Emerson plans sensors acquisitions
2 Apr 2014
Emerson Process Management is targeting acquisitions of sensors manufacturers to increase its presence in a market that bosses believe could more than double in value over the next decade.
The company plans to expand its sensor portfolio into the “pervasive sensing” market, extending the company’s focus beyond traditional process control and safety systems into areas such as predictive maintenance and site security.
Emerson estimates that over the next 10 years this additional served market will more than double the $16 billion (€11.7 billion) traditional measurement market.
Speaking at the Emerson Global Users Exchange event in Stuttgart, Germany yesterday, Emerson Process Management chief strategic officer Peter Zornio said the company was prepared to make acquisitions to support this expansion.
A more comprehensive network of sensors is needed
Emerson Process Management CSO Peter Zornio
“We will be making whatever acquisitions we need to make to deliver this as a top-to-bottom solution,” said Zornio.
“These acquisitions will be of different types of sensors technologies, so that we can offer our customers the complete package. While I can’t say exactly which companies we are looking at, our acquisition last year of Groveley Detection is a good example of the sort of things we are looking at.”
Emerson acquired UK-based Groveley in June 2013 for an undisclosed fee. Groveley Detection produces ultrasonic gas leak detection solutions for both offshore and onshore oil and gas installations. Other acquisitions that Emerson claims are helping it make the step into “pervasive sensing” include oil & gas safety and security specialist NetSafety (acquired in 2011), and corrosion and erosion detection technology from the 2009 Roxar acquisition.
In addition to acquisitions, Emerson Process Management vice president of wireless Bob Karschnia emphasised that the firm is also investing heavily in in-house research and development to bolster its sensing product line.
Zornio added that the reason Emerson expects the sensing market to grow so significantly is that in a world of ever-growing amounts of wireless technology, many customers expect to be able to access greater amounts of detail about their operations.
“Our customers are like anyone else ? they want actionable information that can make their lives safer, more predictable, and save them cost, risk and time,” said Zornio.
“This goes beyond the control room and optimising process performance. They want clarity and certainty of conditions for business-critical decision-making across all aspects of their operations. To achieve this, a more comprehensive network of sensors is needed. Pervasive sensing provides the foundation for their insight.”
