Manufacturing AUTOMATION

Awareness of energy market trends is crucial for sustained profitability: Frost and Sullivan

October 7, 2011
By Manufacturing AUTOMATION

The automation and compression control markets are dynamically shaping up with the onset of new technologies and the impact of energy-efficiency regulations. Maintaining sustained profitability in a highly competitive and challenging economic scenario requires an in-depth understanding of key trends that are expected to influence the automation and compression control markets. The emergence of new technologies and regulations are changing the way industries do business.

Participants in the automation and compression control space must improve their degree of competitiveness by staying up-to-date with the latest technologies. While new technology implementation may be expensive from an initial investment perspective, the long-term potential of optimizing manufacturing cost may drive the gravitation towards new technologies. Investments for process improvements will drive the uptake of advanced automation and compression control technologies.

New analysis from Frost and Sullivan’s Energy Efficiency and Technology Trends in Automation and Compression Control Markets research finds that technology adoption and impact of regulations can have different effects across geographic regions, which fosters the need to understand fully the medium- and short-term opportunities within these markets.

“Efficiency mandates are expected to drive retrofit opportunities for compressors and associated assets,” said Frost and Sullivan industry analyst Muthuraman Ramasamy. “However, the lack of awareness of emerging technologies and their potential benefits and profitability can restrain uptake.”


End users are apprehensive about moving away from traditional legacy systems to new technologies as they may be confronted with productivity loss, system downtime and loss of business opportunities.

“Although the impact of imposed regulations might trigger implementation of new technologies, the real value to the end user is realized when the organization’s goals have a precise alignment with its vision,” said Ramasamy. “Technologies that meet the value-equation (cost, ROI, benefits, etc.) of end users will receive maximum patronage from them.”

New technologies have already witnessed steady penetration, not just in the developed markets, but also in the emerging markets. Emerging markets are the upcoming hotbeds for innovation and improved process excellence.

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