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The State of the Pressure & Temperature Sensor and Switch Markets

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During this QuickCast, VDC’s Chris Rezendes discusses the state of the pressure and temperature sensor and switch markets.

During this QuickCast, VDC’s Chris Rezendes discusses the state of the pressure and temperature sensor and switch markets.

Published in: Technology, Business

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  • VDC Research Group (VDC) provides exceptionally detailed direct-contact primary market research and consulting services to many of the world's largest technology suppliers, innovative start-ups and leading investors.
  • The firm is organized around six practices, each with its own focused area of coverage, but all committed to the firm’s core philosophy.
  • Transcript

    • 1. Industrial Automation & Control Practice Chris Rezendes – Executive Vice President David Laing – Senior Analyst QUICKCAST Sensing & InstrumentationOCTOBER 2011 © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
    • 2. Recording Available A full audio recording is available for download at: http://vdcresearch.com/market_research/industrial_automation/freeresearch.aspx © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
    • 3. About Us Market Intelligence for Technology Vendors & Investors  Direct-Contact Primary Market Research  Deeply Segmented Data  Expert Insights  Validated Results Custom Consulting Services for Your Most Critical Business Decisions  Research-Based Consulting  Transparent Tools & Methodology o Highly Customized Survey Guides & Output Templates o Sophisticated Market Estimate & Forecast Models o Detailed, Flexible Stakeholder Maps & Profiles o Industry Development Scenarios o Market Opportunity Fit Screening, Rating & Ranking © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
    • 4. Our Core Coverage Areas AutoID & Transaction Automation Embedded Hardware & Systems Mobile & Wireless Industrial Automation & Control Embedded Software & Tools Emerging Technologies © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
    • 5. Ways to Work With UsOur syndicated research is the basis for the many ways VDC can help you grow your business. We offer a wide variety of services designed to meetspecific tactical and strategic decision support needs. All of our services are built on a foundation of highly skilled professionals applying robustmethodologies to VDC’s large and continuously refreshed datasets. © 2011 VDC Research Webcast Industrial Automation & Control vdcresearch.com
    • 6. Today’s Speaker Chris Rezendes Executive Vice President Chris has 20 years experience in embedded, industrial, defense and other mission critical and high available technology industries. He has more than 15 years experience in senior management and leadership positions at a number of IT systems and professional services organizations. During that time Chris has initiated or expanded coverage of a number of markets that VDC covers today. Chris has advised many of the largest and most respected technology companies in a number of technology segments worldwide. This work includes working closely with multiple levels of client organizations from Product Managers through CEOs, providing decision support on a wide range of product, market, channel, organization and corporate development opportunities. He has also worked with many of the most successful private equity and venture capital firms in the Americas and Europe. His work with the financial services community includes opportunity identification and due diligence support on investments ranging from $30 million to nearly $3 billion. Chris’ prior consulting experience includes Deloitte & Touche and Harbor Research. Prior to joining VDC Research, Chris was VP and General Manager at Industrial Computer Source, now part of Kontron GmbH. Chris is a graduate of Harvard University.For complimentary insights and marketing data: http://blog.vdcresearch.com/industrial_automation/ © 2011 VDC Research Webcast Industrial Automation & Control vdcresearch.com
    • 7. Introduction – These are NOT Commodity Markets If the pressure and temperature sensor and switch markets suffered at the end of the last decade – if – they are back Customers are acutely focused on maximum ROI with sense, monitor and control applications As such, they are increasing their spending on replacement parts – shorter cycles, incremental upgrading – in order to maintain highest levels of productivity with minimal capital outlay Moreover, they are increasing their demand for secure access to accurate real time data… Enter the process sensor and switch categories © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
    • 8. Pressure and Temperature Sensor / Switch Purchasers Still Buying Discrete85% of survey respondents stated that all or most devices acquired were discrete / stand-alone Please select the option that best describes your purchase or specification of pressure and/or temperature sensing/switching products: Perhaps the rumors in (N = 300) the market that pressure and temperature device 15% are commodities, unknown to users, is a bit overstated? 49% They are at least ‘known’ for stand-alone purchasing is all or part of a vast majority of 36% the market. They make for a qualified community of *Pressure and/or Temperature sensing/switching products are (included/built into/bundled with) equipment we survey respondents. purchase or specify. We seldom, if ever purchase or specify these items other than replacements. We frequently buy or specify pressure and/or temperature sensing and switching products directly although sometimes they are included as part of equipment we purchase. We buy or specify almost all of pressure and/or temperature sensing and switching products directly. © 2011 VDC Research Webcast Industrial Automation & Control vdcresearch.com
    • 9. Spending on These Devices is Expected to Rise During the Next Three YearsNearly 90% of respondents cited steady or growing spending on pressure and temperature devicesTo the best of your ability, please make an estimate about your organizations overall Remember, this is a future use of Pressure and/or Temperature Sensing & Instrumentation Products in 2011 - 2013. conservative group of (N = 231) 50% industrial OEMs from 45% ‘more conservative’ or 46.3% ‘slower moving’ markets. 40% 35% But we think not. This 30% group invested with strength and confidence 26.8% 25% 20% in small projects during 15% the recession. 4.8% 12.1% 10% 4.3% Keys: 3.0% 2.6% 5% 1. User demand in core 0% markets 2. New applications being automated © 2011 VDC Research Webcast Industrial Automation & Control vdcresearch.com
    • 10. Interesting Commercial Considerations Driving Vendor SelectionSome traditional factors appear to be less important …Other than price, when your firm chooses a manufacturer for process level and/or inventory What matters most? tank gauging products it probably considers other non-technical factors. Using the following scale, please rank the nontechnical or business considerations your firm uses. Support – pre and post. What does not? Product Support 3.85 Regional or global 3.71 Post-sales Application & Technical Support 3.67 issues. Other, please specify: 3.66 Availability/Quick Delivery Reputation 3.63 3.51 What was most Availability of SparesCustomer Service - Ordering, Billing, & Logistic Support 3.51 surprising? 3.49 Ease of Purchase 3.41 1. Low rank of Flexibility Warranty Terms 3.26 3.24 brand, AND high rank Broad Selection Availability (Mid Term About 5yr)** 3.23 of reputation – 3.18 Availability (Long Term About 10yr)** 3.16 difference between Local/On-Site Support Pre-sales Application Consulting 3.05 2.94 recognition and Business Terms Training Provided 2.92 perception 2.92 Brand Recognition 2.89 Willing to Customize Willing to Customize 2.85 2.77 2 . Availability / quick Free Test Samples Worldwide Support Capability 2.59 delivery – replacement 2.54 Worldwide Support Capability 2.27 market Ability to Purchase Online 2.20 Manufacturer Location 0.00 1.00 2.00 3.00 4.00** Note: Product discontinuances - Ability to buy exact same product X # of years later. © 2011 VDC Research Webcast Industrial Automation & Control vdcresearch.com
    • 11. Summary – These ARE Value-Driven Markets The global markets for pressure and temperature sensor and switch products are large, healthy and growing They appear to be highly fragmented as well, with massive legacy socket replacement, upgrade and extension opportunities However, the ‘march of automation’ continues in industrial process control markets, and respondents are taking calls, and orders, from a wide range of new applications This growth is extending into a number of new regional markets, but, that growth is not driving demand for local suppliers Users should be astute enough to be demanding of suppliers, and strong internal advocates for them © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
    • 12. Thank You for Attending this VDC WebcastFor more information please contact: David Laing – Senior Analyst dlaing@vdcresearch.com | 508.653.9000 x146 Chris Rezendes – Executive Vice President cjr@vdcresearch.com | 508.653.9000 x120 Bob Perugini – Account Director rperugini@vdcresearch.com | 508.653.9000 x144For complimentary insights and marketing data: http://blog.vdcresearch.com/industrial_automation/ © 2011 VDC Research Webcast Industrial Automation & Control vdcresearch.com