The Measurement, Control and Automation Industry
Measurement, Control and Automation (MC&A) products and services are essential to the proper operation and profitability of the primary materials and energy producing industries. Specific benefits include improved plant throughput and productivity, enhanced worker safety, increased energy efficiency, higher process yields and waste product minimization, improved product consistency and uniformity. MC&A products and services play a key role in elevating worldwide living standards by increasing the availability and reducing the cost of basic materials and energy while insuring adherence to sound environmental practices.
The Value of Process Automation in the US
The Process Instrumentation and Automation (PI&A) market in the United States grew again in 2016 to a level of around $11.7 Billion, a 5-year CAGR of 3 percent, 2011 to 2016. Since 2004, the U.S. PI&A annual market growth had exceeded the U.S. GDP growth until 2015. The drastic drop in oil prices, beginning in late 2014 and continuing through the end of 2016 has pushed the PI&A growth rate down to less than 1 percent in 2016, slightly below the US. GDP rate. The 2017 MCAA Industry Market Forecast shows that the market growth rate will recover to almost 3 percent in 2017 and reach about 4 percent in 2021. The US. GDP growth rate will equal around +/- 2 percent over the forecast period.
Around the Globe
The MC&A industry is a worldwide business producing products and services valued at over $63 billion in 2016. Following very good growth through 2014, recent economic downturns in China, Brazil and Russia combined with the drastic drop in oil prices will moderate growth. These products and services are used for process control and factory automation in the oil & gas, refining, chemical, pharmaceutical, food & beverage, pulp & paper, water & wastewater, utility power, mining/minerals/metals, semiconductor and textile industries.
Measurement, Control and Automation Markets
In 2016, North America and Europe accounted for 48 percent of the Process Instrumentation & Automation market by value, down from 50 percent in 2014. Market share continues to shift to other regions of the world.
Measurement, Control & Automation Products and Services
MC&A was traditionally a product focused business but, since the emergence of microcomputer-based distributed controls, this industry has experienced the growth of a vibrant services sector.
Measurement, Control & Automation Products
MC&A products generally fit into the following categories
- Gas Analytical Instruments
- Liquid Analytical Instruments
- Pressure Instruments
- Electronic Flowmeters
- Mechanical Flowmeters/Primary Elements
- Electronic Level
- Mechanical Level/Tank Gauging
- Temperature Instruments
- Control Systems
- Remote I/O
- Data Acquisition Systems
- Final Control Devices
Measurement, Control and Automation Services
- Distributors – sales representatives
- Process control design services
- Advanced control services
- Process simulation – control systems testing services
- Control system integration services
- Contract instrument/system maintenance services
- Publications/training/economic analysis
MC&A products, and directly related services, represent about 85% of the aggregate MC&A revenues.
Measurement, Control and Automation Producers
An estimated 250-300 firms worldwide produce MC&A products. Most of these firms also provide MC&A services. Over 1,000 firms worldwide provide MC&A services.
Traditionally, the top 12 largest MC&A producers account for somewhat more than 70% of the worldwide revenues. The balance of the MC&A product firms and the dedicated MC&A service firms capture 25-30% of the worldwide MC&A revenues.
The five largest firms worldwide in 2016 (with process control revenues in excess of $5 Billion each) were: Siemens, ABB, Emerson, Rockwell Automation and Schneider Electric. The remainder of the Top 12 included GE, Mitsubishi Electric, Danaher, Yokogawa Electric, Honeywell, Endress+Hauser, and Omron.
The Measurement, Control & Automation Association (MCAA)
MCAA is the principal trade association serving North American MC&A producers. The Association’s 170 plus member firms account for more than half of the U.S. MC&A product and services revenues with ten of the top fifteen producers represented in membership. It is the North American trade association representing providers of process control, measurement instrumentation and factory automation systems and software. The Association was formed in the 1940s and has been known historically as Recorder-Controller, Inc. as well as The Process Measurement & Control Section of SAMA. In 1994, the organization disassociated from SAMA (the Scientific Apparatus Makers Association) and established itself as an independent not-for-profit trade association. Its programs provide tools to both manufacturers and distributors in the areas of market trends (including bookings reports), operating benchmarks, customer satisfaction (including benchmarks against industry peers and competitors), compensation and benefits, sales training and executive education and networking. More about each of these programs can be found in this website.
Courtesy: Global Automation Research LLC, Minneapolis, MN (952-920-2660)