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South African ACS Suppliers Enjoyed Exceptionally Good Year in 2008 Finds Frost & Sullivan - Despite difficult global economic conditions in the second half of 2008, automation and control solutions (ACS) suppliers in South Africa had a strong year
South African ACS Suppliers Enjoyed Exceptionally Good Year in 2008 Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2009/09/15 - Despite difficult global economic conditions in the second half of 2008, automation and control solutions (ACS) suppliers in South Africa had a strong year.

   
 
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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.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be sent to you by email.

"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.

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 over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

Strategic Analysis of the South African Industrial Automation and Process Control Products and Solutions Markets / M41E

 
 
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South African ACS Suppliers Enjoyed Exceptionally Good Year in 2008 Finds Frost & Sullivan

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