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30 www.controlglobal.com DECEMBER/2013 CONTROL/ARC AUTOMATION TOP 50 Major acquisitions and a real shift in focus for the automation industry going forward. by Walt Boyes, David Clayton and Inderpreet Shoker

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Page 1: CONTROL/ARC AUTOMATION TOP 50 Major acquisitions and a

30 www.controlglobal.com D E C E M B E R / 2 0 1 3

C O N T R O L / A R C A U T O M A T I O N T O P 5 0

Major acquisitions and a real shift in focus for the automation

industry going forward.

by Walt Boyes, David Clayton and Inderpreet Shoker

CT1312_30_37_CoverStory.indd 30 12/5/13 12:15 PM

Page 2: CONTROL/ARC AUTOMATION TOP 50 Major acquisitions and a

D E C E M B E R / 2 0 1 3 www.controlglobal.com 31

C O N T R O L / A R C A U T O M A T I O N T O P 5 0

Once again, Control and ARC Advisory Group present our Top 50 list of Automation Suppli-ers. We have not changed our rubric for several years now, so you can compare results year-on-year for the past few years. Our considerations are spelled out in the sidebar, “How We Do It.”

The list is organized into two categories: Worldwide and North America. The World-wide data includes the North America num-bers. Some companies can be seen to have very large Worldwide presences, but very small North American footprints, and the opposite is, of course, true as well.

The Ups and DownsAs shown in the charts, there has been some movement in positions, but none in the rankings of the top three: Siemens, ABB and Emerson are tops worldwide; Emerson, Rockwell and ABB lead the pack in North America. Globally, Rock-well and Schneider traded places since last year, as did Honeywell and Danaher; and in North America, Schneider and Danaher traded slots while Cameron moved up from 10th to eighth.

At the end of the global list, there are several companies that moved to the Honorable Men-tion section from the main list. This is not be-cause their sales have decreased, because most of them had sizeable increases. In fact, most of

TOP 50 GLOBAL AUTOMATION VENDORS2012 Worldwide

Revenue(US$ millions)

1 Siemens 14,313.46

2 ABB 11,591.70

3 Emerson 9,167.17

4 Rockwell Automation 6,072.80

5 Schneider Electric 5,753.45

6 Yokogawa Electric 4,359.99

7 Mitsubishi Electric 3,610.97

8 GE 3,555.45

9 Danaher 3,307.00

10 Honeywell 3,195.09

11 Omron 2,493.79

12 IMI 2,222.00

13 Endress+Hauser 2,170.51

14 Invensys 2,164.83

15 Cameron 2,142.00

16 Phoenix Contact 2,038.46

17 FANUC 1,954.95

18 Spectris 1,948.00

19 Ametek EIG 1,872.00

20 Flowserve 1,557.00

21 Festo 1,410.26

22 Yaskawa 1,224.69

23 FMC 1,163.25

24 National Instruments 1,141.00

25 Mettler-Toledo 1,054.56

26 azbil Group (Yamatake) 1,039.00

27 Wika 935.90

28 Advantech 929.00

29 Hitachi 831.98

30 Fuji Electric 801.87

31 Weidmuller 796.15

32 Roper Industries 795.00

33 IFM Electronics 788.46

34 Teledyne Instruments 749.00

35 Bosch Rexroth 740.53

36 Metso 709.45

37 Eaton 674.85

38 Samson 666.67

39 Harting 641.03

40 MKS Instruments 641.00

41 Pepperl+Fuchs 621.79

42 Wago 577.36

43 Krohne 574.36

44 B&R 551.30

45 Turck 551.28

46 Toshiba 547.86

47 Beckhoff 523.08

48 Burkert 501.30

49 TMEIC 476.13

50 Horiba 457.09

GLOBAL HONORABLE MENTION2012 Worldwide

Revenue(US$ millions)

Thermo Fisher Scienti� c 373.99

Pilz 339.82

Badger Meter 319.60

Belden 272.00

OSIsoft 263.58

Parker 259.20

Aspen Technology 242.00

Pentair 190.80

Hollysys 190.00

SPX 182.23

SupCon 169.60

Magnetrol 157.50

IDEC 102.21

MTS 100.00

Cashco 92.73

Vega 92.42

SMAR 80.76

Opto 22 59.13

Iconics 57.99

Pyromation 20.40

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Page 3: CONTROL/ARC AUTOMATION TOP 50 Major acquisitions and a

the change came with the addition of companies new to the Top 50 World-wide list. Additions this year include Festo (21) and Harting (39), as well as the large conglomerate centered on Ea-ton’s acquisition of Cooper (37). Mag-netrol, after several years on the Honor-able Mention list, makes the Top 50 for North America at number 50.

Changing LatitudesThere were many acquisitions in the

past 12 months. Some of these are de� ning, like the acquisition of vMonitor by Rockwell. This puts Rockwell deeply in wellhead moni-toring in the oil patch, and gives Rockwell a suite of essential sensors in both a proprietary wireless proto-col and WirelessHART. Another de-� ning acquisition was the purchase, just after the Schneider acquisition of Invensys was announced, by Inven-sys of Indusoft. This gives Invensys a

Every year, we � nd more companies to

add to the Top 50 list. If you spot one

we haven’t listed and that should be,

let us know. Even though we add com-

panies and subtract the ones that have

been acquired, we haven’t changed

our basic methodology of analysis for

the past several years.

Here’s what we include in our de� ni-

tion of sales revenue:

• Process automation systems and

related hardware software and

services

• PLC business, as well as related

hardware, software, services, I/O

and bundled HMI

• Other control hardware compo-

nents, such as third-party I/O, sig-

nal conditioners, intrinsic safety

barriers, networking hardware,

unit controllers, and single- and

multi-loop controllers

• Process safety systems

• SCADA systems for oil and gas,

water and wastewater, and power

distribution

• AC drives

• Motion control systems

• Computer numerical control (CNC)

systems

• Process fi eld instrumentation, such

as temperature and pressure trans-

mitters, � owmeters, level transmit-

ters and associated switches

• Analytical equipment, includ-

ing process electrochemical, all

types of infrared technology, gas

chromatographs for industrial

manufacturing and related products

• Control valves, actuators and po-

sitioners

• Discrete sensors and actuators

• All kinds of automation-related

software, from advanced process

control, simulation and optimiza-

tion to third-party HMI, plant asset

management, production man-

agement (MES), ERP integration

packages from the major automa-

tion suppliers and similar software

• Other automation-related ser-

vices provided by automation

suppliers

• Condition-monitoring equipment

and systems

• Ancillary systems, such as burner

management systems, quality

control systems for pulp and pa-

per, etc.

What we don’t include:

• Pumps and motors

• Robotics

• Material-handling systems

• Supply chain management soft-

ware

• Building automation systems

• Fire and security systems

• Processing equipment such as

mixers, vessels, heaters, etc., as

well as process design licenses

from suppliers that have engi-

neering divisions

• Electrical equipment, such as low-

voltage switchgear, etc.

HOW DO WE DO IT?

C O N T R O L / A R C A U T O M A T I O N T O P 5 0

CT1312_30_37_CoverStory.indd 32 12/5/13 12:17 PM

Page 4: CONTROL/ARC AUTOMATION TOP 50 Major acquisitions and a

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C O N T R O L / A R C A U T O M A T I O N T O P 5 0

TOP 50 NORTH AMERICAN AUTOMATION VENDORS 2012 North America Revenue (US$ millions)

1 Emerson 4,404.51

2 Rockwell Automation 2,975.67

3 ABB 1,810.46

4 Siemens 1,541.51

5 Schneider Electric 1,426.86

6 Danaher 1,412.09

7 GE 1,226.81

8 Cameron 963.90

9 Honeywell 963.39

10 Ametek EIG 898.56

11 Invensys 795.61

12 Spectris 617.52

13 Teledyne Instruments 598.45

14 Roper Industries 561.27

15 Flowserve 523.15

16 Endress+Hauser 460.15

17 IMI 457.76

18 National Instruments 454.00

19 Yokogawa Electric 344.88

20 MKS Instruments 325.63

21 Mettler-Toledo 313.20

22 Omron 299.26

23 FMC 290.81

24 Badger Meter 271.00

25 Advantech 268.00

26 Yaskawa 239.76

27 Toshiba 237.97

28 FANUC 218.97

29 Festo 211.54

30 Turck 199.01

31 Thermo Fisher Scienti� c 191.86

32 Mitsubishi Electric 188.12

33 Eaton 163.33

34 Weidmuller 156.05

35 OSIsoft 137.06

36 Metso 127.70

37 Belden 121.86

38 IFM Electronics 118.27

39 Bosch Rexroth 108.22

40 Phoenix Contact 101.92

41 Wika 93.59

42 Parker 88.44

43 Wago 86.60

44 Cashco 86.55

45 B&R 82.69

46 SPX 74.83

47 Pepperl+Fuchs 73.37

48 Aspen Technology 71.00

49 Horiba 70.39

50 Magnetrol 66.60

CT1312_30_37_CoverStory.indd 34 12/5/13 12:17 PM

Page 5: CONTROL/ARC AUTOMATION TOP 50 Major acquisitions and a

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C o n t r o l / a r C a u t o m a t i o n t o p 5 0

slice of the controller market below the typical Wonder-ware HMI application set. The majors in the automation industry are filling out their portfolios with “sideways” acquisitions.

But it isn’t just the majors. For example, Advantech, the powerhouse from Taiwan and Greater China that is 28th on the Worldwide list and 25th on the North America list, purchased GPEG, a British intelligent display manu-facturer. This gives Advantech a smart display capability it didn’t have for industrial automation, but also a strong foothold in the gaming industry. Product synergy can be wonderful.

Schneider and invensysIn what could prove to be a resurgence in consolidation among the major automation vendors, Schneider Electric will be completing its acquisition of Invensys sometime early in the new year. The charts in this article do not reflect this acquisition, but simply adding the revenue of both companies together comes to more than $8 billion, worldwide, which may move the combined company up a slot or two in the rankings. This is the first acquisition of a major automation company by another major in quite some time.

In the past, such acquisitions have foundered on the real-ity—or even the perception—that there is too much overlap and not enough new capability. In this case, as Schneider CEO Jean-Pascal Tricoire noted in an interview with CNN, there is very little overlap and many potential synergies.

Whether the acquisition delivers its anticipated ben-efits remains to be seen. Some Invensys executives, led by CEO Mike Caliel and software boss Ravi Gopinath, believe with Tricoire that the synergies will count more than any integration casualties and reorganizations will cost the combined organization.

Invensys has a huge installed base and long history, and has been engaged in an extensive and expensive revamp of its hardware and software offerings for the past five or six years. Much of this R&D effort has just come to fruition, for example, with the recent release of the Foxboro Evo com-bined control and safety system. Invensys also can point to a stable of industry-leading solutions through its Wonderware and Triconex brands, as well as industry-leading instrumen-tation, simulation and training, asset management and ad-vanced process control capabilities. These complementary

NA HoNorAble MeNtioN 2012 North America Revenue (US$ millions)

Harting 64.10

Krohne 63.18

Pilz 50.97

Burkert 50.13

Beckhoff 41.85

Pentair 39.79

Opto 22 38.62

TMEIC 37.26

Samson 33.33

Vega 32.58

MTS 31.00

Iconics 28.92

Hitachi 25.70

SMAR 22.49

IDEC 21.63

Pyromation 20.40

Fuji Electric 15.76

azbil Group (Yamatake) 7.62

CT1312_30_37_CoverStory.indd 35 12/5/13 12:17 PM

Page 6: CONTROL/ARC AUTOMATION TOP 50 Major acquisitions and a

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capabilities, together with new customers and distribution channels, represent clear growth possibilities for a com-bined company.

Changing Attitudes: Pervasive Sensing and the Internet of ThingsThe major automation companies that have � eld sensor or controller products have been talking about another sea-change that is coming to process automation technology. This is called, variously, ubiquitous data, Big Data, perva-sive sensing, lick-’n-stick-sensors and the Internet of Things.

One contributor to this Big Data shift is the use of wire-less (and considerably less expensive) sensors to pick up and transmit data that was not considered practical or cost-ef-fective to collect in the past. Lots of data. Enough data so that we can use the high-de� nition mathematical models of process behavior in real time.

But as Emerson’s Peter Zornio put it, “We have three is-sues to handle in order to really have pervasive sensing: First we need to do away with the wiring of the sensor, especially in hazardous areas or where the sensor is hard to get to. With WirelessHART, we’ve been able to do that. Second, we need

to make the sensors themselves less expensive. We are begin-ning to do that with new types of sensors and housings. The one thing we need is to develop sensors and methods for see-ing inside pipelines and vessels without the need to make more holes in them.”

If Zornio is right, we have embarked on a whole new vi-sion of how a plant is controlled and operated. This opens up a new world of applications for sensors and new ways of analyzing the data they present. And Zornio isn’t alone.

Industry leaders from Cisco, Invensys, Siemens and Rockwell have talked about this very same vision in their user groups since the summer, and many have talked about it for a long time before that.

“The next few years will be the most exciting time in manufacturing in the past 50,” says Invensys Vice President Peter Martin. “We are � nally going to come into our own as automation professionals. We will be operating process plants with business values in real time.” And we will have all the data we need to do it, too.

Wal t Boyes is Control edi tor in chief; Dav id Clayon is direc tor of research,au tomat ion and safe t y sys tems, ARC Adv isor y Group; and Inderpree t Shoker is analys t , au tomat ion sys tems, ARC Adv isor y Group.

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