Revenues across a number of sectors such as metals and mining, power, chemicals and petrochemicals and food and beverage grew by over 11.8 per cent. Heightened demand for manufacturing visibility and efficiency, cost control and engineering and maintenance services boosted revenues across products such as programmable logic controllers, distributed control systems and manufacturing execution systems.
New analysis from Frost & Sullivan (industrialautomation.frost.com), Strategic Analysis of the South African Industrial Automation and Process Control Products and Solutions Markets finds that the market earned revenues of $284.8 million in 2008 and estimates this to reach $487.8 million in 2015. While the market will expand, it is expected to grow at lower rates over the forecast period due to the global economic slowdown, which will continue to negatively impact industrial investment and output.
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"The growing focus on the benefits of automation is expected to boost revenues for automation and control solutions," notes Frost & Sullivan Industry Analyst Litiya Matakala. "Such advantages include cost savings, process optimisation and manufacturing visibility."
Although project delays and cancellations will limit revenue growth in the metals and mining sector in the short- to medium-term, the increasing strategic focus and importance of ACS are set to support revenue growth over the long-term.
The industrial automation and process control products and solutions market has traditionally relied on high capital expenditure in the metals and mining and chemicals and petrochemicals sectors. Hence, the fall in commodity prices and production output will have a considerable negative impact on the demand for new installations of industrial automation and process control products and solutions in these end-user segments. This, in turn, will result in lower revenue growth.
"Due to the fall in minerals and metals prices, a number of projects in this end user segment are expected to be delayed or cancelled altogether," explains Matakala. "This is poised to have a negative impact on growth prospects, as this sector accounts for an estimated 30.0 per cent of the total ACS market in South Africa."
For market success, companies need to diversify the end-user market base away from the metals, minerals and mining sector. They also need to provide high-quality after-sales services.
The following application sectors are covered in this analysis: metals, minerals and mining, petrochemicals and chemicals, food and beverages, power and water and wastewater.
Strategic Analysis of the South African Industrial Automation and Process Control Products and Solutions Markets is part of the Industrial Automation & Process Control Growth Partnership Services programme, which also includes research in the following markets: South African Switchgear Market, South African Electric Motors Market, South African Pressure Sensors Market and, South African HMI Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Strategic Analysis of the South African Industrial Automation and Process Control Products and Solutions Markets / M41E