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Slow but Steady Growth Expected in Australia and New Zealand Automation and Controls Market Finds Frost & Sullivan - The total automation and software (A&S) market in ANZ is in the transition phase from growth to maturity
Slow but Steady Growth Expected in Australia and New Zealand Automation and Controls Market Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Singapore, Singapore, 2011/02/22 - The total automation and software (A&S) market in ANZ is in the transition phase from growth to maturity.

   
 
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As Australia and New Zealand are high-cost manufacturing destinations compared to others in Asia Pacific, growth is slow. The focus in this market is on assembly activity rather than manufacturing.

Escalating labor costs have encouraged many small and medium enterprises to invest in automation products. The need for uniform quality across global plants and standardization of productivity and quality will drive the market for automation solutions.

New analysis from Frost & Sullivan (industrialautomation.frost.com), Automation and Controls Market in Australia and New Zealand, finds that the market earned revenues of $302.0 million in 2009 and estimates this to reach $498.5 million in 2016.

"Segments such as mining, oil and gas, infrastructure, as well as water and wastewater have driven growth in the Australian market for automation and software solutions, contributing almost 75 percent of total revenues, " says Frost & Sullivan Research Analyst Vandhana Venkatesan. "Capital expenditure on plant, machinery, and equipment in the Australian mining industry had grown from A$9.6 billion in 2008-09 to A$10.8 billion in 2009-10."

Owing to the vast industrial base of the metals and mining and the oil and gas sectors, programmable logic controllers (PLCs) and distributed control systems (DCS) are the high revenue-generating segments. Market participants are looking to expand the end-user base to increase the overall returns from the region.

The rise in the Australian dollar value is driving operations and manufacturing costs upwards. An appreciation in the dollar value could lead to higher levels of capital outflow from Australia as Australian assets become more expensive.

Cost competitiveness of Asian countries is posing a challenge to existing businesses that are already facing margin pressures. As producing the same components in Asian countries such as Thailand, Indonesia, India, and China is far cheaper, the overall sustainability of manufacturing operations in Australia and New Zealand is affected. Rising labor costs and shortage of skilled labor are other issues causing angst for participants in this space.

"To ensure successful business outcomes in this scenario, strong emphasis must be placed on competitive differentiation, " says Venkatesan. "Automation solution providers must deliver the latest in technology solutions tailor-made to suit end user requirements."

Observations reveal that beyond technology and price, end users are more concerned about the services provided by automation solutions providers. ACS and real-time simulation products are gaining traction and are expected to take market prospects forward.

If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Automation and Controls Market in Australia and New Zealand is part of the Industrial Automation & Process Control Growth Partnership Services program, which also includes research in the following markets: Automation and Controls Market in Singapore, Malaysia, Thailand, Philippines and Vietnam. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Automation and Controls Market in Australia and New Zealand / P476

 
 
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Slow but Steady Growth Expected in Australia and New Zealand Automation and Controls Market Finds Frost & Sullivan

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