2011 Process Level Sensing Report Demand-Side Insights

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During this QuickCast, VDC’s David Laing discusses some demand-side insights for the process level sensing solutions market.

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2011 Process Level Sensing Report Demand-Side Insights

  1. 1. Industrial Automation & Control Practice WEBCAST 2011 Process Level Sensing Report AUGUST 2011 Demand-Side Insights © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
  2. 2. Recording Available A full audio recording is available for download at: http://www.vdcresearch.com/market_research/industrial_automation/freeresearch.aspx © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
  3. 3. About UsAbout 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 & Control vdcresearch.com
  4. 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. 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. 6. Today’s Speaker David A. B. Laing, PMP Program Manager / Senior Analyst David is VDC’s program manager in the firm’s Industrial Automation & Controls research practice. David is responsible for supporting VDC’s market research and custom consulting initiatives relative to emerging global opportunities, regional growth strategies, and market intelligence for industrial automation and control, systems components, technologies, services, and related applications across multiple vertical markets. Recent publications include the 2009 Volume 3 report on Position Sensing and the 2010 - 11 volume report on Power Protection products. David accumulated over 30 years of Semiconductor industry experience working at Teradyne Inc. and its worldwide customers. David held multiple positions in support, engineering, IT and management including project and support product management. David was a key leader in Teradyne’s adoption and implementation of remote support technologies. David earned an MBA degree (Summa cum Laude) from the F. W. Olin Graduate School of Business at Babson College and an undergraduate degree in Electronic Systems Engineering Technology from Wentworth Institute. David is a certified Project Management Professional (PMP) through the Project Management Institute.For complimentary insights and marketing data: http://blog.vdcresearch.com/industrial_automation © 2011 VDC Research Webcast Industrial Automation & Control vdcresearch.com
  7. 7. The 2011 Process Level and ITG Report Uses Multiple Sources for a 3600 ViewToday’s Webcast will give you some highlights from the demand-side/channel research End-Users An extensive functional safety Supplier Community survey is employed to give the Regulatory, Channels, etc. demand side perspective. The Many suppliers engage survey set for this report set The project team in interviews / featured a diverse sample of engages with and conversations with the over 550 respondents researches regulatory VDC team, giving us a including End-Users, OEMs, agencies and complete supply-side Systems Integrators, and organizations, as well as perspective of the Consultants. channel partners and market. others. Surveys Interviews Surveys Research Other Industry Supplier Related Interviews Research © 2011 VDC Research Webcast Industrial Automation & Control vdcresearch.com
  8. 8. Beyond Price, Distinct Shifts in Valued Supplier Attributes are Being Seen 2011 Ranking in PL/ITG Survey  The latest survey segmented between service types and timing in order to obtain more granularity Availability for Quick Delivery  It is likely that many demand-side entities  Ranked 4th in 2009 experienced a loss of more experienced  Did response time suffer in personnel 2010 until now?  At the same time, customers are likely to repair process level measurement equipment rather than replacing them Local / On-Site Support  Only ~ 16% of survey respondents  Not Ranked in 2009 described a need for under 4-week lead  Why did this become important? time for a typical order.  Will suppliers fill the gap?  End Users indicate having delays in getting quotes from some suppliers in one case – 3 months!! Availability of Spares  In other cases, the supporting manuals are  Ranked # 7 in 2009 incomplete or confusing, which then  During the downturn, it is likely requires the end user to seek customer that inventories became support tightened © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
  9. 9. There is a Significant Market Opportunity for Service Related Activities Categories of Process Level Spendings Avg %  We asked survey respondents to break down all of their process level spending by category 2.5% 2.5%  Surprisingly, we found that only ~1/2 was for 4.7% the actual hardware 4.9%  The remainder is generally for service related activities 8.7%  The survey respondents showed that they will be looking for external sources for these services 50.8% 10.8% Top 3 Externally Provided Services Cited Custom Engineering 15.2% Integration Testing Hardware Installation Configuration Calibration/Maintenance Programming/software Development Consulting/Specification Services Networking/connections/wiring 0% 50% Compliance with Regulations Verification % of Resp © 2011 VDC Research Webcast Industrial Automation & Control vdcresearch.com
  10. 10. Recent Events Likely Changed The Vertical Markets – Here’s Why - Part 1 2011 Ranking in PL/ITG Survey  There have been many recent incidents involving food quality and contamination. This has also happened in the Bio-Tech Food &Beverage sector. This will drive increased sensing for wash-down, processing, and sanitation.  Ranked 4th in 2011  There will likely be changes in the  Not in Top 5 in 2009 pharmaceutical industry as a result of the unprecedented shortages. In some cases, governments will be forced to either Pharmaceutical / manufacture themselves, or give Bio-Tech incentives to do so. In either case there will be drive for new, more cost efficient/clean  Ranked #2 in 2009 facilities.  Stayed the same in  Within all three of these segments, but 2011 particularly chemical, one overall concern with respect to process level sensors is Chemical about durability. We are seeing some cases where end users, distribution entities, and  Ranked # 1 in 2009 some suppliers are adding value to “off the  Stayed the Same in shelf” sensors in order to make them more 2011 durable when used in some challenging applications. © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
  11. 11. Recent Events Likely Changed The Vertical Markets – Here’s Why - Part 2 2011 Ranking in PL/ITG Survey  Japan/Germany and possibly other countries will be phasing out nuclear power and replacement, conventionally fueled generating facilities will be needed.  The remaining installed base of aging nuclear Electric Power facilities will need additional / replacement N- Stamp and other level sensors to monitor cooling  Ranked 4th in 2011 fluids and other mission critical materials.  Not in Top 5 in 2009  Increases in environmental concerns will further increase the need for water/wastewater capability which, of course, requires significant level sensor usage. Water /  As governments seek to stimulate the economy, Wastewater they have to select projects that have wide  Ranked #2 in 2009 support as calls for decreased spending are resonating. Environmental projects are hard to  Stayed the same in argue with. 2011  Recent changes in the hydrological cycle and subsequent fresh water shortages will drive the need for water desalinization and/or purification.  Widespread hydrological “fracking” requires that the water be cleaned afterwards. © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
  12. 12. Summary of Process Level Demand Side Market Highlights Our recent demand-side survey shows likely shifts in markets as well as preferences Suppliers will be needing to provide advanced features as well as improved durability Recent environmental and safety events will further drive changes Our supplier interviews and demand-side surveys are showing a clear trend that customers will need more support in many phases of the product planning, purchase, installation and use cycle. Cutbacks in the product channel through inventory reductions and phase-out of older products are presenting opportunities for suppliers that demonstrate better responsiveness from both a quotation and delivery perspective. © 2011 VDC Research Webcast Industrial Automation & Controlvdcresearch.com
  13. 13. Thank You for Attending this VDC WebcastFor more information please contact: Bob Perugini – Account Director bperugini@vdcresearch.com | 508.653.9000 x144 David Laing, PMP – Program Manager, Senior Analyst dlaing@vdcresearch.com | 508.653.9000 x146 Chris Rezendes – Executive Vice President cjr@vdcresearch.com | 508.653.9000 x120For complimentary insights and marketing data: http://blog.vdcresearch.com/industrial_automation © 2011 VDC Research Webcast Industrial Automation & Control vdcresearch.com

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