18 April 2017

Africa: Frost & Sullivan - Investment in Services and Technology Aids Growth Opportunities in Indonesia Automation and Process Control Market

press release

Singapore — Automation that easily integrates into IoT environments will boost spending in major industries

Government infrastructure plans, growing population, and the development of Mega Cities will transform the Indonesian automation and process control market. Automation and process control solutions are a key enabler for augmenting growth, and the development of industries such as power, food and beverage, and water and wastewater. Vendors investing in new service offerings and technologies will gain prominence.

"To differentiate their products and drive revenues, companies are offering innovative cybersecurity services for real-time monitoring of Internet of Things (IoT) machine-to-machine (M2M) traffic, including volume, advanced diagnostics, and fraud detection features," said Frost & Sullivan Industrial Automation and Process Control Industry Analyst Krishnan Ramanathan.

Opportunities in Indonesia for Automation and Process Control System Manufacturers, Forecast to 2021, part of Frost & Sullivan's Industrial Automation and Process Control Growth Partnership Service program, finds that the total automation and process control market in Indonesia generated $194.8 million in 2016 and is expected to reach revenues of $246.9 million in 2021.

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The top five automation and process control participants--Yokogawa, Siemens AG, Honeywell, Rockwell Automation and Schneider Electric--contributed 72.0 percent of total market revenue. Indosat embraces technology developments by focusing its strategies on investing in an extensive range of IoT and M2M products and services across connectivity, managed connectivity, and end-to-end solutions.

New automation technology that is easily integrated into IoT environments will boost IoT spending in major industries. Other noteworthy developments bolstering the market include:

The direct investment in Indonesia's processed food and beverage industry surpassed $3.82 billion in 2016. Growth will be due to the increased use of processed foods, with Java being the major area of focus.

Indonesia has set an ambitious target to reduce greenhouse gas emissions by close to 30 percent by 2030. The government plans to significantly boost renewable energy sources.

The number of e-commerce transactions in Indonesia is rising steadily, indicating the potential for IT-related solutions. Recently, multinational organizations such as IBM have forged ties with local organizations to help address the requirements pertaining to data center operations.

Indonesia will look to harness semiconductors that are used in the renewable power sector to meet the needs of its growing domestic and industrial requirements. Automation will play an important role in assembly and other areas that involve complex sequences and processes.

"Automation and process control system manufacturers should look towards opportunities in the renewable energy sector as power requirements increase and cleaner and cheaper sources of energy are targeted. The food and beverage, packaging, and electronics and semiconductors industries also offer opportunities for growth as lifestyles evolve and disposable incomes increase," noted Ramanathan.

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. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion

Opportunities in Indonesia for Automation and Process Control System Manufacturers, Forecast to 2021P947-10

Contact:

Melissa TanCorporate Communications - Asia PacificP: +65 6890 0926F: +65 6890 0999E: melissa.tan@frost.com

http://ww2.frost.com

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