The growth trend in the mining and metals industry that spurred demand for automation, instrumentation, and operational software came to a halt in the last quarter of 2008, according to ARC Advisory Group. The cause was the now well-known global financial crisis. However, spending will still be needed in 2009 with stronger spending to begin in 2010 and beyond, according to Analyst Dick Hill ([email protected]), the principal author of ARC’s Automation Expenditures in Mining and Metals Worldwide Outlook.

Through the first few months of 2008, demand for metals worldwide continued to grow. Emerging market demand was growing fastest as manufacturers in Asia and Eastern Europe increased production of industrial and consumer goods. Now the situation is quite different. World demand for steel in the first quarter of 2009 has dropped by nearly 25%, causing major steel producers to see profits plummet. The reduced demand for iron and steel has led to a dramatic drop in both the demand and price for iron ore. Through 2007, suffice it to say that no one saw the downturn coming, in terms of investment spending in mining and metals. With the global economic downturn as a backdrop, it is understandable that mining and metals companies have cut back the aggressive growth plans of pre-2008. 

The leading global mining and metals companies understand that, though it may seem counterintuitive in light of the current economic downturn, it’s important not to under-invest even now. Certainly, capital outlays are required to maintain production levels at existing mining sites as well as metals processing facilities. The larger investments seen prior to the current down turn have been postponed, but will have to be made to keep up with global demand for minerals and metals.

Over the long term, demand will rise again, particularly in developing regions, and mining and metals prices will rise along with it. Indeed, over the short term, engineering and materials costs may go down as some more complex projects are put on hold, and steep drops in demand for finished goods helps to push down the prices for steel and other commodities. The end result is a more favourable environment for investment than many might expect.

Regionally, the highest growth rates will occur in Asia and Latin America. Asia’s share of sales will reach 35%, according to the report, and while the highest growth in expenditures will be in Latin America over the forecast period, the region will still remain a relatively small portion of the overall market. Despite the strong growth in developing regions, Europe Middle East and Africa will have the largest share of the market. North America’s demand for automation, instrumentation, and software solutions will be nearly a quarter of the world’s sales, but growth is expected to be the lowest of all four world regions.

The report examines the market for automation systems, instrumentation, and operational software in the mining of minerals through the production of metals. It provides strategic market information and guidance. In addition to quantitative assessments, the study also identifies key strategic issues that will have a future impact on this market:

• Market potential and size for automation systems and field devices
• Leading suppliers in this vertical industry sector
• Market size in various world regions
• Strategies for suppliers and manufacturers in the worldwide mining and metals industry to maximize opportunities in a dynamic energy market.

Worldwide Study Table of Contents

Executive Summary

• Scope
• Market size and forecast
• Strategies and recommendations for success.

Scope

Market Shares List of Figures

• Market shares of the leading suppliers
• Market shares by region
• o North America
• o Europe, Middle East, Africa
• o Asia
• o Latin America.

Market Forecast List of Figures

• Total shipments of automation solutions to the Mining and Metals Industry
• Shipments by region
• o North America
• o Europe, Middle East, Africa
• o Asia
• o Latin America
• Shipments by product type
• o Collaborative production management
• o Control valves
• o DCS without SCADA
• o Enterprise asset management
• o Flowmeters
• o High power AC drives without midrange
• o Human machine interface software
• o Laboratory information management systems
• o Low power AC drives
• o Plant asset management
• o Process electrochemical systems
• o Process engineering tools
• o Programmable logic controllers
• o Real-time process optimisation
• o Transmitters

Supplier Profiles

Profiles for 11 of the major suppliers servicing this market are included.  Each profile reviews the company’s business, products, and services as it applies to this market segment.  Suppliers profiled include ABB, Converteam, Danfoss, Emerson Process Management, Hitachi, Honeywell, Invensys Process Systems, Rockwell Automation, Siemens, Toshiba Mitsubishi-Electric Industrial Systems (TMEIC), Yokogawa

For more information on this study, go to www.arcweb.com/res/metals