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Product category: Process Monitoring and Optimisation
News Release from: ABB Automation Tech (Instrumentation + Automation) | Subject: ARC report on services
Edited by the Processingtalk Editorial Team on 21 August 2007

ABB is tops in automation services
market

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In a recently published study "Automation Supplier Provided Services Worldwide Outlook", the industry analyst ARC ranked ABB in the top market position in this rapidly growing market sector

The study reports that the total worldwide market for these services was close to USD14 billion at the end of 2006, and will increase by more than USD10 billion over the next five years, to USD24.9 billion in 2011 (a compound annual growth rate of 12.3%) The growing shortage of skilled labour among end users was cited as a primary contributor to the expanding global services market

As the current automation workforce ages and retires, and the pool of potential replacement workers continues to shrink, end users will more frequently look to automation companies to provide expanded services and support.

"As the largest automation services supplier, ABB is riding the crest of this ever increasing market," said Larry O'Brien, Research Director for Process Industries, ARC.

"With the wide range of traditional and expanded services it offers across the plant lifecycle, ABB is well positioned to help its customers in all industries fill the engineering and resident knowledge gap that continues to widen as more experienced workers retire and leave the automation industry".

While project services and other traditional services were still in strong demand, services provided during the operational phase of the plant, such as asset management, condition monitoring, loop tuning, performance management and overall maintenance outsourcing services, contributed too much of the overall market growth.

The ARC study notes that market shares of the leading suppliers are driven by the suppliers' strength in process automation.

"As the world's leading process automation supplier, ABB has dedicated resources that are committed to helping our customers meet and overcome their operational challenges throughout the lifecycle of their automation installation," said Veli-Matti Reinikkala, head of the ABB Process Automation division.

"As the need for expanded services continues to grow along with the worldwide shortage of skilled technical resources, we will be ready to meet this increasing customer demand with the service products, programmes, expertise and experience that will keep their operations running efficiently and profitably".

According to ARC, mature markets such as North America, and Europe, as well as the Middle East and Africa, currently constitute the bulk of the market for automation services.

Going forward, the developing economies of China, the rest of Asia and Latin America will be increasing sources of services revenue growth and opportunity.

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