Software-based, value-added services to augment revenues for hardware-centric automation vendors
LONDON, July 15, 2019 /PRNewswire/ -- The global automation industry witnessed steady growth in 2018, bolstered by a favourable investment climate, and is expected to continue recording moderate to high growth rates over the coming years. The automation market is set for a paradigm shift due to the proliferation of digitalisation across end-user industries as verticals step up their investment patterns to concentrate on expanding existing plant capacity with modular equipment and digital technologies. With value shifting from hardware to software, automation companies are now working towards supplementing their traditional products, such as sensor and control systems, with software-based, value-added services.
"Digitisation is the key theme across major end-users industries. Data has become the most strategic asset, and future success depends on how the data is utilised," said Rohit Karthikeyan, Senior Analyst, Industrials at Frost & Sullivan. "Automation majors have realigned their market strategies to match the opportunities offered by digitisation."
Frost & Sullivan's latest analysis, Global Industrial Automation Market Outlook, 2019, delineates the key trends and predictions that will influence growth in the $230 billion global automation market in 2019. The study provides a detailed market landscape analysis of the key participants in process, hybrid, and discrete automation markets.
For further information on this analysis, please visit: http://frost.ly/3lg
The global automation industry is characterised by high levels of M&A activity, with major automation vendors bidding for key acquisitions in the digital space, including Emerson's move to acquire General Electric's Intelligent Platforms division. An increasing number of automation majors will look towards partnering with or buying out start-ups with crucial technical know-how to develop the requisite software tools to work in conjunction with their pre-existing hardware systems.
Players in this sector anticipating to grow their overall share in the market should capitalise on growth opportunities present in:
- Expanding into APAC and African countries displaying increasing demand for automation systems.
- Developing up-to-date cybersecurity solutions that can be retrofitted to clients' existing systems.
- Offering scalable digital twin solutions, which are expected to see widespread adoption in 2019.
Global Industrial Automation Market Outlook, 2019 is part of Frost & Sullivan's Industrial Automation & Process Control consulting research and analyses available through the Frost & Sullivan Leadership Council, which helps organisations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Global Industrial Automation Market Outlook, 2019
SOURCE Frost & Sullivan