A Measurement System to Spark Companies 2 Action (C2A)—Innovation That Fuels New Deal Flow and Growth Pipelines
12-Nov-2019
Global
Frost Radar
K3E0-01-00-00-00
IA01552-GL-MR_23741
The global industrial automation market is set for a paradigm shift as end-user industries step up their investments to concentrate on expanding plant capacity with modular equipment and digital technologies. With a focus on digital transformation, there is an equal emphasis on improving reliability and efficiency of assets on site. Companies are investing in Industrial Internet of Things technologies, remote condition monitoring, and diagnostics to address unmet maintenance needs and emphasize predictive maintenance. Data has become the most strategic asset: success depends on how data is utilized. Automation majors have realigned their market strategies to capture opportunities offered by digitization.
Asset management subscriptions are on the rise. Critical asset class monitoring fetched higher-value subscriptions, while key value drivers have lowered the cost of monitoring non-critical asset classes. In addition, refurbishment of aging infrastructure, coupled with growth in the power generation, automotive, and food and beverage verticals, will intensify demand for industrial automation solutions. Digital play was more focused on hardware and software. As customer capabilities decline, the focus will shift to managed services. Automation vendors have started to develop strategies to enter the managed services market.
All automation vendors’ cash cows are control and sensor platforms. However, over the next decade, a shift will progress towards service-driven monetization.
From a geographical perspective, the Asia-Pacific region will continue to be the largest market, driven by the economic growth in nations such as India and Indonesia.
A total of 21 companies were analyzed and evaluated for the growth and innovation leadership. The Frost Radar reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar methodology. The document presents competitive profiles on each of the companies in the Frost Radar based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.
Industry Overview
The Frost Radar
Frost Radar—Description of Companies Plotted
ABB
Advanced Motion Controls (AMC)
AMETEK
Beckhoff Automation
Bosch Rexroth AG
Emerson
Endress+Hauser (E+H)
General Electric (GE)
Hitachi
HollySys Automation Technologies Ltd
Honeywell
IDEC Corporation
KROHNE Ltd
Metso
Mitsubishi Electric
Omron
Rockwell Automation
Schneider Electric
Siemens
Valmet
Yokogawa
The Last Word—Key Takeaways
Legal Disclaimer
Frost Radar—2 Major Indices, 10 Analytical Ingredients, 1 Platform
Frost Radar—2 Major Indices, 10 Analytical Ingredients, 1 Platform (continued)
Frost Radar—C2A
Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform
Growth Index
Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.
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Market Share (previous 3 years)
This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years. -
Revenue Growth (previous 3 years)
This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™. -
Growth Pipeline
This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities. -
Vision and Strategy
This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision? -
Sales and Marketing
This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.
Innovation Index
Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.
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INNOVATION SCALABILITY
This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals. -
RESEARCH AND DEVELOPMENT
This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline. -
PRODUCT PORTFOLIO
This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue. -
MEGATRENDS LEVERAGE
This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline. -
CUSTOMER ALIGNMENT
This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.
Significance of Being on the Frost Radar™
Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.
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GROWTH POTENTIAL
Your organization has significant future growth potential, which makes it a Company to Action. -
BEST PRACTICES
Your organization is well positioned to shape Growth Pipeline™ best practices in your industry. -
COMPETITIVE INTENSITY
Your organization is one of the key drivers of competitive intensity in the growth environment. -
CUSTOMER VALUE
Your organization has demonstrated the ability to significantly enhance its customer value proposition. -
PARTNER POTENTIAL
Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.
Speak directly with our analytics experts for tailored recommendations.
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| Deliverable Type | Frost Radar |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Rohit Karthikeyan |
| Industries | Industrial Automation |
| WIP Number | K3E0-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9593,9420 |
Frost Radar in the Industrial Automation Market
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