Market Trends of Process Automation Industry
This section covers the major market trends shaping the Process Automation Market according to our research experts:
Paper and Pulp Segment is Expected to Register a Significant Growth
- The pulp and paper industry comprises a large and major portion of the global economy. Pulp and paper is a key industry with numerous processes necessary for the final product production, and paper products are among the major export commodities in many countries.
- The numerous processes in the paper and pulp industry require the raw materials pass through a lot of process with close monitoring of temperature and chemical content and the process automation allows to achieve the same from one location through the process automation.
- Moreover, according to FAO, in 2018, the global production capacity of paper and paperboard amounted to around 267.36 million metric tons and is expected to reach 278.24 million by 2023. Such growth in the production capacity is expected to create scope for the market. Today's pulp and paper mills operate under constant pressure to reduce production costs and increase yields. Hence, many operators are moving to DCS for increased production and improved yields.
- The growing adoption of DCS is driving the market's growth positively. For instance, in April 2020, Valmet would supply a complete mill-wide Valmet DNA DCS to JK Paper Limited for their board project at Fort Songadh Mill (India). JK Paper adopted Valmet's automation system based on good references in technology, service support, and low ownership costs.
- Valmet's offering includes the design, engineering, manufacturing, factory acceptance test, and installation of Valmet DNA DCS. The mill-wide DCS system would cover the control of the pulp mill, paper machine, recovery island, and power block sections. JK Paper also placed an additional order for Valmet DNA DCS of Power Block for their Sirpur unit.
- Furthermore, Valmet would supply Valmet DNA automation systems to Shandong Sun Paper Industry Joint Stock Co. Ltd (Sun Paper) in China. The two systems would be installed on the company's paper machine PM 39 and PM 40, enabling the lines to increase availability, production efficiency, and optimize operation.
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North America Accounts to have Significant Market Share
- The US manufacturing sector is one of the largest globally, with the contribution to GDP from the manufacturing industry in the country reaching USD 2190.40 billion in the third quarter of 2019. The manufacturing production in the country, however, witnessed a significant decrease over a year earlier in April 2020, the biggest decline since May 2009, primarily owing to the outbreak of COVID-19, which led multiple factories to suspend their operations.
- For the manufacturing sector in the country, the emergence of AI and automation solutions is expected to reshape the source of value creation, the formation of new business models, and the delivery of value-added services, such as predictive maintenance and mass customization.
- Multiple provisions in federal law are also expected to support the manufacturing sector in the country. For instance, the Advanced Manufacturing Partnership (AMP) is an initiative undertaken across the country to make the industry, universities, and the federal government to invest in emerging technologies. This has helped the country to substantially gain a competitive edge in the global economy.
- Moreover, there are cities in the United States that do not meet health standards. For instance, in September 2019, the EPA reported that California had about 202 water systems that did not meet the health standards 665 times in the recent reporting quarter. That also includes 67 systems that have about 194 instances of falling short of the federal requirements for the levels of arsenic in water.
- Furthermore, there are currently 20 major upcoming water treatment construction projects across the country, each of which is worth about USD 5 billion on average. In addition, major companies are interested in building waster water pipeline rehabilitation worldwide.
- Moreover, Canada is also an active member of various International Energy Agency Technology collaboration programs in renewable energy and end-use, including the International Smart Grid Actions Network. Thus researchers are also collaborating on R&D tasks to advance the deployment of renewable energy and energy efficiency in the built environment and power systems.
- Further, in June 2019, the Canadian government announced a USD 5 million investment to Hydro Ottawa for Phase 2 of a smart grid project at a community housing complex in Ottawa. This gives users the freedom to establish microgrids, which allows them to generate their own power.
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