Operator Panel Suppliers Face Drastically Changing Landscape
Operator panels progressively displaced conventional operator input devices and display elements. This study excludes these push button devices and simple displays. As the trend toward open systems in the operator panel market unfolds, more functionality is incorporated on a standard hardware platform. ARC calls these �automation panels�. However, Industrial PCs are excluded in this study.
Most operator panels are limited to �interface� capabilities of monitoring and operating. Automation panels, however, are experiencing above average growth and triggering technological changes within the market, which allow for new automation architectures.
In addition to the technological change, the market for operator panels was hit hard by the economic crisis and contracted in 2009.
Even though the market is dominated by large suppliers that sell complete systems or solutions to customers, there is a large number of small, innovative niche players that address specific application and industry needs. More than thirty percent of the market is represented by suppliers with a market share below 2 percent. However, it is important to point out that many of these small players often appear smaller than they are, since they often have various brand labeling agreements.
The mixture between economic contraction, a competitive market, and technological change is creating a climate of creative destruction, where new technologies emerge and many players seek their chances to get a larger piece of the pie.
Strategic Issues
Many players are currently developing or introducing new products. Many suppliers are also abandoning the traditional business model in search of new markets. Below are some key strategies to help suppliers through this difficult transition.
- Clear positioning of operator panels within the portfolio in order to position the company as a solution, system, or product provider and leverage the specific benefits.
- Operator panels should be a strategic focus and not only seen as a controller by-product
- Add intelligence and openness to the existing products
- Create standardized and scalable hardware platforms to use economies of scale
- Differentiation through software
- Stay price competitive
