DCS Business Recovers in 2010
The year 2010 definitely showed a comeback in Distributed Control Systems (DCS) numbers compared to 2009, when the effects of the worldwide financial crisis and recession were most apparent. The recovery in the market was driven by new projects in the traditional heavy process industries as sales orders in mid to late 2009 translated into revenue in 2010. The industry verticals of chemical, petrochemical, and oil &gas, were particularly strong. Since these verticals are some of the largest in the DCS marketplace, the overall DCS marketplace showed an upswing. The water & wastewater sector also continued to show significant above average growth, even though this sector is not very large.
The resurgence in power generation projects, particularly in the nuclear and gas-fired combined cycle sectors, has increased the demand for DCSs. In the developed regions, the emphasis will be on improving efficiency, reducing emissions, and improving ramp rates. The emerging countries, China in particular, are undergoing a shift from coal-fired power generation to nuclear, wind, and solar generation. The resurgence in power generation projects — including many large greenfield projects — will not only drive demand for DCSs, but also for CPM, APC, optimization, and training simulators.
Strategic Issues
Both automation suppliers and end users are continuously striving to get more value out of their automation systems. Some key strategies for success in this study include:
- ARC CPAS Vision: From DCS to a Collaborative Process Automation System
- Extending the scope of the MAC concept
- Opportunities for virtualization in DCS
- The increasing role of supplier-provided services
- Cyber security issues
- The impact of cloud computing
- Mobility: DCS access in the field