ABB retains top spot in DCS outlook study

ABB has retained the top worldwide market position in ARC Advisory Group’s Distributed Control Systems Worldwide Outlook study.

According to the study, the global distributed control system (DCS) market grew modestly in 2012, with stronger growth in North and Latin America. The overall market for DCS increased by 3%, while North America increased by almost 18%.

Several factors contributed to growth in the Americas, according to the report. North America’s overall economic recovery has been stronger than in other parts of the world; contributing factors to this include the increased use of new technologies in oil and gas production and related petrochemical project expansion in the region.

Globally, prices for oil, gas and other commodities have remained at a level that can support new production investments. The resurgence in power generation projects, especially in gas-fired combined cycle projects, also increased demand for DCS.

“ABB’s focus on the needs of energy and energy-intensive industries like oil and gas, utilities and mining operations have driven the integration of its electric power infrastructure and automation systems; this has reinforced their global market share,” said Harry Forbes, principal analyst at ARC and author of the report.

“For industrial customers, the benefit is greater visibility of energy use and more integrated and automated operations.”

According to the study, based on revenues, ABB was also the market share leader for Latin America and Europe/Mid East/Africa (EMEA) regions. ABB remained the global market share leader for both service and software and the worldwide leader in key global verticals including oil and gas, mining and metals, and pulp and paper.

The report also notes that the DCS business has been and will continue to be primarily a services business, with combined project, engineering and operational services accounting for more than half of total projects revenues. The shortage of qualified engineers will contribute to the growing need for these services. The use of new information technologies, such as virtualisation and collaboration portals, give EPC and end-user firms the ability to access teams for global projects from a worldwide pool of technical talent.