a8电ProcessAutomationYHarriswilliamsA quickly growing market with structural tailwinds andLEK.investment opportunitiesDecember2021
TableofContents1.Executivesummary>Viewonautomationfor industrial aoolications:seaments and end markets9Impact of meaatrends and new technoloaies4.Condition-based/ oredictivemaintenanceFmissionsManaaementSystems5Profitabilitv andvaluedrivers of kev market oarticioant6M&AtrendsintheprocessautomationmarketCONFIDENTIALEK2
ExecutivesummaryAutomationis dlavina a key role in al industrial markets. In paricular, process automation has seen an increase in popularity, as it enables a broad rangeof companies to reduce costs and waste and enhance outputs. Based on current trends, this market is expected to see substantial growth in the comingyearsandprovide arangeofopportunities forinvestment andvaluve creationbeing impacted by five overarching megatrends, including the introduction of new environmental regulation, increasingly stringent health and safetystandards, mounting pressure to reduce costs while improving quality, and labor shortages. These megatrends present diverse and significantchallenaes across industries and accelerate the adoption of automation technologiestheseaddresskevmeaatrendsandareenabledbvnewdicital technoloaies (suchassensoechnc,Examples of these applications includeonaasturbinesIwhereAssetPerformanceManadementsolutionshave emerged tooptimizethe trade-off betweenofcentralized test data to monitor and predict conditionEmissions Management Systems (e.g., in petrochemical plants)reduce operational complexity but critcally ensure compliance with environmentalregulations whereprocess industries generate a significant share ofgreenhouse gas emissionsWinning companies in process automation have high levels of IP, reqular innovation capability, alobal aftermarket presence, and offersyneraistic software-based solutionsOveral M&A activity has been strong over the last five years with over 500 transactions in process automation.Investors are lookingfor both end-marketdiversifiled and product-specialized companies. They value highly specialized niche players with extraordinary engineering capablities andexceptionalmarginprofiles,ThereisanincreasingdemandforIoTsolutionsacrossallsectorsTo lustrate where the market is now and where it is going The global process automation market was worth roughly $85 billion in 2020), but it is expected to be worth around $115 billion by 2025. Therefore, this level of grow th is expected to atract the atfention of many OEMs entering new markets as wellas financial investors interested in consolidatingthemarketHNCONFIDENTIAL
The growing industrial automation sector comprises 3 key subsectors that cover multiple industrialend-industriesIndustrialautomationDownload Summer2021ReportProcessIndustryautomationDiscrete(Factorv)automationWarehouseautomationAutomationsystemsusinganetworkofFactory automation is the incorporationAutomation ofwarehousesincludes the,interconnected sensorsandcontrolerstoof automationfrom end-to-endh...
