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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
24-Sep-2020
North America
Market Outlook
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
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| Deliverable Type | Market Outlook |
|---|---|
| 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 |