Process automation market to hit $124bn
1 Aug 2013
Revenues in the global process automation market are expected to grow at a rate of over 6% per year to $124.29 billion in 2018, according to research published this week.
The global instrumentation market, meanwhile, is expected to grow at a rate of over 5% per year to $36.71 billion in 2018, according to the Process Automation and Instrumentation Market report published by RnRMarketResearch on Tuesday.
Process automation’s estimated growth from $86.07 billion in 2012 at a compound annual growth rate of 6.05% is credited by the report to the need for high productivity, less down time, improved product quality, lower energy costs and enhanced safety, among other factors.
The power sector in particular was highlighted as an area of strong growth by another piece of research published this week by ARC Advisory Group.
The resurgence in power generation projects, including many large greenfield projects, will not only drive demand for DCSs, but also for CPM, APC, optimisation, and training simulators
ARC senior analyst Harry Forbes
According to the report, Electric Power Generation Industry Automation and Software Expenditures, the resurgence in power generation projects, particularly in the gas-fired combined cycle market, has increased the demand for automation equipment.
In the developed regions, says the study, the emphasis will be on improving efficiency, reducing emissions, and improving ramp rates.
Emerging countries, and China in particular, are undergoing a shift from coal-fired power generation to nuclear, wind, and solar generation. In Germany, Switzerland, and Italy, the “dash to gas” in the wake of the Fukushima nuclear disaster in Japan, will replace much existing nuclear generation capacity with new gas-fired combined cycle and renewable power generation capacity.
“The resurgence in power generation projects, including many large greenfield projects, will not only drive demand for DCSs, but also for CPM, APC, optimisation, and training simulators,” said ARC senior analyst Harry Forbes.
Regionally, the report claims the highest growth rates will occur in Asia and Latin America.
Asia’s share of sales, growing at above average rates, will become nearly equivalent to the EMEA region by 2016.
EMEA and North America have not yet recovered fully from the recession, so with high unemployment and sluggish consumer demand, combined with the fact that they are mature markets and therefore rely largely on replacement projects, ARC estimates lower than average growth for these regions.
Meanwhile Latin America market is growing at above the average growth rate, but it is still the smallest market by a substantial margin. Several countries such as Argentina, Chile, and Paraguay have shown good growth in the past, but the biggest market for automation suppliers in Latin America is still Brazil.
