AndhraNews.net
Home » International News » 2014 » August » August 19, 2014

Frost & Sullivan: Industrial Services Get a Boost in the Middle East as Plant Owners Seek Operational Efficiencies


August 19, 2014 - Dubai, United Arab Emirates

Industrial plant owners in the Middle East are increasingly recognising the value of industrial services as privatisation is encouraging the implementation of global best practices. This rising end-user awareness about the gamut of industrial services, along with the influx of global know how, is expected to spur the growth of industrial services market.
 
New analysis from Frost & Sullivan, Strategic Analysis of the Middle East Industrial Services Market, finds that the market earned revenues of USD 549.3 Million in 2013 and estimates this to reach USD 818.5 Million in 2018, at a compound annual growth rate of 8.3 per cent. The study covers the Middle East market for industrial service of pumps, motors, compressors, automation, instrumentation and electric drives.
 
Plant owners’ eagerness to ensure maximum asset utilisation, plant productivity and profitability coupled with stipulations by external agents such as process licensors have stoked the adoption of modern maintenance practices. The demand for service from the growing installed base and subsequent maintenance requirements will continue to be crucial to the overall market growth.
 
“The tangible benefits of improved operational efficiency, lower life cycle costs and overall plant safety encourage end users to invest continuously on services,” said a Frost & Sullivan Industrial Automation & Process Control Research Analyst. “Additionally, the rising population and strong economic growth will stimulate investments, contributing to the growth of industrial services market in the Middle East.”
 
End-users also notice substantial revenue opportunities in services; so much, that they have begun to accept project (equipment installation) orders at lower margins, with expectations of gains from after-sales services. Several original equipment manufacturers (OEMs) are utilising service offerings as a differentiator in an increasingly homogeneous market.
 
Although services are playing an increasingly important role in the business strategies of end users, it is possible that the reduced global demand for crude from the Middle East will affect the investments planned in the Middle East. The geo-political instability in the Middle East may further dampen investor sentiments and impede greenfield and brownfield investments.
 
While on one hand the lack of investments hampers the industrial services market, on the other, it encourages end users to resort to maintenance services to make the optimum use of their aging infrastructure. In a competitive market, offering timely and high-quality services is crucial, so service providers will be looking to have an efficient local set-up for services and sales.
 
Another important trend is the escalating popularity of integrated solutions. The higher degree of automation in pumps, compressors, and motors have prompted end users to buy integrated solutions that comprise frequency drives, valves, logic controllers, and automation software.
 
“The maintenance and repair of technically advanced automated systems are often beyond the capabilities of in-house workshops,” noted the Analyst. “This ensures that the systems’ commissioning and servicing is OEM or third-party-centric. Evidently, the adoption of integrated solutions makes services for systems indispensable and enhances the revenue generated through services.”
 
If you are interested in more information on this study, please send an email to Tanu Chopra at tanu.chopra@frost.com or Paroma Bahttacharya at paromab@frost.com.
 
Strategic Analysis of the Middle East Industrial Services Market is part of the Industrial Automation & Process Control

(http://www.industrialautomation.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Southeast Asia Automation Services Market, The Main Automation Contractor (MAC) Model in the Automation and Controls Market, European Smart Pumps Market for the Water and Wastewater Industry and ANZ Automation Services Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
 
  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360-degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
 
Contact Us:Start the discussion
Join Us: Join our community
Subscribe:Newsletter on “the next big thing"
Register:Gain access to visionary innovation

Source: Business Wire India

BusinessWireIndia

Comment on this story

Share