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Frost & Sullivan: Australia's Busy Mining Activity Stokes the Automation Services Market

- End users need to engage with multiple vendors as single vendors are unable to meet the complete range of requirements

SYDNEY, April 2, 2014 /PRNewswire/ -- Australia's dynamic and flourishing mining industry has created a lucrative market for automation solutions, especially maintenance and repair services. The mining process and the transportation of resources (coal) from the bottom of the mine to power stations is mostly automated and features a range of sophisticated mining and material-handling technologies. These complex applications require regular monitoring and maintenance, translating to higher revenue opportunities for automation vendors.

New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), ANZ Automation Services Market, finds that the market earned revenues of $181.9 million in 2013 and estimates this to reach $279.2 million in 2018, with most of the growth expected from the power and mining industries.

The flip side of the greater automation in mining is the increased frequency of attacks by hackers; the majority of users do not have adequate security measures to thwart such attacks. As a result, newer automation systems will have to comply with additional safety protocols to gain acceptance.

"While there are numerous projects in progress, end users are conservative about investing in new systems," noted Frost & Sullivan Industrial Automation & Process Control Research Analyst Krishnan Ramanathan. "They are, however, likely to spend on services so vendors are ramping up their service portfolios – from consulting to maintenance."

End users are also showing a willingness to engage with multiple vendors and their system integrators. Although most customers prefer to liaise with a single point of contact for all their automation requirements, in many cases, automation companies are unable to address all of them.

Gradually, end users are also realizing that liaising with a single vendor could be detrimental if there are snags at the supplier level. In such a scenario, specifying open architecture standards could well be the most effective way to ensure flexibility and enable system integrators to step in to address technical concerns.

"Already, major automation companies have forged ties with local distributors in key regions in Australia," noted Ramanathan. "Several of the distributors are also value-added resellers that sometimes exclusively market products and services of the companies they represent."

Overall, with a rise in the number of projects in several industries including mining, energy, water and wastewater, automation vendors are expected to experience significant growth. They will do well to introduce advanced technologies that will quickly gain acceptance and spawn greater demand across industries.

If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at [email protected], with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

ANZ Automation Services Market is part of the Industrial Automation & Process Control Growth Partnership Service program. Frost & Sullivan's related studies include: The Main Automation Contractor (MAC) Model in the Automation and Controls Market, ANZ Manufacturing Execution Systems Market, Southeast Asia and ANZ Automation & Software Solutions Market for the Chemical & Petrochemical Industry, and Global Smart Plants Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

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Southeast Asia Automation Services Market
P76F-10

Contact:

Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
F: +61 (02) 9252 8066
E: [email protected]

http://www.frost.com

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