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Frost & Sullivan: Technological Advancement and Increasing Investment in End-user Industries Boosts Automation Market in Japan


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Frost & Sullivan

25 Mar, 2013, 04:28 GMT

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-- Quality, reliability, and energy efficiency will be important drivers for increased automation

SINGAPORE, March 25, 2013 /PRNewswire/ -- Along with the economy, the automation and controls market in Japan is steadily recovering after the massive setbacks caused by the Great East Japan Earthquake in 2011. Strong support from the government in terms of investment in the ever-growing electronics and semiconductors, metals and mining, pharmaceuticals, and automotive industries as well as the continuing demand for Japanese products from other Asian countries is fuelling the use of automation products.

New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), Analysis of the Automation and Controls Market and Growth Opportunity in Japan, finds that the market earned revenues of over $2911.1 million in 2011 and estimates to reach $4800.2 million in 2017. The study covers the following product segments: programmable logic controllers (PLC), distributed control systems (DCS), supervisory control and data acquisition (SCADA), human machine interface (HMI), and manufacturing execution systems (MES).

"Rising energy costs are pushing end users to invest in automation, which optimizes asset utilization and reduces total production costs," observed Frost & Sullivan Research Analyst Vandhana Venkatesan. "Control systems can carry out condition monitoring, collaborative manufacturing, and real-time optimization, reducing time-to-market while maintaining standards."

The need for compliance with safety, regulatory, and quality standards is another key driver in the market. The Japan Industrial Standards (JIS) encompass both the ISO and IEC standards and mandate certain safety-integrated controls for efficient production. As manufacturing companies look to deploy state-of the-art automation and control systems, vendors will be challenged to cater to their technology, service, support and training demands.

Price competition is expected to be fierce in the high-demand PLC and DCS segments. The blurring difference between DCS and advanced PLC functionality will also force the latter to focus on multi-domain functionality and increased programming flexibility to sustain market share.

Price reduction of DCS drives will increase demand from small- and medium-scale manufacturing units. PC-based SCADA systems, HMI solutions and MES-integrated enterprise resource planning solutions too are expected to see increased demand. The steady growth in manufacturing and technological advancements will also support growth in the MES segment, which is currently suffering due to low awareness of the technology's benefits.

"Cost, performance, prompt delivery, support, technology, reliability, and customer relationships will be key competitive factors in the automation and controls market," stressed Venkatesan. "After-sales service support, in particular, is required to have an edge over other competitors."

If you are interested in more information on this research, please send an email to Jessie Loh, Corporate Communications, at jessie.loh@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Analysis of the Automation and Controls Market and Growth Opportunity in Japan is part of the Industrial Automation & Process Control Growth Partnership Services program, which also includes research in the following markets: Global MES and ECQM Market for the Regulated Industries, Automation and Controls Market in Southeast Asia and Australia-New Zealand, Middle East Advanced Process Control and Process Optimization Market, Global DCS Market, and Automation & Software Solutions for Power Industry. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
F: +61 (02) 9252 8066
E: djeremiah@frost.com

Jessie Loh
Corporate Communications – Asia Pacific
P: +65 6890 0942
F: +65 6890 0988
E: jessie.loh@frost.com

http://www.frost.com

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