Global Process Automation and Instrumentation Market 2016-2020
Market outlook of the process automation and instrumentation market
Technavio’s research analyst predicts the process automation and instrumentation market to grow steadily at a CAGR of 7% during the forecast period. The growing necessity to minimize the overall production costs is driving the growth of the process automation and instrumentation market globally. Process automation and instrumentation solutions help companies to optimize business outcomes by effectively controlling production processes. Instrumentation products are extensively used in process industries such as oil and gas, power, and water and wastewater treatment for calibration and measurement purposes whereas automation solutions enable effective controlling and monitoring of manufacturing processes and minimize plant downtimes.
The need to mitigate the impact of rising labor costs has prompted companies to embrace automation and instrumentation technologies. The labor costs in Austria, China, Australia, Germany, and the US has grown at a rate of around 10% over the last decade. The food and beverages industry, which has been affected by the rise in labor cost, is mitigating the impact by focusing on implementation of complete automation and instrumentation solutions.
Product segmentation and analysis of the process automation and instrumentation market
- Control valves
- Transmitters (temperature, level, pressure, and flow)
- Programmable logic controller (PLC)
- Distributed control system (DCS)
- Supervisory control and data acquisition (SCADA)
- Manufacturing execution system (MES)
During 2015, the DCS segment dominated the process automation market. Decentralization by DCS allows effective and efficient control and management of an entire plant. It also reduces downtime errors and raises the plant’s productivity. Industries such as power, pharmaceutical, oil and gas, pulp and paper, food and beverages, chemical, automotive, and packaging are the key users of DCS solutions.
Geographical segmentation and analysis of the process automation and instrumentation market
The Americas accounted for 37% of the market share during 2015 and is expected to reach a market value of above $37 billion by the end of 2020. The increased investments from the US chemicals and petrochemicals industry in new plants and equipment are driving the demand for process automation and instrumentation in this region. For instance, during 2014, the US government and numerous manufacturers invested more than $33 billion in the chemicals and petrochemicals industries.
Competitive landscape and key vendors
The process automation and instrumentation market is extremely diverse and spread across many global and regional vendors. Regional vendors strive to remain competitive in the market by providing free access to aftersales service for a year post installation and commissioning. However, large international vendors dominate the market in terms of quality, durability, reliability, technological innovations, and customer support. The competitive environment in this market has intensified with an increase in R&D and M&A, wherein smaller entities are being acquired by or are being merged with, major players.
The leading vendors in the market are -
- Mitsubishi Electric
Other prominent vendors in the market include Emerson, Danaher, Omron, Rockwell, Schneider, and Yokogawa.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global process automation and instrumentation market?
- What are the key market trends impacting the growth of the process automation and instrumentation market?
- What are the challenges to market growth?
- Who are the key vendors in this market space?
- What are the market opportunities and threats faced by the vendors in the process automation and instrumentation market?
- Trending factors influencing the market shares of the Americas, APAC, and EMEA?
- What are the key outcomes of the five forces analysis of the process automation and instrumentation market?
Technavio also offers customization on reports based on specific client requirement.