September/October 2013
Automation Update

Mobile devices drive CPM growth

The collaborative production management for process industries (CPM-P) market is still a hot market-largely driven by mobile devices, big data analytics, manufacturing intelligence, energy management, regulations, globalization, performance improvements, and the need to reduce manufacturing costs. The global CPM market, which encompasses the manufacturing execution systems (MES) market, is increasing in all regions of the world, driven by the need to collaborate and increase efficiency. Growth in the market is also due to the increased need for real-time information and the use of newer technologies, such as usability tools, software templates and apps, and mobility devices. Despite economic instability and risk aversion in some areas, ARC expects that industry dynamics will continue to drive overall CPM-P market growth in 2013 and beyond.

Due to improved graphic capabilities and the emergence of cloud computing, mobile devices with customized displays are rapidly making their way into the manufacturing environment and driving CPM-P/MES growth. Specialized graphics and displays are being designed for smartphones and tablets that correspond to the new smaller screens with easy-to-use pop-ups and drill-down capabilities. Apps are being designed to incorporate customized screens and include interaction and collaboration with information that can produce faster results.

Safety regulations compel industries to implement SISs

European process and discrete industries are bouncing back from the economic downturn and are focusing on improving production. The improving market conditions encourage them to invest in new automation technologies and production innovations, including safety instrumented systems (SISs).

New analysis from Frost & Sullivan, Analysis of European Safety Instrumented Systems Market, finds that the market earned revenues of $510.1 million in 2012 and estimates this to reach $665.4 million in 2017.

Greater production creates a need for more intensive control of the process, especially its efficiency and safety. SISs allow users to control the health of the plant's equipment and shut down the process if the preset conditions have been violated.

Also, the IEC 61508 and IEC 61511 standards have enhanced end-user awareness of the benefits of risk analysis. The guidelines for assessing hazards and planning safety management are prompting them to be more accountable for safety.

No enforcement slows adoption of high-efficiency motors

IHS reports that IE1 standard efficiency motors still represent a significant portion of revenues in low-voltage (LV) motor markets that are under government-mandated transitions to higher efficiencies.

The global IE1 LV motor market was estimated to be worth $7.5 billion in 2012, which represented 60 percent of the total regulated LV motor market by revenues. Regulatory exemptions that allow motors of lesser efficiency to be produced beyond the required inception dates have slowed the turnover of both annual sales and the global installed base of motors to IE2 or above. This has greatly impeded the high-efficiency motor markets from gaining traction, and has diluted revenue growth in the global LV motor market significantly. Exemptions are being exploited to circumvent the original intent of the legislation. IE1 motors are still the dominant motor efficiency class in the European Union and South Korea despite these markets being more than two and six full years, respectively, into the transition to IE2.

Batch management software growing

According to ARC, the increasing importance of quality, production performance, and business system integration, and increasing regulations on food and drug safety are fueling the growth in the batch management software market. Global economic conditions and countries with increasingly troublesome fiscal conditions and policies are affecting regional growth patterns.

The pharmaceutical and biotech, food and beverage, and chemical industries are the leading users of batch management software. Together they purchase more than two-thirds of these systems worldwide. As manufacturers expand their markets, their packaging is becoming more diverse and complex. This and the fluctuating cost and quality of raw materials are increasing the complexity of the manufacturing processes needed to produce consistent quality products.

Batch management software systems also play a key role in reducing the time for development of a new product and increase speed-to-market in the highly regulated pharmaceutical and biotech industries.

Netherlands named partner country for Hannover Messe

The Netherlands has been named the "partner country" for Hannover Messe 2014. The high-tech, export-savvy nation will use the industrial exhibition to promote its trading credentials.

The Dutch government is lending its vigorous support to the partner country project. Given the country's small domestic market, exports drive the Dutch economy. From January to November 2012 exports amounted to some EUR 470 billion, a gain of 17 percent year on year. The country's fastest growing sector is mechanical and electrical engineering, with forecasts envisioning annual growth of 4.5 percent in exports of mechanical engineering products and services through 2020.