ARC study states that new projects in heavy process industries, power generation contributed to overall market growth
In the newest version of ARC Advisory Group’s “Distributed Control Systems Worldwide Outlook,” study, ABB retained its leading worldwide market position in this core automation market. According to the study, the DCS (distributed control system) market in 2010 rebounded from 2009; the overall market for DCS (distributed control system) increased by 3.3 percent, in part due to an increase of new projects in the heavy process industries.
ARC forecasts that market growth, while improved compared with 2009, will not reach peak 2008 levels until next year, and then will resume normal slow but steady growth. The increase in new projects in the heavy process industries such as oil & gas and petrochemical, as well as a resurgence in power generation projects, helped to drive global demand for DCS in 2010.
Many of the larger projects that contributed to 2010 growth were booked throughout 2009. ABB booked a number of large process industry and power generation orders, which included major greenfield projects as well as system upgrades and expansions for existing installations.
“Innovation, quality products, extensive industry knowledge and application expertise has enabled ABB to establish a large and loyal customer base,” said Barry Young, Principal Analyst at ARC and author of the report. “ABB brings together a product, system and service capability that allow them to deliver complete automation and production solutions across a broad range of industries.”
According to the study, ABB was also the regional market share leader for Latin America, Europe/Mid East/Africa (EMEA), and the worldwide leader in key global verticals including Upstream Oil & Gas, Pulp and Paper, Mining and Metals, and Cement and Glass.
The report also notes that the DCS business has continued to be primarily a services business over the past few years, with combined project, engineering and operational services accounting for more than half of total revenues. In particular, the Main Automation Contractor (MAC) approach, in which the automation vendor manages the overall project and includes a strong project execution and services component, continues to grow stronger and expand in scope.
“ABB’s deep process industry knowledge, extensive global and local resources, and world-class services organization provide the project execution capabilities needed to successfully manage complex projects as the Main Automation Contractor,” said Veli-Matti Reinikkala, head of ABB’s Process Automation division. “In addition, we offer our customers a diverse portfolio of DCS solutions to help any process perform better, from the smallest operation to large integrated operations.”
ABB’s portfolio of DCS includes its flagship System 800xA Extended Automation platform, Symphony Plus control system, Freelance process control system for small to medium process applications, as well as its prior generation systems. All ABB control systems offer a secure evolution path forward to next generation technologies to protect and enhance the control system investment over its lifetime.
Additional information on the DCS Worldwide Outlook, as well as other studies on the global automation market, is available at www.arcweb.com
Founded in 1986, ARC Advisory Group has grown to become the Thought Leader in Manufacturing and Supply Chain solutions. ARC analysts have the expert industry knowledge and first-hand experience to help clients find the best answer to complex business issues. ARC focuses on simple yet critical goals: improving clients’ return on assets, operational performance, total cost of ownership, project time-to-benefit, and shareholder value.