The global market for total process automation will experience significant growth in the near future, as manufacturers continue to invest in automation equipment to remain competitive in a global environment.
According to a new ARC Advisory Group study, the worldwide total process automation market is projected to see a compounded annual growth rate of 6.4 percent over the next five years.
In 2005, the market was almost $58 billion and ARC forecasts that it will reach approximately $79 billion by 2010.
During the past two years, the process automation market showed strong growth, and this is expected to continue. Both users and suppliers are starting to rethink the role of automation and its contribution to the profitability and success of manufacturing.
“Modern process automation plays a key role in enabling integration of real-time visibility, agility, and speed into the performance management system so that the enterprise remains on course in improving business performance,” according to Senior Analyst Himanshu Shah, the principal author of ARC’s “Automation for the Process Industries Worldwide Outlook.”
Worldwide, the market for automation is still growing and this is projected to last through the next several years, the study shows.
China, India, and the rest of Asia are booking large infrastructural and grassroots projects. The Middle East is also continuing with its capital investment boom, and in other industries besides oil, gas and refining.
Although Japan, North America and Western Europe, as the most developed economies when it comes to automation and manufacturing, are experiencing less growth, these markets are facing the need to modernize a rapidly aging automation infrastructure, the report said.
As manufacturers demand increased operational efficiency, they are looking to automation products to provide real-time operation intelligence to measure key performance indicators, and this is driving process automation suppliers to invest in greater market penetration and product development.
For more information on ARC’s “Automation for the Process Industries Worldwide Outlook” please click here.