Automation Spurs Expansion of System Integrator Business in India

June 20, 2013
Driving Demand for Products and Systems Boosts Economy

A growing domestic demand for industrial automation products and systems such as NC, DCS, PLCs, AC drives and SCADA has made India a manufacturing powerhouse.

More than 250 system integrator firms are predicted to grow automation revenue to $180 million in India by 2017, according to ARC Advisory Group's recent study "Service Capabilities and Profiles of System Integrators in India Market Research Study."

"As manufacturing firms in India move up the value chain to produce ever more sophisticated products, they will further boost demand for these automation products and systems along with the commissioning, software and hardware engineering, installations, project management and services," said G. Ganapathiraman, country manager for ARC India and co-author of the study. "This provides ample opportunities for the growth of the automation market, which in turn spurs the expansion of the system integrators business."

India's recent economic and industrial growth alone will not be enough to keep business booming for system integrators in India over the coming years head. New strategies, better positioning and anticipated global economic worries will help system integrators remain competitive and successful. Customers are looking for "one-stop" solution providers, opposed to seeking out several vendors for help.

Electric power, cement, metals, and chemical and petrochemical industries generate a larger percentage of revenue than other industries in India, according to ARC's 2012 India CapEx survey. On average, more than 37% of revenue is spent on CapEx (plant and machinery) by the electric power industry, while 47%, 33% and 29% is spent by cement, metals, and chemical and petrochemical industries.
Gas, mining, electricity, and quarrying are also key influencers to the gross domestic product (GDP) and is expected to show significant growth over the next few years as the demand for automation technology increases.