The distributed control system (DCS) market saw just modest growth last year, up 3 percent over 2011, according to the ARC Advisory Group. The relatively stagnant market is hampered in part by an aging installed base, the latest report indicates, which presents a challenge for DCS suppliers.
Suppliers have boosted the type and depth of both product and support services, ARC says, but the system upgrade path is still seen as difficult and disruptive by many end users, ARC says, urging suppliers to design upgrade processes with the same if not greater care than is spent on new products.
As part of the efforts to get more value out of the automation systems, strategies focus on technology and business trends, intelligent I/O modules and cabinets, commercial off-the-shelf (COTS) networks, virtualization, cybersecurity issues, cloud computing, remote operations management, skid-mounted DCS for modular plants, integrated process and electrical automation, and DCS migration considerations, ARC detailed.
Although market growth overall held to 3 percent, it is stacked unevenly around the globe, with North America growing by almost 18 percent in 2012. Several factors contributed to that growth. The overall economic recovery in North America has been stronger than in other parts of the world, driven in part by increased use of new technologies in oil and gas production and related petrochemical project expansion in the region.
Globally, prices for oil, gas and other commodities have remained at a level that can support new production investments. The resurgence in power generation projects, especially in gas-fired combined cycle projects, also increased demand for DCS.
ABB stays on top
It’s within this climate that ABB has retained its position as leading revenue earner in the DCS market, according to ARC’s market outlook. “ABB’s focus on the needs of energy and energy-intensive industries like oil and gas, utilities and mining operations have driven the integration of its electric power infrastructure and automation systems; this has reinforced their global market share,” said Harry Forbes, principal analyst at ARC and author of the report. “For industrial customers, the benefit is greater visibility of energy use and more integrated and automated operations.”
Based on revenues, ABB was also the market share leader for Latin America; and Europe, Middle East and Africa (EMEA) regions. ABB remained the global market share leader for both service and software, and the worldwide leader in key global verticals including oil and gas, mining and metals, and pulp and paper.
Latin America’s DCS market also grew well, but the growth rate slowed in Asia. The business contracted slightly in the EMEA region, despite strong business levels in the Middle East. Disappointing regions in 2012, ARC reports, include Western Europe, which still struggles with recession and high unemployment in many countries.
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