May 2020
Digital Transformation will redefine
landscape – disrupt and transform the marketscape
THE FUTURE OF THE MIDDLE EAST INDUSTRIAL AUTOMATION MARKET
The Growth Pipeline™ Company Powering clients towards a future shaped by growth
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The Bigger Picture: Top 5 Predictions for 2020
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Middle East Industrial Automation Market – Top Predictions for 2020 Automation vendors is focusing on realign their portfolio as digitalization gains prominence in the Middle East region
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Source: Frost & Sullivan
AUTOMATION INDUSTRY
PREDICTIONS 05
INTENSIFYING FOCUS ON CYBERSECURITY IN OIL AND GAS SEGMENT • Risks from cybersecurity are profound • More collaboration between stakeholders
GROWING DIGITAL TECHNOLOGY FOCUS • Digital opportunities to grow 2x times traditional automation product
markets
ERA OF PARTNERSHIPS AND M&As • Automation companies building partnerships with Technology
start-ups • Acquiring capabilities in Cloud, AI, Blockchain and Cybersecurity
SHIFT FROM PROCESS TO HYBRID/ DISCRETE SEGMENTS • Spurred by economic diversification in the region
INCREASING ADAPTABILITY OF NEW TECHNOLOGIES • Especially smart sensors, intelligent machines, and
advanced automation technologies
KEY TRENDS TO WATCH OUT FOR 2020
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(4)
(3)
(2)
(1) 4 3 2 1 0
(1) (2) (3) (4) (5)
1
2
3
4
High Certainty
High
Importance
Low Certainty
Low
Importance
Industrial Automation Market: Impact of Top 10 Trends, Middle East, 2020
Competition from new quarters; Go-to-market strategies need significant revamp
Market Impact Analysis of Top 10 Trends
Source: Frost & Sullivan
Industrial
Cybersecurity
5-level ISA-95
network architecture
Market
Consolidation Product-based to
lifecycle services
Industry Transition –
Open process
Automation system
Drones
Industrial Cloud
and AI
Digital
Twins
Blockchain
MAIC
MAIC – Main Automation and Information Contractor
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Top 10 Trends have an Impact on Middle East Industrial Automation Market (1/2)
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Source: Frost & Sullivan analysis
Field devices and sensors to become more intelligent; increased connectivity to
Enterprise applications
Application for components, enabling auditing and inspections, and asset
tracking
Transformation of 5-level ISA-95 Model to Network Architecture
Increasing Focus on Industrial Cyber Security
Blockchain in the Industrial Space
Framework become agile – higher assurance attained
AI will be applied across supply chain, design, testing, cybersecurity, workforce
optimization, and sustainability
Shift of Business Models from Product-based to Lifecycle
Services
Convergence of AI with Everything
Service economy will gain prominence as end-user industries look to optimize asset
utilization
Top 10 Trends have an Impact on Middle East Industrial Automation Market (2/2)
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Source: Frost & Sullivan analysis
Interoperable devices will push consortiums (e.g. The Open Group),and
open systems architecture.
Application and benefit in condition monitoring and asset operations and life
cycle management
Industry in Transition: Open Process Automation Systems
Drone Technology—Operational Intelligence for Monitoring and
Surveying
Digital Twins for Enhanced Process and Product Visibility
Adoption will increase across applications in the O&G value chain
Between industrial automation companies and new-age digitalization
specialists
Emerging Model of Main Automation & Information
Contractor Market Consolidation
Reduction of uncertainties in production and supply chain
Impact: Shift from Product-based to Lifecycle Services Market participants need to prepare for business model disruption
Digital Enablers
Connected products
Embedded services
Focus on horizontal
Machines to more value
Omnichannel distribution
Business Model: 1
Prescriptive
Services
Business Model: 2 Business Model: 3
On-premise
SaaS Connected
Services
Business Model: 4
Usage-based
Service
Business Model: 5 Business Model: 6
Outcome-based
Services Product-as-
a-Service
Industrial Automation Market: Shift from Product-based to Lifecycle Services, MEA, 2020
Source: Frost & Sullivan
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Market Intelligence Services
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Crisis Management and Risk Mitigation
Implementation planning and PMO
Partner selection
Digital Transformation enablement
CLIENT
Frost & Sullivan: Your Global Growth Partner We can facilitate your journey through this transition
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THANK YOU
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Senior Consultant - Industrial Office: +91 44 6681 4017 Email: [email protected]
Arun Prasath