As the lifecycle benefits of fieldbus solutions become more apparent, it is becoming more accepted in a wider range of industries and by greater numbers of end users. The worldwide market for fieldbus solutions in the process industries is expected to grow at a compounded annual growth rate (CAGR) of 22.3percent over the next five years. The market was greater than US$831million in 2006 and is forecasted to be over US$2279million in 2011, according to a new ARC Advisory Group study.

The holy grail of a fieldbus is interoperability of devices, which is only achievable if system testing and validation are available. “Initially, the primary advantage of fieldbus was portrayed as reduced wiring, installation, and commissioning costs. However, end users are now indicating greater operational expenditure (Opex) benefits are being realised due to the bi-directional communication and improved process efficiency of linked intelligent devices,” says senior process automation analyst Paula Hollywood, the principal author of ARC’s new Fieldbus solutions in the process industries worldwide outlook.”

Manufacturers are recognising that the real value of fieldbus is Opex related rather than capital expenditure (Capex) related. End users have reported that predictive maintenance is the single largest savings resulting from the use of fieldbus. Consequently, supplier revenues from unbundled services such as plant asset management (PAM) solutions will be the source of the greatest growth in fieldbus revenues. Revenues from field devices are also expected to be above average as greater amounts of intelligence are embedded in those devices that carry higher average selling prices.

With the number of installed fieldbus-enabled devices approaching a million units, fieldbus has finally made its way into the mainstream of process automation. Recent enhancements to fieldbus functionality focus on sharing data from the field with PAM applications as well as providing connectivity to safety systems through TÜV-approved fieldbus networks and other applications through technologies such as OPC. Such enhancements are expected to contribute to double-digit fieldbus growth.

Fieldbus solutions lend themselves particularly well to large new installations that can best leverage the benefits of the technology, says the report. Consequently, the BRIC countries (Brazil, Russia, India and China) will experience the greatest growth. Asia Pacific will be the fieldbus growth engine, much the same as it has been for much of the process automation industry, with growth approaching 32percent. Latin America is also expected to experience the highest growth rate of nearly 34percent. However, the region will still only account for a small percentage of the total fieldbus market.

In a second report, ARC finds that manufacturing companies continue to increase investments in capital expenditures for automation equipment as they clearly recognise the role of automation in the fierce global market. As a result, the worldwide market for total process automation will grow robustly, with ARC expecting a compounded annual growth rate (CAGR) of 6.4percent over the next five years. The market was nearly US$58billion in 2005 and is forecasted to reach nearly US$79billion in 2010, according to Automation business for the process industries worldwide.

“Modern process automation plays a key role in enabling integration of real-time visibility, agility, and speed into the performance management system so that the enterprise remains on course in improving business performance,” according to senior analyst Himanshu Shah, the report’s principal author.

The global market for automation is still in a growth phase that is expected to last through the next several years. China, India, and the rest of Asia are firing on all cylinders, booking large infrastructural and grassroots projects. The Middle East also continues its capital investment boom, with opportunities not just limited to the oil, gas and refining industries. Japan, North America and Western Europe, the most developed economies when it comes to automation and manufacturing, are experiencing less growth, but are driven significantly by the need to modernise a rapidly aging automation infrastructure.

Manufacturers continue to look at ways that provide greater efficiency, cost reductions, and improved productivity in the global competitive arena. To satisfy this underlying demand, suppliers continue to make investments for greater market penetration and product development. This report identifies a number of issues suppliers face in this market where users demand increasing operational efficiency and rely on automation products for real-time operation intelligence to measure key performance indicators. 

Discrete automation suppliers are also striving to increase their solution’s capabilities and reach more hybrid and process markets. Many discrete automation suppliers are offering process solutions and increasing their presence in process industries. Suppliers are augmenting their deliverables and enhancing functionality to meet the expanding needs of users.