Frost & Sullivan Research Service   Published: 3 Mar 2004
North American SCADA Systems and Software Markets
  SERVICE HOMEPAGE
RESEARCH OVERVIEW BENEFITS OF THIS SERVICE MARKET SECTORS
TECHNOLOGIES ANALYST PRESENTATION TABLE OF CONTENTS
ORDERING INFORMATION FURTHER INFORMATION
   Research Overview
 

Limited End-user Awareness Inhibits Adoption of SCADA Systems

While computer manufacturers are investing more in differentiating products, end users’ preoccupation with unit costs of parts often makes them miss a total systems perspective and the significance of more advanced units in relation to it. Educating users, who are primarily driven by features, availability, and price factors, about the benefits of supervisory control and data acquisition (SCADA) systems is necessary to increase its adoption. The recent power crisis in the United States and Canada highlighted the importance of SCADA and is expected to have a strong positive impact on the market.

This Frost & Sullivan research service analyzes the North American markets for SCADA systems and software. The study provides valuable analyses of market drivers and restraints and gives forecasts, identifying the areas of growth. The segments covered include PC-based turnkey systems, packaged software, hardware aftermarket, and the SCADA workstation-based turnkey aftermarket.

"Ease-of-Use" and "Increased Functionality" Propel Adoption of PC-based Systems

"PC-based systems are gaining popularity with small- and medium-sized projects because of their economical cost, and ease of use/integration in a variety of applications," says the author. "A new breed of end users that has grown up with PCs, and is familiar with Windows-based systems, is speeding up the acceptance of a PC-based turnkey SCADA system as the wave of the future for control and data acquisition systems."

Lower costs of maintenance and increased processing power are encouraging many companies to foray into the SCADA turnkey systems, pushing UNIX workstation-based turnkey solutions out of the market. However, the perception that Windows-based systems are more reliable in higher-end applications coupled with the lack of features such as additional fail-safe capabilities are likely to restrain the SCADA-based market.

Improving Economy and New Global Infrastructure Projects Set Stage for Sustained Market Growth

"The growth in global infrastructure projects, the deregulation and privatization of power and electric utilities, and a large installed base of systems along with decreasing prices of hardware are helping the SCADA market to grow," notes the analyst. The ability of the systems to increase efficiency and improve infrastructure ensures a steady interest from investment development banks and trade administrations.

As competition is fierce, companies that innovate, provide value-added products, and optimize merger and acquisition opportunities/threats are expected to fare well in this evolving market. Since the system configuration and expertise provide the most profit out of the total systems purchase, developing relationships with system integrator firms is also important.

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  • 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
 

An In-depth End-user Analysis Allows Companies to Further Expand their Customer Base

This study provides an in-depth analysis of the SCADA systems' main end-user market segments such as power and electric utility, oil and gas, and water and wastewater. The research will not only benefit SCADA companies but also help OEMs and investors to stay abreast of the newest technology trends that are contributing to the demand for SCADA systems in different end-user markets. The comparison of each of these markets and the analysis by geographic region will allow market participants to gain a more competitive position in this growing and dynamic area.

Detailed Product Breakdown Compares Opportunities across All Market Segments

The research focuses on the market for SCADA systems. The market covers the main product areas including PC-based turnkey SCADA systems, the packaged SCADA software market, the SCADA hardware aftermarket, and the SCADA workstation-based turnkey aftermarket. Detailed analysis of each segment presents a complete picture of the market.

Market Share Analysis Identifies Major Participants

The study provides market share breakdown of major participants for each product segment. Suppliers can be divided into stock suppliers, captive manufacturers, and custom suppliers. The leading market competitors are those whose dominance is felt across a number of regions and application areas. The market is also served by a range of more specialized manufacturers that are either focused on a specific technology or are serving only a limited customer base. Many of these participants face stronger competition and new entrants have initially focused on smaller market areas to increase their presence and use it as a base from which to expand into the rest of the North American market.

Detailed Forecasts and Analysis for Designing Long-term Growth Strategies

The research provides forecasts for individual products from 2003 to 2009. As these forecasts incorporate major challenges, drivers, and all the major envisaged events, the study offers a greater understanding of the future market scenario. This will help market participants align their strategies and understand market conditions.

Comparison of Different SCADA Systems

The research provides an analysis of which technologies are currently being employed in the various end-user markets and provides insights into which products are most likely to dominate the market in the future. It suggests reasons for the use of certain SCADA systems over others and discusses perceived advantages.

   Market Sectors
 

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

  • PC-based Turnkey SCADA Systems
  • Packaged SCADA Software Market
  • SCADA Hardware Aftermarket
  • SCADA Workstation-based Turnkey Aftermarket
   Technologies
 

The following technologies are covered in this research:

  • PC-based Turnkey SCADA Systems: This refers to the sale of the PCs (both master terminal unit and additional nodes), proprietary software and non-proprietary software installed into the system, the operating system installed, and all the connective tissue (hardware) that makes the system run. Additionally, these systems include remote telemetry units or programmable logic controllers that provide field data to the control system. These systems are either put together in-house within the corporation providing the SCADA system or the components are bought/specified and linked together through an independent systems integrator.
  • Packaged SCADA Software: Packaged SCADA software refers to the sale of commodity SCADA software also known as generic SCADA and packaged SCADA software that has bundled an array of features together. These software packages are typically bought and installed separately from the rest of the SCADA system.
  • SCADA Hardware Aftermarket: This refers to the sale of upgrade, retrofit, or replacement products manufactured by systems integrators and equipment suppliers. The products included in this market include remote terminal units (RTUs) and master terminal units (MTUs). The SCADA RTU is a ruggedized computer that provides intelligence in the field and allows the central SCADA master to communicate with the field instruments. It is a standalone data acquisition and control unit. Its function is to control process equipment at the remote site, acquire data from the equipment, and transfer the data back to the central SCADA system.
  • SCADA Workstation-based Turnkey Aftermarket: This refers to the sale of remote terminal units, master terminal units, and other necessary hardware configured and manufactured by systems integrators and equipment suppliers. This segment does not include personal computer-based systems, aftermarket remote terminal units, packaged SCADA software, or any hardware and peripheral equipment that are sold as part of workstation/mainframe-based turnkey solution. The dominant master stations today are units from Sun Microsystems and IBM in a UNIX environment.
   Analyst Presentation
 

Click here to view the analyst presentation:

A311.ppt

 

 

 

  Table Of Contents

North American SCADA Systems and Software Markets

1. Executive Summary
      1. Market Overview
           1. Introduction
           2. Competitive Analysis
      2. Major Research Findings
           1. Market Segment Analysis
           2. Technology Trends
           3. Strategic Conclusions

2. Total North American SCADA Systems and Software Market
      1. Overview
           1. Introduction
           2. Challenges Overview
           3. Primary Market Challenges
           4. Secondary Challenges
           5. Market Engineering Analysis
           6. Market Drivers and Restraints
      2. Forecasts and Trends
           1. Introduction
           2. Total SCADA Systems and Software Forecast
           3. Forecast by Market Segment
           4. Forecast by End-user Industry
           5. Forecast Percentage by Geographic Region
           6. Competitive Market Share Analysis
           7. Distribution Trends
      3. Frost & Sullivan Awards
           1. Customer Value Leadership Award
           2. Product Line Strategy Innovation Award
           3. Customer Satisfaction Excellence Award
           4. Technology Leadership Award
           5. Customer Service Leadership Award

3. PC-based Turnkey SCADA Systems
      1. Market Overview
          1. Introduction and Market Definitions
          2. Market Engineering Measurements
          3. Market Drivers
              a. Increased Focus on Security
              b. Environmental Awareness and Compliance
              c. Recent Power Crisis and Blackouts
              d. Decreasing Prices of PCs
              e. User-Friendly Nature and Increased Awareness of Microsoft
                  Windows
          4. Market Restraints
              a. Economic Uncertainty and Cautious Approach among Customers
              b. Perception about Reliability of Windows Software
      2. Market Forecasts and Trends
          1. Revenue Forecasts
          2. Forecast by End-user Market
          3. Forecast for the Oil and Gas Industry
          4. Forecast for the Power and Electric Utilities Industry
          5. Forecast for the Water and Wastewater Industry
          6. Forecast for the Other Industries
          7. Forecast by Geographic Region
          8. Market and Technology Trends
      3. Competitive Analysis
          1. Market Share Analysis
          2. Competitive Structure

4. Packaged SCADA Software Market
      1. Market Overview
           1. Introduction and Market Definitions
           2. Market Engineering Measurements
           3. Market Drivers
               a. Advanced Diagnostic Capabilities Which Guide Management
               b. Infrastructure Development
               c. Emergence of Web-based Technology and Advanced Communication
               d. Improved Resource Management and Efficiency
           4. Market Restraints
               a. Reduced Capital Spending Due to Economic Recession
               b. Uncertainty Regarding Recent Mergers and Acquisitions
               c. System Upgrades Performed in Advance of Y2K

      2. Market Forecasts and Trends
           1. Revenue Forecasts
           2. Forecast by End-user Industry
           3. Forecast for the Oil and Gas Industry
           4. Forecast for the Power and Electric Utilities Industry
           5. Forecast for the Water and Wastewater Industry
           6. Forecast for the Other Industries
           7. Forecast by Geographic Region
           8. Market and Technology Trends
      3. Competitive Analysis
           1. Market Share Analysis
           2. Competitive Structure

5. SCADA Hardware Aftermarket
      1. Market Overview
           1. Introduction and Market Definitions
           2. Market Engineering Measurements
           3. Market Drivers
               a. Storage Capacities Lead to Process Optimization
               b. Power Deregulation and Privatization
               c. Technology Favored by Continuous Process Industries
               d. Increase in Purchase of Replacement Hardware
           4. Market Restraints
               a. Availability of PLCs as a Less-expensive Substitute Product
               b. Popularity of PC-based Systems
      2. Market Forecasts and Trends
           1. Revenue Forecasts
           2. Forecast by End-user Market
           3. Forecast for the Oil and Gas Industry
           4. Forecast for the Power and Electric Utilities Industry
           5. Forecast for the Water and Wastewater Industry
           6. Forecast for the Other Industries
           7. Forecast by Geographic Region
           8. Market and Technology Trends
     3. Competitive Analysis
           1. Market Share Analysis
           2. Competitive Structure

6. SCADA Workstation-based Turnkey Aftermarket
      1. Market Overview
          1. Introduction and Market Definitions
          2. Market Engineering Measurements
          3. Market Drivers
              a. Preference for UNIX over Windows
              b. Systems are More Robust and Reliable
          4. Market Restraints
              a. Price of Workstation-based Systems is More Expensive
              b. Use of PC-based Turnkey Systems for a Variety of Operations
              c. Budget Constraints for Companies Hinder Growth
              d. Familiarity and Awareness with Windows Blunts Growth
      2. Market Forecasts and Trends
          1. Revenue Forecasts
          2. Forecast by End-user Market
          3. Forecast for the Oil and Gas Industry
          4. Forecast for the Power and Electric Utilities Industry
          5. Forecast for the Water and Wastewater Industry
          6. Forecast for the Other Industries
          7. Forecast by Geographic Region
          8. Market and Technology Trends
      3. Competitive Analysis
          1. Market Share Analysis
          2. Competitive Structure

7. Appendix
      1. Decision Support Database
           1. Hydro Electricity Installed Capacity
           2. Crude Oil Production
           3. Total Electricity Generation
           4. Total Electricity User Profile (Industrial)
           5. Total Water Consumption



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