LONDON, April 29, 2014 /PRNewswire/ -- Upcoming brownfield and greenfield projects in the oil and gas and power generation industries will sustain the demand for automation and control solutions (ACS) in the Commonwealth of Independent States (CIS). Among the countries in the region (Kazakhstan, Azerbaijan, Uzbekistan, Ukraine, Belarus, Armenia, Kyrgyzstan, Tajikistan and Moldova), Kazakhstan and Azerbaijan will remain market hot spots as scheduled oil and gas exploration activities as well as the anticipated modernisation of the industrial automation sectors pave the way for ACS adoption.
New analysis from Frost & Sullivan, Strategic Analysis of the Automation and Control Solutions Market in CIS Countries, finds that the market earned revenues of $443.8 million in 2013 and estimates this to reach $559.2 million in 2017. While programmable logic controllers (PLCs) and safety instrumented systems (SIS) will continue to dominate the market, the distributed control system (DCS) segment is expected to witness the highest growth rate.
"As awareness increases, industries in the CIS are deploying ACS to bolster production volumes, optimise manufacturing processes, decrease operational costs, and boost returns," said Frost & Sullivan Industrial Automation and Process Control Research Analyst Maryna Osipova. "Advanced solutions that offer asset management capabilities and enable the processing, displaying and archiving of information are particularly making a mark among end users."
One of the key challenges in the CIS ACS market is the lack of a well-qualified workforce. Innovative ACS systems require professional engineering resources for installation, operation and repair services, and the shortage of skilled assets affects project performance and customer service support for ACS products.
Another restraint is the economic downturn that has compelled customers to tighten budgets, resulting in the temporary shelving of present projects and the delay of future ones. High inflation rates further curb the purchasing power of customers and limit investments in automation.
Expanding into the region will help ACS producers overcome cost concerns from end users to an extent through geographical proximity and product customization activities.
"Building sound relationships with original equipment manufacturers will allow ACS service providers to deliver flexible solutions and carve a niche for their products in the competitive CIS market," elaborated Osipova. "In addition, ACS suppliers must customise solutions to not only meet emerging customer needs but also add value to their offering and widen their reach in the region."
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Strategic Analysis of the Automation and Control Solutions Market in CIS Countries is part of the Industrial Automation & Process Control (http://www.industrialautomation.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Strategic Analysis of the Global Industrial Valves and Actuators Market, Analysis of the Global PLM Market in Discrete Industries, Global Programmable Logic Controllers Market Global Automation and Control Systems (ACS) Market in the Upstream Oil and Gas (O&G) Industry, and Automation Modernization Opportunities in the US Refinery Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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