analysis of the north americal terminal automation market

11
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)

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Page 1: Analysis of the North Americal Terminal Automation Market

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)

Page 2: Analysis of the North Americal Terminal Automation Market

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

Page 3: Analysis of the North Americal Terminal Automation Market

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

Page 4: Analysis of the North Americal Terminal Automation Market

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

Page 5: Analysis of the North Americal Terminal Automation Market

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

Page 6: Analysis of the North Americal Terminal Automation Market

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

Page 7: Analysis of the North Americal Terminal Automation Market

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

Page 8: Analysis of the North Americal Terminal Automation Market

Interested in Full Access? Connect With Us

Ariel Brown Associate Corporate Communications

(210) 247-2481

[email protected]

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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ND84-10

Page 9: Analysis of the North Americal Terminal Automation Market

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ND84-10

Page 10: Analysis of the North Americal Terminal Automation Market

Global Perspective 40+ Offices Monitoring for Opportunities and Challenges

Page 11: Analysis of the North Americal Terminal Automation Market

Industry Convergence Comprehensive Industry Coverage Sparks Innovation Opportunities

Automotive &

Transportation

Aerospace & Defense Measurement &

Instrumentation

Information &

Communication Technologies

Healthcare Environment & Building

Technologies

Energy & Power

Systems

Chemicals, Materials

& Food

Electronics &

Security

Industrial Automation

& Process Control

Automotive

Transportation & Logistics

Consumer

Technologies

Minerals & Mining