6.6% annual growth projected for automation products serving discrete industries overseas

Oct. 22, 2002
The Europe, Middle East, and Africa market for automation products and services for discrete industries is expected to grow at a compounded annual growth rate of 6.6 percent over the next 5 years.


Dedham, Mass. October 22, 2002 -- The EMA (Europe, Middle East, and Africa) market for automation products and services for discrete industries is expected to grow at a healthy compounded annual growth rate (CAGR) of 6.6 percent over the next five years.

This market was over $8 billion in 2001 and is forecasted to reach over $11 billion in 2006 according to a new ARC Advisory Group study.

The study analyzes market data of a broad spectrum of automation products, including Programmable Logic Controller (PLC), General Motion Control (GMC), Computer Numeric Control (CNC), AC Drives, Human Machine Interface (HMI), Operator Interface Terminal (OIT), Material Handling Control Systems Software (MHCS), and Collaborative Production Management (CPM), among others.

In Europe, manufacturers are continuing to be cautious as their economic strength declines.

"While the current slowdown in the economy has severely impacted the industrial automation business in the EMA region, many bright spots are ahead with automation products and services for the discrete industries. High growth is projected for Eastern European and Nordic countries. Germany is the largest country for discrete products and services in the region and will also outpace the market growth rate," according to ARC Senior Analyst Himanshu Shah (mailto:[email protected]), the principal author of ARC's "Total Automation Business for Discrete Industries EMA Outlook, Market Analysis & Forecast Through 2006."

Many Factors Fuel Growth
Advancement in technologies brings more functionality, ease of use, and lower cost to automation products and makes their adoption easier among users. Wide acceptance of the PC as an integration platform for HMI, logic solving, motion control, and vision systems make use of automation easier across the plant floor. Progress in establishing networking standards, a single programming and diagnostic environment, and standards for data exchange facilitates integration of various automation elements in a consistent manner, further fuel the growth.

Automation Is a Key to Survival
Users strongly believe that leading edge automation is the key to stay competitive. Users are under pressure for better quality products with more variety and quickly brought to the market at a lower cost. This translates into a need for better automation and greater flexibility, infusing new technologies and integration of plant floor to business processes. This situation will increase use of new automation products and services across many industries in the EMA region.

Fierce Competition Will Continue
Automation suppliers are facing special challenges to keep revenue growing while maintaining profit margins. The marketplace is fiercely competitive with declining revenues as prices keep plunging. This study reveals how suppliers of each class of automation products face their own unique market characteristics and challenges for growth. The report discusses these characteristics and challenges, and recommends strategies to remain successful in this tough economic and market environments.

Additional information on this study can be found at: http://www.arcweb.com/research/auto/auto_disc_ema.asp

ARC Advisory Group provides strategic planning and technology assessment services to leading manufacturing companies, utilities, and global logistics providers, as well as to software and solution suppliers worldwide.

From Global 1000 companies to small start-up firms, ARC has the strategic knowledge needed to succeed in today's technology driven economy. Further information can be obtained from ARC, Three Allied Drive, Dedham, MA 02026, 781-471-1000, Fax 781-471-1100, E-mail [email protected], Web ARCweb.com.

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