O market

Wellingborough, UK  - While suppliers of PLC and DCS controllers continue to dominate the global market  of I/O modules, ‘third-party suppliers are becoming an increasing force in this growing market, according to a new report from IMS Research, based in Wellingborough.

The impact of ‘’third-party’’ suppliers on the I/O module market is seen more in new products and technology than in their current market share, according to IMS, which predicts that global demand for I/O modules will grow by around 5.6% per annuover the next few years to be worth nearly $8 billion by 2011.

Third party suppliers have driven the introduction of many new features and increased functionality in I/O products, the IMS report found. This includes innovations such as I/O products with higher physical protection (IP67), the concept of bit-modular (slice) I/O modules, the application of wireless technology, and I/O link technology.

"Most of the ’third-party’ suppliers have used their technological expertise as terminal block manufacturers, or as smaller specialist suppliers of I/O products, to develop I/O products further. This is to their advantage, when selling I/O modules as components to customers. In addition, they are supported by the continuing development of open field-bus networks and distributed solutions," said the report.

By contrast, IMS said established I/O suppliers are more inclined to encourage customers to purchase integrated solutions from a single source, which is then responsible for ensuring compatibility between the components in the automation system, and for solving any problems that arise. This strategy, it commented, seems to be the most effective way for them to maintain and strengthen their share of the market.