Frost & Sullivan Research Service   Published: 21 Feb 2005
Automation and Software Markets in India
   Research Overview

Complex Bidding Process Extends Sales Cycles and Restrains Market Growth

The Indian Government is playing a growing role in propelling private and foreign investment in the country, and public sector companies are the primary customers for automation and software suppliers in India. However, the extensive process involved in awarding projects – through open bids for tenders – is restraining growth. Many suppliers complain of contradictions in tender specifications. Further, the multiplicity of participants, each constituting an extra step between release and finalization of a tender, extends sales cycles sometimes even by years. These factors are proving to be a challenge to speedy transactions and expanding market share.

This Frost & Sullivan research service offers insights into the automation and software market in India. The study is segmented industry wise into power generation, oil and gas, metal, automotive, chemicals, cement, pharmaceuticals, pulp and paper, and power. Other sectors such as food and beverages, textiles, packaging, machinery, mining, and general process industries have also been included in this study. Market trends, drivers, and restraints, and industry challenges have been included to aid participants strategically plan and capture market share.

Low Awareness Levels Challenging Automation Deployment

Another barrier to revenue growth is the low level of awareness among end users in relation to knowledge, technological trends, and benefits of automation. A labor-intensive industry, India is now waking up to the advantages of automation following a sudden influx of multinational companies (MNCs). At present, the specifications for automated systems and the allotment of budgets are heavily dependent on discussions with external consultants. The resulting specifications are often contradictory in nature or outdated, stalling deployment of automated systems.

"To raise awareness levels, automation companies along with organizations such as the Confederation of Indian Industry (CII) are conducting seminars and discussion forums for end users," observes the analyst of this research. "Participants must invest in the development of resources to increase awareness and reduce dependency on consultants and the time frame needed to finalize a project."

Indian Automation Market Poised for Rapid Expansion

The Indian automation and software market has been on an upswing following the increasing investments in the public and private sectors. The rising foreign direct investment (FDI) is further encouraged by the low manufacturing costs in India and the abundance of intellectual resources. MNCs are expecting to capitalize on the massive export and import market and the growing domestic consumption. In addition, India’s entry into the World Trade Organization (WTO) is ensuring global standards and compliance with quality.

"The changing profile of the industry is also boosting value-added services such as maintenance services for automation systems, calibration, software upgrades, and asset management services," explains the analyst. "Though in the present market scenario, these offerings are not yet popular, automation suppliers are optimistic that such services will emerge as a key differentiator in long-term customer relationships."

Frost & Sullivan Growth Partnership Service

Based on extensive and in-depth research, real-world consulting work, and new theories tested in hundreds of companies across many industries, Frost & Sullivan has evolved its Growth Partnership Services (GPS) program that provides established and emerging firms with powerful growth visions. Moving beyond token mission statements, GPS provides an actionable vision to growth consulting partners by illustrating how key intelligence and strategic research based on defined goals can guide day-to-day behavior and overall company direction. The foundation of Frost & Sullivan's GPS includes:

  • Assisting companies to reach their full potential in the core business
  • Providing growth strategies to help companies expand into related businesses
  • Preemptively redefining the core business during market turbulence
  • Applying the Frost & Sullivan framework to identify and address common mistakes resulting from misaligned corporate strategies
  • Recommending growth management strategies through continuous partnership

To maximize the potential for growth within a firm’s internal and external environment, Frost & Sullivan consultants can facilitate the creation of strategic programs that deliver improved market success. Frost & Sullivan’s strengths lie in combining strategic understanding with market expertise and applying these with absolute commitment to its clients’ growth.

   Benefits of this Service

Market Revenue Forecast

The total market revenue forecast is provided with predictions by end-user segment in order to aid participants to plan effectively.

End-user Buying Criteria

The various parameters that are important to end users while selecting an automation vendor are analyzed with spider-web charts and ranking charts.

End-user Perception of Major Automation Vendors

The end-user perception of various major automation vendors has been provided based on interviews with customers. This guides participants in targeting consumers successfully.

   Market Sectors

In this research service on the automation and software markets in India, the market has been segmented industry wise into the following:

  • Power generation
  • Oil and gas
  • Metal (includes basic metals such as steel, aluminum, and copper)
  • Automotive
  • Chemicals (fine chemicals, specialty chemicals, heavy chemicals, petrochemicals, and plastics)
  • Cement
  • Pharmaceuticals (includes bulk drugs, specialty pharmaceuticals, injectables, and associated packaging)
  • Pulp and paper
  • Power
  • Others

The ‘others’ industry segment consists of:

  • Food and beverages
  • Textiles
  • Packaging
  • Machinery
  • Mining
  • General process industries

The following technologies are covered in this research:

  • Automation for the purposes of this report: Distributed Control Systems (DCS), Programmable Logic Controllers (PLCs), Supervisory Control And Data Acquisition (SCADA) markets, and Manufacturing Execution Systems (MES). The scope covers the systems, services, and the retrofit markets. It does not include transmitters, sensors, transmission, drives, and sub-subsystems. The forecast for the total automation and software markets is done of the total market numbers along with the individual forecasts for the DCS, PLC, SCADA, and MES segments. The market numbers do not include simulation, enterprise asset management, plant asset management, and computerized asset management software revenues.
   Analyst Presentation

Click here to view the analyst presentation:

4998-10 presentation.ppt







  Table Of Contents

1. Executive Summary
   1. Market Overview
      1. Introduction
      2. Market Trends
   2. Major Research Findings
      1. Competitive Analysis
      2. Revenue Forecasts
      3. Strategic Directions
2. Total Automation Markets In India
   1. Introduction
      1. Market Overview and Definitions
      2. Market Segmentation
      3. Primary Market Challenges
      4. Secondary Market Challenges
      5. Primary Market Drivers
        a. Increasing Requirement for Power Generation and Distribution Boosts Automation Market Demand
        b. Funding from the World Bank and Asian Development Bank in the Water Projects Stimulates the Growth in Supervisory Control and Data Acquisition Systems (SCADA) Automation Markets
        c. Food and Drug Administration (FDA) Regulatory Compliance Requirements Drive Manufacturing Execution Systems (MES) Market Opportunities
        d. Tracking and Tracing during a Potential Recall Situation Encourages the Investment in MES for Automotive and Consumer Appliances Market
        e. Increasing Investment in Infrastructure Projects Boosts the Growth of Automation in End -User Segments like Steel, Telecommunications, Roads and Ports.
      6. Secondary Market Drivers
        a. Increasing Realization of Bottom-line Benefits of MES Boosts Market Acceptance
        b. Investment in Infrastructure for Oil and Auto Fuel Retailing Encourages Investments in Automation Systems
        c. Outsourcing of Pharmaceutical Manufacturing to India Spurs Opportunities
        d. Foreign Direct Investment Boosts Market Expansion
        e. Infrastructure Requirements for the Olympics in China Drive the Growth in Metals and Mining Industries
      7. Market Restraints
        a. Presence of Local Home Grown Manufacturers in Bidding Curtails Profit Margins
        b. Inadequacy of Financial Resources Restrains Market Growth
        c. Low Acceptance of System Integrators by Medium to Large End -Users Restrains the Choices to Only Large Automation Suppliers
        d. Preference given to some Public Sector Companies in some Bids Minimizes the Potential Market for a Majority of Automation Suppliers
   2. Market Analysis
      1. Total Automation Market in India: Growth Rate and Revenue Forecasts
      2. Total Automation Market in India: Industry Segment Analysis
      3. Competitive Structure
   3. Frost & Sullivan Awards
      1. Market Leadership Award
      2. Customer Value Leadership Award
      3. Product Line Leadership Award
      4. Vertical Market Leadership Award
3. Key End-User Segments and Opportunities in India
   1. Introduction
      1. Introduction
      2. Degree of Automation in Industry Segments
   2. Key Industrial Segments
      1. The Oil and Gas Sector - Upstream and Refining
      2. The Power Sector - Generation Transmission and Distribution
      3. The Pharmaceutical Sector
4. Automation Company Strategies in India
   1. Introduction
      1. Country Strategic Analysis Snapshot
      2. Key Success Factors in India
      3. Company Profile and SWOT Analysis of Major Market Participants
   2. Automation Company Directions
      1. Industry Strategy Snapshot
      2. Industry Directions and Strategic Recommendations
5. Appendix
   1. Decision Support Database Tables
      1. Gross Domestic Product
      2. Iron Ore production
      3. Steel Production
      4. Crude Oil Production
      5. Electricity Generation


   List of Figures

Chapter 2

  • Total Automation and Software Markets: Impact of Top Seven industry Challenges (India), 2005-2011
  • Total Automation and Software Markets: Market Drivers Ranked in Order of Impact (India), 2005-2011
  • Total Automation Market: Market Restraints Ranked in Order of Impact (India), 2005-2010
  • Total Automation and Software Markets: Revenue Forecasts (India), 2001-2011
  • Total DCS Automation Market: Revenue Forecasts (India), 2001-2011
  • Total PLC Automation Market: Revenue Forecasts (India), 2001-2011
  • Total SCADA Automation Market: Revenue Forecasts (India), 2001-2011
  • Total MES Automation Market: Revenue Forecasts (India), 2001-2011
  • Total Automation and Software Markets: Revenue Forecasts by End-User (India), 2001-2011
  • Total Automation and Software Markets: Percentage of Revenue Forecasts by End User (India), 2001-2011
  • Total Automation and Software Markets: Competitive Structure (India), 2004
  • Total Automation and Software Markets: Market Share Trends of Major Distributed Control Systems (DCS) Market Participants (India), 2004
  • Total PLC Automation Market: Market Share Trends of Major Programmable Logic Controller (PLC) Market Participants (India), 2004

Chapter 6

  • Decision Support Database: Gross domestic product (Billion USD)
  • Decision Support Database: Iron ore production (Million Metric Tons)
  • Decision Support Database: steel production (Million Metric Tons)
  • Decision Support Database: crude oil production (Thousand Barrels Per Day)
  • Decision Support Database: electricity generation (Billion KWH)
  Further Information

Enquiries from:
Tel: +27 21 680 3260
Enquiries from:
Asia Pacific:
Tel: +65 68900999
Enquiries from:
Tel: +44 (0)20 8996 8500
Enquiries from:
Tel: +972-9-9502888
Enquiries from:
Latin America:
Tel: +54 11 4777 1550
Enquiries from:
Middle East and North Africa:
Tel: +971.4.4331.893
Enquiries from:
North America:
Tel: +1.877.GO.FROST (463.7678)
Enquiries from:
South Asia:
Tel: +91 (0) 22 6160 6666
For a full list of our offices click here.