Frost & Sullivan says Brazilian and Mexican DCS and PLC Markets growing |

Frost & Sullivan says Brazilian and Mexican DCS and PLC Markets growing

January 23, 2008 - SAO PAULO, Brazil & MEXICO CITY - The Mexican and Brazilian markets for programmable logic controllers (PLCs) and distributed control systems (DCSs) are getting a boost as companies are becoming increasingly aware of their benefits. Market participants have to highlight the financial gains obtained in the mid and long term, as well as the increase in productivity that results from implementation of PLC or DCS to overcome clients’ resistance.

New analysis from Frost & Sullivan, Brazilian and Mexican DCS and PLC Markets, finds that the market earned revenues of $448.7 million in 2006 and estimates this to reach to $926.0 million in 2012.

Automation vendors will find lucrative opportunities if they promote their solutions’ ability to improve the factory’s control, reduce operational costs, and connect automation systems with management systems such as Applications and Products in Data Processing (SAP) and enterprise resource planning (ERP).

Apart from disseminating information about the benefits of their products, vendors would also do well to hire qualified professionals such as engineers and programmers with proficiency in industrial automation. The lack of such expertise will hamper vendors’ ability to respond to end users’ needs, as engineering skills are required to tailor the automation solution to verticals’ specific needs.

“Competitors have to guarantee high-quality technical support and continuous spare parts replacement,” says Matheus Salvadori, Industrial Consultant at Frost & Sullivan. “Latin American industrial park tends to have longer usage of equipment, and due to several factors, plants are expected to last longer, requiring superior services from automation companies.”

As Brazil and Mexico are geographically wide, many industrial plants are located in remote areas. Taking stock of this situation, automation companies have to decentralize operations and be flexible enough to provide effective support to these plants. Vendors must be prepared to adapt to the requirements of various companies within a vertical, as some of them may be technologically advanced, while some other factories may be operating with dated equipment.

The end users that account for most of the revenue in the PLC and DCS market are heavy industries such as oil and gas, metals and mining, pulp and paper, and chemicals. It is not only their significant investments that have helped prop up the market, but also the greater product uptake caused by the increasing shift in production facilities from North America to Mexico.

“Although large companies are investing huge amounts of resources in new factories, smaller companies are expected to play an important role within the controllers market, especially in PLC,” notes Salvadori. “With the decreasing prices and increasingly accessible solutions, these companies are expected to increase the adoption of PLC in order to gain a competitive advantage and improve productivity. A good example of that are the Brazilian sugar and alcohol sugar mills, which are expected to invest in automation solutions in order to gain efficiency.”

Brazilian and Mexican DCS and PLC Markets is part of the Industrial Automation & Process Control Growth Partnership Service program, which also includes research in the following markets: Latin America low-voltage drives market and Latin America wireless communication test equipment. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.
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