A new report released by Frost & Sullivan highlights the potential for vendors of distributed control systems gaining more revenue if they focus on open architectures.
The study states that focusing on open, secure and interoperable distributed control systems would expand revenue generated from $14.79 billion to $17.14 billion by 2025.
Moreover, integrating cybersecurity and service-based business models will help vendors to expand their customer base.
The move by end-users towards Industrial Internet of Things or Industry 4.0 is driving greater demand for the convergence of IT-operational technologies.
Vendors in the market that are keen to prove their agility and adaptability will look to innovate in the software segment to create value for end users, according to the study.
Vendors will be able to generate further revenues by making the most of the growth opportunities in:
- Providing services, mainly in the areas of operations, maintenance, training, and support.
- Minimising the investment risk quotient by adopting new business models such as Product-as-a-Service, pay-per-use, and licensing.
- Migrating to advanced DCS systems (or modernisation) to benefit both end users and suppliers.
- Adopting a customer-centric approach to solution development and delivering high customisation based on end-user needs.
Rohit Karthikeyan, senior research analyst for Frost & Sullivan’s Global Industrial team, said: “Owing to the higher adoption of digitalisation in end-user industries, DCS vendors are collaborating with IT providers to develop digital capabilities. Start-ups with niche capabilities will, therefore, play a crucial role in the future of industrial automation.
“Meanwhile, as end users‘ projects increase in scale and complexity, their dependence on main automation contractor(MAC) will also rise. Consequently, DCS vendors will strive to develop MAC capabilities to execute end-user automation projects and gain a competitive advantage.
“Going forward, the growth in emerging Asian countries will expand APAC’s share of the global DCS market revenues to 34.8% by 2025.
“Investments in new pipeline projects from the Middle East to Central Europe and refinery projects in countries such as Germany, France, and Italy are expected to lead to new midstream and downstream project activities and ultimately, revenue opportunities in the next three to five years.”
For further information on this analysis, please visit: http://frost.ly/3er