During this QuickCast, VDC’s David Laing discusses some demand-side insights for the process level sensing solutions market.

1. Industrial Automation & Control Practice
WEBCAST
2011 Process Level Sensing Report
AUGUST 2011
Demand-Side Insights
© 2011 VDC Research Webcast
Industrial Automation & Control
vdcresearch.com

2. Recording Available
A full audio recording is available for download at:
http://www.vdcresearch.com/market_research/industrial_automation/freeresearch.aspx
© 2011 VDC Research Webcast
Industrial Automation & Control
vdcresearch.com

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© 2011 VDC Research Webcast
Industrial Automation & Control
vdcresearch.com

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© 2011 VDC Research Webcast
Industrial Automation & Control
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© 2011 VDC Research Webcast
Industrial Automation & Control
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6. Today’s Speaker
David A. B. Laing, PMP
Program Manager / Senior Analyst
David is VDC’s program manager in the firm’s Industrial Automation & Controls research practice. David is
responsible for supporting VDC’s market research and custom consulting initiatives relative to emerging global
opportunities, regional growth strategies, and market intelligence for industrial automation and control, systems
components, technologies, services, and related applications across multiple vertical markets. Recent
publications include the 2009 Volume 3 report on Position Sensing and the 2010 - 11 volume report on Power
Protection products.
David accumulated over 30 years of Semiconductor industry experience working at Teradyne Inc. and its
worldwide customers. David held multiple positions in support, engineering, IT and management including
project and support product management. David was a key leader in Teradyne’s adoption and implementation of
remote support technologies. David earned an MBA degree (Summa cum Laude) from the F. W. Olin Graduate
School of Business at Babson College and an undergraduate degree in Electronic Systems Engineering
Technology from Wentworth Institute. David is a certified Project Management Professional (PMP) through the
Project Management Institute.
For complimentary insights and marketing data:
http://blog.vdcresearch.com/industrial_automation
© 2011 VDC Research Webcast
Industrial Automation & Control
vdcresearch.com

7. The 2011 Process Level and ITG Report Uses Multiple Sources for a 3600 View
Today’s Webcast will give you some highlights from the demand-side/channel research
End-Users
An extensive functional safety
Supplier Community survey is employed to give the Regulatory, Channels, etc.
demand side perspective. The
Many suppliers engage survey set for this report set The project team
in interviews / featured a diverse sample of engages with and
conversations with the over 550 respondents researches regulatory
VDC team, giving us a including End-Users, OEMs, agencies and
complete supply-side Systems Integrators, and organizations, as well as
perspective of the Consultants. channel partners and
market. others.
Surveys Interviews
Surveys
Research
Other
Industry
Supplier Related
Interviews Research
© 2011 VDC Research Webcast
Industrial Automation & Control
vdcresearch.com

8. Beyond Price, Distinct Shifts in Valued Supplier Attributes are Being Seen
2011 Ranking in PL/ITG Survey  The latest survey segmented between
service types and timing in order to obtain
more granularity
Availability for Quick
Delivery  It is likely that many demand-side entities
 Ranked 4th in 2009 experienced a loss of more experienced
 Did response time suffer in personnel
2010 until now?  At the same time, customers are likely to
repair process level measurement
equipment rather than replacing them
Local / On-Site Support
 Only ~ 16% of survey respondents
 Not Ranked in 2009 described a need for under 4-week lead
 Why did this become important? time for a typical order.
 Will suppliers fill the gap?  End Users indicate having delays in getting
quotes from some suppliers in one case –
3 months!!
Availability of Spares
 In other cases, the supporting manuals are
 Ranked # 7 in 2009 incomplete or confusing, which then
 During the downturn, it is likely requires the end user to seek customer
that inventories became support
tightened
© 2011 VDC Research Webcast
Industrial Automation & Control
vdcresearch.com

9. There is a Significant Market Opportunity for Service Related Activities
Categories of Process Level Spendings Avg %  We asked survey respondents to break down
all of their process level spending by category
2.5% 2.5%
 Surprisingly, we found that only ~1/2 was for
4.7%
the actual hardware
4.9%
 The remainder is generally for service related
activities
8.7%  The survey respondents showed that they
will be looking for external sources for these
services
50.8%
10.8% Top 3 Externally Provided Services Cited
Custom Engineering
15.2% Integration
Testing
Hardware Installation
Configuration
Calibration/Maintenance Programming/software Development
Consulting/Specification Services Networking/connections/wiring
0% 50%
Compliance with Regulations Verification % of Resp
© 2011 VDC Research Webcast
Industrial Automation & Control
vdcresearch.com

10. Recent Events Likely Changed The Vertical Markets – Here’s Why - Part 1
2011 Ranking in PL/ITG Survey  There have been many recent incidents
involving food quality and contamination.
This has also happened in the Bio-Tech
Food &Beverage sector. This will drive increased sensing
for wash-down, processing, and sanitation.
 Ranked 4th in 2011
 There will likely be changes in the
 Not in Top 5 in 2009 pharmaceutical industry as a result of the
unprecedented shortages. In some cases,
governments will be forced to either
Pharmaceutical / manufacture themselves, or give
Bio-Tech incentives to do so. In either case there will
be drive for new, more cost efficient/clean
 Ranked #2 in 2009 facilities.
 Stayed the same in  Within all three of these segments, but
2011 particularly chemical, one overall concern
with respect to process level sensors is
Chemical about durability. We are seeing some cases
where end users, distribution entities, and
 Ranked # 1 in 2009 some suppliers are adding value to “off the
 Stayed the Same in shelf” sensors in order to make them more
2011 durable when used in some challenging
applications.
© 2011 VDC Research Webcast
Industrial Automation & Control
vdcresearch.com

11. Recent Events Likely Changed The Vertical Markets – Here’s Why - Part 2
2011 Ranking in PL/ITG Survey  Japan/Germany and possibly other countries will
be phasing out nuclear power and replacement,
conventionally fueled generating facilities will be
needed.
 The remaining installed base of aging nuclear
Electric Power facilities will need additional / replacement N-
Stamp and other level sensors to monitor cooling
 Ranked 4th in 2011 fluids and other mission critical materials.
 Not in Top 5 in 2009  Increases in environmental concerns will further
increase the need for water/wastewater capability
which, of course, requires significant level sensor
usage.
Water /  As governments seek to stimulate the economy,
Wastewater they have to select projects that have wide
 Ranked #2 in 2009 support as calls for decreased spending are
resonating. Environmental projects are hard to
 Stayed the same in argue with.
2011
 Recent changes in the hydrological cycle and
subsequent fresh water shortages will drive the
need for water desalinization and/or purification.
 Widespread hydrological “fracking” requires that
the water be cleaned afterwards.
© 2011 VDC Research Webcast
Industrial Automation & Control
vdcresearch.com

12. Summary of Process Level Demand Side Market Highlights
 Our recent demand-side survey shows likely shifts in markets as well as
preferences
 Suppliers will be needing to provide advanced features as well as improved
durability
 Recent environmental and safety events will further drive changes
 Our supplier interviews and demand-side surveys are showing a clear trend that
customers will need more support in many phases of the product planning,
purchase, installation and use cycle.
 Cutbacks in the product channel through inventory reductions and phase-out of
older products are presenting opportunities for suppliers that demonstrate better
responsiveness from both a quotation and delivery perspective.
© 2011 VDC Research Webcast
Industrial Automation & Control
vdcresearch.com

13. Thank You for Attending this VDC Webcast
For more information please contact:
Bob Perugini – Account Director
bperugini@vdcresearch.com | 508.653.9000 x144
David Laing, PMP – Program Manager, Senior Analyst
dlaing@vdcresearch.com | 508.653.9000 x146
Chris Rezendes – Executive Vice President
cjr@vdcresearch.com | 508.653.9000 x120
For complimentary insights and marketing data:
http://blog.vdcresearch.com/industrial_automation
© 2011 VDC Research Webcast
Industrial Automation & Control
vdcresearch.com