Asia-Pacific is expected to account for 30.1% of the total LCS market by 2022, followed by North America
SANTA CLARA, California, Oct. 27, 2020 /PRNewswire/ — Frost & Sullivan’s recent analysis, Zeal for Productivity and Profit Pressures Accelerate the Growth of the Global Automation Lifecycle Services Market, 2019–2022, finds that the industrial automation lifecycle services market is likely to experience strong short-term growth despite COVID-19. Industry end-users seek a shift from manual to digital workplaces, movement to online and inline continuous monitoring, and a shift toward operational expenditure-based pricing models. The global automation lifecycle services (LCS) market is estimated to reach $61.11billion by 2022 from $52.64 billion in 2020, at a compound annual growth rate (CAGR) of 7.2%.
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"Asia-Pacific (APAC) is expected to account for 30.1% of the total LCS market by 2022, followed by North America (28.9%), due to the commissioning of new process manufacturing plants and large plant base," said Vasanth Krishnan, Senior Research Analyst, Industrial Practice. "Owing to the large presence of the discrete and hybrids industry, the EU will be third with 27%. MEA and LATAM regions account for 13.9% of the market."
Krishnan added: "Although Europe and North America are expected to be the fastest-growing regions with a CAGR of 8.2%, APAC is expected to bounce back strongly from COVID-19, with power, chemicals, and water industries showing strong recovery signs. In the Middle East, integration of refining and petrochemicals is leading to market consolidation, while LATAM is expected to witness strong recovery in 2021 and 2022, once COVID-19 subsides."
To tap into the growth prospects exposed by the industrial automation LCS market, vendors should focus on the following:
- Value shift from hardware to software: Automation vendors should support clients in adopting digital technologies by minimizing the investment risk quotient with new business models, such as product-as-a-service, pay-per-use, and licensing.
- Cybersecurity as a service: Market participants should work with cybersecurity and IT vendors to build their cyber value proposition. Added security features will become a priority for customers with an increasing need for retrofit solutions.
- Focusing on emerging economies: More than 40% of end-user industries are based in developing economies, especially Middle Eastern and Asia-Pacific countries. Automation vendors should offer cost-effective products with flexible servicing support to gain market share in this region.
- Strengthening digital capability through partnerships and mergers and acquisitions: In addition to offering industrial internet of things (IIoT)-ready solutions, automation vendors should forge strategic partnerships with pure-play IIoT providers to add value to the existing offering and enable them to be a single point of contact for end-users.
Zeal for Productivity and Profit Pressures Accelerate the Growth of the Global Automation Lifecycle Services Market, 2019–2022 is the latest addition to Frost & Sullivan’s Industrial Automation & Process Control research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Zeal for Productivity and Profit Pressures Accelerate the Growth of the Global Automation Lifecycle Services Market, 2019–2022
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