analysis of the north americal terminal automation market
TRANSCRIPT
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)
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
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
Dri
vers
R
es
tra
ints
Dri
vers
R
estr
ain
ts
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
Scope
Source: Frost & Sullivan
Product Segmentation Geographic Split Vertical 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
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
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
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
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
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