Analysis of motor control centres market.

11/11/2014

The increasing level of industrial automation is fuelling the global demand for motor control centres (MCCs). A MCC is an assembly of motor starters or overload protection devices such as contractors and/or overload relays that are connected by a common power bus bar so as to control several motors. Intelligent MCCs (iMCCs) – with remote diagnostic capabilities as well as features such as loss detection and predictive maintenance – are gaining traction especially in the oil and gas, mining, water and wastewater, and chemicals industries due to its ability to minimise maintenance costs, reduce equipment downtime, and ensure operator safety.

fandsNew analysis from Frost & Sullivan Analysis of the Global Motor Control Centres Market, finds that the market earned revenues of $4.06 billion in 2013 and estimates this to reach €4.13 billion (US$5.12 b) in 2018. The study covers low- and medium-voltage MCC.

While iMCCs are boosting overall market revenues, regular MCCs are witnessing a decline in revenue share due to the standardisation of safety features and performance. This has lessened differences between competitors’ products and resulted in price-based competition. In addition, the preference of end users in Russia, India, China and Southeast Asia for switchgears to control motors and for overload protection in the medium-voltage segment is dampening MCC market growth.

“As the percentage of customers that purchase higher-priced iMCCs is expected to rise in the long term, the fall in MCC revenues will not be a concern much longer,” said Frost & Sullivan Industrial Automation & Process Control Senior Research Analyst Krishna Raman. “With iMCCs set to play an important role in the future of the market, manufacturers have to focus on rolling out these products. Manufacturers must develop iMCCs that can be easily integrated with other communication networks to allow customers to move to an integrated enterprise ecosystem.”

In order to succeed globally, MCC manufacturers should also be able to meet multiple standards such as International Electrotechnical Commission and National Electrical Manufacturers Association. For tier-one companies that have already forayed into new regions, the maintenance of a robust product line and an extensive sales network will be key focus areas.

“Ultimately, high-quality, reliable offerings will help establish a strong brand name globally,” noted Raman. “To achieve this, MCC manufacturers need to possess sound technical skills and a thorough understanding of end-user requirements.”


Demand for valves to soar as political and economic conditions stabilise in emerging economies!

08/09/2014
Emerging Regions Prove Increasingly Profitable for the Industrial Valves and Actuators Market

The increase in oil exploration activities, investments in new refineries, and modernisation of existing facilities will spur the uptake of valves and actuators, particularly in emerging markets such as Africa and Latin America. Demand from the offshore oil and gas industry in Latin America, in particular, is expected to fuel the valves and actuators market. In addition to the demand from the emerging economies, control valve manufacturers will find growth opportunities in North America and Europe due to end-user preference for greater process automation.

1024px-ValveNew analysis from Frost & Sullivan, Strategic Analysis of the Global Industrial Valves and Actuators Market, finds that the market earned revenues of €14.86 billion (US$19.51 billion) in 2013 and estimates this to reach €19.76 billion (US$25.95 billion) in 2018. The study covers the oil and gas, power generation, chemical processing, mining and metallurgy, and water and wastewater end-user industries.

“The water and wastewater industry will offer significant growth potential for valve and actuator manufacturers in Asia-Pacific, Africa and Latin America,” said Frost & Sullivan Industrial Automation and Process Control Research Analyst Niranjan Paul. “Due to the burgeoning population and rapid urbanisation in these regions, water scarcity and the need to provide purified and portable water for human consumption have led to the setting up of desalination plants, boosting the use of valves and actuators.”

Despite this demand, valve and actuator manufacturers are likely to witness a loss of potential revenues due to the political situation in countries such as Iran, Sudan and Syria. In addition, the global financial downturn has compelled end users to defer projects and focus on the maintenance of existing equipment rather than the purchase of new valves and actuators.

The adoption of aggressive pricing strategies in Asia-Pacific too will reduce the sale of new valves. Vendors must enhance their aftermarket capability to sustain profits as well as meet wide-ranging consumer requirements.

“Valve and actuator manufacturers need to invest in R&D to deliver a comprehensive solution complete with wireless monitoring and advanced valve-condition monitoring capabilities,” recommended Paul. “With subsea exploration in Europe and Latin America projected to rise, widening product portfolios to include double-expanding gate valves will help vendors appeal to a larger consumer base in this high-potential market.”


Demand for accurate, lightweight test & measurement sensors set to increase!

07/08/2014

Test and measurement is a prerequisite for constant innovation and improvement in the development and manufacturing space. In turn, monitoring various operating conditions such as acceleration, pressure, temperature, magnetic field and frequency range while performing test and measurement tasks automatically necessitates a variety of sensors. As innovations in testing methods gather pace, the development of sensors used in test and measurement applications too will pick up.

tandmNew analysis from Frost & Sullivan, Sensors in Test and Measurement, finds that the market earned revenues of €820m ($1.10 billion) in 2013 and estimates this to reach €1,14 billion ($1.53 billion) in 2020. The aerospace and defence as well as automotive industries will generate the maximum revenue due to the large number of applications involved, and the high cost of sensors used. Meanwhile, the installation of wind turbines, owing to the intensifying focus on renewable energy, will present opportunities for sensors in testing wind turbines. Product testing in consumer electronics is another avenue that promises high growth.

“As product design and development become more complex, the need for highly accurate, sophisticated sensors for test and measurement applications will increase,” said Frost & Sullivan Measurement and Instrumentation Senior Industry Analyst Sankara Narayanan. “The shift to smaller, lighter structures will also drive the demand for smaller, lighter electronic components, including sensors.”

However, innovations in core sensor technologies have not kept pace with developments in other areas such as instrumentation and sensor packaging. To expand market scope, proven experience of having met the requirements of demanding test and measurement end markets will be critical. Further, easy-to-use, dedicated sensor solutions that provide state-of-the-art measurement and monitoring will be mandatory irrespective of the end market.

It is important for sensor manufacturers to offer a wide configuration of sensors to support multiple applications. Maturing into a one-stop shop by supplying test equipment and associated software along with sensors will help vendors appeal to a larger consumer base.

“Moreover, sensors used in test and measurement are put to extreme working conditions involving high temperature and pressure,” noted Sankara Narayanan. “Therefore, manufacturers must be able to deliver both on-site and local technical, repair and calibration services to stamp their authority in the global market.”


EMC tests find higher uptake as wireless technology gains currency. #PAuto

26/05/2014

The wider integration of wireless technology into products that were previously wired has caused a steady shift in electromagnetic compatibility (EMC) test services from classic or non-wireless testing to wireless testing. This trend, along with the proliferation of smart devices, has resulted in a higher number of new frequency bands. The greater density of frequency bands, in turn, has created a need for noise and emission reduction, making a strong case for enhanced EMC tests and services. 

Cartoon Science Borealis

Cartoon Science Borealis

New analysis from Frost & Sullivan, The European Electromagnetic Compatibility Test and Services Market, finds that the market earned revenues of $405 million in 2013 and estimates this to reach €409.6 million ($557.8m) in 2020. 

“With the integration and implementation of new technologies as well as the increasing complexity of electronic equipment, customers will require enhanced types of testing services,” said Frost & Sullivan Measurement & Instrumentation Research Analyst Rohan Joy Thomas. “Consequently, there will be the demand for EMC test equipment such as electromagnetic interference (EMI) test receivers, which are capable of more and quicker measurements, and spectrum analysers that are faster as well as more efficient and versatile.” 

The market will be sustained by the advances in the automotive industry, where there is intense activity around electric and hybrid vehicles. Electric and hybrid cars consist of a high voltage power source, an electric motor, a frequency convertor as well as high power cables. The high voltage power source could lead to more emissions of radiation, which can pollute the environment, or interfere with other electric equipment. 

To ensure that the vehicle is electromagnetically compliant with its surroundings, original equipment manufacturers (OEMs) require EMC testing services and consultations from a market participant with significant expertise in this domain. Overall, the higher sophistication of electric and hybrid vehicles generates a need for upgraded EMC test equipment and systems. 

However, although opportunities are plenty, the maturity of the market hinders the growth of smaller participants. As suppliers of EMC testing equipment and test services build their reputation on experience as much as technical expertise, it will be difficult for a market entrant to break into the market. The high investment costs are also significant entry barriers to a fragmented and price-sensitive market. 

“In such a scenario, participants tend to pull out all stops to retain their customer base – primarily by providing exceptional customer services and international standards of testing,” noted Thomas. “As EMC testing equipment and test services are highly specialized, participants have to constantly offer technological innovations and act as one-stop shops for customers.” 

The European Electromagnetic Compatibility Test and Services Market is part of the Test & Measurement Growth Partnership Service program. Frost & Sullivan’s related research services include: Global Sensor Outlook 2013, European Fiber Optic Test Equipment Markets, Western Europe General Purpose Test and Measurement Equipment Market, Analysis of World Markets and Trends for System-in-Package (SiP) Technology and World Densitometers and Profilometers Markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. 


Smarter phones drive mobile data monitoring!

02/04/2014
Expansive increase of smartphone use creates a need for mobile data monitoring solutions!

Over the next five to ten years, data traffic is expected to increase exponentially due to the growing adoption of smartphones globally. This amplified volume of data will place considerable strain on the networks of communication service providers (SPs)  and their information management systems, thereby stoking demand for mobile data monitoring systems.

smtphnsMobile data monitoring solutions are critical tools to improve overall mobile data performance and customer experience, as these can analyze mobile data and optimize the performance of their networks.

New analysis from Frost & Sullivan, Global Mobile Data Monitoring Market, finds that the market earned revenue of $312.4 million in 2013 and estimates this to more than triple, reaching $1.103 billion in 2020, at a compound annual growth rate of 19.8 percent.

Due to the rocketing adoption of smart devices, mobile apps and video are expected to be the most consumed types of data. This growth is unlikely to dip, as social networking traffic and machine-to-machine (M2M) communication continues to rise in popularity. Over the next five years, M2M traffic is expected to outstrip even that of social networking traffic, as connected devices and sensors are anticipated to exceed 50 billion units.

Currently, SPs are ill equipped to deal with this demand for data.
“Communications SPs must invest in mobile data monitoring solutions to ensure positive end-user experience and lower customer churn,” stated Frost & Sullivan Communications Test & Measurement Program Manager Olga Yashkova-Shapiro. “Already, many SPs have rolled out Long-Term Evolution (LTE) networks and are exploring other data traffic offload strategies to keep pace with demand.”

Adoption of over-the-top applications stimulates market growth
In addition to the adoption of smart phones, over-the-top (OTT) applications are contributing to the mounting demand for mobile data monitoring solutions. The swelling data traffic is forcing telecom companies to invest in more secure and complex testing capabilities to match strides with network expansions as well as upgrades in 3G and LTE.

Consumers are demanding more bandwidth-hungry applications, which require operators to deploy faster transmission links. When mobile users log on to 3G networks, they expect the applications to work seamlessly. Moreover, the information received from these different networks must be correlated.

Although the adoption of LTE has helped achieve the required data rates, there are significant concerns about the quality of voice and data. Companies are hoping to mitigate these issues with the adoption of voice over LTE (VoLTE), an IP-based multimedia system standardized by the third-generation partnership project (3GPP) to maximize international interoperability. VoLTE allows SPs to reduce the cost of delivery, enhance voice service offerings, and combat the service degradation in OTT services such as Skype and Viber.

“Traditional voice monitoring or service assurance solutions were not designed to analyze voice delivered over a data network,” notes Yashkova-Shapiro. “Therefore, the demand for next-generation mobile data monitoring solutions to support VoLTE is expected to increase and more operators are investing in new mobile devices required to support the VoLTE standards.”

Overall, SPs’ keenness to provide the highest levels of quality of service and quality of experience is expected to sustain the demand for comprehensive management solutions and proactive monitoring.


High density 40/100 gigabit Ethernet testers drive overall market revenues!

24/02/2014

With data centre activities and cloud-based services rapidly gaining importance in the communications industry, the global Ethernet test equipment market has been witnessing a constant evolution of complex next-generation solutions. As carrier Ethernet for cloud access continues to gain traction owing to its bandwidth scalability, security and ease of management, demand for Ethernet test equipment will grow worldwide. Adoption of 40/100 gigabit Ethernet testers, in particular, will contribute to market revenues.

New analysis from Frost & SullivanHigh Growth Testing Opportunities—Global Ethernet Test Equipment Market, finds that the market earned revenues of €688 million (US$943 million) in 2012 and estimates this to reach €1.03 billion (US$1.41 billion) in 2017.

“Gigabit Ethernet vendors are investing in R&D to address changing end-user technologies, meet specific requirements with high-performance test solutions, offer best value for money, and ensure highest quality of experience,” said Measurement and Instrumentation Research Analyst Prathima Bommakanti. “On the other hand, the evolving pattern of operating technologies and shifting customer needs is intensifying competition in the Ethernet test market.”

While the optimum service delivery levels of major market participants pose a concern for small and medium-sized companies, the explosive growth in data centre activities makes it attractive for even big companies to create a niche through technologically advanced product introductions and frequent upgrades.

Market participants must offer innovative, multi-functional Ethernet test equipment and solutions with sophisticated capabilities that save on both time and cost. This is especially crucial as the new breed of technicians is trained in multiple technologies unlike the older lot, where each technician specialised in one technology.

“Test equipment vendors that deliver superior capabilities at competitive prices will find themselves best poised to boost market shares,” noted Bommakanti. “Companies that have a keen eye to address customer concerns such complex device under test and high-price points will also build a robust advantage over competitors and enjoy market leadership.”


Telcos expected to play an important role in ensuring a fully connected plant floor!

21/02/2014
Emergence of smart manufacturing will drive demand for M2M communication

The manufacturing sector has traditionally implemented a range of wired networks to automate plant floor operations. However, emerging machine-to-machine (M2M) systems such as short-range wireless and long-range cellular networks are evolving into choice solutions for factories of the future. M2M systems can supplement or replace wired networks to enable advanced robotics and enterprise mobility on the plant floor, enabling convenient connectivity in inaccessible areas, communication across barriers, and simplified installation based on wireless local area, wide area, and sensor networks.

New analysis from Frost & Sullivan, M2M Communication in Manufacturing, finds that telecommunication companies (telcos) will be an important stakeholder in the provision of M2M solutions and the growth of the Internet of Things in the manufacturing sector in Europe.

m2m

“Telcos’ ability to offer enterprise-grade communication services integrated with plant-level communications is critical to reliable plant-level operations,” said Frost & Sullivan Information and Communication Technologies Research Analyst Shuba Ramkumar. “Existing partner networks can also be leveraged to provide end-to-end services, including network implementation, provision of applications, and data analytics.”

The pace at which M2M communication is adopted may, however, be slow as the traditionally-conservative manufacturing sector will be apprehensive about potential downtime and the risk to the value and quality of their output. Security concerns are another reason manufacturers are reluctant to use wireless networks. Apart from these technical challenges, the relative inexperience of telcos in this market dissuades manufacturers from availing their services.

Educating manufacturers on the benefits of advanced M2M technologies, ensuring secure functioning of wireless networks, and consulting with manufacturers to tailor solutions to their unique requirements will make smart manufacturing a reality that much quicker.

“In areas where telcos do not have in-house expertise, there is room for partnerships with automation providers, system integrators, or data analytic providers,” recommended Ramkumar. “Acquiring smaller companies that specialise in innovative enterprise mobility applications and data analytics will help telcos capitalise on the immense potential available for M2M communications in the manufacturing sector.”


Phones, tablets and sensors!

11/12/2013

Product innovation and competitive pricing are key factors for success

The rapid proliferation of smart phones and tablets has caused the global magnetic sensors market to boom. This growth curve will continue as declining price points make magnetic sensors affordable for mass-market penetration.

New analysis from Frost & Sullivan, Analysis of the Global Magnetic Sensors Market, finds that the market earned revenues of  €1.20 billion (US$1.66b) in 2012 and estimates this to reach €2.56 billion (US$3.51b) in 2019. The study also outlines the prospective areas of growth globally, end user- and application-wise.

smart-phones-and-tabletsAnalysis of the Global Magnetic Sensors Market is part of the Sensors & Instrumentation Growth Partnership Service program. Frost & Sullivan’s related research services include: Global Temperature Sensors and Transmitters Market, Sensors in Laptop, Tablet, and Smartphone Global Markets, Global Sensor Outlook 2013, and Chinese Markets for Sensor Contract Manufacturing and Exports. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

With navigation emerging as a must-have feature in smartphones and cellular handsets, the need for digital compasses has spurred the global magnetic sensors market.

“Moreover, the mandatory fitment of magnetic sensors in vehicles due to regulations from the automotive sector has fuelled sale volumes,” said Frost & Sullivan Measurement and Instrumentation Senior Industry Analyst V Sankaranarayanan. “Opportunities for magnetic sensor vendors in the automotive industry will continue to open up as new applications emerge.”

However, this immense potential may not translate into equivalent revenues as intense competition leads to pricing pressures. Manufacturers are reducing prices to penetrate markets such as consumer electronics, where a compelling price point is crucial for success. Profits are also affected as automotive manufacturers apply downward price pressure on sensor manufacturers.

To counter these challenges, innovative product differentiation strategies are necessary. Products must move from competing purely on price to non-price factors, especially as customers look for unique solutions with tangible benefits.

“Manufacturers are investing in technological advancements and the widening of magnetic sensor application areas,” noted Sankaranarayanan. “Magnetic sensors have already evolved greatly in terms of sensitivity, size, packaging and flexibility. Miniaturisation, in particular, will be a common trend in the global magnetic sensors market.”

Demand from Asia-Pacific and Latin America is likely to push technology and product development further.


End-user expectations and requirements of services across various product markets

05/11/2013
Industrial services – a new frontier for business model innovation and profitability

The poor scope for technological innovation coupled with growing market maturity, has motivated major industrial product suppliers to concentrate efforts on achieving growth through alternative channels. In this context, the potential for industrial services attains center stage, both from the standpoint of industrial vendors interested in market expansion and end-users aiming to maximise profitability.

The market has grown significantly in the last decade. In order to better understand the emerging services market, Frost & Sullivan has mapped the emerging segment into the larger framework of Industry 4.0.  “The idea of Industry 4.0 assisted us in identifying a few key criteria like Big Data, the Internet of Things and the Internet of Services, as functional pillars catalysing the transformation of the current organisational architecture”, notes Frost & Sullivan Practice Director Industrial Automation & Process Control and Measurement & Instrumentation Muthukumar Viswanathan.

According to recent analysis by Frost & Sullivan, the overall estimates for service revenues accrued from automation products like DCS, PLC and SCADA. reached nearly $15 billion in 2012. The conspicuous part of this large service base is the increasing demand for new value-added services that goes beyond traditional repair and maintenance.

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Global Pump Figures!

For example analysis on global pump market finds that the market earned revenues of €9.38  billion ($12.65b) in 2011 and estimates this to reach €13 billion ($17.55b) by 2016 with a CAGR of 6.8%. Within this segment, value-added services, such as condition monitoring, predictive maintenance, and advanced diagnostics, are rapidly gaining acceptance, and are anticipated to account for a significant portion of the growing demand for advanced pump monitoring solutions. Additionally, stringent regulations pertaining to pump efficiency and emission control, particularly in Europe and North America, is also likely to result in increased demand for superior value-added services.

From a demand perspective, end-users are increasingly looking at maintenance and plant service as a means for maximising profitability. From a market standpoint, we can safely surmise that the demand for services has improved quite significantly over the last decade. There is also a growing acknowledgement from industrial product suppliers and the end-user community about the dawn of services as the next big frontier for business model innovation and profitability.

“In order to understand and evaluate the nature of this new service frontier, Frost & Sullivan will be initiating a strategic in-depth analysis, focussing on end-user expectations and requirements of services across various product markets”, notes Mr. Viswanathan. “The study will aim to assist industrial product suppliers with designing their service mix and aligning their product strategies to better serve the needs of the end-user in a rapidly-changing industrial landscape”.


European packaging machinery market

29/05/2013
Industries’ focus on process control and efficiency boosts European packaging machinery market

The high standard of living in Europe has popularised packaged goods, including packaged food, beverages, toiletries and cosmetics, thereby spurring demand for packaging machinery in the region. The need for packaging solutions for products of different shapes and sizes, along with manufacturer focus on automation to enhance process efficiency across industries, will sustain investments in the market.

packgingNew analysis from Frost & Sullivan’s, Analysis of the European Packaging Machinery Market, finds that the market earned revenues of more than €9.73 billion ($12.62 billion) in 2012 and estimates this to reach €11.28 billion ($14.63 billion) in 2016. The research covers filling, closing, and filling and closing (FCFC) machinery, form-fill-seal (FFS) machinery, wrapping machinery, group packaging machinery, and palletising machinery. End-user segments include chemicals and petrochemicals, food, beverage, pharmaceuticals, confectionery and tobacco, and toiletries and cosmetics.

Demographic changes such as an aging population and the increasing number of small households in Europe drive the need for single-portion packaging, leading end-user sectors to turn to specialised packaging lines and machinery.

“Intense competition and the economic downturn have forced industries across Europe to optimise their production processes and decrease operational costs,” said their Industrial Automation and Process Control Research Manager Sivakumar Narayanaswamy. “Automation packaging machinery that eliminates labour, generates less waste, and enhances productivity is, therefore, becoming widely accepted.”

Sale volumes have gone up further with the advent of multi-functional packaging equipment that reduce costs and provide better space management. Integrated systems also have greater operational flexibility and can adjust to new production specifications.

However, mature markets such as Germany, France and Italy are already well-equipped, and, likely to generate limited orders for these advanced packaging machines. High taxation and labour costs in these countries also dissuade foreign investors and limit green field projects, curbing new equipment uptake.

In southern Europe, the downturn has affected process and discrete industries. End users are looking to trim operating and maintenance costs, and are unwilling to invest in non-crucial automation processes.

“Machine suppliers need to concentrate on regions that have not been affected by the economic downturn,” concluded Narayanaswamy. “The markets in Scandinavia, Central and Eastern Europe, and Britain will offer the highest scope for adoption due to their stable economy and end-user growth.”