The distributed control system (DCS) market is on a healthy growth curve, according to a new report from ARC Advisory Group, and revenue for automation control vendors will continue to rise as process manufacturers modernize legacy systems while grassroots projects build out in Asia.
The ARC report, released this week, noted that the global DCS market grew 13% between 2006 and 2007 and is poised to maintain a compound annual growth rate (CAGR) of 9.8% through 2012.
ARC estimates that there is $65 billion worth of installed process automation systems in the world that are nearing the end of their useful lifecycle. About $12 billion of those are original DCSes installed in the late 1970s. Now, as manufacturers look to upgrade the system, they are not locked into a single vendor's offering as each automation vendor has come up with a competitive migration strategy.
In addition, manufacturers are turning to their suppliers to act as the main automation contractor (MAC) overseeing all aspects of automation projects from design to start-up. Most end users list migration as one of the key issues they face. "Making the transition to a modern DCS is fraught with challenges for end users, from the increasingly difficult task of justifying the automation purchase, selecting a supplier, implementing the solution, to providing a roadmap for the future," according to the report.