Zeal for Productivity and Profit Pressures Accelerate the Growth of the Global Automation Lifecycle Services Market, 2019–2022

Zeal for Productivity and Profit Pressures Accelerate the Growth of the Global Automation Lifecycle Services Market, 2019–2022

Growing Technology Complexity and Vanishing Knowhow are Growth Drivers for Lifecycle Services

RELEASE DATE
24-Sep-2020
REGION
North America
Research Code: K42E-01-00-00-00
SKU: IA01600-NA-MO_24761

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Description

Amid shifting industry dynamics being driven by decentralization, digitalization, decarbonization and the rise of new business models, the keystone market of industrial automation, lifecycle services, is expected to experience a phase of strong short-term growth. Frost & Sullivan’s market analysis estimates the market size to grow from $49.56B to $61.11B between 2019 and 2022 at a CAGR of 7.2%. Frost & Sullivan finds the decline in the skilled industrial workforce, shift from manual to digital workplaces, the movement to online and inline continuous monitoring, and shift toward operational expenditure based pricing models as the major driving factors. Furthermore, the current market offerings, which limit to products and services in tandem, are expected to become obsolete against the emergence of digital delivery and outcome-based model, where digital platform-based solutions drive end-to-end plant optimization within the next 5 to 10 years. Among the market tiers of lifecycle services, Level-3 (connected services) is poised to see strong adoption across a spectrum of field devices (heat exchangers, corrosion monitoring, flowmeters, control valves). Level-1 (support services) is expected to maintain a majority share. Level-2 and Level-3 services are forecast to be the two fastest-growing segments. Together, they are expected to account for 46.80% of the market by 2022. L4 services are likely to be highly sought after, but will make up only 4% of the market. The process industry constitutes 79.5% market among industries. Large field and expanding plant base relative to hybrids and discrete industry contribute toward it being dominant. Asia-Pacific, North America, and Europe account for in excess of 60% of the market. The presence of large oil and gas, power, and chemical plant base compared to other regions is the main reason for this large share. According to Frost & Sullivan’s market analysis, Emerson Automation was the market leader as of Q4 2019, however, strong competition in terms of market offerings and solution value propositions is expected, and as a result, Siemens is likely to lead the market by 2022. Overall, leading market participants offering their respective marquee lifecycle solutions include Emerson Automation, Siemens, ABB, Honeywell, Yokogawa, Rockwell Automation, and Schneider Electric. Maturity of lifecycle services offering, organization alignment, future vision on lifecycle services, go-to-market strategy, and lifecycle value propositions have been analyzed in tandem with major automation solution provider financials to estimate market participant share.

The emergence of COVID-19 has been taken into consideration while drawing market forecasts. However, as the situation continues to remain highly fluid, Frost & Sullivan will continue to monitor and make any revisions on its estimates if deemed necessary.

Table of Contents

Executive Summary—Key Findings

Impact of COVID-19

Top Line Research Findings

Market Analysis by Service Level, Business Unit, Sectors, and Region

Industry and Business Process Transformations

Definitions and Service Scope

Research Scope

Key Questions this Research will Answer

Mega Trends in the Pandemic Era

Impact of COVID-19 on World Growth

COVID-19 Impact on Key Regions and Countries

Impact of COVID-19 on Key Industries

Key Lifecycle Services Market Trends to Watch

Every Business will Become a Connected Business

Future Industrial Workforce Impact

Data is the New Gold—Unbundling Siloed Value Through Data

Data is the New Gold—Two Methods of Compute Emerging

Data is the New Gold—Automation Giants Articulate the Value of Data

Edge Computing will Become the Compute Platform of Choice

AR Adoption for Field Maintenance Services

AR Adoption for Field Maintenance Services (continued)

AR Adoption for Field Maintenance Services (continued)

Transition Toward Prescription Intelligence

Prescriptive Intelligence Combines with Cognition

Driving Factors and Challenges for Lifecycle Services Market

Driving Factors and Challenges Impact Mapping

Driving Factors Explained

Driving Factors Explained (continued)

Driving Factors Explained (continued)

Driving Factors Explained (continued)

Challenges Explained

Challenges Explained (continued)

Challenges Explained (continued)

Definitions and Service Scope

Market Analysis by Service Level, Business Unit, Sectors, and Region

Market Analysis Discussion by Service Level, Business Unit, Sector, and Region

Revenue Forecast by Service Level

Revenue Forecast Discussion by Service Level

Revenue Forecast by Business Unit

Revenue Forecast Discussion by Business Unit

Revenue Forecast by Region

Revenue Forecast Division by Region

Revenue by Region

Revenue Forecast by Sector

Revenue Forecast Discussion by Sector

Lifecycle Services Competitive Heat Map

Market Share Analysis

Vendor Profile—Emerson Automation Solutions

Emerson Automation—Lifecycle Services Value Proposition

Emerson Automation—Lifecycle Services Value Proposition (continued)

Vendor Profile—Siemens Digital Industries

Siemens Digital Industries—Lifecycle Services Value Proposition

Siemens Digital Industries—Lifecycle Services Value Proposition (continued)

Siemens Digital Industries—Lifecycle Services Value Proposition (continued)

Vendor Profile—ABB Industrial Automation

ABB Industrial Automation—Lifecycle Services Value Proposition

ABB Industrial Automation—Lifecycle Services Value Proposition (continued)

ABB Industrial Automation—Lifecycle Services Value Proposition (continued)

Vendor Profile—Honeywell SPS

Honeywell—Lifecycle Services Value Proposition

Vendor Profile—Yokogawa

Vendor Profile—Yokogawa (continued)

Growth Opportunity 1—Value Shift from Hardware to Software

Growth Opportunity 2—Cybersecurity as a Service

Growth Opportunity 3—Focusing on Emerging Economies

Growth Opportunity 4—Strengthening Digital Capability Through Partnerships and M&As

Strategic Imperatives for Success and Growth

Key Conclusions

Key Conclusions and Future Outlook

Legal Disclaimer

Market Engineering Methodology

Abbreviations and Acronyms Used

Partial List of Other Key Participants

List of Exhibits

List of Exhibits (continued)

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
Amid shifting industry dynamics being driven by decentralization, digitalization, decarbonization and the rise of new business models, the keystone market of industrial automation, lifecycle services, is expected to experience a phase of strong short-term growth. Frost & Sullivans market analysis estimates the market size to grow from $49.56B to $61.11B between 2019 and 2022 at a CAGR of 7.2%. Frost & Sullivan finds the decline in the skilled industrial workforce, shift from manual to digital workplaces, the movement to online and inline continuous monitoring, and shift toward operational expenditure based pricing models as the major driving factors. Furthermore, the current market offerings, which limit to products and services in tandem, are expected to become obsolete against the emergence of digital delivery and outcome-based model, where digital platform-based solutions drive end-to-end plant optimization within the next 5 to 10 years. Among the market tiers of lifecycle services, Level-3 (connected services) is poised to see strong adoption across a spectrum of field devices (heat exchangers, corrosion monitoring, flowmeters, control valves). Level-1 (support services) is expected to maintain a majority share. Level-2 and Level-3 services are forecast to be the two fastest-growing segments. Together, they are expected to account for 46.80% of the market by 2022. L4 services are likely to be highly sought after, but will make up only 4% of the market. The process industry constitutes 79.5% market among industries. Large field and expanding plant base relative to hybrids and discrete industry contribute toward it being dominant. Asia-Pacific, North America, and Europe account for in excess of 60% of the market. The presence of large oil and gas, power, and chemical plant base compared to other regions is the main reason for this large share. According to Frost & Sullivans market analysis, Emerson Automation was the market leader as of Q4 2019, however, strong competition in terms of market offerings and solution value propositions is expected, and as a result, Siemens is likely to lead the market by 2022. Overall, leading market participants offering their respective marquee lifecycle solutions include Emerson Automation, Siemens, ABB, Honeywell, Yokogawa, Rockwell Automation, and Schneider Electric. Maturity of lifecycle services offering, organization alignment, future vision on lifecycle services, go-to-market strategy, and lifecycle value propositions have been analyzed in tandem with major automation solution provider financials to estimate market participant share. The emergence of COVID-19 has been taken into consideration while drawing market forecasts. However, as the situation continues to remain highly fluid, Frost & Sullivan will continue to monitor and make any revisions on its estimates if deemed necessary.
More Information
No Index No
Podcast No
Author Vasanth Krishnan
Industries Industrial Automation
WIP Number K42E-01-00-00-00
Is Prebook No
GPS Codes 99EA-A5,9593,9420