Product category:
Marketing strategy and consultancy
News Release from: Frost and Sullivan
Edited by the Marketingservicestalk Editorial
Team on 01 May 2007
Frost and Sullivan report analyses ACS
market
Frost and Sullivan's latest report on the European automation and control solutions (ACS) market in the pulp and paper sector finds that the sector is nearing saturation.
The maturity of the European ACS market in pulp and paper suggests that automation and control solution manufacturers should rethink their growth strategies in this sector in order to maintain profitability Frost and Sullivan finds that the European ACS Market in Pulp and Paper earned revenues of $1.22 billion in 2006 and estimates this to reach $1.39 billion in 2013
This article was originally published on Marketingservicestalk on 4 May 2007 at 8.00am (UK)
Related stories
Analysis predicts growth in east European ACS
The automation and control solutions market in eastern Europe is expected to witness strong growth, according to the latest analysis from global growth consultancy Frost and Sullivan.
Frost and Sullivan turns spotlight on OLED
Organic light-emitting diodes (OLEDs) will be a key technology of the future, particularly in the context of display and lighting applications, according to analysis from Frost and Sullivan.
Frost and Sullivan has created a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the European ACS Market in Pulp and Paper.
Pulp and paper makers' conservatism towards adopting rapid technological advances has begun to fade.
However, automation and control solution manufacturers need to be aware of the changing needs of end users and the diverse criteria on which they will evaluate their suppliers in the future.
Further reading
Briefing analyses welding equipment market
Frost and Sullivan is hosting a Quarterly Analyst Briefing on the European Welding Equipment Market on Wednesday 6 June 2007 at 15.00 BST.
Report investigates belt and chain drive market
While the European market for belt and chain drives is mature, original equipment manufacturers (OEMs) are continuing to focus on improving the design and the performance of their products.
Briefing tackles European Drives Market in food
Frost and Sullivan is to Host a Quarterly Analyst Briefing on the European Drives Market in the Food and Beverage Industry on Tuesday 21 August 2007 at 15.00 BST.
Pulp and paper makers in Europe are under pressure to cut costs by removing process bottlenecks and to improve overall process efficiency.
"The primary driver for growth in the European ACS market in the pulp and paper sector will be the growing need to improve the efficiency of existing pulp- and paper-making processes for better profitability," noted Frost and Sullivan Research Analyst Ambika Kolangarakath.
"The need for the effective use of raw materials such as fibre and energy will lead to continued investments by pulp and paper makers in automation architecture and control systems to streamline their operations".
Meanwhile, ageing control solutions and technology obsolescence in automation architecture in most of the older mills will drive replacement demand in a large number of western European mills.
Most of the control solutions in the older mills are about 15 to 20 years old and have to be gradually replaced, since it will become increasingly difficult for end users to obtain hardware, software or manpower support for this antiquated technology.
This is a positive development for automation suppliers, since very limited replacements have been made in their large installed bases in Europe to date.
Given the high levels of competition in this market, there is a growing need to add value to products, with an emphasis on comprehensive and integrated control solutions.
"Currently there are several ACS product offerings with minimal differences in features and benefits," said Kolangarakath.
"These need to become less commoditised if drastic price reductions, intensifying competition and general business decline are to be addressed".
A key restraint to revenue growth in this market is the negative price pressure arising from increasing commoditisation and declining differentiation in the vast range of products offered by suppliers.
With intense competition contributing to low growth in the market, the major participants will need to focus on product differentiation though value-added features and functionality, along with differentiated services.
Meanwhile, small- to medium-sized suppliers that focus on single or niche solutions will have to expand their product portfolio or resort to mergers with other companies to supplement their offerings.
This aspect will assume greater importance since most end users are increasingly looking to meet all or the majority of their control system needs from the lowest possible number of suppliers.
European ACS Market in Pulp and Paper is part of the Industrial Automation and Process Control Subscription, which also includes research in the following markets: European ACS market in Oil and Gas, European ACS market in Power Generation, European ACS market in Food and Beverages, European ACS market in Chemicals.
All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
Frost and Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years.
The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities.
Frost and Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
• Frost and Sullivan: contact details and other news
• Email this article to a colleague
• Register for the free Marketingservicestalk email newsletter
• Marketingservicestalk Home Page
Search the Pro-Talk network of sites
