Keywords: Process I/O Modules, Intelligent I/O Modules, Digital I/O Modules, Analog I/O Modules, Ethernet I/O Modules, Intrinsically Safe I/O Modules, Industrial I/O Modules, Control I/O Modules, I/O Hardware, Intrinsic Safety, Remote I/O Modules
A new ARC Global Market Research Study shows the market for process I/O module sales showed moderate growth in 2014. In 2015, ARC expects the revenues to stay at the same level, due to the strong dip in oil prices. We expect the market to pick up the pace in 2016 and beyond. The market for process I/O modules is mainly driven by two forces: an increasing need for intrinsically safe I/O modules and the increasing demand from the Middle East and the BRIC countries.
While the process I/O modules market is large in Europe, Japan, and North America – and is expected to remain large – the growth regions will be Latin America, the Middle East, and parts of Asia, namely China, India, Vietnam, Korea, Thailand, Indonesia, and some other countries. Looking at specific hardware types, intrinsically safe I/O modules, network adapters, and intelligent I/O will grow above the market average.
“The market for process I/O modules experienced solid and consistent growth over the last five years. However, the current situation with the rapid drop in oil prices and the struggle of the European power market present a more pessimistic outlook. In addition, there is a high pricing pressure coming from the I/O module market itself, leading to a slower overall growth,” according to Stefan Miksch, the principal author of ARC’s “Process Automation I/O Modules Global Market Research Study”.
Intrinsic Safety
Intrinsically safe I/O modules are not a new type of I/O module nor have they changed in how they work. The increasing amount of installed automation even in harsh and explosive environments makes intrinsically safe components essential. In turn, the demand for intrinsically safe process I/O modules will grow above average and continue to do so beyond the forecast horizon of this study.
Industry Trends – Electric Power Slow, Chemical High
Electric power is suffering especially in Europe, though China’s demand for power continues to increase and helps to stabilize this industry. The shift in Europe from coal and nuclear power plants (which are typically DCS centric), to sustainable power sources such as wind turbines (which are typically more PLC-centric), is decreasing demand for process automation systems and related I/O.
On the plus side, the chemical industry is currently witnessing strong development and more investments in the short and long-term are likely as modernization of plants in Russia and the Middle East are being prioritized.
Asia – Also Growth Region in the Future?
Asia needs to be separated into the emerging and mature countries. While emerging Asia will contribute to the growth of the process I/O module market, mature Asia, more precisely Japan as the biggest market for process I/O modules in this region, will show growth rates explicitly below average.
Europe and North America still experience great uncertainty when it comes to the debt situation and financial markets and therefore growth rates in this regions are not expected to be at a significant high level.
For more information on this study, please visit our Market Research section.