Analysis of the North Americal Terminal Automation Market


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The upturn in North American oil and gas (O&G) production is generating opportunities for terminal automation service providers. To take advantage of these, terminal automation providers must address key needs of O&G terminal end-users such as integrated solutions and advanced data management. Equipped with these solutions, terminal automation providers can accelerate the uptake of automation solutions in this and other key application segments.

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Analysis of the North Americal Terminal Automation Market

  1. 1. How Solution Providers Can Capture the North American Terminal Automation Market Research PREVIEW for the Analysis of the North American Terminal Automation Market (ND84-10)
  2. 2. Executive Summary $110.5 M 56.8% $2.0–3.0 M 42.5% The North American terminal automation market generated $110.5 million in revenue in 2013 and is expected to witness a compound annual growth rate (CAGR) of 5.5% from 2013 to 2020. While the average CAPEX for small terminal projects is $100,000–$200,000, large brownfield projects have average spend of $2.0–3.0 million. The services segment that accounts for 42.5% of the total revenue generated is expected to grow the fastest during 2013 to 2020 (CAGR 6.3%) as end users look to outsource their in-house engineering capabilities and vendors improve their after-sales support. 3.4% The biofuels segment is expected to witness slow growth (CAGR 3.4%) as compared to the oil and gas and industrial end-user segments, primarily due to the high cost of production. The top 3 competitors account for 56.8% of the market; Toptech Systems dominates the market owing to its large installed base, while strategic acquisitions made by Schneider Electric and FMC Technologies have allowed the companies to enhance their market position. Source: Frost & Sullivan ND84-10
  3. 3. Drivers and Restraints Denotes long-term impact Denotes current impact Source: Frost & Sullivan Total Terminal Automation Market: Key Market Drivers and Restraints, North America, 2014–2020 DriversRestraints DriversRestraints Increase in US domestic oil and gas production Integrated industry opportunities Diversified infrastructure developments Widened scope of brownfield terminal projects Outsourcing of in-house engineering capabilities Government regulations and mandates Advent of wireless technologies High cost of production for biofuels Satisfactory results from traditional systems and manual procedures Lower automation CAPEX spend for projects Throughput to justify terminal automation adoption ND84-10
  4. 4. Scope Source: Frost & Sullivan Product Segmentation Geographic SplitVertical Market Total Terminal Automation Market Oil & Gas Industrial - Chemical and Petro- chemical Biofuels Hardware Software Services United States Canada Control Systems Software Tank Farm and Inventory Management Order Management Blending Optimization Software Loading Automation Control systems (DCS, SCADA, and PLC) PSS HMI Presets Total Terminal Automation Market: Market Segmentation, North America, 2013 ND84-10
  5. 5. Executive Summary — CEO’s Perspective 2 Infrastructure investments in rail and pipeline transportation to transport oil and gas create new software opportunities for terminal automation vendors. 3 Availability of low-cost feedstock owing to high oil and gas production rates drives modernization opportunities for existing terminals in the industrial markets. 4 Barrier to entry for key automation vendors is that the market is dominated by terminal automation system (TAS) vendors that have a larger installed base. 5 Price, reliability, after-sales services, and integration capabilities are key purchasing attributes that end users look for from terminal automation vendors. 1 Application-specific requirements of varying terminal types have resulted in direct sales being the preferred go-to market strategy for solution providers. Source: Frost & Sullivan ND84-10
  6. 6. Table of Contents Source: Frost & Sullivan Section Slide Numbers Executive Summary 5 Market Overview 10 Total Terminal Automation Market - • External Challenges: Drivers and Restraints 19 • Forecasts and Trends 34 • Market Share and Competitive Analysis 50 • Competitive Advantage and Market Positioning (CAMP) Analysis 56 Mega Trends and Industry Convergence Implications 64 CEO’s 360 Degree Perspective 68 Product Segment Breakdown - • Hardware Segment Breakdown 70 • Software Segment Breakdown 78 • Services Segment Breakdown 86 ND84-10
  7. 7. Table of Contents(continued) Source: Frost & Sullivan Section Slide Numbers Vertical Market Breakdown - • Oil and Gas Market Breakdown 92 • Industrial Market Breakdown 98 • Biofuels Market Breakdown 104 The Last Word (Conclusions and Implications) 110 Appendix 113 ND84-10
  8. 8. Interested in Full Access? Connect With Us Ariel Brown Associate Corporate Communications (210) 247-2481 Research Authors Rahul Vijayaraghavan Senior Research Analyst, Industrial Automation and Process Control Naveen Kumar Senior Industry Analyst, Industrial Automation and Process Control Muthuraman "Ram" Ramasamy Industry Manager, Industrial Automation and Process Control Facebook LinkedIn Group SlideShare Twitter Frost & Sullivan Events GIL Community ND84-10
  9. 9. Associated Multimedia Blog Security as a Profit Center Analyst Briefings Frost & Sullivan SlideShare Presentation Global Building Automation Market Market Insights Annual Outlook for Positive Displacement Pump Market GIL Community Site Growth, Innovation & Leadership Community ND84-10
  10. 10. Global Perspective 40+ Offices Monitoring for Opportunities and Challenges
  11. 11. Industry Convergence Comprehensive Industry Coverage Sparks Innovation Opportunities Automotive & Transportation Aerospace & Defense Measurement & Instrumentation Information & Communication Technologies HealthcareEnvironment & Building Technologies Energy & Power Systems Chemicals, Materials & Food Electronics & Security Industrial Automation & Process Control Automotive Transportation & Logistics Consumer Technologies Minerals & Mining