Activity in end-user markets drives Australia-New Zealand automation and controls market


Companies in Southeast Asia and Australia-New Zealand have traditionally responded tepidly to automation and controls solutions. Due to the economic downturn, they have deferred large scale expansion plans but have not completely stalled R&D investment.

Despite this impressive industrial growth has made these regions fertile markets for automation techniques.

New analysis from Frost & Sullivan indicates that the market earned revenues of US$921.4 million in 2011 and estimates this to reach US$1.88 billion in 2018.

“Although automation systems are expensive to install and use, most of them offer advantages that far outweigh the burden of the initial investment,” says Frost & Sullivan research analyst Krishnan Ramanathan.

“Companies believe that automating a system significantly reduces the scope for damage, as systems are almost free of human intervention and the chances of errors are reduced.”

Automation companies will be heartened by the market’s prospects but they, especially the majors, will also have to strategise for the stiff competition in the market.

Currently, there is little specificity in technologies and in some cases, PLC and DCS can be used interchangeably. However, technologies such as PLC, SCADA, and DCS will continue to remain vital to industries and will be significant contributors to market revenue.

The market will also get a leg up from the developments in end-user industries. The higher demand for power and water across Southeast Asia and Australia will stoke the markets for solar and wind energy, which, in turn, will require automation.

The flourishing mining and oil and gas industries in Australia will provide an extra thrust to the demand for automation solutions.

Meanwhile, the rising green consciousness is encouraging the installation of smart grids and new generation technologies, all of which require automation to function optimally. Most countries generate demand for automation by investing in infrastructure.

“Most public and private agencies rely extensively on technology, boosting the demand for automation products and thereby, technology,” says Mr Ramanathan.

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