Batch Competitive Analysis Copyright © Yokogawa Electric Corporation Jan. 2005 Batch Worldwide...

Batch Competitive AnalysisCopyright © Yokogawa Electric CorporationJan. 2005

Batch Worldwide Outlook Analysis 2004

2005/02/07 Rev.1

Chiaki ShimadaIA Marketing

Dave EmersonU.S. Development Cent

er

Confidential Batch Competitive AnalysisCopyright © Yokogawa Electric CorporationJan. 2005

This document shows the Batch Control Systems (BCS) worldwide outlook comparing 2001 and 2004 data, based on ARC report.

The BCS includes Hardware, Software, Integration services, Maintenance Services, and Third Party Services.

ContentsKey words

Market Shares

Market Analysis & Forecast


Strategies for Success on BCS by ARC

Get Ready for FDA’s PAT (Process Analytical Technology) initiative– Effects on drug manufacturing and validation process– Many phrama and biotech companies are studying the immediate a

nd longer-term implications of PATOffer Model Predictive Control for Batch Application– Suppliers need to offer MPC (Model Predictive Control) packages fo

r batch control application– Reduced batch cycle time is MPC’s biggest value proposition

Offer Facilities for Dynamic Recipe Updates– To measure the actual processing condition and adjust the recipe f

ormulationPenetrate the Growing Asian Market– People of Asia are creating a massive demand for life science prod

ucts2004 ARC Advisory Group


Market Shares of the Leading BCS Suppliers

2000 Revenues $2414.5 Million 2003 Revenues $2834.2 Million

3rd PartyServices

16%

Others21%

Honeywell6%

Yokogawa6%

Rockwell9%

Fisher-Rosemount

8%Invensys8%

ABB15%

Siemens11%

Schneider3%

Mitsubishi3%

3rd PartyServices

16%

Others12%

Honeywell5%

Invensys7%

Rockwell11%

ABB12%

Yokogawa10%

Emerson10%

Siemens11%

2001, 2004 ARC Advisory Group

•Market shares show DCS based and PLC based control system•Yokogawa increased the position from 7th to 5th.•Rockwell, Emerson, Yokogawa have increased their market share.


Market Shares of the Leading DCS-based BCS


Rockwell0%

Siemens4%

Yamatake4%

3rd PartyServices

9%Others

8%

Invensys14%

Honeywell10%

Yokogawa10%

ABB25%

Emerson16%

Rockwell5%

Siemens4%

Yamatake0%

3rd Party Services9%

Others7%

Yokogawa17%

Invensys13%

Honeywell9%

ABB19%

Emerson17%

•In case of DCS-based, Yokogawa is 3rd position in FY2003.•Emerson, Yokogawa have increased business•ABB, Invensys have decreased their market share.•Yamatake has disappeared.



Leading Suppliers of BCS in North America


Fisher-Rosemount

9%Invensys9%

Honeywell8%

ABB20%

Rockwell14%

Others17%

3rd PartyServices

17%

Siemens6%

Schneider3%

3rd PartyServices

17%

Others13%

Emerson14%

Rockwell22%

Honeywell8%

Invensys11%

ABB12%

•The Revenue in U.S. market from 2000 to 2003 is down due to the economy recession.•Rockwell, Emerson are winner.•ABB has been decreased their market share.2001, 2004 ARC Advisory Group


Leading Suppliers of BCS in Europe, Middle East, & Africa


Fisher-Rosemount

10%Invensys9%

Honeywell5%

Siemens20%

ABB15%

Others19%

3rd PartyServices

17%

Rockwell5%

3rd PartyServices

16%

Others10%

Yokogawa5%

Schneider5%

Honeywell4%

ABB15%

Siemens21%

Rockwell5% Invensys

7%

Emerson12%

•The vender map has not changed.•However, Yokogawa and Schneider appeared in Europe market.



Leading Suppliers of BCS in Asia


Fuji7%

Yamatake5%

Invensys5%

Yokogawa16%

Mitsubishi8%

ABB3%

Fisher-Rosemount

4%

Siemens4%

3rd PartyServices

10%

Others38%

Omron5%ABB

5%Fuji5%

Yokogawa27%

Mitsubishi11%Siemens

4%

Emerson4% Rockwell

5%

3rd PartyServices

15%

Others19%

•Very improved Asian market•Yokogawa has been improved. •Yamatake has gone.



Leading Suppliers of BCS in Latin America

Fisher-Rosemount

8%

Siemens8%Invensys

6%

Rockwell16%

ABB13%

Others27%

3rd PartyServices

22%Honeywell

4%

3rd PartyServices

31%

Others11%

ABB13%

Rockwell17%

Siemens6%

Emerson7%

Invensys11%


•Nothing changed the order.•Third Party Services has been increased.



Total BCS Shipments Forecast Including Hardware, Software, & Services

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

BUS$

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Forecast in 2001 Forecast in 2004

CAGR 5.9%

CAGR 5.9%

•The forecast of CAGR of total BCS is 5.9% in future 5 years.



0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

BUS$

2004 2005 2006 2007 2008 2009

PLC-based DCS-based

Total BCS Shipments Forecast Including Hardware, Software, & Services

PLC-basedCAGR 5.6%

DCS-basedCAGR 6.2%

•The DCS based CAGR will be much higher than PLC based.



DCS-based BCS Shipments Forecast by Industry

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

ChemicalPharmaceutical Food &Beverage

Pulp & Paper Metals &Mining

Cement &Glass

Other

2004 2009

CAGR 6.7 %

CAGR 8.7 %

CAGR 5.5 %

•Food and Beverage will be the highest grow industry.•Chemical and Pharma are forecasted still high CAGR. 2001, 2004 ARC Advisory Group


BCS Shipments Forecast by Hardware, Software, and Service

34.7%

10.5%30.7%

7.3%

16.8%

Hardware

Software

Integ. Srv.

Maint. Srv.

3rd Party Srv.

30.3%

11.1%33.0%

7.5%

18.0%

Hardware

Software

Integ. Srv.

Maint. Srv.

3rd Party Srv.

2004 Revenues $2,834.2 Million


Decrease hardware portion,Increased integration part.



BCS Shipments Forecast by Region

29.6%

40.4%

25.6%

4.5%North America

EMA

Asia

Latin America

28.6%

40.6%

26.2%

4.5%

North America

EMA

Asia

Latin America



Almost all same market forecast by region.



Market Analysis and Forecast by ARC

Shipment of BCS by Controller Type– DCS-based batch control systems will show a higher growth

rate than PLC based systems.– The market size of PC-based batch control systems remains

small.

BCS Shipments by Region– The Europe, Middle East, and Africa region continues to be

the largest market– The Asian market includes China, Japan and India, had the

highest level of growth.– The N.A. market was flat.

BCS Shipments by Industry– The food and beverage industry will show the largest growth.– Pharma including biotech will experience the second largest

growth.– Asian chemical manufacturing excluding Japan is dominated

by bulk chemicals.

2004 ARC Advisory Group


Market Analysis and Forecast by ARC

Shipments of BCSs by Distribution Channel– The sales through reps and distribution channel is increased.– Sale of DCS-based system through OEM and system integrator

s are expected to increase in the next five years.

2004 ARC Advisory Group


Other Analysis

In 2001 data, there were 3 type of categories, but PC-based has been eliminated due to the small number.– DCS-based– PLC-based– PC-based

In 2001 data, Japan was separated against Asia market, but it has been merged in Asia on 2004. It means Asia outside of Japan is not disregard.In case of DCS-based, Yokogawa is 3rd position. The Yokogawa data of 2001 has not included non-recipe management type Batch process. This year includes the simple batch process without recipe management as the batch installation record.

By Shimada

Batch Competitive Analysis Copyright © Yokogawa Electric Corporation Jan. 2005 Batch Worldwide...

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