ARC says Plant Asset Management to grow 10.8% annually

  • October 23, 2007
  • ARC Advisory Group
  • News
Dedham, Massachusetts; October 23, 2007: The worldwide market for Plant Asset Management (PAM) systems is expected to grow at a compounded annual growth rate (CAGR) of 10.8% over the next five years. The market was $1.4 billion in 2007 and is forecast to be over $2.4 billion in 2011, according to a new ARC Advisory Group study. The process industry landscape is brewing a “perfect storm” that will sustain the accelerating adoption of PAM systems for many years to come. End users are faced with the challenge of maximizing the availability of plant resources with fewer people, as experienced process engineers and technicians retire. The maturing product lifecycle of PAM has been re-invigorated with the addition of support for more asset classes, enabling technologies such as wireless, and new service offerings. “Today’s PAM systems are highly evolved, and should be considered by every enterprise to balance the cost of maintenance and productivity. PAM system growth will exceed that of intelligent field devices, and will drive automation investments as users experience the value PAM solutions bring to their operations,” according to Research Director Wil Chin, the principal author of ARC’s “Plant Asset Management Systems Worldwide Outlook.”PAM Market Consolidation to ContinueDespite the slew of consolidations in the last five years, there remains a large number of smaller suppliers serving the PAM market. As the PAM market enters the next wave of growth, we expect to see more consolidation. Leaders will likely make strategic acquisitions to bolster their solutions to fill any gaps as consumers begin to add an increasing number of assets they hope to manage with these systems. It is clear that the market landscape will continue to evolve in coming years.User Requirements Fuel PAM InnovationsIncreasing demand has spurred increasing supplier R&D, and the resulting innovation has propelled PAM a long way in the past decade. Remarkable technological strides have been made in development of measurement sensors, analytical software, signal processing, information storage, wireless technology, open communications, and system integration — all at a lower cost. The resulting improvements allow end users to optimize their plant asset availability, capacity, reliability, performance, and efficiency, leading to increased profitability. Asia Spurs Growth, Europe Embracing PAMThe tremendous growth of greenfield process plants in Asia is spurring the growth of DCS systems and driving robust market demand for embedded applications such as PAM. The conservative adoption attitude of users in developed countries in EMEA (Europe, Middle East, Africa) is also changing drastically, benefiting PAM suppliers with significant brand recognition there. A more receptive attitude toward PAM and a large installed base of assets in developed countries in EMEA, combined with the need for new plants in developing countries in EMEA, will subsequently help drive growth there at a CAGR somewhat greater than in North America. About ARC: Founded in 1986, ARC Advisory Group has grown to be-come the Thought Leader in Manufacturing and Supply Chain solutions. No matter how complex your business issues, our analysts have the expert industry knowledge and first-hand experience to help you find the best answer. We focus on simple yet critical goals: improving your return on assets, operational performance, total cost of ownership, project time-to-benefit, and shareholder value. Learn More

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