Distributed Control Systems for

Electric Power Generation

Global Market Research Study

MARKET ANALYSIS AND FORECAST

THROUGH 2020
Purchased by ABB

Project Team:
Harry Forbes
David Clayton
Larry O’Brien
 Copyright  2016
ARC Advisory Group
All data contained in this report are proprietary to and copyrighted by ARC Advisory Group and
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Market Forecast Updates

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periodically as required. Therefore, we recommend that clients obtain the latest market
information from ARC before making any important decisions. ARC does not recommend that
clients use the market forecast data beyond two years for future business planning.
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 Table of Contents
Executive Overview ................................................................................................................................... 7
Major Trends .................................................................................................................................. 8
Major DCS and Related Technology Trends ............................................................................. 9
ExxonMobil’s “It Just Happens” Initiative .............................................................................. 11
ExxonMobil’s Open Systems Initiative ..................................................................................... 16
Industry Trends ........................................................................................................................... 23
Regional Trends ........................................................................................................................... 23
End User Trends .......................................................................................................................... 25
Strategies for Success .................................................................................................................. 26

Scope of Report Research ....................................................................................................................... 29

Key Issues Researched ................................................................................................................ 29
Market Size and Forecast Definitions ....................................................................................... 29
Questionnaire Used for Market Data Collection ..................................................................... 35
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Market Shares Analysis .......................................................................................................................... 37

Leading Suppliers ........................................................................................................................ 37
Top Suppliers by Geographic Regions ..................................................................................... 43
Top Suppliers by Industry Segment ......................................................................................... 45

Market Share Figures .............................................................................................................................. 47

Leading Suppliers of Distributed Control Systems for Power Generation .......................... 49
Leading Suppliers of Distributed Control Systems for Power Generation in North ..............
America ......................................................................................................................................... 50
Leading Suppliers of Distributed Control Systems for Power Generation for EMEA ....... 51
Leading Suppliers of Distributed Control Systems for Power Generation for Asia ........... 52
Leading Suppliers of Distributed Control Systems for Power Generation for Latin..............
America ......................................................................................................................................... 53
Leading Suppliers of Distributed Control Systems for Power Generation for ........................
Hardware Revenues .................................................................................................................... 54
Leading Suppliers of Distributed Control Systems for Power Generation for ........................
Software Revenues ...................................................................................................................... 55
Leading Suppliers of Distributed Control Systems for Power Generation for Service
Revenues ................................................................................................................................ 56
Leading Suppliers of Distributed Control Systems for Power Generation for ........................
Continuous Process Applications .............................................................................................. 57
Leading Suppliers of Distributed Control Systems for Power Generation for ........................
Supervisory Control Applications ............................................................................................. 58
Leading Suppliers of Distributed Control Systems for Power Generation for Coal ........... 59
Leading Suppliers of Distributed Control Systems for Power Generation for Natural Gas
................................................................................................................................................. 60
Leading Suppliers of Distributed Control Systems for Power Generation for Nuclear ..... 61
 Leading Suppliers of Distributed Control Systems for Power Generation for Oil ............. 62
Leading Suppliers of Distributed Control Systems for Power Generation for ........................
Renewables ................................................................................................................................... 63
Leading Suppliers of Distributed Control Systems for Power Generation for Large .............
Systems.......................................................................................................................................... 64
Leading Suppliers of Distributed Control Systems for Power Generation for Medium- size
Systems ................................................................................................................................... 65
Leading Suppliers of Distributed Control Systems for Power Generation for Small .............
Systems.......................................................................................................................................... 66
Leading Suppliers of Distributed Control Systems for Power Generation for ........................
Operations Services ..................................................................................................................... 67
Leading Suppliers of Distributed Control Systems for Power Generation for Project
Management Services ........................................................................................................... 68

Market Forecast Analysis........................................................................................................................ 69

Market Size and Forecast by Region ......................................................................................... 70
Factors Contributing to Growth ................................................................................................ 75
Factors Inhibiting Growth .......................................................................................................... 77

Market Forecast Figures .......................................................................................................................... 79

Total Shipments of Distributed Control Systems for Power Generation for ...........................
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Distributed Control Systems for Power Generation ............................................................... 81

Total Shipments of Distributed Control Systems for Power Generation by ............................
World Region ............................................................................................................................... 82
Total Shipments of Distributed Control Systems for Power Generation by World................
Region............................................................................................................................................ 83
Total Shipments of Distributed Control Systems for Power Generation in North America
................................................................................................................................................. 84
Total Shipments of Distributed Control Systems for Power Generation in EMEA............. 85
Total Shipments of Distributed Control Systems for Power Generation in Asia ................ 86
Total Shipments of Distributed Control Systems for Power Generation in Latin America 87
Total Shipments of Distributed Control Systems for Power Generation by ........................ 88
Revenue Category ........................................................................................................................ 88
Total Shipments of Distributed Control Systems for Power Generation by ............................
Revenue Category ........................................................................................................................ 89
Total Shipments of Distributed Control Systems for Power Generation for ...........................
Hardware Revenues .................................................................................................................... 90
Total Shipments of DCS for Power Generation for Software Revenues ............................... 91
Total Shipments of DCS for Power Generation for Service Revenues .................................. 92
Total Shipments of DCS for Power Generation by Application Type .................................. 93
Total Shipments of DCS for Power Generation by Application Type .................................. 94
Total Shipments of DCS for Power Generation by Customer Type...................................... 95
Total Shipments of DCS for Power Generation by Customer Type...................................... 96
Total Shipments of DCS for Power Generation by Plant Type .............................................. 97
Total Shipments of DCS for Power Generation by Plant Type .............................................. 98
Total Shipments of DCS for Power Generation for Coal ........................................................ 99
Total Shipments of DCS for Power Generation for Natural Gas ......................................... 100
Total Shipments of DCS for Power Generation for Nuclear ................................................ 101
Total Shipments of Distributed Control Systems for Power Generation by ............................
 Hardware Revenues by System Size ....................................................................................... 102
Total Shipments of Distributed Control Systems for Power Generation by ............................
Hardware Revenues by System Size ....................................................................................... 103
Total Shipments of DCS for Power Generation for Small Systems ..................................... 104
Total Shipments of DCS for Power Generation for Medium-size Systems ........................ 105
Total Shipments of DCS for Power Generation for Large Systems ..................................... 106
Total Shipments of Distributed Control Systems for Power Generation by ............................
System Size ................................................................................................................................. 107
Total Shipments of Distributed Control Systems for Power Generation by ............................
System Size ................................................................................................................................. 108
Total Shipments of DCS for Power Generation for Large Systems ..................................... 109
Total Shipments of DCS for Power Generation for Medium-size Systems ........................ 110
Total Shipments of DCS for Power Generation for Small Systems ..................................... 111
Total Shipments of Distributed Control Systems for Power Generation by ............................
Hardware by Type..................................................................................................................... 112
Total Shipments of Distributed Control Systems for Power Generation by ............................
Hardware by Type..................................................................................................................... 113
Total Shipments of DCS for Power Generation for Controllers .......................................... 114
Total Shipments of DCS for Power Generation for I/O ....................................................... 115
Total Shipments of DCS for Power Generation for Workstations ....................................... 116
Total Shipments of DCS for Power Generation for Networking Hardware ...................... 117
Purchased by ABB

Total Shipments of Distributed Control Systems for Power Generation by ............................

Service Revenues by Type ........................................................................................................ 118
Total Shipments of Distributed Control Systems for Power Generation by ............................
Service Revenues by Type ........................................................................................................ 119
Total Shipments of DCS for Power Generation for Operations Services............................ 120
Total Shipments of Distributed Control Systems for Power Generation by ............................
Project Management Services ................................................................................................... 121
Total Shipments of Distributed Control Systems for Power Generation by ............................
Sales Channel ............................................................................................................................. 122
Total Shipments of Distributed Control Systems for Power Generation by Sales ..................
Channel ....................................................................................................................................... 123

Supplier Profiles .................................................................................................................................... 125

ABB .............................................................................................................................................. 126
ALSTOM ..................................................................................................................................... 130
BHEL ........................................................................................................................................... 134
Emerson Automation Solutions .............................................................................................. 138
General Electric .......................................................................................................................... 140
Honeywell .................................................................................................................................. 143
Mitsubishi Hitachi Power Systems ......................................................................................... 146
Novatech ..................................................................................................................................... 149
Rockwell Automation ............................................................................................................... 152
Schneider Electric ...................................................................................................................... 155
Siemens ....................................................................................................................................... 157
SMAR .......................................................................................................................................... 161
Valmet ......................................................................................................................................... 164
Yokogawa ................................................................................................................................... 167
 Appendix A: Standard Market Segmentations................................................................................ 171
Key Issues Researched .............................................................................................................. 171
Key Regional Segments ............................................................................................................ 172
Key Currency Factors................................................................................................................ 173
Key Industry Segments ............................................................................................................. 173
Shipments by Distribution Channel........................................................................................ 173
Shipments by Customer Type ................................................................................................. 174
Shipments by Machinery Segments ........................................................................................ 175
Standard Industry Code Classifications - Process Industries.............................................. 176
Standard Industry Code Classifications - Discrete Industries ............................................ 177
Standard Industry Code Classifications - Service Industries .............................................. 178
Standard Industry Code Classifications Construction/Infrastructure Industries ........... 179
Standard Machinery Classifications ....................................................................................... 180

Appendix B: Research Methodology .................................................................................................. 183

Step 1: Client Inputs and Secondary Search ......................................................................... 184
Step 2: Identify Key Issues....................................................................................................... 184
Step 3: Conduct Primary Research ......................................................................................... 185
Step 4: Data Analysis................................................................................................................ 185
Step 5: Prepare Final Report .................................................................................................... 186
Benefits of ARC's Methodology .............................................................................................. 186
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Primary Authors ..................................................................................................................................... 187

Lead ARC Analyst Biography ................................................................................................. 189
Peer ARC Consultant Biography ............................................................................................. 191
ARC Services ........................................................................................................................................... 193

Continuous Advisory Services ................................................................................................ 193

Solution and Supplier Selection Services ............................................................................... 193
Market Intelligence & Rapid Analysis (MIRA) Tool ............................................................ 194
Investor Information Services .................................................................................................. 194
Merger & Acquisition Services ................................................................................................ 194
Strategy Forums ......................................................................................................................... 194
Consulting Services ................................................................................................................... 194
 Distributed Control Systems for Electric Power Generation Global Market Research Study

Executive Overview

The market for distributed control systems serving the power generation
industry suffered another year of decline in 2015. The good news is that the
decline in 2015 was not as steep as the decline suffered in 2014. There are a
number of factors that contributed to the decline in DCS spending for electric
power in 2015. One of the leading contributors to the decline is the shift in
primary energy sources for generation going on worldwide. Coal is being
replaced by a combination of natural gas (used primarily in combined-cycle
generating plants) and renewables. Nuclear power is declining in global
importance, and instead will become an important source only in certain
regions of the world (notably France and China).

Investments are made when

The problem with the shift toward renewable generation
owner-operators are confident
technologies (wind and utility-scale solar) is that they
that regulatory policy will support
their investments. typically do not use DCS for automation. The relatively
small unit modularity of these generation technologies (1-5
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MW vs. 500-1,000 MW per unit) and the need for motion control (in wind
turbines) make them better suited to PLCs and specialized automation
controllers rather than DCS. Growth in new generation capacity is also
slowing due to conservation measures and improving energy efficiency
(especially in applications such as lighting). Finally, the growth of
residential-scale solar-PV installations and demand response further delay
the need for additional generating capacity in many regions.

Another set of factors contributing to the decline stemmed from the reduced
demand for electric power, especially as generated by utility-scale plants.
Although demand for power continued to grow in some developing regions,
the majority of electric utility firms in the developed regions are not
experiencing load growth, and many do not expect load to grow in the
foreseeable future.

Regulatory policy is a critical factor in promoting capital investment in the

industry. Major capital investment occurs several times in the life of most
generating plants, not only when they are first built. However, investments
are made when owner-operators are confident that regulatory policy will
support their investments. For older plants in developed countries, policy
uncertainly is higher due to the penetration of renewables and the changes
they bring to the operation of electric systems.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Major Trends

The most important major trend in the electric power generation industry is
the general shift away from conventional coal-fired generation toward
renewables and combined-cycle gas-fired plants. In general aging coal plants
are being retired rather than updated and retrofitted with new features. This
has been the case in Europe for some time, but today new generating
capacity planned in North America is mostly wind and solar photovoltaic
(PV). The important China market is also ramping up the deployment of
renewable generation.

The most important major trend The implication of this for fossil-fired generating plants is
in the electric power generation
that they will obtain a reduced share of future electric
industry is the general shift away
generation, and thus will operate at lower capacity factors
from conventional coal-fired
generation toward renewables in the future. This will raise their overall plant cost
and combined-cycle gas-fired metrics, such as “levelized cost of electricity.” That in turn
plants. will make new investment in these types of plants more
challenging to justify economically, despite the fact that
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fossil-fueled generation will remain vital.

There is a trend to reduce reliance on coal-fired generating capacity

worldwide, due to higher carbon emissions and the air pollution caused by
other non-carbon emissions. New coal plants are still being constructed,
especially in China and India, but on a smaller scale than in the past.

In North America and Europe, net coal generating capacity will actually go
down due to plant retirements during the five-year ARC forecast period. The
DCS business for supporting and updating these retired plants will
disappear. Upgrades, replacements, and aftermarket services, rather than
new plant business represent the majority of the DCS power market. The
retirement of dozens of coal-fired plants will be a major factor retarding DCS
power market growth.

Finally, the issue of industrial control system (ICS) cybersecurity continues to

grow in the utility industry. A few years ago this matter was perceived by
end users more as a matter of regulatory compliance rather than a significant
risk. Now end users perceive real risk to assets and operations, in the wake
of the deployment of the Stuxnet malware, the 2015 Ukraine grid attack and
other industrial attacks – attacks that are often attributed to what are
euphemistically called “state actors.” The public service mission of electric
utilities depends now on robust cybersecurity.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Major DCS and Related Technology Trends

Until recently, the DCS had changed very little at its core from the systems
that were first introduced in the 1970s. Breakthroughs in DCS product design
and function were incremental, not revolutionary. Over the past several
years, however, the market has undergone several changes that really signal
the end of the largely proprietary, monolithic DCS as it has traditionally been
known in the market.

Despite their name, “distributed” control systems, typically consolidate a

large number of control loops within a common DCS controller.
Furthermore, traditional I/O is fixed and not
Recent open systems initiatives
configurable, so any project must factor in extra I/O to
spearheaded by major DCS end
user companies such as account for project changes. The traditional DCS
ExxonMobil and Saudi Aramco, consists of proprietary control network protocols and
will also have a tremendous proprietary controllers that ultimately exist within a
impact on the DCS market proprietary software environment. Traditional DCS I/O
moving forward. is also closely coupled to the controllers. However, all
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of this is changing rapidly.

The need for so much DCS I/O is largely due to the proliferation of analog
field devices. Input signals from 4-20mA or HART field devices must be
conditioned and so must the associated controller outputs. The proliferation
of digital networks at the field level will change the role and the demand for
I/O in the control system. In the meantime, we will still have lots of demand
for I/O, but there is no reason that I/O should be fixed; so we now have
configurable and characterizable I/O and standard cabinets that can greatly
reduce both time to project completion and automation-related costs.

While the nature of the physical I/O, control networks, and field networks is
changing, other technologies like the Industrial Internet of Things (IIoT) are
coming along that are pushing change even faster. IIoT consists of sensors
and edge devices, internet technology, the Cloud, and analytics capabilities.
These aspects of IIoT are already having a huge impact on both asset
management and operations management applications.

As we’ll also explain in some detail later in this report, recent open systems
initiatives spearheaded by major DCS end user companies in oil and gas such
as ExxonMobil and Saudi Aramco, will also have a tremendous impact on
the DCS market moving forward.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Impact of IIoT on Distributed Control Systems

Automation suppliers are already driving IIoT functionality into their
process automation offerings to some degree. The DCS, however, exists
primarily in the realm of real-time controls for critical process functions.
Demand for determinism, fast response times, and high availability in
process control preclude the use of the IIoT for real-time control applications,
for now at least.

However, utility companies are already rapidly

embracing cloud technology in areas where real-time
control is less of a concern. These include system
engineering and cloud hosting of operations
management applications and plant data.

Many utility companies are also embracing

virtualization technology, which was introduced to
the world of process automation several years ago.
It’s likely that the same will happen for cloud
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technology, Big Data approaches, and analytics.

ARC Industrial Internet of Things Model Edge devices, like gateways, are assuming more IT-
associated functionality due to the need to filter and
massage data to prevent overloading of low-capacity remote networks and
prevent higher-level platforms from being flooded by the tidal wave of data
generated by industrial devices. Edge computing, fog computing, and
similar strategies will be needed to both prevent this data deluge and deliver
feedback locally and in as close to real time as possible. This will
increasingly require the ability to execute applications on edge devices. Edge
analytics applications that serve the business objectives of reduced
downtime, maximized performance, and production operations are
emerging as the “killer apps” in this area.

While not in the scope of this report, operations management applications

have become more tightly integrated with today’s DCSs. These applications
range from batch software to planning and scheduling, simulation,
optimization, plant asset management, and more. The penetration of IoT
technology could result in a decoupling of these applications from process
automation systems. Industry-standard integration technologies like OPC
UA are stepping in to provide the common language that will provide
integration between control systems and other applications.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

This decoupling of operations management into more cloud-based and IoT-

centric applications, along with parallel efforts to decouple the process I/O
from process controllers and develop more open and interoperable system
architectures will enable independent hardware and software components to
interoperate with a minimum of customization.

ExxonMobil’s “It Just Happens” Initiative

Several years ago, when the price of oil was at record high levels and
upstream oil and gas project activity was booming, ExxonMobil launched an
initiative to significantly reduce the time, effort, and cost for the automation
portion of its numerous and far flung upstream projects. The ExxonMobil
team called this initiative, “It Just Happens,” which reflects how they
believed automation projects should be executed. The objectives are equally
relevant in today’s cost-constrained business environment.

This initiative has already had a huge impact on the development on the new
generation of DCSs
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Benefits
Reduced I&C Project
Engineering Reduced Wiring Hardw are FAT Elim inated Com missioning Time Schedule
Technology (incl. rework) or Terminations Reduction or Reduced Reduced TIC Reduced Im provement

Smart Configurable I/O X X X X X X X

Run-time Server Virtualization X X X

Virtualized System for Engineering X X X

DICED (automatic commissioning) X X X

Std. Package Interface X X X X

Std. Electrical System Interface X X X X

Reduced SPI (INtools) Requirements X X X

Standardized HMI (Operator Graphics) X X

SIS Programming using Cause & Effects X X X X

Wireless Instruments X X X

DC Pow er Supply (inverters eliminated) X X

Estim ated % Im provement for Typical Project 30-40% 70-80% 66% 50-60% 20-30% 30-40% 15-25%
of total ICSS of total of cabinets, of traditional IFAT of commissioning time of total installed approx. 3-4 calendar
engineering terminations; junction boxes, calendar duration per field device on automation costs months of ICSS
hours incl. significant cable, tray, average (w ith today's including schedule; may not
normal but Construction HVAC, LER mix of HART devices) infrastructure and change overall
extensive man-hour reduction associated project schedule
rew ork reduction services (EPC unless the ICSS
and MICC activities are driving
combined) the schedule

Key Automation Technologies Promoted by “It Just Happens” and Estimated Benefits

Copyright 2016 © ARC Advisory Group • ARCweb.com • For Internal Use Only • 11
 Distributed Control Systems for Electric Power Generation Global Market Research Study

ExxonMobil believes it is too costly and difficult to manage complex

automation projects using the same approaches as in the past. The “It Just
Happens” initiative calls for suppliers to step back and look at whole new
ways of doing things. The automation industry needs lean project execution
that separates the physical system from the software. Toward this end, the
technology suppliers have to think differently and deliver technology in a
way that allows the team to eliminate, simplify, and/or automate steps in the
overall execution of automation.

The top twelve challenges laid out by ExxonMobil in its “It Just Happens”
initiative are:

1. Eliminate, simplify, and/or automate steps in the overall execution of

automation

2. Minimize custom engineering and reduce the total amount of

engineering required
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3. Shift the custom engineering to the software and rely on standard

hardware components so hardware fabrication can progress independent
of software design

4. Virtualize the hardware and prove the software design against the
virtualized system

5. Prevent design recycle and hardware/software rework

6. Eliminate unnecessary automation components and standardize the

remaining components so all systems look alike across projects

7. Eliminate or minimize the physical, data, and schedule dependencies

with other disciplines

8. Simplify the configuration of interfaces with third-party packages

9. More easily accommodate changes, including late changes

10. Mitigate the effects of hardware and software version changes

11. Eliminate, simplify, and/or automate generation of required

documentation

12. Challenge traditional approaches

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Intelligent I/O Modules and Standard Cabinets Significantly

Reduce Cost and Project Time to Completion
As one example, thinking about I/O differently led to today’s smart
configurable DCS I/O. This new technology allows the project team to
continue the design and engineering well past the traditional point where
decisions get “cast in concrete.”

Traditional I/O, wiring, and marshalling schemes can be problematic for an

automation project. Conventional I/O modules are rigid, with dedicated
connection points for analog or digital input or output, as well as other
signals. This fixed structure can make it difficult to adapt to late changes in
the project. Many end users try to get around this
issue by pre-planning additional spare I/O
capacity and through other measures. However,
late changes must almost always be
accommodated and, in many cases, new I/O
modules need to be added along with all the
associated point-to-point wiring and associated
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labor. This can make retrofit DCS projects with

limited physical space much more difficult.

For many end users this is more than just a

nuisance. Significant I/O increases, forced post-
Characterizable I/O: I/O Modules Can Be
“Characterized” for Certain Signal Type and FAT (factory acceptance testing) rework, and field
Plugged into Any Slot in a Standard Rack modifications can mire down a project and have a
major impact on cost. These late changes can
affect almost every facet of a project, from delays in release of construction
drawings to delayed delivery of automation systems, delayed construction
and commissioning, and late startup dates.

Configuration Workstation Points Configured via Software in a Standard Rack Leading automation suppliers have
“stepped up to the plate” with new I/O
that is either characterizable,
AO configurable, or a combination of the
two. Characterizable I/O includes
hardware modules that plug into a rack
and can represent analog input, analog
output, digital input, digital output, etc.
The type of module plugged into the
Configurable I/O: Individual Points Configured via rack determines the type of signal.
Software

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Modules can be plugged anywhere in the rack and are location independent.

Configurable I/O solutions take a similar approach in terms of point

independence and flexibility, but the points are configured through software
rather than hardware modules. Some vendor solutions offer a combination
of characterizable and configurable I/O points, depending on the type of
signal.

Characterizable and/or configurable I/O solutions also have typically a

much smaller footprint than traditional I/O, resulting in significant space
savings on a new project, and better management of the
Characterizable and/or
configurable I/O solutions also small space that will probably be available in migration
have typically a much smaller projects. Controller cabinets can also be smaller. Some
footprint than traditional I/O, vendor solutions also offer field-mounted junction boxes for
resulting in significant space a more distributed environment. Entire marshalling cabinets
savings on a new project, and can be eliminated. Users no longer have to customize
better management of the small
cabinets and can choose from a smaller, more manageable
space that will probably be
catalog of standard cabinets. Other benefits include reduced
available in migration projects.
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power consumption and associated heat generation.

Characterizable or configurable I/O not only reduces the footprint from all of
the cabinets and junction boxes, but also significantly reduces weight. Today
many utilities are compressing everything down to the smallest possible size
and weight. These utilities are incorporating the new I/O or, as an
alternative, fieldbus-based solutions, to reduce footprint and weight.

For many companies, the traditional approach also requires large numbers of
controller/I/O cabinets, marshalling cabinets, and field junction boxes to
collect the I/O in the field. According to at least one supplier, the new I/O
technologies can reduce the total number of cabinets, junction boxes, and
amount of terminations required by as much as 66 percent. This represents a
significant reduction in construction work and removes many of the sources
for errors.

Automating Automation Projects

Better management of engineering data has improved efficiency during the
engineering and design phase. While the tools used by engineering,
construction and procurement (EPC) companies help engineering share
design data during facility design, the automation engineer still has to extract
the related design data necessary to build the control configuration. This
work is time consuming and prone to error.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

“DICED,” another technology concept that originated at ExxonMobil in

conjunction with its “It Just Happens” initiative, takes smart I/O to the next
level by automating many key facets of an automation project. Initially,
DICED (auto-Detect, auto-Integrate, auto-Configure, auto-Enable, and auto-
Document) will enable HART devices to be self-commissioning, but many
automation suppliers are working to extend this capability to switches or
digital devices. When commercialized, this technology could reduce
commissioning times for automation systems by up to 80 percent.

DICED will also allow users to greatly simplify the documentation for a
project and help eliminate documentation errors. Interconnect drawings
created by an engineering contractor will no longer be required. A
construction contractor will hook up an instrument, run the wiring to the
closest smart junction box, terminate on any set of input terminals, and -- if
the control system is powered up -- the loop will self-commission. When the
contractor is finished, a few clicks will generate the needed “as-built”
interconnect drawings. DICED will detect where the instrument is
connected. Since smart I/O does not care about polarity, the construction
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contractor cannot make a mistake, so no human checking is necessary. This

brings a new level of “bonehead simple” to automation systems.

Late Binding and Separating Hardware from Software

The impact of characterizable and configurable I/O goes beyond reduced
hardware, footprint, and wiring. These new forms of I/O represent a
fundamental shift in systems architecture. Specifically, they allow the
hardware- and software-related aspects of the system to be separated. With
fully adaptable and standard I/O and control hardware, the user can
theoretically design and test all of the software aspects of the system before it
is deployed into the physical system hardware. This allows the software to
be deployed into the hardware infrastructure at the very late stages of the
project. This is often referred to as “late binding.”

Late binding has some interesting implications for the project lifecycle and
can eliminate the need for FAT and other project stages. It also allows for
more flexibility in system design and facilitates concepts such as concurrent
engineering in which multiple people can work on the system engineering
project from different locations around the world, with the system software
configuration residing in a cloud-based infrastructure. This has powerful
implications for collaboration. With the system design totally contained
within the software, it can be validated virtually with no need for hardware

Copyright 2016 © ARC Advisory Group • ARCweb.com • For Internal Use Only • 15
 Distributed Control Systems for Electric Power Generation Global Market Research Study

FAT. The hardware can be virtualized for engineering purposes and the
software design proven using this virtualized hardware.

This new approach also means that certain elements of the project can be
executed simultaneously with less interdependence, so system hardware and
software can be configured at the same time. The hardware and software are
brought together at the site, with all the
12 Month Project Timeline necessary hardware available when
required. This could reduce typical
automation project execution times from
18 to 24 months to just 12 months.

Front End
Define Engineering Use of virtualization also allows hardware
and Design
(FEED) definitions and purchase decisions to be
made further along in the project design,
thus minimizing design errors.
Configuration Software FAT Decoupling the rigorous design details
from the purchase of specific hardware
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helps eliminate unnecessary costs in

several ways. First, designing and testing
Installation &
Commissioning
Startup a virtual system will uncover flaws that
can be more easily fixed. Second, late
Late Binding of Automation Software to Hardware binding allows the use of the latest
Helps Reduce Project Cycle Times Dramatically
technologies, particularly when a project
is executed over a long period of time.

End users also report benefits of managing this data during the operations
and maintenance (O&M) phases of the plant lifecycle. Up-to-date, as-
engineered design data is key to managing a company’s engineering and
manufacturing operations throughout the plant’s lifecycle.

ExxonMobil’s Open Systems Initiative

ExxonMobil’s latest open systems initiative (spearheaded by the company’s

downstream business) aims to take the “It Just Happens” concepts further by
opening up the system architecture to make it easier to manage the overall
system lifecycle. In January 2016, ExxonMobil Research and Engineering
Company (EMRE) awarded Lockheed Martin a contract to serve as the
systems integrator in the early stage development of a next-generation open
and secure automation system for process industries.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

This initiative is noteworthy for several reasons: First because it is being

spearheaded by ExxonMobil, a leading international oil company with a long
reputation for operational excellence. Second, because the products of this
program will be technologically quite different from the process automation
systems used today. Third, because the organization and the value chain
executing this program are also quite different from the way the process
automation market works today.

ExxonMobil discussed the objectives of this initiative at the 2016 ARC

Industry Forum in Orlando in February, where it generated significant
discussions among technology end users and
ExxonMobil has shaken up the process suppliers alike.
automation market by beginning a
program to develop both a new process During their forum presentations, ExxonMobil
automation system architecture and a representatives stated clearly that one objective in
new process automation value chain. making their automation plans public is to
promote the development of a business
“ecosystem,” a market segment with many companies supplying products
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and services. This ecosystem eventually would support and enhance the new
automation technology that ExxonMobil is adopting. The presenters
explicitly said, “We do NOT want to create a system that is only used by
ExxonMobil. That would represent a failure of this program.”

Strategies are being developed to enable multiple end user and supplier
firms to effectively collaborate on the standards and practices that will be
required for the ExxonMobil automation development program.
ExxonMobil and Lockheed Martin have held several “industry day” events
to solicit questions on the initiative from automation suppliers and end users
alike. In June 2016, we also learned that ExxonMobil and The Open Group
have formed a consortium to help develop a standard architecture for these
new open process automation platforms.

Key Differentiators of ExxonMobil’s Program

This ExxonMobil program is noteworthy for many reasons. In ARC’s
assessment, the three most important distinctions are:

 First, the organization of the program and the value chain is different
from the way today’s process automation market is structured. The
system integrator has a different role. The firm that serves as the system

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

integrator does not supply any of its own hardware or software to the
program.

 Second, the effort will adopt a rigorous software architecture designed to

optimize portability of software and make the resulting systems highly
interoperable, easily extensible, and more modular compared to today’s
automation systems.

 Third, the program will include new electronic equipment dedicated to

managing a single control loop (such as a single liquid flow or tank
level). This highly distributed approach represents a return to a practice
from several decades ago when single-loop controllers abounded, and a
departure from the current practice of putting many control loops into a
single (redundant) DCS controller.

These points are similar to a parallel open process automation initiative now
under way at Saudi Aramco.
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ExxonMobil Automation Context

ExxonMobil’s downstream and chemical operations represent a very large
installed base of plants and automation systems. There are dozens of
production sites, hundreds of process units, and literally hundreds and
hundreds of large automation systems. And most of these systems are very
old, especially certain parts of them. In fact, much of the regulatory control
equipment dates back to the early 1980s.

This equipment has been carefully maintained for many years, but spare
parts availability is becoming an issue, making it more difficult to support
such old technology. It became clear that despite the efforts to prolong their
life, these systems would have to be replaced within the next 10 years or so.
Internally, ExxonMobil sought a way to realize some incremental business
value from replacing these systems. In the company’s evaluation, just
replacing these old systems with today’s equivalent systems would not
provide this value (apart from longer expected life), and so they looked for a
different kind of replacement solution. This requires a little further
explanation.

Within ExxonMobil, as with most process manufacturing companies, the

automation and production management systems are thought of as
hierarchical layers or levels. Each component operates at a specific level.
The basic regulatory controls, the base-level automation of the process is

18 • Copyright 2016 © ARC Advisory Group • ARCweb.com • For Internal Use Only
 Distributed Control Systems for Electric Power Generation Global Market Research Study

designated as “level 1.” These might control a single process temperature,

flow, or level. In contrast, the higher level functions involve things such as
providing broader situational awareness and driving the operating point of
the overall process to goals that meet business-related objectives. It is at
these higher levels that the economic optimization of production operations
occurs.
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ExxonMobil Automation Level Designations

(Sources: ExxonMobil, ARC)

Historically, ExxonMobil’s strategy has been to focus its investment in these

higher levels, where return on investment was higher. While well
maintained, the level 1 equipment has not received nearly as much ongoing
investment. Now, a great deal of this level 1 equipment is targeted for
replacement.

However, at the end of its operating life, refreshing or replacing the level 1
equipment (DCS controllers and I/O equipment) is technologically complex
and can disrupt operations. This equipment is closely coupled to both the
field and to higher automation levels. Replacement requires system-level
projects that cannot easily be subdivided into very small steps. ExxonMobil
wanted very much to avoid ever having to undergo such a complex and
disruptive replacement program. The company wanted new automation that
was substantially simpler to refresh and began developing a vision to replace
its level 1 equipment with a very different type of system.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Components of the Automation Vision

The following chart shows the envisioned architecture. The new components
are colored yellow, while the existing systems are light blue. The new
capabilities are broken into three major areas:

 New Operations Platform: We have all heard of IT/OT convergence.

This is a new type of OT platform that will be implemented using highly
standardized IT-like software and hardware. ARC believes that it’s likely
that this will be implemented using an on premise cloud platform with
some additional real-time capabilities and will make extensive use of
virtualization and of open source software.

 Real-time data services “bus:” This set of data services will tie the
system together and enable incremental expansion and change. This also
may be implemented using open source software, but regardless the
definitions of the services will certainly be public and probably already
standardized.
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New Components of ExxonMobil Automation Vision

(Sources: ExxonMobil, Lockheed Martin)

 Distributed Control Node (DCN): A dedicated single-loop controller

module for highly distributed control. While there will be a high number
of these in each system, in most cases, each DCN will regulate just a
single control loop. This has the advantage of limiting the span of an
automation control module failure. Today’s DCS controllers may
manage hundreds of loops, making them much more critical system
components. Over time, existing DCS functions migrate either to the

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

DCNs or to the real-time operations platform. Both of these will have

their own computation and storage resources, albeit of different orders of
magnitude.

Software Architecture for Interoperability and Re-use

Besides the system architecture, software is a critical component of the
program deliverables. Therefore, the program will adopt a rigorous software
design framework. This framework serves to isolate platform dependencies
and requires that software components use only fully specified interfaces for
their interoperation.

What is notable about this framework (named the Future Airborne

Capability Environment, or FACE) is
that it has been developed over the
past several years by firms serving
the U.S. Department of Defense. The
framework is now used to develop
and procure many avionics systems
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for US military aircraft, including

unmanned aircraft, and its use
within the Department of Defense
may expand further in the future.
The overall reasons for using FACE
in defense projects is to speed up
system delivery through re-use of
validated software components and
to enable rapid and simpler
incremental improvements to
avionics systems installed in fleets of
aircraft.

FACE Software Architecture Segments and Interfaces Please note that these objectives of
(Source: FACE Consortium, The Open Group) FACE in military avionics programs
(rapid development and incremental
expansion/improvement) align very well with the objectives that
ExxonMobil articulated for the replacement of its level 1 regulatory
automation systems.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

ARC Assessment
While it’s not possible to make any definitive conclusions at this early stage,
ARC’s preliminary assessment of this program covers the risks, ecosystem,
schedule, and potential benefits.

The greatest risks from the end user perspective is the need to integrate a
number of software capabilities for configuring, operating, monitoring, and
managing such an automation system. Some key features of DCS software
have historically been difficult to implement. Examples are online control
parameter and configuration changes, alarm management, system-wide I/O
and data use analysis, and online device and system software backup and
upgrade. This type of software needs to be rock-solid through years of
continuous operation, since it fundamentally manages the process
operations. Any new technology program cannot compromise the
operational integrity of the plants.

Second, it will be necessary for the program to cultivate a support ecosystem

of businesses. ExxonMobil envisions that this new architecture should make
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many routine maintenance tasks much simpler to perform. However, the

lifetime of process automation systems is measured in decades, making it
critical to have ongoing support channels throughout the system lifecycle.

Finally, the schedule for this program is very ambitious, with the first actual
installations now scheduled for 2019.

The potential benefits as envisioned by ExxonMobil include: a simplified

automation system architecture, ease in updating or extending the system
and thus smaller and more incremental system upgrades and extensions.
Another benefit may be greatly reduced dependence on any single
automation supplier going forward, albeit that the overall system and its
architecture will inevitably require life-long support.

While this program carries considerable risk, ExxonMobil’s evaluation is that

now is an appropriate time, technologically, for the process automation
industry to move in an important way toward a new architecture featuring
much higher levels of system interoperability and much smaller modularity
than is common in DCS products today.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Industry Trends

Within the organizations that operate generation plants, a few important

trends are appearing. First the combination of a “graying workforce” and a
need to reduce operation and maintenance (O&M) expenses is driving
centralization of domain expertise in areas like equipment condition
monitoring, process control, plant optimization, reliability, planning and
scheduling. Human resources at plant sites include fewer engineers with
these skill sets, except at major multi-unit plant sites where their presence
can more easily be justified.

A corollary to this trend is the development of remote support “centers of

excellence” where utilities can analyze and diagnose issues across their entire
fleet of generating units. This type of center includes rich historical plant
data, analytical applications, and supplier collaboration tools.

The concepts of the “Industrial Internet” (a phrase coined by General

Electric), the Industrial Internet of Things (IIoT), and Industrie 4.0 (promoted
by Germany) all reinforce the concept of remote or vendor support. Indeed,
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improved, more cost-effective, and more comprehensive remote support

solutions offer a rare opportunity for business growth and customer
intimacy. OEMs and DCS suppliers to the power generation industry have
offered such services for years, but ARC expects them to evolve as IIoT
solutions become more standardized and commonplace.

Regional Trends

The electric power generation business is highly regional by its very nature,
since electricity cannot be stored or shipped from region to region as can
coal, LNG, or oil. Regions must be self-sufficient to a high degree with
respect to electric generation.

With respect to demand for electricity the world’s developing regions,

especially China, India, and non-OECD Asia are the major growth
opportunities. While load growth in these economies is not keeping up with
its historical trend, nevertheless there is significant growth as more parts of
countries, regions, homes, and businesses are electrified.

In developed economies, especially Europe and North America, electric load

growth has been nonexistent since the 2008 recession, with new energy
efficiency technologies such as CFL and LED lighting, and distributed solar

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

PV generation penetrating down to a residential level, utilities are planning

based on a forecast of flat to negative electricity growth for the next five
years.

North America
During the next few years the fate of the US government’s proposed “Clean
Power Plan” will have an important role in the business. The plan calls for
carbon emission reduction planning at the state level with reductions to
begin in 2020. The plan is being challenged in court by several US states, and
may be modified or eliminated depending upon the results of the US
elections in 2016.

Regardless of the plan’s fate, the retirement of many coal-fired units has
already occurred in the US and more will occur during the forecast period.
Forecasts of how much capacity will be retired range from 5-15 GW of
capacity per year.

The rapid growth in unconventional (shale) oil and gas in North America has
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also depressed natural gas prices and made gas-fired generation significantly
less expensive from an O&M standpoint. At this point in time natural gas
has an overwhelming advantage over coal in North America, except for the
fact that long-term coal supply and pricing agreements can be negotiated
while long-term gas pricing agreements cannot be negotiated; and if needed
can only be achieved through financial hedging.

The situation in North America is such that in most cases utilities will choose
to invest in combined-cycle gas-fired plants if they need new non-
intermittent (dispatchable) generating capacity. Some have called this
situation the “Dash to Gas 2.0.” ARC believes that is an accurate description.

Europe
The new build situation in Europe is also biased heavily toward renewables.
The German program “Energiewende” (energy transition) was undertaken
after the 2011 Fukushima nuclear disaster in Japan. The program includes
plans to phase out nuclear power in Germany by 2020 and replace it with a
combination of renewable and gas fired combined cycle plants.

The resulting high cost of electricity in Europe (especially Germany)

combined with the high price of other primary energy such as natural gas

24 • Copyright 2016 © ARC Advisory Group • ARCweb.com • For Internal Use Only
 Distributed Control Systems for Electric Power Generation Global Market Research Study

has caused concern among energy-intensive industries that they may not
remain globally competitive with other regions, especially North America.

Other European national energy policies vary, with France still committed to
nuclear base load and eastern European countries favoring coal.

Asia
Asia has been the major market for new build for 10-15 years. China
especially has a long history of high load growth and electric generation
infrastructure growth. While China’s growth has slowed, it will continue to
add generating capacity of all types, including coal for the next five years at
least. The worldwide market for new coal fired plant will shift almost
completely to China and India during the next five years. OECD Asia
(mainly Japan, Australia, and New Zealand) will behave more like Europe,
with renewable plant rather than fossil growth.

End User Trends

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The “graying workforce” issue receives a great deal of management attention

within established electric utilities as they continue to operate older asset
bases with a younger and less experienced workforce. Beyond youth itself,
there is an increase in career mobility in many organizations so that the
career paths of employees are less predictable than in earlier times. Staff
headcounts are also reduced from that era.

As a result, the trend is to co-locate domain experts where they can

collaborate and also where they can train and mentor employees at the front
line. Utilities seek to develop “centers of excellence” that provide
coordinated remote support, business intelligence and asset management.
These centers build on operational information software tools. In some cases,
they may span the traditional divide between generation and T&D, but in
most cases utilities maintain separation between these two operations.

The smart grid and smart metering initiatives of the last five years has driven
a greater share of management attention to T&D rather than generation
assets. This is likely to continue as the major sources of business and
technical disturbance will be occurring at the edges of the grid. These are the
growing share of renewable generation that is integrated through electric
power distribution systems, and more widespread adoption of residential
solar PV.

Copyright 2016 © ARC Advisory Group • ARCweb.com • For Internal Use Only • 25
 Distributed Control Systems for Electric Power Generation Global Market Research Study

Strategies for Success

The next few years in the power generation market will be challenging for
DCS suppliers. As they face a market that is flat at best, their main challenge
is finding different business opportunities that grow both their business and
their importance to existing DCS customers.

Address Plant Assets in a Lifecycle Context

Utility companies will be managing their generation plants with a form of
triage during the coming years. The management of plants, especially those
older and less economical ones that are expected to be retired will be a
challenge. Suppliers need to address a range of end user requirements. For
some plants, the needs will be very short-term. In order to address these
market segments, suppliers must understand where any asset fits in the
future plans of the utility customer, and why.

Reduce End User Upgrade Disruption and Risk

Upgrades that suppliers see as evolutionary, some end users view as “rip
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and replace,” with the associated disruption, uncertainty, and risks. End
users have limited OpEx budgets, but a service offering that combines a well
specified benefit set with a highly predictable outlay over time can receive
consideration. Suppliers must evolve products and services that can meet
the budgetary constraints of end users. Suppliers must innovate and further
drive down their service and solution costs in order to make such services
profitable.

Strengthen End User and Supplier Remote Support

End users would prefer to concentrate their key personnel and do more
expert monitoring at “centers of excellence.” These may be located at major
plants or at corporate offices. Often the information resources available there
center on data historians rather than DCS software. DCS suppliers have
developed industry-specific solutions for remote operations support in areas,
such as offshore oil & gas platforms. These types of solutions could be
attractive to utilities if outfitted with different sets of applications and
analytics.

Reduce End User O&M with Advanced After-Market Services

As end user staffing is reduced, the burden of system support falls into less
experienced hands. O&M services such as DCS analytics, system backups,
and other periodic tasks may not be kept up at the desired schedules. End

26 • Copyright 2016 © ARC Advisory Group • ARCweb.com • For Internal Use Only
 Distributed Control Systems for Electric Power Generation Global Market Research Study

users need assurance that their systems are well maintained, and have fewer
expert human resources to do this.

Likewise, system management and analytical applications that were

designed to be operated by end users could be re-purposed to provide expert
advice via the DCS suppliers. End users need deep expertise and specific
advice to care for their installed DCSs. This type of service is a natural fit for
the OEM, and offers an opportunity for new business.

Address the Utility-Scale Renewables Market

The renewables market at utility scale consists of wind and solar farms. In
most installations there is no control above the unit level, and remote
monitoring is limited. Usually these plants have been created for
independent developers rather than to utility specifications. DCS does not
play a significant role in these sites. Can it? Not at the automation level.
However, analytics, optimization, and performance diagnosis are usually
primitive at these sites. End users (who increasingly are utilities) need to be
able to diagnose and manage these plants, and the tools they are using to
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date are mainly nothing more than data historians and HMI software.

Simplify Cybersecurity Compliance

Utility end users spend significant sums on cybersecurity compliance both
for their generation and for their T&D assets. Besides the expense, the major
complaint of end users is that the activity soaks up very scarce intellectual
resources. DCS suppliers who can reduce the burden of compliance work
will be delivering value to their installed base of customers.

Cyber security is a barrier and a pain point in both industrial automation and
in the Industrial Internet of Things. Thought leaders in both markets
articulate plans for intrinsically secure devices and systems, and these plans
align very closely. The Industrial Internet Consortium’s (IIC) new Security
Framework could also serve as a framework for cyber security of future
industrial control systems. Utility end users and suppliers need to broaden
their outlook on cyber security beyond (NERC-CIP) compliance to focus
more on security itself. The IIC framework is a good guide for this.

Move Smart I/O into the Retrofit Market

DCS suppliers have developed “smart” or “universal” I/O strategies that
accept multiple signal types, allowing the assignment of particular sensors to
I/O to occur late in a project and reducing the amount of detail engineering.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

These products have been priced at a premium, but customers with

greenfield projects have been willing to bear the cost because of the
opportunity to compress their construction schedule.

Examples of this technology in the DCS retrofit market are few and far
between compared to greenfields. Is that because the value proposition fails
in these projects, or because the project plans have not been revised to take
advantage of these capabilities?

Re-Think Your Customer Training Strategy

Traditionally DCS technical training serves both end users and technical
employees of the DCS firm. The business model needs to shift from high cost
offsite training classes and labs to independent study (perhaps including a
combination of software simulation and DCS lab equipment) and supplier
certification of end user personnel credentials. Some customers have set up
very small DCS training and development systems at their sites, often doing
so with minimal supplier support. Whole training programs with new
business models, using tools such as Internet video, could be targeted at
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customers with such equipment, and the expertise cultivated will pay off in
the long-term for both suppliers and end users.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Scope of Report Research

This report is intended to serve as a planning guide for current product or

service providers as well as companies considering entry into the
marketplace. It has been prepared specifically to provide strategic
information to industry executives responsible for planning, marketing,
sales, and development of their company’s offerings. All market data is
provided in U.S. dollars.

Key Issues Researched

ARC’s analysis of the worldwide power generation DCS marketplace

includes market size and segmentation, market forecast, industry structure,
supplier market shares, and supplier profiles. In
The report can serve as an
addition to the quantitative assessment of this DCS
effective planning guide for
companies interested in marketplace, the report provides an insightful analysis
purchasing DCSs and/or of the products and strategies of the leading DCS
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providing DCSs to the worldwide suppliers. It also explores in depth the key issues that
marketplace. will affect this business in the near future. Some of these
issues include:

This study explores several key issues which include:

 Market size and growth potential

 Regional analysis of North America, EMEA, Asia, and Latin America
 Forecast by geographic region
 Supplier market shares by region
 Market size by primary energy source (generating plant type)
 Vertical markets offering the greatest growth opportunities
Market analysis based on supplier interviews and end user surveys
Strategic issues confronting suppliers’ future issues
Successful strategies in the business
 Profiles of leading suppliers

Market Size and Forecast Definitions

Market size figures were derived from ARC’s extensive in-house databases
and in-depth interviews with the leading DCS suppliers. ARC bases its
market forecasts on a combination of factors, including user projections of
future demand and ARC’s assessment of the growth potential.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

ARC calculates base year market size in terms of shipments by industry

participants, not by bookings or orders. Geographically, the market data
includes DCS shipments to all customers worldwide. ARC tracks the DCS
market based on point of purchase, not final destination. For example, a
system purchased in the US for deployment in Saudi Arabia is counted as a
system sold in the US. This fact is particularly relevant for this market, ARC
believes, because a large volume of projects destined for end users in Asia are
engineered in Europe or North America and exported to the end users.

ARC continuously analyzes issues affecting the demand side of the

marketplace, including OEMs, systems integrators, and end users. Each year,
ARC conducts ongoing, continuous research with end users from each major
market segment regarding current and planned purchase decisions, main
purchase criteria, supplier selection criteria, planned adoption of industry
standards, and a wide range of other issues. ARC carefully analyzes this data
to formulate demand trends for process control in each major segment and to
develop automation business strategies for users and suppliers.
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Total DCS Business Contents

A typical DCS consists of functionally and/or spatially distributed digital
controllers capable of executing from one to 256 or more regulatory control
loops in one controller “box.” The sensor I/O can be integral with the
controller or located remotely and connected via a field network. Controllers
currently available have extensive computational
A typical DCS consists of capabilities and, in addition to continuous PID control,
functionally and/or
generally can also perform logic and sequence control.
geographically distributed
digital controllers capable of
DCSs may employ one or several workstations and can be
executing from one to 256 or
configured at the workstation or by an off-line personal
more regulatory control loops
in one controller. computer. A control network, usually Ethernet, with
transmission over twisted pair or fiber optic cables handles
local communication. A server and/or applications processor may be
included in the system to provide system services as well as additional
computational, data storage, and reporting capability.

Segmentation by Hardware/Software/Services
ARC segments each researched market into its components of hardware,
software, and services.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Hardware
With the evolving DCS architecture and the ever-expanding business scope
of DCS suppliers, ARC has made an effort to focus its definition of DCS,
rather than including all possible inter-related elements of plant automation.
ARC typically covers other related plant automation elements in separate
market studies.

At the hardware level, DCS begins at the sensor I/O modules and extends all
the way through controllers, application processors, workstations, PCs, and
the networking equipment falling within the DCS control domain. PLCs sold
as part of an independent PLC product business, such as Rockwell Control
Logix and Siemens S7 PLCs, are not included in this report. PLCs and PLC-
type controllers sold as part of an integrated system offering, such as the
Siemens Simatic PCS 7 and Rockwell Logix Integrated Architecture system,
are included. Also included are DCS controllers that perform PLC functions
only and replace PLCs in an integrated system.
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Included Excluded

Workstations for related DCS software Workstations for non-DCS

applications software applications

Controllers Field sensors & actuators

I/O modules Drives

Networking hardware Analytical equipment

Cabinets/enclosures related to Specialty measurement devices

controllers, I/O, networking

Any “resale” items such as monitors, Marshaling cabinets & field wiring
etc., related to the above

Classes of Hardware Included and Excluded from DCS Scope

Excluded from the DCS hardware definition are field instruments, control
valves, analytical devices, all specialty measurement equipment (such as
paper machine gauges and condition monitoring devices), and any other
devices that exist outside the I/O level of the system. Also excluded are
dedicated supervisory workstations that execute applications, such as
advanced control, production management, real-time optimization,
simulation, or plant asset management.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Small Medium Large

Workstations 1-2 3-8 >8

Controllers 1-2 3-8 >8

Analog I/O Points 0-599 600-1499 1,500+

Digital I/O Points 0-299 300-799 800+

ARC DCS Size Segmentation

ARC’s primary segmentation of the DCS marketplace is by DCS size.

Segmentation of DCSs into small, medium, and large systems is based on
hardware content. Hardware specifically includes all controllers, application
processors, I/O modules, workstations, and communications networks. PCs
used for system configuration and real-time control are included in DCS
scope, as are computers used for supervisory control, if sold as part of the
system. ARC also includes PLCs sold by DCS suppliers that are integrated
with the DCS.
Purchased by ABB

Software
DCS software includes embedded controller software as well as some, but
not all, software sold bundled with a system. DCS software includes control,

Included Excluded

Production management/MES
Bundled control software software, unbundled PIM or historian
software

Unbundled advanced process control

Bundled HMI software (APC) or model predictive control
software (MPC)

Real-time process optimization (RPO)

Engineering & configuration
and process simulation and
software
optimization (PSO) software

Bundled plant information Plant asset management (PAM)

management (PIM) software software

Bundled historian software Supply chain software

Unbundled third-party HMI

Bundled batch software
software

Classes of Software Included and Excluded from DCS Scope

HMI, systems management software, engineering and configuration

software, and plant information management (PIM) software such as
bundled data historians.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

In addition to performing HMI functions, DCS HMI software can also

perform functions such as I/O communication. HMI software typically
resides in the DCS workstation or PC. Control software typically resides
embedded in controllers and performs basic control functions. Programming
software, used to program and configure the various functions of the control
system at startup, accounts for a small part of the total DCS software
business.

The DCS definition excludes optional supervisory software that performs

production management (MES) and advanced control functions and typically
resides in a supervisory DCS server. Supervisory software includes
categories such as advanced process control (APC), model-predictive control
(MPC), real-time process optimization (RPO), process simulation and
optimization (PSO), and plant asset management (PAM) applications. ARC
covers the markets for these applications in other market reports.

Services – Systems Integration Project Services

Project services include all services provided by DCS suppliers for in-stalling,
Purchased by ABB

configuring, and commissioning DCSs, but only services for the hardware
and software included in the DCS scope. It does not include services for field
instruments or other non-DCS plant equipment. ARC produces a study
dedicated to the entire market for automation services that are provided by
automation suppliers.

In this study, the project services segment includes only those services
provided by direct employees of DCS suppliers and excludes indirect
contributors. For example, project services performed by distributors and
authorized systems integrators (SIs) for DCS suppliers are excluded from the
overall tabulation. Also excluded are project services performed by
representatives of instrument companies. ARC also excluded DCS project
services delivered by end users, consultants, EPCs, process equipment
manufacturers, and independent SIs.

Services – Operations Services

Operations services include all post-installation and facilities planning
services provided by a DCS supplier’s field services organization which are
delivered outside of long-term contracted maintenance or value-added
operational or performance services. Non-contract maintenance services can
also include engineering, programming, training, and network management.
ARC excludes third-party services from this segment.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Applications
From an application perspective, ARC includes all DCSs sold for continuous
and batch control. We have included SCADA systems sold on a traditional
DCS platform for power plant control applications, but not for control and
electric power T&D applications. Dedicated SCADA systems, such as those
sold by Emerson under the Bristol brand, are not included.

Batch control applications are not a major segment of electric power DCS.
Typically, batch, or sequence control is used for auxiliary applications control
of soot blower systems and demineralizer operation and regeneration.
Sequence or batch control can also be applied to integrate power operations
such as fully automated turbine and unit startup and shutdown sequences.

ARC includes quality control systems (QCSs) for paper, plastic sheet, and
similar applications in the scope of DCS, but these applications are not
relevant to the power generation DCS market.

ARC has also excluded systems serving dedicated power generation

Purchased by ABB

automation applications (for example auxiliary turbine control systems and

burner management systems) except when these applications are
implemented using DCS equipment. For example, a PLC-like turbine
controller provided by a turbine automation specialist would be excluded,
while a main turbine control system implemented on a turbine OEM,
Emerson (Ovation) or ABB (Symphony Plus) platforms would be included.

Plant Type
All electric power generating plants convert other forms of energy into
electricity. The form of energy that is converted is referred to in the industry
as the “primary energy” which the plant uses. This report segments the
forms of primary energy as follows:

Coal – Steam cycle plants that burn pulverized coal as fuel

Oil – Simple and combined cycle plants, and steam plants
Gas - Simple and combined cycle plants, and steam plants
Nuclear – Nuclear steam plants of all types
 Renewables – Hydro power, onshore and offshore wind turbines, solar
photovoltaic, concentrated solar, wood, other biomass, etc.

Different types of plants use different forms of automation. They also have
very different unit sizes. The spending for DCS across these different types of
plants is not directly related to the capital investment in each type of plant.

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Figure 2-1
Questionnaire Used for Market Data Collection
Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study
Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Shares Analysis

Power generation has evolved into a distinct market segment within the
overall DCS market over the years, and is the largest single vertical
industry consumer of DCS. Many suppliers have dedicated DCS platforms
and even dedicated business units to serve the power generation industry.
These include Siemens Energy Sector Power Generation Division, ABB
ARC observed consolidation in Power Systems Division, Emerson Power and Water
this market as the top three Solutions, and others. Looking at the market shares of
suppliers now account for nearly the leading suppliers of DCSs to the power generation
three-quarters of the global industry, ABB and Siemens figure most prominently in
market. this business, as does Emerson.

ARC observed consolidation in this market as the top three suppliers now
account for nearly three-quarters of the global market. The present market
shares indicate a two tier arrangement with ABB, Siemens and Emerson
sharing the top tier. A larger number of competitors operate in the second
Purchased by ABB

tier, each with less than 5 percent of the total market. However, these firms
each have market segments where they are much stronger and entrenched
than their overall market presence would indicate.

Leading Suppliers

ABB
Holding the largest share of the power generation market is ABB. The
remarkable part of this share leadership is that ABB does not have a
“captive market” of OEM equipment that employs its DCS. ABB laid the
foundation for this strong industry presence when it acquired Elsag Bailey
and Hartmann & Braunn. The company has effectively maintained its
number one position since that time.

The biggest change at ABB from an organizational perspective in 2015 was

the reorganization of the Process Automation business within ABB, which
repositioned the Symphony for power generation DCS business back to the
Process Automation business unit, along with the PLC business. This
change was announced at the end of 2015 and was not officially
implemented until early 2016. Symphony also had a major upgrade in
2015. The SD Series is designed to improve energy efficiency and
productivity in diverse operating environments within both the power and
water industries.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

The growth of renewable energy may well benefit ABB as a group, but is
not likely to boost the DCS business within ABB. ABB is not an OEM of
either wind turbines or solar PV systems, but it is a top tier supplier in the
supply chains of renewable equipment OEMS and project developers. In
addition, ABB competes very successfully for the large HVDC systems that
are needed to transmit large blocks of wind power from offshore locations,
most especially for subsea transmission lines.

Within the power industry, however, the installed base of ABB DCS is
threatened both by the transition to renewables and the move to gas-fired
combined cycle plants. Much of ABB’s installed base is in coal-fired units
which face a more uncertain future.

Siemens
Siemens is a leading supplier of DCS to the electric power industry, where
it is also a leading OEM of power generation equipment. The company’s
principal DCS offering for power generation is called “SPPA-T3000.” SPPA
stands for “Siemens Power Plant Automation.” The SPPA-T3000 takes over
Purchased by ABB

from its previous lines of DCS for power generation, Teleperm.

As a major turbine OEM, Siemens supplies turbine-generators for

combined cycle, simple cycle, and thermal power generation plants. Many
other products and services are bundled with this equipment and DCS is
most often part of such bundles. Siemens also contracts construction of
some power station projects on a turnkey basis, which provides huge
opportunities to “pull through” Siemens products.

From an automation standpoint, Siemens is a market share leader in both

factory automation and process automation markets, a unique attribute.
This product volume enables Siemens to share some hardware designs and
products across both markets (ET200 I/O, S7 controller, and Scalance
networking hardware are examples). Siemens DCS products for power, the
SPPA T3000 line, are differentiated from their factory automation
counterparts primarily by their software.

Siemens has developed a cloud analytics capability in collaboration with

SAP. This is branded as Siemens “Mindsphere”. While ARC believes
Mindsphere targets primarily other industries served by Siemens, what
play Mindsphere has in power generation will be an important trend for
end users to watch.

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Emerson Automation Solutions

The former Emerson Process Management has been renamed as Emerson
Automation Solutions. Emerson has a long history of experience in the
power industry, offers a wide array of power-specific solutions, and has the
ability to provide strong service and support. Emerson addresses the
power generation market using a dedicated business unit within the
Automation Solutions division, named “Emerson Power and Water
Solutions.” This unit has its own sales force, customer events, its own DCS
product (Ovation) and distinct industry-specific application software
solutions. Emerson’s power generation DCS business employs the Ovation
DCS platform. The completion of new offerings such as Ovation
Embedded Simulation, Cybersecurity Solutions, and Combined Cycle
Optimization helped drive growth for Emerson in 2015.

The Ovation DCS had its early roots in the WDPF DCS that was marketed
by the former Westinghouse Process Control Division. This business was
acquired by Emerson in 1998. Emerson has continued to invest in the
Ovation DCS platform, whose installed base consists overwhelmingly of
Purchased by ABB

power generation and water/wastewater utility plants.

Emerson has aggressively pursued power and water utility business with
Ovation and Ovation is a fully ongoing DCS product line that shares only
minimally with the DeltaV DCS that Emerson markets to other process
industries. Ovation offers connectivity to a wide range of third party
devices as well as providing high-speed interfaces to General Electric,
Mitsubishi, and Toshiba turbine controllers. In addition, Emerson now
offers Ovation SIS to address the requirement for SIL certified applications
like emergency shutdown and burner management.

Through its new CHARMs I/O and approach to project engineering that
incorporates virtualization, the Cloud, and late binding principles, Emerson
is focused on using process automation to improve business performance
for end users. Emerson calls this approach “Project Certainty.” Emerson
claims that applying reliability best practices in conjunction with Project
Certainty can achieve 18 days more uptime on average for
owner/operators and save $40 million in maintenance costs over the
lifecycle of a facility.

Emerson benefits from being able to draw from an extensive network of

local business partners (LBPs). These third-party companies sell Emerson
products and services and also offer a comprehensive range of project and

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

aftermarket services. LBPs are primarily found in North America, but exist
all over the world. Most of these businesses are focused on traditional
process manufacturing industries and relatively few of these LBPs have
deep expertise in power generation. This study does not include the
considerable service revenues generated by these third-party Emerson
LBPs.

Yokogawa
Yokogawa has used its market share dominance and installed base in Japan
to create a springboard that has helped the company build a considerable
and growing presence in EMEA, North America, Asia, and all other parts of
the world.

Yokogawa markets the Centum DCS for both process and power
applications. Yokogawa’s differentiation in the overall DCS market is as a
quality-focused company and the overall reliability and longevity of the
Centum products. There is little specific vertical industry marketing or
development for the power industry.
Purchased by ABB

In early 2016, Yokogawa announced a major acquisition that will bring the
company into the world of cloud technology in a big way. The Cloud has
gone beyond being just another industry buzzword and is now becoming a
part of everyday life in the world of process automation. Its acquisition of
Industrial Evolution, Inc. will enable Yokogawa to launch a “Data-as-a-
Service” (DaaS) solution that will provide considerable value to process
industry end users in the form of more easily accessible data across the
enterprise and an enhanced ability to turn those data into useful
information, and will be a major step in Yokogawa’s evolution toward the
Industrial Internet of Things.

Yokogawa is also one of the few suppliers that offers configurable and
intelligent I/O with the latest release of the Centum VP process automation
system. Dubbed Network-I/O, the Yokogawa approach combines
elements of both hardware-based flexibility and software configurability.
N-I/O features an I/O module that can handle up to 16 I/O points and is
software configurable so the end user can choose AI, AO, DI, or DO for
each point. Special hardware-based adapters can be used for pulse and
relay I/O. The new I/O module results in a 40 percent reduction compared
to the current footprint of existing conventional I/O.

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Schneider Electric
The acquisition of Invensys places Schneider Electric in the power DCS
market. The company’s DCS power generation revenue was actually a
bright spot as electric power generation continues to be a strong vertical for
Schneider Electric. However, their business has high exposure to Chinese
nuclear programs that will likely switch to indigenous DCS suppliers in the
future.

The solution for power generation incorporates the industrial automation

brands of Invensys Process Systems (Foxboro, Triconex, SimSci-Esscor, and
Avantis), Wonderware, and Eurotherm. The acquisition also brings
considerable services and solutions capabilities to Schneider Electric and
should continue to experience significant revenue growth in its services
business.

Schneider Electric is one of four suppliers (as of the publication of this

report in October of 2016) that can offer configurable intelligent I/O in the
form of its FBM248 modules, which received a major upgrade in 2016. The
Purchased by ABB

new Intelligent Marshalling FBM248 offering now includes redundancy

capabilities. Intelligent Marshalling eliminates the costly and labor-
intensive marshalling process traditionally required for control systems and
further enhances the reliability and efficiency of control system design and
operation.

Schneider Electric now has the capacity to integrate its wide range of
electrical assets, from intelligent motor control centers and drives to
switchgear in the Evo process automation system. In late 2015, the
company announced its FLEX approach to automation project execution
and engineering. Schneider Electric believes that its method for
automatically updating and refining data entered early in the project
(“early data”) puts it in a unique position in this respect and can provide
significant value throughout the project execution phase and across the
entire plant lifecycle.

Honeywell
While power generation has historically been a good industry for
Honeywell, the company is not nearly as strong in the DCS for Electric
Power industry as it is in the overall DCS market.

The Experion PKS system remains Honeywell’s flagship DCS. Experion is

one of four systems available on the market today that can offer

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

configurable intelligent I/O in the form of Honeywell’s Universal I/O.

Universal I/O is part of an overall campaign that Honeywell has to reduce
automation project costs called LEAP, or Lean Execution of Automation
Projects.

Another key advancement from Honeywell in 2016 is the growth in the

company’s service business, particularly Assurance 360 outcome-based
services. With outcome-based agreements, Honeywell works with the
customer to determine which KPIs are important to them and creates a
solution that best meets their goals. Performance outcomes center on the
overall reliability and availability of the control system. Key metrics can
include controller uptime and minimizing loss of view into the process.

Honeywell Process Solutions (HPS) and UOP, a leading technology licensor

and engineering firm, have been part of the same Performance and
Materials Technology (PMT) business unit within Honeywell for several
years now. The two companies have developed joint solutions to monitor
key UOP processes called “Experion Solution Suites.” Experion Solution
Purchased by ABB

Suites templates include things like preconfigured graphics, process

automation system configuration templates, embedded operating
procedures, safety narratives, and even preconfigured templates and
strategies for alarm and event management and notification.

BHEL
Bharat Heavy Electricals Limited (BHEL) is among the few automation
suppliers capable of providing complete power plant automation solutions
encompassing balance of plant (BOP) controls, burner management
systems (BMS), and turbine controls. The company has an exclusive focus
on the electric power industry in India, and its performance in both utility
and large capacity CPP segments is considerable. BHEL continues to
dominate in the power generation market in India for thermal and hydro
plants and represents nearly half the market for DCS sold to the electric
power industry in India.

The go-to-market strategy includes an on-going collaboration agreement

with Valmet for hardware and software. In 2011, BHEL began offering
Valmet DNA technology equipped with compact modular and
miniaturized I/O interface and latest fast controllers that can be configured
to work on Ring/Star plant network configurations, with high-level
application software building support. This technology caters to all needs
of process control application including wireless connectivity, imbibed with

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capability of strong asset management software on same platform.

Interfaces with field bus devices and various suites of user-friendly,
knowledge-driven, front-end HMI applications are available.

BHEL has full-fledged in-house hardware manufacturing facilities apart

from testing and integration facilities of DCS. The company makes
controller cards and I/O modules. BHEL’s core strength is its domain
knowledge, application engineering competence, strong service orientation,
and ability to respond to customer needs.

General Electric
Normally a supplier of only turbine and generator controls, GE has
repositioned its Mark IV system to support additional applications. GE
Wind turbines employ the Mark IV. GE has also broadened the scope of
Mark IV to include certain safety applications.

Through its Industrial Internet initiative, GE has developed advanced

software solutions (part of the “Predix” brand) for power generation and
Purchased by ABB

wind farms. The recently announced GE Industrial Internet Control System

(IICS) is initially being promoted as an on-site Predix platform that can
perform unit analytics, load dispatch optimization, and other advanced
applications on each unit or each plant.

It is too early in the life of these programs to evaluate their success.

However, the industrial internet initiative is notable within GE in that it is
primarily a software initiative that has been developed at a corporate level
rather than at the level of a GE business unit. GE’s strategy here is that
better software infrastructure tools can be deployed if they are shared
across multiple GE businesses (aircraft engines, power turbines, medical
imaging, etc.). Clearly GE would like to use this new technology to develop
customer preferences for its industrial equipment. How successful this will
be in the power industry is certainly a situation to watch. Likewise, the role
of the GE IICS versus its traditional Mark VIe and RX3i systems.

Top Suppliers by Geographic Regions

Despite the overall globalization of the process automation market, the

leading suppliers to the global DCS power generation market vary
significantly among geographic regions. Below ARC provides brief
descriptions of the leading suppliers to each major world region.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

North America
Emerson retained its position as the number one DCS supplier in 2015.
Emerson is an aggressive competitor for the power business, and tries to
differentiate itself through long-term cultivation of key accounts. The
company seeks to present itself as both dedicated to the industry and also
as most willing to listen to utility customers. Emerson has made several
acquisitions in recent years, particularly in the services business, providing
a considerable boost in North America.

ABB, the number two supplier in North America, excels in the North
American power generation business and continues to have a large share of
the installed base of DCS for power. The ABB Symphony Plus DCS is the
company’s primary offering for power generation. The Symphony Plus
product line provides a forward migration path for much of the company’s
installed base in the electric power industry, especially in North America.
Prior to the introduction of Symphony Plus, the migration to ABB 800xA
product was perceived by customers as significantly more difficult and
disruptive than moving to the Symphony Plus line.
Purchased by ABB

Siemens Energy comes in at third. Growing its North American process

business has been a top strategic priority for the company for almost a
decade now. Siemens grew its installed base of Simatic PCS 7 process
automation systems substantially in North America in this period with a
comprehensive competitive migration offering. The company services a
substantial installed base of SPPA and Teleperm systems mainly on
Siemens turbines installed in North America.

Honeywell is fourth in the North American market. Its installed base is

concentrated in the north central USA and in Texas.

Europe Middle East Africa

ABB and Siemens, with their long histories in the region and huge presence
in the power generation industry, continue to do battle in this region with
one firm or the other taking the market share lead in any one year, with
ABB eking out the top share position in 2015. Combined, both Siemens and
ABB capture more than three-quarters of the overall DCS Power market in
EMEA. ABB is the leading supplier in Eastern Europe and FSU while
Siemens dominates the Russia market. Emerson is a distant third position
in this market. ARC attributes this to Emerson’s strength in Eastern
European countries.

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Asia
For years, Asia has been the leading growth engine for the global DCS
marketplace, but that engine went into reverse in 2015. ABB remains the
largest DCS Power supplier in Asia, followed by Siemens. ABB benefits
from its strong presence throughout Asia – even in Japan. Siemens benefits
from its agreement with Fuji Electric to sell the Simatic PCS 7 DCS in Japan.

The Chinese DCS for Power market is shared among both global and
Chinese firms. Besides Siemens and ABB, Emerson, Invensys, Schneider
Electric, and Yokogawa are all actively participating in power projects in
Asia. Emerson has become the third largest supplier of DCS to the power
industry in Asia, based primarily on growth in coal fueled plants in China.
Regional suppliers, however, are growing in strength and reputation.
These local suppliers now have acceptable solutions and are being shown
preference in state-funded projects. HollySys and SUPCON are strong
regional suppliers doing business almost exclusively in China. HollySys is
also a competitor in nuclear power. BHEL, a company focused almost
exclusively on the power industry in India, leads the Indian market. Other
Purchased by ABB

leading suppliers to the Indian marketplace include Yokogawa and

Siemens.

Latin America
Latin America is the smallest geographic segment, and the most volatile.
Siemens is the market share leader benefiting from having a presence in key
Latin American countries, such as Mexico and Brazil, for over 100 years.
ABB is the second largest supplier to Latin America benefitting from
establishing a strong local presence in the region as well as relationships
with third-party representatives and distributors. Emerson is the third
largest supplier to the region and continues to see substantial growth in the
region. Schneider Electric, with its long history in Latin America, is the
fourth largest supplier. The company manages to generate a significant
amount of pull-through business in Latin America from its Triconex safety
systems business.

Top Suppliers by Industry Segment

The most important industry segmentation in this market is by plant type.
ARC segments the plant types as coal, natural gas, nuclear, oil, and
renewables.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

ABB leads the coal segment by a wide margin. The coal segment is the
largest plant type segment. Leadership in this segment may be problematic
in the long-term, since ARC expects coal generation capacity to contract in
North America and EMEA. It will only grow in China and India. So while
this is the largest plant type segment at present, it is expected to shrink
through the retirement of older plants.

Siemens leads in natural gas plants, followed by ABB, Emerson, and GE.
GE’s fourth place finish seems surprising. However, GE has historically
been associated with turbine controls and has not competed for much of the
plant automation content beyond this until recently. This is a growing
segment, and ARC expects the turbine OEMs to capture a larger share of
the segment in the long run.

The nuclear segment is also led by Siemens, followed by Schneider Electric.

Siemens has had a long history in the nuclear plant market through its
Teleperm system (which has been succeeded by the current SPPA T3000).
Siemens has had partnerships for nuclear automation most notably with
Purchased by ABB

AREVA. Schneider Electric supplies Triconex safety shutdown systems

and Foxboro Evo automation to nuclear plants mainly in China and the
USA.

Competition in the renewables is fierce, with the top three suppliers all
within 3 percentage points of each other in terms of market share. ABB is
the leader, followed by Siemens and Emerson. Although renewables
represent little more than 5 percent of the DCS market for power, it
represents more than half of the new generating capacity being added.
Unfortunately, renewable plants, even at utility scale, are not usually good
candidates for DCS application, since the units are much smaller and
integrated control of multiple units is unusual.

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Market Share Figures

The following 20 pages contain the market share figures for the leading
suppliers by segmentation.
Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study
Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-1
Leading Suppliers of Distributed Control Systems for Power Generation

2015 Revenues = $3,449.6 Million

Purchased by ABB

Other = 10.1%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-2
Leading Suppliers of Distributed Control Systems for Power Generation in North
America

2015 Revenues = $690.0 Million

Purchased by ABB

Other = 6.8%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-3

Leading Suppliers of Distributed Control Systems for Power Generation for EMEA

2015 Revenues = $1,526.6 Million

Purchased by ABB

Other = 6.8%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-4
Leading Suppliers of Distributed Control Systems for Power Generation for Asia

2015 Revenues = $1,044.2 Million

Purchased by ABB

Other = 7.1%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-5
Leading Suppliers of Distributed Control Systems for Power Generation for Latin
America

2015 Revenues = $188.9 Million

Purchased by ABB

Other = 2.8%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-6
Leading Suppliers of Distributed Control Systems for Power Generation for
Hardware Revenues

2015 Revenues = $1,084.1 Million

Purchased by ABB

Other = 7.0%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-7

Leading Suppliers of Distributed Control Systems for Power Generation for

Software Revenues

2015 Revenues = $562.5 Million

Purchased by ABB

Other = 10.4%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-8

Leading Suppliers of Distributed Control Systems for Power Generation for Service
Revenues

2015 Revenues = $1,803.0 Million

Purchased by ABB

Other = 7.1%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-9

Leading Suppliers of Distributed Control Systems for Power Generation for

Continuous Process Applications

2015 Revenues = $3,233.8 Million

Purchased by ABB

Other = 7.4%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-10

Leading Suppliers of Distributed Control Systems for Power Generation for

Supervisory Control Applications

2015 Revenues = $148.7 Million

Purchased by ABB

Other = 6.2%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-11

Leading Suppliers of Distributed Control Systems for Power Generation for Coal

2015 Revenues = $2,084.3 Million

Purchased by ABB

Other = 8.4%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-12

Leading Suppliers of Distributed Control Systems for Power Generation for Natural
Gas

2015 Revenues = $782.5 Million

Purchased by ABB

Other = 8.4%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-13

Leading Suppliers of Distributed Control Systems for Power Generation for Nuclear

2015 Revenues = $321.1 Million

Purchased by ABB

Other = 5.3%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-14

Leading Suppliers of Distributed Control Systems for Power Generation for Oil

2015 Revenues = $64.7 Million

Purchased by ABB

Other = 2.8%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-15

Leading Suppliers of Distributed Control Systems for Power Generation for

Renewables

2015 Revenues = $197.0 Million

Purchased by ABB

Other = 7.1%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-16

Leading Suppliers of Distributed Control Systems for Power Generation for Large
Systems

2015 Revenues = $582.5 Million

Purchased by ABB

Other = 6.5%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-17

Leading Suppliers of Distributed Control Systems for Power Generation for Medium-
size Systems

2015 Revenues = $376.5 Million

Purchased by ABB

Other = 4.2%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-18

Leading Suppliers of Distributed Control Systems for Power Generation for Small
Systems

2015 Revenues = $125.1 Million

Purchased by ABB

Other = 8.0%

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Figure 3-19

Leading Suppliers of Distributed Control Systems for Power Generation for

Operations Services

2015 Revenues = $641.7 Million

Purchased by ABB

Other = 5.5%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure 3-20

Leading Suppliers of Distributed Control Systems for Power Generation for Project
Management Services

2015 Revenues = $1,161.3

Million
Purchased by ABB

Other = 6.7%

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Market Forecast Analysis

As anticipated, the DCS for Electric Power market experienced a steep decline
in 2015. In fact, the downturn worsened in Q4 compounded by currency
exchange translation effects, weaker demand from China, and continued
uncertainty. The Brexit situation and uncertain energy policy in the UK has
further increased global uncertainty leading to increased risk avoidance
The Brexit situation has further that will make it even more challenging for companies to get
increased global uncertainty financing for automation investments over the next few
leading to increased risk years. International sanctions on Russia will further dampen
avoidance that will make it even growth in the EU. ARC anticipates new construction project
more challenging for companies activity in the DCS power market to decline again in 2016
to get financing for automation
and through much of 2017. Lower project activity in both
investments over the next few
China and India will continue to negatively impact new
years.
construction project activity going forward.

Replacement project activity is expected to decline through much of 2017 as

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well as the lower capacity utilization on the part of the utilities allows them
to find replacements from other areas and avoid buying a replacement for
failing automation equipment and accessories wherever possible.
Upgrade/expansion project activity is expected to be flat to down slightly
in 2016 as the downturn in expansion activities will be somewhat offset by
a focus on selective short-term, quick-ROI return upgrade projects. As a
result of the increasing headwinds facing the global markets, ARC is
postponing the DCS market recovery until 2018.

Total Shipments of DCS for Power Generation

Besides regional factors, weighing on the immediate future are the
worldwide adoption of energy efficiency technologies such as more
efficient building and outdoor lighting, “smarter” use of existing lighting
systems, and the generally smarter grids that are being developed, which
can respond to conditions in a number of ways besides demanding more
generation.

One major potential growth contributor would be deployment of more

electric vehicles (EVs). Indeed, more widespread EV deployment could
alter the daily demand profiles as well as overtax residential and
commercial electric distribution infrastructure. But sales of these vehicles
have been very modest, and ARC does not expect EVs to drive new
demands for electric capacity.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Size and Forecast by Region

Regional conditions are very important for this market, as the electric
systems between regions are independent. Business in nearly every region
declined for the DCS power market between 2014 and 2015. Asia
experienced the steepest decline, followed closely by EMEA and North
America. Latin America was the only world region to experience moderate
growth between 2014 and 2015 despite the ongoing economic and political
concerns in various Latin American countries that continue to inhibiting
spending.

ARC also expects universal declines for the DCS power business across all
geographic regions in 2016 and 2017, with a market turnaround expected in
2018. Market growth is expected to resume to more of a historic industry
average of around 4 percent by the end of the forecast period covered in
this report.

North America
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North America

Trend Impact

Government-supported return of certain

Geopolitical manufacturing operations to North America
Upcoming presidential election
Lack of skilled workers in many industries
Sociocultural Rising healthcare costs
Aging workforce
Declining competitiveness and productivity
Economic
IIOT-driven investment
Resources/Environment Greater emphasis on sustainability

The strong US dollar has resulted in reduced profits for the US

multinational corporations, causing a reduction in capital expenditure
funding, which results in some drag on growth. Key challenges facing the
US include the aging workforce, a shortage of educated workers, and a
decline in competitiveness.

Distributed renewable generation is putting pressure on utilities to adapt

and channel investment away from generation and into the T&D side of the
market. Environmental concerns and low prices are shifting the focus in

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North America to natural gas generation, away from coal. Coal-fired

generating capacity is expected to drop by 5-15 GW per year in the US
alone. ARC expects that in North America many older generating units
will be retired or “mothballed” during the next 1-2 years. Utilities will need
to make these decisions as older and more polluting units will require
either major investment in new equipment (especially for air quality) or
retirement. This is roughly 15-45 large generating units that will fall out of
the installed base rather than be upgraded.
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Americas Automation Index

Latin America
Latin America

Trend Impact

Political instability
Geopolitical Corruption
Infrastructure needs
High degree of inequality
Sociocultural
Urbanization
Economic Protectionist environment in Brazil
Resources/Environment Greater emphasis on sustainability

Growth in Latin America will be negated by the poorer trade conditions in

resource-exporting countries such as Brazil, Venezuela, and Chile. Brazil
and Venezuela remain in a slump with shrinking economies, while
Argentina returned to positive growth in 2015. The Brazil economy has
taken a hit recently from the collapse in commodity prices over the past few
years, mostly due to lower demand from China as the economy there cools

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

off. Venezuela’s economy is a disaster made worse by the worldwide

politics of oil. While growth is negative, the real problem is rampant
inflation caused by a lopsided economy and the phenomenon in which all
other industries in a country suffer as a result of the oil industry drawing
all investment.

EMEA
EMEA

Trend Impact

Instability in Russia and the Middle East create

uncertainty and hamper sales
Geopolitical
Austerity in some European countries
Sovereign debt crisis
Lack of skilled workers in many industries
Sociocultural
Aging population
Ongoing economic uncertainty in the Euro zone
Economic
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Industrie 4.0
Low oil prices damaging for nations dependent
Resources/Environment on exporting oil
Greater emphasis on sustainability
The European market for electric power faces many headwinds as well.
The geopolitical situation in Europe, including the crisis in Ukraine,
political tension with Russia, and the civil war on the outer European
border in Syria and the Middle East, is clearly having a negative impact on
the overall European power market. The German initiative to reduce
nuclear and fossil generation will also weigh on the market.

The ongoing economic uncertainty in the euro zone was further

complicated by the United Kingdom’s vote to exit the European Union
(EU). Continuing economic uncertainty in the EU is leading to increased
risk avoidance, making it even more challenging for companies to obtain
financing for capital investments. As of this writing, it is unclear how
impactful Brexit will be on the European Union and the global economy.
The worst-case scenario for Europe includes a financial crisis followed by a
full-blown economic recession as companies suffer from trade hurdles and
the EU shrinks to a core few member states, focused on economic
collaboration. The most likely scenario, however, is that the EU will
continue to exist and a full recession will be avoided.

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In addition to the economic headwinds facing the European power market,

exchange rate concerns including depreciation of the Russian ruble and the
more recent decline in value of the euro with respect to the US dollar are
further inhibiting ARC’s forecast for Europe’s power growth. The US
dollar appreciated with respect to most other major currencies during 2015.
The decreased value of the euro with respect to the dollar is the most
prevalent currency fluctuation affecting ARC’s 2015 market size for
Europe’s power market, as the euro is used by 19 countries and is
considered the world’s second largest reserve currency.

While some pundits believe the impacts for European companies could
exceed that of the 2009 crisis, ARC is less pessimistic. However, we think
that the Brexit will hinder growth through 2018. Overall, it is a difficult and
challenging to identify all the dynamics and even more so to quantify them.
Purchased by ABB

European Automation Index

The European power market is also largely affected by environmental

regulations. The regulatory environment in EMEA is dynamic, with many

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

countries focusing on opening their power sectors to competition and

private investments. One of the most important pieces of EU legislation on
European gas and electricity markets is referred to as the Third Package,
which is aimed at further liberalizing European energy markets.

Asia
Asia

Trend Impact

Government stimuli in many Asian nations

Geopolitical Modi administration focus on improving Indian
infrastructure
Rising wages in emerging Asia
Demand for increased quality in products
Sociocultural
Rapid pace of urbanization
Growing middle class
Economic China slowdown
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Resources/Environment Greater emphasis on sustainability

Market conditions in Asia will be more favorable. Based on the long-term
trends of the global economy, Asia will demand more energy and basic
materials. This will result in increased production of electricity. Emerging
economies have been experiencing rapid development in many sectors due
to urbanization and an increasing amount of foreign investments. Many of
these investments are targeted at the infrastructure industries, including
electric power generating plants, and water & wastewater facilities.

Asian Automation Index

The largest developing economies in Asia, China and India, are planning
large amounts of new generation capacity over the next 5 years. In China

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much of this capacity growth will accrue to renewables, but conventional

coal thermal plants will continue to be built. India plans a substantial
investment in new coal-fired plants, but the fraction of these plans that will
actually be completed is open to question.

Japan’s domestic companies experienced some tailwinds to help with

growth, such as a decrease in long-term interest rates, depreciation of the
Yen increasing exports, and lower oil prices. This resulted in record profits
for many of the companies. To further boost its domestic economy, Japan
has kept interest rates low for a long time, but with “Abenomics,” the
policies of the current prime minister, the expansive monetary and fiscal
policy has reached a new high and improved the investment climate.

Factors Contributing to Growth

The main factors that are contributing to the growth of this market include:

Asian Economic Growth and Policy

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The Asian regional market has been the engine of growth for the global
DCS market in power generation, as developing countries especially China
have added electric power infrastructure. While the growth rates in Asia
are slowing down, the region will still grow at above-market rates for the
next five years at least, ARC believes.

Public policy in Asia will also contribute to growth as both China and India
have plans to continue building substantial numbers of new coal-fired
plants.

Need for Greater Cybersecurity

In any country, the installed base of electric power generation plants with
DCS count as critical national infrastructure. These plants are now
regarded as potential targets for cyber warfare, as well as being targets for
other types of attackers such as cyber criminals and dissidents with an anti-
utility agenda.

Spending for greater cybersecurity is a priority item among owner-

operators of these plants, and the market is fast moving, so that security is a
more or less ongoing expense rather than a one-time purchase. The
difficulty from the end user standpoint is the variety of critical assets that
need protection from attack. Besides DCS, these include SCADA, rotating

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

equipment and plants, transformers, transmission lines, substations,

protective relays, switchgear, meters and other types of equipment.

Build-out of New and Flexible Combined Cycle Plants

As intermittent renewable generation plants increase their share of power
generation, the remaining plants, which can be dispatched by grid
controllers will have to cycle more often and more rapidly to offset the
intermittent nature of renewables. As a result, a new generation of
combined cycle plant is now being built with rapid load adjustment as a
key plant design metric. These new plant designs also have very high
thermal efficiencies. End users are likely to turn to these plants for a
greater fraction of their new plant investments. Usually the majority of the
plant automation spend for these facilities is captured by the OEM of the
major rotating equipment.

Shrinking End User Automation Expertise

In earlier times, every plant would be staffed with some component of
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engineers and technicians charged with supporting the plant’s automation

systems. Over time these technical staffs have thinned, and owner-
operators have tended to concentrate their personnel with automation
expertise at major generation sites or at corporate locations that service
multiple plants.

This thinning of plant staff has opened new aftermarket service

opportunities for automation suppliers. This includes traditional support
services, but especially new online system maintenance and diagnostic
services. Owner operators are open to outsourcing many different types of
DCS maintenance and support activities, provided they are assured of the
value of these services. This can be a challenge since neglected system
maintenance may only be detectable through audits or through very
infrequent malfunctions and loss of equipment/software.

Remote monitoring and diagnostic capabilities for DCS are also a good fit
for multi-plant “centers of excellence” that are being developed by owner
operators to maximize the utilization of their limited supply of human
experts.

Upgrades for Utility-scale Renewable Plants

Many large renewable plants have been developed to optimize their
construction schedules and installed costs, without giving much thought to

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the needs of the long operating life of these plants. Many of these plants are
later acquired by other owner-operators who then face challenges in
monitoring and managing these plants cost-effectively. Higher levels of
automation will be one way to do this, but the automation must be cost-
effective and will focus more on monitoring, analytics, and visualization
rather than process control.

Given these requirements DCS is one of the options for addressing this
need, but so are SCADA systems, data historians in combination with other
software tools, and specialized software applications. What does seem to be
the case, however, is that owner-operators are less than satisfied with the
situation they have been left with by the original plant developers.

Factors Inhibiting Growth

Factors that are retarding the growth of DCS in the power generation
market include:
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Lack of Load Growth

Traditional electric load forecasting was more or less simple extrapolation
based on 2-3 percent annual load and peak load growth. That is no longer
the case. However, utilities must plan many years in advance since
electrical assets take many years to develop. In North America and Europe,
most utilities have experienced negligible load growth since the economic
recession in 2008 – a dramatic departure from past history. There are a
number of factors at play in this, but the result is that these utilities have
been able to delay investment in substantial amounts of new generating
capacity.

Trend to renewables
There is a worldwide trend to develop new generating capacity using
renewable forms of generation, principally wind turbines and solar PV.
These types of plants feature small unit sizes (by a factor of roughly 100)
and do not require DCS-type of automation. There may be benefits in
larger scale automation for such installations, but most have been
developed by non-utility firms and these developers have usually not
concerned themselves with long-term operational issues.

The growth of renewable capacity on power grids also discourages

development of new fossil plants because the future utilization of such

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

plants would generally be lower (as measured by unit capacity factor),

which increases the lifetime production cost for such plants, as measured
by metrics such as Levelized Cost of Electricity, or LCOE.

More stringent emission regulations, including carbon

Power plants are major emitters of pollutants and greenhouse gases. In
some regions, pollutants such as particulates, oxides of sulfur, and oxides of
nitrogen have been reduced extensively through plant air quality systems,
which require major capital investment in equipment and automation.

Technology for capture of greenhouse gasses, called CCS for “Carbon

Capture and Sequestration” has only been demonstrated at small scale, and
the economics of CCS are quite uncertain. In addition, regulatory bodies in
Europe and North America are beginning to treat carbon emissions as a
regulated pollutant (the 2015 US Clean Power Plan is one example). If
regulatory restrictions of carbon emissions persist through legal challenges,
they will favor construction of renewables and (to some extent) gas-fired
plants over coal-fired plants, reducing the available DCS market.
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No regulatory policy for emerging utility role as backup

Regulatory policy is critical for development of power generation assets.
With many power grids now in transition to a much larger fraction of
intermittent renewable sources, the “legacy” utility generating plants are
consigned to a back-up role, although they may serve in this role for many
hours of operation each year. Nevertheless, plant utilization will be lower
in this role, and utility regulators have not devised regulatory policies that
will effectively support operation in a back-up role versus the classical
utility role as the near-monopoly supplier of electric power.

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Market Forecast Figures

The following 43 pages contain market forecast figures and tables for the
five-year period beginning with the base year of 2015 and ending with 2020.
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 Distributed Control Systems for Electric Power Generation Global Market Research Study
Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-1

Total Shipments of Distributed Control Systems for Power Generation for

Distributed Control Systems for Power Generation

Figures in Millions of US Dollars, Total Market CAGR = -0.2%

< - History Forecast - >

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-2

Total Shipments of Distributed Control Systems for Power Generation by

World Region

Figures in Millions of US Dollars

World Region 2015 2016 2017 2018 2019 2020 CAGR

Purchased by ABB

North America 690.0 639.7 596.4 583.4 609.8 641.9 -1.4%

EMEA 1,526.6 1,423.0 1,352.2 1,355.0 1,413.2 1,489.7 -0.5%
Asia 1,044.2 999.0 993.9 1,021.4 1,061.0 1,116.4 1.3%
Latin America 188.9 173.2 163.5 158.3 162.2 167.3 -2.4%
Total 3,449.6 3,234.9 3,105.9 3,118.2 3,246.2 3,415.3 -0.2%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-3

Total Shipments of Distributed Control Systems for Power Generation by World

Region

Figures in Millions of US Dollars

World Region 2015 2015 % 2020 2020 % CAGR

Purchased by ABB

North America 690.0 20.0% 641.9 18.8% -1.4%

EMEA 1,526.6 44.3% 1,489.7 43.6% -0.5%
Asia 1,044.2 30.3% 1,116.4 32.7% 1.3%
Latin America 188.9 5.5% 167.3 4.9% -2.4%
Total 3,449.6 100.0% 3,415.3 100.0% -0.2%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-4

Total Shipments of Distributed Control Systems for Power Generation in North

America

Market CAGR = -1.4%

Figures in Millions of US Dollars, Total Market CAGR = -1.4%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-5

Total Shipments of Distributed Control Systems for Power Generation in EMEA

Figures in Millions of US Dollars, Total Market CAGR = -0.5%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-6

Total Shipments of Distributed Control Systems for Power Generation in Asia

Figures in Millions of US Dollars, Total Market CAGR = 1.3%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-7

Total Shipments of Distributed Control Systems for Power Generation in Latin

America

Figures in Millions of US Dollars, Total Market CAGR = -2.4%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-8

Total Shipments of Distributed Control Systems for Power Generation by

Revenue Category

Figures in Millions of US Dollars

Revenue Category 2015 2016 2017 2018 2019 2020 CAGR

Hardware Revenues 1,084.1 976.8 918.2 909.0 931.7 972.7 -2.1%
Purchased by ABB

Software Revenues 562.5 523.1 505.9 505.9 526.1 555.0 -0.3%

Service Revenues 1,803.0 1,735.0 1,681.8 1,703.3 1,788.4 1,887.6 0.9%
Total 3,449.6 3,234.9 3,105.9 3,118.2 3,246.2 3,415.3 -0.2%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-9

Total Shipments of Distributed Control Systems for Power Generation by

Revenue Category

Figures in Millions of US Dollars

Revenue Category 2015 2015 % 2020 2020 % CAGR

Purchased by ABB

Hardware Revenues 1,084.1 31.4% 972.7 28.5% -2.1%

Software Revenues 562.5 16.3% 555.0 16.3% -0.3%
Service Revenues 1,803.0 52.3% 1,887.6 55.3% 0.9%
Total 3,449.6 100.0% 3,415.3 100.0% -0.2%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-10

Total Shipments of Distributed Control Systems for Power Generation for

Hardware Revenues

Figures in Millions of US Dollars, Total Market CAGR = -2.1%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-11

Total Shipments of DCS for Power Generation for Software Revenues

Figures in Millions of US Dollars, Total Market CAGR = -0.3%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-12

Total Shipments of DCS for Power Generation for Service Revenues

Figures in Millions of US Dollars, Total Market CAGR = 0.9%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-13

Total Shipments of DCS for Power Generation by Application Type

Figures in Millions of US Dollars

Application Type 2015 2016 2017 2018 2019 2020 CAGR

Purchased by ABB

Batch Applications 66.3 64.0 61.1 60.5 63.3 68.0 0.5%

Continuous Process Applications 3,233.8 3,023.6 2,902.7 2,917.2 3,033.9 3,185.6 -0.3%
Quality Applications 0.8 0.8 0.8 0.7 0.7 0.8 1.1%
Supervisory Control Applications 148.7 146.4 141.3 139.9 148.3 160.9 1.6%
Total 3,449.6 3,234.9 3,105.9 3,118.2 3,246.2 3,415.3 -0.2%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-14

Total Shipments of DCS for Power Generation by Application Type

Figures in Millions of US Dollars

Purchased by ABB

Application Type 2015 2015 % 2020 2020 % CAGR

Batch Applications 66.3 1.9% 68.0 2.0% 0.5%
Continuous Process Applications 3,233.8 93.7% 3,185.6 93.3% -0.3%
Quality Applications 0.8 0.0% 0.8 0.0% 1.1%
Supervisory Control Applications 148.7 4.3% 160.9 4.7% 1.6%
Total 3,449.6 100.0% 3,415.3 100.0% -0.2%

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Market Forecast Group Figure 4-15

Total Shipments of DCS for Power Generation by Customer Type

Figures in Millions of US Dollars

Purchased by ABB

Customer Type 2015 2016 2017 2018 2019 2020 CAGR

End Users 3,089.1 2,891.4 2,775.7 2,775.7 2,886.7 3,031.1 -0.4%
Original Equipment Manufacturers 75.7 71.9 69.0 69.7 72.8 77.6 0.5%
Systems Integrators 284.8 271.7 261.2 272.8 286.7 306.7 1.5%
Total 3,449.6 3,234.9 3,105.9 3,118.2 3,246.2 3,415.3 -0.2%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-16

Total Shipments of DCS for Power Generation by Customer Type

Figures in Millions of US Dollars

Purchased by ABB

Customer Type 2015 2015 % 2020 2020 % CAGR

End Users 3,089.1 89.5% 3,031.1 88.7% -0.4%
Original Equipment Manufacturers 75.7 2.2% 77.6 2.3% 0.5%
Systems Integrators 284.8 8.3% 306.7 9.0% 1.5%
Total 3,449.6 100.0% 3,415.3 100.0% -0.2%

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Market Forecast Group Figure 4-17

Total Shipments of DCS for Power Generation by Plant Type

Figures in Millions of US Dollars

Plant Type 2015 2016 2017 2018 2019 2020 CAGR

Purchased by ABB

Coal 2,084.3 1,877.9 1,730.0 1,708.5 1,798.7 1,928.6 -1.5%

Natural Gas 782.5 786.5 810.1 834.4 859.4 885.2 2.5%
Nuclear 321.1 314.7 314.7 324.1 333.8 343.8 1.4%
Oil 64.7 58.8 54.1 50.3 47.3 44.5 -7.2%
Renewables 197.0 197.0 197.0 201.0 207.0 213.2 1.6%
Total 3,449.6 3,234.9 3,105.9 3,118.2 3,246.2 3,415.3 -0.2%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-18

Total Shipments of DCS for Power Generation by Plant Type

Figures in Millions of US Dollars

Plant Type 2015 2015 % 2020 2020 % CAGR

Purchased by ABB

Coal 2,084.3 60.4% 1,928.6 56.5% -1.5%

Natural Gas 782.5 22.7% 885.2 25.9% 2.5%
Nuclear 321.1 9.3% 343.8 10.1% 1.4%
Oil 64.7 1.9% 44.5 1.3% -7.2%
Renewables 197.0 5.7% 213.2 6.2% 1.6%
Total 3,449.6 100.0% 3,415.3 100.0% -0.2%

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Market Forecast Group Figure 4-19

Total Shipments of DCS for Power Generation for Coal

Figures in Millions of US Dollars, Total Market CAGR = -1.5%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-20

Total Shipments of DCS for Power Generation for Natural Gas

Figures in Millions of US Dollars, Total Market CAGR = 2.5%

Purchased by ABB

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Market Forecast Group Figure 4-21

Total Shipments of DCS for Power Generation for Nuclear

Figures in Millions of US Dollars, Total Market CAGR = 1.4%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-22

Total Shipments of Distributed Control Systems for Power Generation by

Hardware Revenues by System Size

Figures in Millions of US Dollars

Hardware Revenues by System Size 2015 2016 2017 2018 2019 2020 CAGR
Purchased by ABB

Small Systems 125.1 117.6 117.6 122.3 126.0 129.1 0.6%

Medium-size Systems 376.5 353.9 353.9 365.6 372.9 380.4 0.2%
Large Systems 582.5 505.3 446.7 421.1 432.8 463.2 -4.5%
Total 1,084.1 976.8 918.2 909.0 931.7 972.7 -2.1%

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Market Forecast Group Figure 4-23

Total Shipments of Distributed Control Systems for Power Generation by

Hardware Revenues by System Size

Figures in Millions of US Dollars

Purchased by ABB

Hardware Revenues by System Size 2015 2015 % 2020 2020 % CAGR

Small Systems 125.1 11.5% 129.1 13.3% 0.6%
Medium-size Systems 376.5 34.7% 380.4 39.1% 0.2%
Large Systems 582.5 53.7% 463.2 47.6% -4.5%
Total 1,084.1 100.0% 972.7 100.0% -2.1%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-24

Total Shipments of DCS for Power Generation for Small Systems

Figures in Millions of US Dollars, Total Market CAGR = 0.6%

Purchased by ABB

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Market Forecast Group Figure 4-25

Total Shipments of DCS for Power Generation for Medium-size Systems

Figures in Millions of US Dollars, Total Market CAGR = 0.2%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-26

Total Shipments of DCS for Power Generation for Large Systems

Figures in Millions of US Dollars, Total Market CAGR = -4.5%

Purchased by ABB

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Market Forecast Group Figure 4-27

Total Shipments of Distributed Control Systems for Power Generation by

System Size

Figures in Thousands of Units

Purchased by ABB

System Size 2015 2016 2017 2018 2019 2020 CAGR

Large Systems 5.6 4.8 4.6 4.6 4.7 4.9 -2.9%
Medium-size Systems 5.6 5.4 5.3 5.4 5.5 5.6 0.1%
Small Systems 7.0 6.7 6.6 6.8 7.0 7.2 0.7%
Total 18.2 16.9 16.4 16.8 17.3 17.8 -0.5%

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-28

Total Shipments of Distributed Control Systems for Power Generation by

System Size

Figures in Thousands of Units

Purchased by ABB

System Size 2015 2015 % 2020 2020 % CAGR

Large Systems 5.6 30.9% 4.9 27.5% -2.9%
Medium-size Systems 5.6 30.7% 5.6 31.7% 0.1%
Small Systems 7.0 38.3% 7.2 40.8% 0.7%
Total 18.2 100.0% 17.8 100.0% -0.5%

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Market Forecast Group Figure 4-29

Total Shipments of DCS for Power Generation for Large Systems

Figures in Thousands of Units, Total Market CAGR = -2.9%

Purchased by ABB

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Market Forecast Group Figure 4-30

Total Shipments of DCS for Power Generation for Medium-size Systems

Figures in Thousands of Units, Total Market CAGR = 0.1%

Purchased by ABB

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Market Forecast Group Figure 4-31

Total Shipments of DCS for Power Generation for Small Systems

Figures in Thousands of Units, Total Market CAGR = 0.7%

Purchased by ABB

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Market Forecast Group Figure 4-32

Total Shipments of Distributed Control Systems for Power Generation by

Hardware by Type

Figures in Millions of US Dollars

Hardware by Type 2015 2016 2017 2018 2019 2020 CAGR

Purchased by ABB

Controllers 224.7 204.4 196.3 196.3 202.2 212.3 -1.1%

I/O 371.0 334.3 312.6 309.4 316.2 328.9 -2.4%
Workstations 190.1 171.3 160.1 158.5 162.0 168.5 -2.4%
Networking Hardware 116.9 108.7 106.5 107.6 111.4 117.5 0.1%
Other Hardware 181.5 158.1 142.7 137.2 139.9 145.6 -4.3%
Total 1,084.1 976.8 918.2 909.0 931.7 972.7 -2.1%

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Market Forecast Group Figure 4-33

Total Shipments of Distributed Control Systems for Power Generation by

Hardware by Type

Figures in Millions of US Dollars

Purchased by ABB

Hardware by Type 2015 2015 % 2020 2020 % CAGR

Controllers 224.7 20.7% 212.3 21.8% -1.1%
I/O 371.0 34.2% 328.9 33.8% -2.4%
Workstations 190.1 17.5% 168.5 17.3% -2.4%
Networking Hardware 116.9 10.8% 117.5 12.1% 0.1%
Other Hardware 181.5 16.7% 145.6 15.0% -4.3%
Total 1,084.1 100.0% 972.7 100.0% -2.1%

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Market Forecast Group Figure 4-34

Total Shipments of DCS for Power Generation for Controllers

Figures in Millions of US Dollars, Total Market CAGR = -1.1%

Purchased by ABB

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Market Forecast Group Figure 4-35

Total Shipments of DCS for Power Generation for I/O

Figures in Millions of US Dollars, Total Market CAGR = -2.4%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-36

Total Shipments of DCS for Power Generation for Workstations

Figures in Millions of US Dollars, Total Market CAGR = -2.4%

Purchased by ABB

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Market Forecast Group Figure 4-37

Total Shipments of DCS for Power Generation for Networking Hardware

Figures in Millions of US Dollars, Total Market CAGR = 0.1%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-38

Total Shipments of Distributed Control Systems for Power Generation by

Service Revenues by Type

Figures in Millions of US Dollars

Service Revenues by Type 2015 2016 2017 2018 2019 2020 CAGR
Purchased by ABB

Operations Services 641.7 643.4 626.3 637.2 679.6 717.8 2.3%

Project Management Services 1,161.3 1,091.6 1,055.6 1,066.1 1,108.8 1,169.7 0.1%
Total 1,803.0 1,735.0 1,681.8 1,703.3 1,788.4 1,887.6 0.9%

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Market Forecast Group Figure 4-39

Total Shipments of Distributed Control Systems for Power Generation by

Service Revenues by Type

Figures in Millions of US Dollars

Purchased by ABB

Service Revenues by Type 2015 2015 % 2020 2020 % CAGR

Operations Services 641.7 35.6% 717.8 38.0% 2.3%
Project Management Services 1,161.3 64.4% 1,169.7 62.0% 0.1%
Total 1,803.0 100.0% 1,887.6 100.0% 0.9%

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Market Forecast Group Figure 4-40

Total Shipments of DCS for Power Generation for Operations Services

Figures in Millions of US Dollars, Total Market CAGR = 2.3%

Purchased by ABB

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Market Forecast Group Figure 4-41

Total Shipments of Distributed Control Systems for Power Generation by

Project Management Services

Figures in Millions of US Dollars, Total Market CAGR = 0.1%

Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Market Forecast Group Figure 4-42

Total Shipments of Distributed Control Systems for Power Generation by

Sales Channel

Figures in Millions of US Dollars

Purchased by ABB

Sales Channel 2015 2016 2017 2018 2019 2020 CAGR

Direct Sales 3,029.2 2,847.4 2,733.5 2,760.8 2,882.3 3,026.4 0.0%
Independent Reps/Distributors 154.9 138.6 133.1 125.1 123.2 130.0 -3.4%
Internet 18.2 17.8 17.5 17.8 18.7 19.8 1.7%
Systems Integrators/Value Added Reseller 247.4 231.0 221.8 214.5 222.0 239.1 -0.7%
Total 3,449.6 3,234.9 3,105.9 3,118.2 3,246.2 3,415.3 -0.2%

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Market Forecast Group Figure 4-43

Total Shipments of Distributed Control Systems for Power Generation by Sales

Channel

Figures in Millions of US Dollars

Purchased by ABB

Sales Channel 2015 2015 % 2020 2020 % CAGR

Direct Sales 3,029.2 87.8% 3,026.4 88.6% 0.0%
Independent Reps/Distributors 154.9 4.5% 130.0 3.8% -3.4%
Internet 18.2 0.5% 19.8 0.6% 1.7%
Systems Integrators/Value Added Reseller 247.4 7.2% 239.1 7.0% -0.7%
Total 3,449.6 100.0% 3,415.3 100.0% -0.2%

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Supplier Profiles

The following pages provide profiles of the leading DCS suppliers

worldwide. These profiles analyze the total business of each company as
well as the DCS-related portion. ARC’s supplier profiles provide
information regarding current model numbers, associated components,
communication protocols, and system-level offerings. ARC also provides
information on served markets and alliances where appropriate. ARC
derived this information from company annual reports and in-depth
discussions with senior company officials.
Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

ABB

http://www.abb.com

Key Products
System 800xA, Symphony Plus and Freelance are the current offerings.
Continued lifecycle service offerings are in place for Symphony (Harmony
and Melody), INFI 90, Contronic, Advant Master, Advant MOD 300, SattLine
and DCI System Six.

DCS Description
Symphony Plus is ABB’s primary automation solution to meet the needs of
the Power and Water industries and to support the automation challenges of
its installed base customers in all industries segments. The Total Plant
automation platform is designed to maximize plant efficiency, reliability,
security, and safety through automation, integration and optimization of the
entire plant. Introduced in 2011 as the new generation of the Symphony
Purchased by ABB

(Harmony and Melody) family of distributed control systems, Symphony

Plus represents the latest step in 35+ years of contiguous DCS system
support. This is made possible through ABB’s “Evolution without
obsolescence” life cycle policy which supports cost-effective system
management and upward compatibility with all its earlier generations.

The Symphony Plus product portfolio comprises a comprehensive suite of

standards-based control hardware and software and includes a flexible and
scalable Fast Ethernet hierarchical plant architecture to meet both centralized
block and geographical distributed automation configurations. The portfolio
covers all types of fieldbus and includes a wide range of products for
electrical integration, condition monitoring, cyber security, alarm
management, asset management, information management, device
integration, and simulation. The result is an integrated, collaborative
environment to lead users to greater situation awareness, faster response and
better decisions.

Recent enhancements include the SD Series standards-based DIN rail

mounted control and I/O products, device and system integration via
standard communication including HART, Profibus DP, IEC 60870-5-104,
IEC 61850 and Modbus TCP, a unified engineering environment for the
configuration and maintenance of any system component, high performance

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graphics, advanced trending, EEMUA 191 based advanced alarm

management and an integrated geographical information system (GIS).

While not an OEM of turbines, ABB has nurtured its ability to perform
complete mechanical and automation retrofits of large turbines by other
OEMs, including large steam turbines for power plants and Pratt & Whitney
FT8 gas turbines, which are popular peaking units. These retrofits use the
Symphony Plus automation system.

Renewable Solutions
ABB has recently developed solutions for automation of utility-scale
renewable plants. These are called “Symphony Plus for wind” and
“Symphony Plus for solar”. These offerings are attractive to utilities
developing large renewable plants. At present, ARC believes, most utility
scale wind and solar farms have not implemented control at any level higher
than the individual unit.

Symphony Plus electrical and device integration

Purchased by ABB

ABB has been a leader in the adoption of IEC 61850, enabling easy interface
of electrical equipment for substation automation and process plants.
Symphony Plus uses IEC 61850 (and Modbus TCP) to integrate motor control
centers, switchgear, transformers, excitation systems, and protective relays,
with process control and plant operations, thus improving reliability and
lowering total cost of ownership.

S+ Operations: Targeting improved operator effectiveness

The system’s HMI, S+ Operations, provides a comprehensive window into
the entire process. Designed for improved operator effectiveness, S+
Operations provides an intuitive, easy-to-use environment to facilitate
process monitoring & control, fault mitigation, and optimization. S+
Operations system architecture provides flexible and scalable configurations
(server less, multi-server / multi-master, multi-system) with redundancy
options at all levels. With user-specific information presentation, easy
navigation to data, and alarm management based on EEMUA 191 guidelines,
S+ Operations delivers reliable and consistent plant operations. Integrated
information management features present pertinent, easy-to-understand
information in intuitive desktop displays to all levels of the organization. To
protect the investments of users of previous Symphony consoles, S+
Operations retains their existing operator graphics displays, faceplates, and
tag database.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

For more information on the entire Symphony Plus offering, industry

applications, and project news, follow the links below:

Symphony Plus
SD Series Control and I/O
ABB in Power Generation

Partnerships and Acquisitions

Partnerships: ABB Group has a number of partnerships and venture
investments through the ABB Technology Ventures unit. The investments
most relevant to power generation are in cyber security firm Industrial
Defender (acquired by Lockheed Martin in 2014) and water system analytics
firm Takadu.

Acquisitions: The acquisition of Baldor advances ABB’s strategy to become a

leader in the North American industrial motors business and a global leader
for movement and control in industrial applications. The combination
provides an even stronger growth platform from which ABB can increase its
Purchased by ABB

penetration of North American markets by building on Baldor’s strong

presence while at the same time facilitating the sale of Baldor’s products
globally through ABB’s worldwide distribution network.

ABB's strong position in both drives and in many of the world's most energy-
intensive process industries, place it in a good position to take advantage of
the energy efficiency revolution. The company's acquisition of Ventyx
enables ABB to provide a suite of software that provides the glue that allows
ABB to track the flow of electrons from the point of generation to the point of
use.

Following the Ventyx acquisition, a number of complementary companies

were purchased to further extend their suite of software including: Obvient
Strategies Inc., a privately owned specialist software provider; Insert Key
Solutions (IKS), a privately owned specialist software provider; and Mincom.
Mincom brings expertise and experience in a range of industries, and a
comprehensive set of solutions for applications such as EAM, mining
operations and mobile workforce management.

Strengths and Challenges

Strengths: ABB has a strong offering around both power plant automation
power equipment. The company has a large installed base of automation

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systems in power generation. Innovation, quality products, extensive

industry knowledge and application experience has enabled ABB to establish
a large and loyal customer base. ABB brings together a product, system, and
service capability that allow them to deliver complete automation and
production solutions across a broad range of industries.

Challenges: The major challenge facing ABB in power generation is the

move away from coal-fired plants to combined cycle and renewables. ABB
Group is positioned very well for this move, but it is a challenge for the
power plant automation business, since more of the automation in these
newer plants is provided by equipment OEMs. ABB’s offerings for
renewables are one answer to this issue. These are more focused on
software, analytics, and services than a typical thermal plant system.

A second related challenge is the impending retirements of larger numbers of

coal units which until recently were expected to operate for another 10-15
years.
Purchased by ABB

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ALSTOM

http://www.alstom.com
http://alstomenergy.gepower.com/products-services/product-
catalogue/power-generation/coal-and-oil-power/automation-and-controls-
for-coal-and-oil/distributed-control-system-dcs/

Key Products
ALSPA CONTROPLANT DCS; SmartPower

DCS Description
On November 2, 2015, General Electric finalized its long-running acquisition
of Alstom SA’s power business. GE first offered to buy Alstom in April 2014
for about $13.5 billion. The value of the transaction eventually fell to $9.5
billion on account of joint energy ventures announced, changes in the deal
structure, price adjustments for the remedies, and net cash at close. In order
to win clearance from the European Union, GE agreed to sell some of
Purchased by ABB

Alstom’s assets to an Italian rival. Regulators there worried that GE’s

acquisition of the French power business would lead to higher prices in
Europe for large gas turbines. The EU blessed the deal in October 2015, after
US regulators and around 20 other global regulators had approved the
transaction. The combination of Alstom Power and GE Power & Water from
the new GE Power.

Alstom introduced its ALSPA Series 6 Control System in 2009 to take

advantage of its extensive experience in power plant control. ALSPA Series 6
encompasses all the operation, management, maintenance, automation, and
safety functions that a modern power plant needs.

Alstom based its Series 6 ALSPA CONTROPLANT on a flexible, modular,

and open real-time architecture (based on Ethernet Powerlink) and designed
to provide increased data centralization. The introduction of this design, that
moved away from the distributed management used a few years ago, was
possible because the new technologies allows the Series 6 to manage large
quantities of information quickly and safely, using reliable and low-cost
communication networks.

ALSPA CONTROPLANT can be used from small systems to large complex

systems in power station or industrial applications to control, optimize and

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protect all types of power plants and their turbines – whether thermal, hydro
or nuclear.

ALSPA Series 6 uses the latest Microsoft.net technology for the operator
screen of the system (or human machine interface – HMI), producing an
ergonomically friendly and easy-to-use system. Users can configure the
control room according to the different architectures needed for the various
processes; e.g. hydro, combined cycle, or supercritical thermal projects.

Users can securely access control functions, such as the analysis of historical
plant operation data, remote maintenance diagnostics, and remote power
plant supervision, through the internet. Automation cells (machine
controllers, distributed controllers and input/output devices) that report
information back to the control system are now more powerful, allowing for
operations that are more complex.

Users can link the ALPSA CONTROPLANT with ALPSA OPTIPLANT,

which covers plant management applications, such as asset management and
Purchased by ABB

scheduling. Complementing ALSPA CONTROPLANT are a series of

products designed specifically for major power plant equipment, including;
CONTROFLAME for boiler protection and management; CONTROGAS for
gas turbine automation and control; and CONTROSTEAM for steam turbine
automation and control.

Partnerships and Acquisitions

Key Partnerships: None relevant to DCS

Key Acquisitions: None relevant to DCS

Strengths and Challenges

Strengths: Strong focus on the electric power industry; Strong focus on
providing high-range best-in-class solutions; Ability to provide solutions for
applications that cover all fuels, including thermal (coal, oil, gas), nuclear
(conventional island only), and renewables (hydro, wind, and solar).

Challenges: Ability to design and roll-out new product offering to meet the
needs of new emerging markets; high reliance on the electric power industry;
Managing its relationships with partners in emerging markets, such as China
and Russia, and deriving profitable outcomes from these geographies.

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Azbil (Yamatake)

http://www.azbil.com/
http://www.azbil.com/products/bi/ias/index.html#1-1

Key Products
Harmonas-DEO

DCS Description
Azbil Corporation’s flagship process automation system is called Harmonas-
DEO, which is comprised of human-machine interface (HMI) nodes to be
used for system monitoring and control operations, highly reliable process
controller nodes that can be arranged in a redundant configuration, and
redundant control LAN (Ethernet) systems to connect all the nodes.
Windows is used for all HMIs as the basic operating system to provide users
with a comfortable monitoring and control operation environment, as well as
to provide an open data processing environment.
Purchased by ABB

To establish a control system that is well-suited for the application, various

types of application modules are available. These include field operation
modules, remote monitoring modules, history analysis modules, batch
process control modules, communication gateway modules, transient
operation support modules, and alarm analysis modules.

DOSS (DEO Open Supervisory Station) provides system construction

(engineering) functions as well as HMI functions for process control and
monitoring operations. DOSS_H is implemented with the process history
database functions in addition to the basic HMI functions of DOSS.

A triple modular parallel redundancy system is used for the CPUs of DOPC
(DEO Open Process Controller) IV. The redundant architecture adopts the “2
out of 3” standard used in systems requiring a high degree of reliability.
Calculations are performed by 3 constantly synchronized CPUs, and by
outputting after comparing results, the reliability of the output data is
enhanced. Also, tripling of the CPU modules allows automatic recovery,
except in the case of a permanent fault. The parallel redundancy system
allows seamless switchover, without the unavoidable processing time
required by standby redundancy systems when switching from the execution
device to the standby device.

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TSS (Thin Client Supervisory Server) nodes provide client PCs installed in
remote fields and offices with a DCS operations environment. DOSS-like
control operations can be made from client PCs. Display applications of TSS
are constructed in common with DOSS.

DOPL II S (DEO PLC Linker II S) is the PLC integration controller for the
Harmonas-DEO system. DOPL II S is used for connecting (Mitsubishi)
MELSEC and GOT1000 nodes as I/O devices of DOPL II S via the
MELSECNET (10 or H) network in order to achieve high capacity, high-
speed interface connections with B and W MELSECNET link devices. In
addition, by making DOPL II S main units redundant, reliability of
communication I/O with MELSEC devices and integrated control over
MELSEC devices can be significantly improved. While the primary role of
DOPL II S is to integrate the PLC subsystems used to monitor and control
the peripheral machinery of plants that need to be monitored and
controlled by Harmonas-DEO systems, further advanced plant automation
can be achieved by combining PLC and DCS functions.
Purchased by ABB

Partnerships and Acquisitions

Key Partnerships: None relevant to DCS

Key Acquisitions: None relevant to DCS

Strengths and Challenges

Strengths: Expertise in systems integration and applications for a variety of
industrial processes; ability to conduct total turnkey solutions with a broad
range of industrial automation products; large installed base and customer
loyalty in Japan

Challenges: Achieving growth outside of the Japanese market; becoming a single

source vendor for its customers; relatively strong reliance on the global chemicals
industry

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BHEL

www.bhel.com

Key Products

maxDNA suite, which includes maxSTATIONS; maxLINKS; maxOPC;

maxVIEW; maxSTORIAN; maxTOOLS

Description
maxDNA DCS system offers a wide variety of solutions for power plants
ranging from simple control systems to complex unified automation.
maxDNA DCS system with its modular and scalable capability has been
enhanced by BHEL to include diagnostics, flexibility, faster response times,
and interoperability with other control systems. BHEL engineers,
manufactures, supplies and commissions maxDNA systems for boilers,
turbines, balance-of-plants including ash handling plants (AHP), and coal
handling plants (CHP), Water Treatment Plant, FGD Plants, sub-stations, and
other such applications including Static VAR & Fixed series compensation.
Purchased by ABB

The maxDNA DCS system provides regulatory control, sequential logic

control, operator interaction through CRTs (maxSTATION), and information
management. The maxSTATION can be configured as an operator station,

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engineering station, historian (maxSTORIAN), gateway (maxLINKS), or link

server (maxOPC) to other systems. Its Object-Oriented design approach
facilitates “plug and play” capability. maxDNA is a scalable and flexible
system with facilities to link to third party systems.

maxDNA also provides a comprehensive set of tools (maxTOOLS) for the

development of system application, configuration, and installation. maxNET
communication system is based on open system architecture with switched
fast Ethernet full duplex operating at 100 Mbps /1Gbps speed. maxNET
connects remote processing units, which include distributed processing units
and IO modules with maxSTATIONS and requires no traffic director, and its
functionality is not affected by the number of stations connected on the net.

The synergy of BHEL’s expertise in power plant automation controls and in-
house manufacturing capability of complete range of electronic modules
(Input, output & controller) in one plant supported by maxDNA provides
unified DCS solutions for the entire power plant comprising Boilers,
Turbines, Generator, Electrical switchyard, Balance-of-plants including AHP,
Purchased by ABB

CHP, WTP, FGD Plant and others. maxDNA is also configured for complete
range of Hydro Turbine governing and control & monitoring of hydroelectric
power plants.

maxDNA provides many features and benefits, including the use of open
system architecture based upon Windows Operating system, object oriented
design and a revolutionary approach for facilitating a “plug and play”
capability. The software backplane maxSTATIONS, maxVUE, maxTOOLS
and maxLINKS provide a power suite of programs for power plant and
industrial applications. This provides flexibility when it comes to expanding
the system or linking to third party systems.

BHEL’s experience as a supplier of automation systems to the electric power

industry is well established. BHEL’s offerings include Burner Management
System (BMS) for fossil fired boilers and fluidized bed combustion boilers;
Automatic startup systems including governing system; turbine stress
controllers; TMR-based designs for governing and protection for industrial,
combined cycle, cogeneration and utility turbines; and Station control &
instrumentation, including coordinated master controls, Switchyard
controls, Electrical Controls and controls for Ash Handling Plant, Coal
Handling Plant, FGD plant and Water Treatment Plant for the entire
power plant.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

New Generation DCS: Valmet DNA

BHEL has extended the existing Technical Collaboration Agreement (TCA)
with Valmet, to include manufacture and supply of the New generation DCS
“Valmet DNA” for electric power plants and other industries with features
that include:
Purchased by ABB

Valmet DNA Architecture

 Controllers with fast control cycles

 Switched Fast Ethernet standard based system bus with ring / star
topology
 Ethernet connectivity between process controller and IO
 Centralized and Distributed IO
 HART capable analog input & output modules
 Fieldbus compatibility: HART, FOUNDATION Fieldbus (FF), PROFIBUS
 Built-in SOE
 Optional protective coating for G3 environment
 Centralized engineering and on-line documentation
 Automatic loop tuning facility

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

 Integral DNA field assessor for configuration and maintenance of HART,

FOUNDATION Fieldbus, PROFIBUS devices
 Reply history from any picture, “time machine”
 Integrated diary entries for trends and loops
 Open Architecture with third party system interface: OPC, XML,
MODBUS, IEC protocols
 Web based reports
 Display server for remote view

Partnerships and Acquisitions

BHEL has a technical collaboration and license agreement with Metso
(Valmet) for the manufacture and supply of distributed control systems
maxDNA/ ValmetDNA CR. The company is also setting up joint venture
companies to build on complementary strengths and expertise.
Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Emerson Automation Solutions

Corporate: http://www2.emersonprocess.com/en-us/divisions/power-
water/Pages/powerwater.aspx
http://www.emersonprocess.com
DCS for Power:
http://www2.emersonprocess.com/enus/brands/Ovation/Pages/index.aspx

Key Products
Ovation

DCS Description
The Ovation control system is Emerson’s automation solution for the power
generation and water/wastewater industries. Ovation offers a comprehensive control
solution for all types of power generation: renewable, fossil, hydro, and through its
partnership with Westinghouse, nuclear. Ovation control and SCADA technology is
also used on many of the largest metropolitan water and wastewater systems.
Purchased by ABB

Ovation is a reliable and innovative platform with a fully redundant

architecture for mission critical applications. Based upon open technologies,
Ovation provides a smooth migration path with both forward and backward
compatibility.

Ovation features a wide range of standard and specialized I/O modules, native
connectivity options, integrated asset management software, numerous industry
standard communication protocols, and seamless wireless field device integration.
Ovation is a single platform that offers a wide array of control capabilities for the
power generation market: boiler control, integrated turbine control, emissions
monitoring, process optimization, generator excitation, machinery health monitoring,
and fleet management.

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Ovation control is developed in a graphical environment that integrates both

continuous and logic control. Control configurations are easily loaded and can be
monitored and tuned online. Ovation advanced power applications enhance base
control capabilities to continuously optimize plant processes. The Ovation High-
Performance Control Room provides comprehensive views of plant processes that
allow operators to anticipate and avoid process upsets. Ovation simulation
technologies are used by customers to train plant operators, validate changes to
control strategies, and optimize plant performance. The Ovation Security Center
helps customers ensure their assets are protected from cybersecurity threats by
centralizing and streamlining the management of critical security functions: intrusion
detection, malware prevention and vulnerability detection—without interrupting the
controlled process.

Partnerships and Acquisitions

Key Partnerships: Westinghouse Electric Company, Mitsubishi Hitachi Power
Systems America, Power System Manufacturing, LLC (PSM)
Purchased by ABB

Key Acquisitions: Turbine Control Service Associates (TCSA), Innovative Control

Systems (ICS)

Strengths and Challenges

Strengths: Broad capabilities in power generation: fossil, hydro, gas turbine,
renewable generation. Expertise in excitation and power plant mechanicals.
Extensive products and services focusing on security. High fidelity simulation
capabilities embedded in Ovation. Very power-generation focused business unit with
reasonable autonomy.

Challenges: New and evolving environmental protocols impacting coal-fired plants.

NERC-CIP regulations and certification requirements.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

General Electric

http://www.ge.com/
http://www.ge-ip.com/

Key Products
Proficy Process Solutions; Mark VIe Integrated Control System (ICS), RX3i
PLC, ALSPA CONTROPLANT

DCS Description
General Electric finalized its long-running acquisition of Alstom SA’s power
business on Nov. 2, 2015 following months of tough negotiations with
European regulators. The acquisition marks one of GE’s biggest acquisitions
to date. GE, which has been shifting back to an industrial base, and is in the
process of shedding its banking business, first offered to buy Alstom in April
2014 for about $13.5 billion. The value of the transaction eventually fell to
$9.5 billion on account of joint energy ventures announced last year, changes
Purchased by ABB

in the deal structure, price adjustments for the remedies, and net cash at
close.

In order to win clearance from the European Union, GE agreed to sell some
of Alstom’s assets to an Italian rival. Regulators there worried that GE’s
acquisition of the French power business would lead to higher prices in
Europe for large gas turbines. The EU blessed the deal in October 2015, after
US regulators and around 20 other global regulators had approved the
transaction.

Alstom Power and GE Power & Water have combined to form GE Power.
GE recently consolidated multiple automation platforms into the GE
Intelligent Platforms unit. Automation applications are engineered and
delivered to end users by GE vertical business units, such as GE Power &
Water for the power generation market. For DCS, GE now offers three
products. First, the Mark VIe Integrated Control System for power
generation and oil and gas applications. Second, Proficy Process Solutions
focused on hybrid process control. Third, the ALSPA CONTROPLANT,
which came to the company through the ALSTOM acquisition.

GE’s Mark VIe ICS platform combines the attributes of turbine control
(reliability, availably, and speed) with the flexibility and distributed
properties available in a typical plant-wide distributed control system (DCS).

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The Mark VIe control platform is a modular control architecture that can be
effectively applied to rotating equipment and process control. Extending the
machine control to a total plant solution, based on a common hardware and
software platform, provides a unified plant control system that is simple to
use and enables comprehensive system and plant automation. In a power
plant environment, the Mark VIe ICS brings together the gas turbine, steam
turbine, generator, heat recovery steam generator (HRSG), excitation, and
safety systems (SIL3) into a common platform.

The Proficy Process Systems architecture is designed to provide a modular

and expandable system to meet the most demanding process control needs.
Proficy Process Systems can range from a small, one-machine architecture to
a large, multi-machine architecture. Proficy Process Systems are supported
by single or redundant controllers. Proficy Process Systems are supported by
copper and fiber Gigabit PROFINET (with built in MRP redundancy) I/O
network that enables users to interface to a wide range of third party devices.
Because of the system’s strong roots in the HMI marketplace, Proficy Process
Systems can interface to most suppliers’ I/O and controllers.
Purchased by ABB

ALSPA CONTROPLANT can be used from small systems to large complex

systems in power station or industrial applications to control, optimize and
protect all types of power plants and their turbines – whether thermal, hydro
or nuclear.

Users can link the ALPSA CONTROPLANT with ALPSA OPTIPLANT,

which covers plant management applications, such as asset management and
scheduling. Complementing ALSPA CONTROPLANT are a series of
products designed specifically for major power plant equipment, including;
CONTROFLAME for boiler protection and management; CONTROGAS for
gas turbine automation and control; and CONTROSTEAM for steam turbine
automation and control.

The application and integration strategy for GE’s Predix in fossil power
generation is still being developed, but likely will center on a new offering
dubbed the “Industrial Internet Control System”.

Partnerships and Acquisitions

Key Partnerships: Intel (Wind River)

Key Acquisitions: Alstom SA’s power business (2015). SmartSignal

Corporation (2011); MTL Open Systems Technology (MOST) (2008).

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Strengths and Challenges

Strengths: OEM advantages in greenfield projects. Ability to offer control
systems at a value price point; ability to provide plant-wide control utilizing
a broad range of products and solutions for both discrete and process
automation; ability to offer expanded software solutions with embedded
technology, including PAC controllers, with open architectures that allow
customers to select the fieldbus of their choice.

Challenges: Increasing market awareness as a relatively new entrant into the

DCS market; organizing its corporate structure for changing global needs;
Ongoing training for support personnel
Purchased by ABB

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Honeywell

https://www.honeywellprocess.com
https://www.honeywellprocess.com/en-US/explore/products/control-
monitoring-and-safety-systems/integrated-control-and-safety-
systems/Pages/default.aspx

Key Products
Experion Process Knowledge System (PKS); TPS; TDC3000; TDC2000

DCS Description
Since introducing the first distributed control system in the 1970s, Honeywell
continues to innovate technologies that provide data visibility across the entire
enterprise, from field to boardroom. Industrial manufacturers rely on Honeywell to
deliver solutions and services that improve the safety, reliability, efficiency, and
profitability of their operations.
Purchased by ABB

According to Honeywell, it has the largest contiguous installed base of any

single process automation system, with the TDC2000, TDC3000, TPS, and
Experion PKS systems. Honeywell has taken an evolutionary approach by
providing incremental changes over time that have kept customers up to
date allowing them to always leverage their investment in existing installed
intellectual property while reaping the gains of the latest technology.

Experion provides a single integrated system for all of the automation

applications in the process industries. Experion scales from the smallest
purpose engineered applications (Experion HS) to the largest mega-projects
for mission critical applications in refining, chemicals, oil & gas, metals &
mining, pharmaceuticals, pulp & paper, and many other industries. Under a
single human-machine interface, effectiveness is driven through common
alarming, trending, and overall operator experience. Experion integrates
process control, safety, SCADA, process video, and even electrical control
and management via integrated IEC 61850 within the control system.

Experion also integrates other Honeywell solutions for blending movement

and automation, terminal management, fire and gas, and industrial security
applications. All work seamlessly together with integrated HMI and
Honeywell’s patented Distributed Systems Architecture, providing seamless
operational integration. The single integrated and tested architecture
approach avoids benefits decay, and also reduces the overall cost of

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

ownership of the automation system through lower training, engineering,

and maintenance costs over the lifecycle of the system.

Experion PKS was the first system from Honeywell to capture knowledge
through capabilities, such as procedural operations and directly embedded
advanced control via Profit Loop and Profit Controller. It also was the first
platform from Honeywell to rely on a completely standards-based industrial
Ethernet-based network with Fault Tolerant Ethernet (FTE), and was the first
to incorporate a unified approach to fieldbus. Additionally, the system took
a unified approach to safety with the Safety Manager platform, which
Honeywell claims is the first safety instrumented system (SIS) to earn
certification from TÜV Rhineland for Safety Integrity Level (SIL) 3
applications.

Experion supports all wireless standards. The OneWireless™ Network

connects ISA100 Wireless, WirelessHART and Wi-Fi devices all in one end-
to-end redundant, cyber secure network. OneWireless delivers high
performance even when scaling to thousands of IO.
Purchased by ABB

Honeywell has taken another major step forward, providing an open and
cyber secure IIoT-ready control system with lean project execution. Experion
leverages LEAP™ project execution with Universal I/O Cabinets,
virtualization, cloud engineering, and automated device commissioning.
LEAP separates physical from functional design and enables engineering to
be done from anywhere in the world. Auto device commissioning enables
late binding of devices with loop configuration created in the cloud.
Automated skid integration also applies LEAP lean automation to PLC
integration. A large capital project can realize up to 30% capital savings in
automation infrastructure projects, and flexibility for up to a 25%
improvement in schedule.

Honeywell supports Experion PKS with its project execution and service
team with a global network of more than 6,000 engineers and designers.

Partnerships and Acquisitions

Key Partnerships: None relevant to DCS

Key Acquisitions: Enraf Holding B.V. (2007); RMG GROUP (RMG Regel +
Messtechnik GmbH and all of its subsidiaries (2009); Matrikon (2010); RAE
Systems (2013); Elster (2015)

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Strengths and Challenges

Strengths: Broad breath of capabilities it offers to its core industries; ability
to offer expertise along with advanced technologies; strong client base

Challenges: Successfully fending of other suppliers trying to gain presence

in the refining and chemical markets; need to maintain many systems of
varying age to keep the installed base satisfied; relatively strong reliance on
the global chemicals industry
Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Mitsubishi Hitachi Power Systems

https://www.mhps.com/en/index.html
https://www.mhps.com/products/category/diasys.html

Key Products
DIASYS Netmation

DCS Description
Mitsubishi Hitachi Power Systems is a joint venture company formed by
combining the integrating thermal power generation systems and other
related businesses of Mitsubishi Heavy Industries and Hitachi on February 1,
2014. On October 1, 2014, Mitsubishi Hitachi Power Systems, Ltd. (MHPS)
announced plans to integrate its businesses with Babcock-Hitachi K.K.
(BHK), a Yokohama-based group company handling boilers and air quality
control systems (AQCS). The aim of the merger is to bring enhanced speed
to business management and achieve greater efficiency and cost
Purchased by ABB

competitiveness in order to more swiftly and securely realize synergy merits

from the business integration in February 2014 of Mitsubishi Heavy
Industries, Ltd. (MHI) and Hitachi, Ltd.

BHK's products consist of core equipment of thermal power generation

systems such as boilers and AQCS's, and, like MHPS, the company has
functions within Japan in related to development, engineering and
manufacturing. MHPS since its inauguration has pursued the integration of
the technological and sales capabilities it took over from MHI and Hitachi,
and it has also strengthened the ties among group companies in its global
network. Following the merger of MHPS Engineering and BHIC, companies
that both handle industrial thermal power generation systems, MHPS
Engineering continued as the surviving company. Through the integration
of the two companies - which target the same user markets in Japan and have
mutually complementary product lineups - the new MHPS Engineering aims
to offer improved response to the needs of a broad range of industrial users.
The new MHPS Engineering is a wholly owned subsidiary of MHPS.

MHPS, having taken over the comprehensive strengths and product

operations of MHI and Hitachi, now has ability to provide a full range of
thermal power generation systems and total solutions. DIASYS Netmation is
Mitsubishi Hitachi Power Systems’ (MHPS) total plant control system

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(network integrated), which unites state-of-the-art info-com technology,

MHPS’ rich experience as a plant manufacturer, and control technology for
maximum satisfaction of customer demands, such as high reliability,
economy, advanced automation, and easy maintenance. Since the 1970s,
MHI has supplied more than 3,000 systems throughout the world, ranging
from a minimal configuration consisting of only the smallest turbine
governor system to control systems for BTG plants, including 1,000-MW class
supercritical boilers, and combined cycle plants consisting of gas turbines
and steam turbines etc., all with high-efficiency operating assistance.

This system is configured by the following stations and network:

 MPS (Multiple Process Station): used to perform automatic plant

control and I/O processing

 CPS (Compact Process Station): a smaller controller for performing

automatic control and input/output processing
Purchased by ABB

 OPS (Operator Station): as human-machine interface for monitoring and

operating the plant

 Browser OPS (Browser Operator Station): Mitsubishi Heavy Industries

also offers Web-based OPS software. Simply by installing and setting up
this software on a browser-resident PC, operators can obtain the same
functionality as provided by an OPS in the central control room.

 EMS (Engineering Maintenance Station): a set of engineering tools for

performing maintenance on all instrumentation control equipment in the
plant

 ACS (Accessory Station): a system equipped with a powerful relational

database for storing and managing large amounts of plant data

 Unit Network: a closed 100M, industry standard Ethernet bus that unites
the system components

Partnerships and Acquisitions

Key Partnerships: None relevant to DCS

Key Acquisitions: None relevant to DCS

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Strengths and Challenges

Strengths: Ability to draw on a history of strong technical performance
backed by the rich experience as a plant manufacturer; ability to provide a
total solution for a control system including machinery; strong presence in
Japan, Korea, and Taiwan

Challenges: Successfully expanding the application of DIASYS Netmation

beyond power plant applications; increasing its presence in North America
and Europe; Overcoming the challenging economic climate in Japan
Purchased by ABB

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Novatech

www.novatechweb.com/company/our-company/
www.novatechweb.com/d3v14

Key Products
D/3 Distributed Control System; FlexBatch S88 Batch Management System;
Paperless Procedures – ISA-106 Procedural Automation System; Orion -Data
Concentrator and Protocol Adapter for Process Control

DCS Description
The D/3 is a robust, reliable, and feature-rich distributed control system
(DCS) providing run-time performance and redundancy options. Every D/3
System is able to control in excess of 50,000 I/O points, support hundreds of
operator consoles (each with 5 to 10 live graphics), collect up to 20,000 unique
data points into redundant TrendR historians, export thousands of data
points per second via D/3’s OPC servers, run hundreds of SABL programs
Purchased by ABB

simultaneously, and scale from 2 to 160 nodes without performance

degradation.

The D/3 also includes easy to use engineering and configuration tools;
supports dozens of simultaneous application developers; features
comprehensive continuous and sequential batch process control; recipe
management; product tracking; high-performance visualization software;
scalable vector-based graphic displays; comprehensive trending; dynamic
alarm management; multiple reporting packages; intuitive, automatic loop
tuning; and optimization capability.

D/3’s process controller features integrated analog, digital, and batch

control. The Sequence and Batch programming Language (SABL) allows
users to create high level structured sequence programs to control the most
demanding and sophisticated applications.

D/3’s native 8000 Series Ethernet I/O features great performance, dense
footprint, HART pass through, a full complement of intrinsically safe
modules, and redundancy to the module level if desired.

The new D/3 ProcessVision Console provides a comprehensive visualization

experience in a modern tabbed browser-like display. ProcessVision allows

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

the user to analyze every aspect of their process and control system
components via displays automatically generated by the system.

NovaTech’s TotalVision graphics engine allows for the development of a

scalable vector-based Human Machine Interface (HMI) and incorporates
hundreds of Smart Graphic Objects to facilitate easy deployment of a High
Performance HMI strategy that allows operators to react to and control
abnormal plant situations more effectively.

For a mobile HMI experience, NovaTech created a new cloud-based mobile

application called D3Express. D3Express allows the mobile user to access
D/3 Tag, Trend, and Alarm information on any device (PC, Tablet, or
Smartphone) from anywhere.

NovaTech’s philosophy, with respect to D/3 System openness, keeps total

cost of ownership, ease of use, and flexibility front and center. The open
architecture concept allows users to: 1) Implement and run third party
software application programs directly on D/3 System hardware; 2) Develop
Purchased by ABB

custom applications and interfaces; 3) Perform in-depth system analysis with

many third party products; 4) Use non-proprietary hardware for most D/3
System & network components; and 5) connect to any major MES, ERP,
Historian, PLC, PLC I/O, or bus I/O subsystem.

The D/3 System was one of the first DCS systems introduced to the market.
Today, NovaTech is the only major DCS supplier that provides a 20-year
migration path guarantee and backs it with the track record of 30 years and
counting. This is called their Platinum Pledge. D/3 Systems initially
installed in the early 1980s on DEC’s VMS and PDP platforms are easily
upgraded to the most modern Windows/Intel platforms. Customers are able
to accomplish this with essentially no risk and minimal plant down time due
to NovaTech’s commitment to easy migration of existing applications and
I/O system components.

Partnerships and Acquisitions

Key Partnerships: AspenTech; Control Station; GE; Microsoft; OSIsoft; PAS

Strengths and Challenges

Strengths: Proven system integration methodology with a focus on Human
Reliability, Abnormal Situation Management, and a Comprehensive
Automation Philosophy; aability to deliver low total cost of ownership

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through the development of innovative products; ability to deliver turnkey

solutions, and become a trusted extension of their customers’ engineering
organizations.

Challenges: Smaller corporate scale compared to leading suppliers. Need to

continue introducing innovative and cost effective products through core
product development, partnerships and acquisitions.; Need to invest in their
services business to offer expanded new services to its clients; need to
continue increasing its presence outside of North America.
Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Rockwell Automation

http://www.rockwellautomation.com
http://www.rockwellautomation.com/solutions/process/

Key Products
PlantPAx Process Automation System

DCS Description
PlantPAx is the process automation system of Rockwell Automation. It
combines the plant-wide control technologies and scalability of the
company’s Integrated Architecture with all the core capabilities expected in a
DCS.

PlantPAx goes beyond process automation to perform true plant-wide

control, which includes not only process control but also discrete, safety, and
power control with an architecture that was designed from the beginning to
Purchased by ABB

provide seamless information flow through the system and into adjacent
business systems. This information flow enables continuous process
improvement throughout the enterprise by providing real-time knowledge
and decision making abilities.

Rockwell Automation has a full offering of solutions for improving

operational productivity for its end users. Taking advantage of “IT-friendly”
technologies and its relationship with Cisco, the company supplies an
infrastructure that is built to deliver information to a variety of users in a
given plant. This information gets packaged and presented in many ways,
and not only supports production reporting and analysis, but also offers
decision support tools for making operational decisions; for example,
optimizing energy consumption versus production.

PlantPAx offers a full suite of advanced process control capabilities for

production optimization. This portfolio covers everything from basic and
advanced regulatory control for single or interacting loops to unbounded
fuzzy logic expert systems, all the way to multi-unit model predictive control
for financial optimization of a process.

PlantPAx is a scalable process control system. It can scale from less than 50
points of I/O (well suited to process skids and other OEM equipment) to
over 50,000 points of I/O. This enables Rockwell Automation to provide the

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same technology to process skid builders and equipment manufacturers for

use on packaged equipment as they provide to their end user clients for the
plant-wide DCS.

PlantPAx supports high availability capabilities throughout the architecture.

Redundant I/O, communications, controllers, HMI interfaces, and even
redundant data collectors for the historian are available. In addition,
PlantPAx offers a myriad of solutions for ensuring maintainability of the
system without disruption. These include capabilities, such as online
configuration changes, partial-import of sections of code online, expansion of
the system without disruption, and less frequent modifications, such as
upgrading controller firmware while the system is running.

Because PlantPAx is based upon Rockwell Automation’s Integrated

Architecture, users are able to take advantage of the company’s broad
portfolio of controllers and I/O capabilities. PlantPAx offers a wide range of
controllers suitable for only a few loops through hundreds of loops, allowing
users to segregate and actually distribute their DCS if they choose.
Purchased by ABB

PlantPAx provides a comprehensive portfolio for process safety and critical

control. The system’s Control Logix controllers are certified for use up to
SIL2 fault tolerant applications. For users preferring diversity in their safety
solution, Rockwell Automation’s AADvance product line is scalable from
SIL0 through SIL3 fault tolerant. For very large process safety applications
requiring the highest levels of assurance, Rockwell Automation’s Trusted
controllers and I/O provide SIL3 assurance in a triple modular redundancy
(TMR) solution.

The latest version of Plant PAx includes pre-built process control strategies,
new design and documentation capabilities, built in model predictive control
(MPC), and other features. New pre-built control strategies developed
within the Rockwell Automation library of process objects provide a
consistent user and maintenance experience.

Partnerships and Acquisitions

Key Partnerships: Cisco; Endress+Hauser

Key Acquisitions: Pavilion (2007); ICS Triplex (2007); Lektronix (2011);

Hiprom (2011); SoftSwitching Technologies (2012); vMonitor (2013)

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Strengths and Challenges

Strengths: Ability to draw on expertise in the discrete industries; strong
presence in the markets for variable speed drives, PLCs, discrete sensors,
safety, and motion control; ability to offer one control platform for all of the
disciplines across a plant for process, power, safety, and information
solutions.

Challenges: Need to provide a superior business value proposition; need to

continue to live up to its release schedule; limited direct sales channel; need
to invest heavily in research and development.
Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Schneider Electric

http://www.schneider-electric.com/ww/en/
http://www.schneider-electric.com/en/product-category/86798-process-
control-and-safety/

Key Products
Foxboro Evo; Triconex; Foxboro PAC

DCS Description
In January 2014, Schneider Electric acquired Invensys, creating synergies
between the two companies’ software for energy automation, industrial
automation, and process automation. Through this acquisition, Schneider
Electric gained access to Foxboro’s I/A Series DCS and Foxboro PAC. The
I/A Series was the first system to embrace Ethernet as its control network,
and the first to embrace a fully functional object-oriented architecture with
the Object Manager (OM). Both the Ethernet-based control network and OM
Purchased by ABB

remain key components of the Foxboro Evo (formerly I/A Series) today, and
they help extend capabilities beyond traditional DCS functionality to
encompass enterprise wide control.

In 2013, Foxboro introduced the Evo system. The name of the system
“Foxboro Evo” represents a play on the words “everyone” and “evolution.”
“Evo” emphasizes two key elements of the DCS mission statement. First is
that “enhance the operational insight of its people” applies not just to control
room operators, process engineers, and technicians, but to every role in the
enterprise. Second is the ability of the new system to evolve easily over its
lifecycle.

Deliverables include a new controller, a new I/O family, new and much
more complete integration for the Triconex SIS, a new HMI, new network
and device integration capability, a new historian, and new engineering tools
and capabilities. Existing I/A systems can be upgraded to integrate with
Foxboro Evo, and the new Foxboro Universal I/O module will work with
both the old and new controllers.

Schneider Electric recently announced its new Intelligent Marshalling

FBM248 offering for the Evo DCS, now with redundancy capabilities,
designed to eliminate the costly and labor intensive marshalling process
traditionally required for control systems.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

On the “hybrid” industry side of the business, Schneider Electric recently

announced the latest version of PlantStruxure PES V4.2, integrating new
hardware with capabilities from the company’s Modicon M580 ePAC family.
Built for Industrial Internet of Things applications, the addition of Modicon
M580 redundant controllers delivers higher availability for critical
continuous process operations. PES V4.2 meets the next generation of
requirements with the M580 ePAC and the ability to lock down ports within
a single configuration environment.

Partnerships and Acquisitions

Key Partnerships: In 2016 Schneider Electric announced an alliance with
Phoenix Contact to provide their VIPER product, which is a modular
intelligent I/O accessory that is used in pre-designed configurations with
Foxboro Evo Intelligent Marshalling.

Key Acquisitions: Schneider Electric announced the completion of its

acquisition of Invensys on January 17, 2014. The acquisition of a major
software, automation, and controls company, such as Invensys, enhances
Purchased by ABB

Schneider Electric’s position as an efficient solutions provider, especially for

the automation and power industries. The merging of Schneider Electric and
Invensys helps create synergies between software applications, energy
control automation, and industrial automation while providing a wider
service base for its customers worldwide. The combined company is able to
reach diverse market segments throughout the world due to minimal overlap
between the industry and customer base of both companies.

CIMNET (2007); Skelta (2010); Indusoft (2013)

Strengths and Challenges

Strengths: The continuous evolution of the single I/A Series PAS platform;
Large installed base; Advanced approach to real-time performance
management through its Dynamic Performance Management (DPM)
business.

Challenges: Supporting the continuous evolution of its I/A Series platform

while maintaining and supporting its considerable installed base; Solidifying
the future of ArchestrA in the context of the I/A Series system.

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Siemens

www.siemens.com
www.siemens.com/processautomation

Key Products
SPPA, Teleperm

Description
Siemens’ principal DCS offering for power Generation is called “SPPA-
T3000”. SPPA stands for “Siemens Power Plant Automation”. The SPPA-
T3000 takes over from their previous lines of DCS for power generation,
Siemens Teleperm.

SPPA is differentiated by a software “Three Layer Architecture” that Siemens

claims is common to major IT solutions. The three layers are shown in the
following figure. The “bottom” layer is automation equipment consisting of
Purchased by ABB

sensors, actuators, I/O systems, and PLCs.

The “Middle Layer” is the server layer that consists of the Application
Server, which can be a single or multiple servers depending upon the
application. High availability or “fault-tolerant” server configurations are
available for these components via a Siemens partnership with a supplier of
high-availability hardware. The key software elements of the Siemens
package are implemented and run in these servers. This is what Siemens
calls “Embedded Component Services”. Essentially this means that all the
relevant data, displays, rules, etc. reports, are represented in software
“objects” and these objects are created and exist in a hierarchy and are able to
inherit properties from other objects. Implementation of this software is
done in Java.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study
Purchased by ABB

Figure – SPPA-T3000 “3-Layer” Architecture

The “top” layer consists only of client Human-machine Interfaces (HMIs)

that run Windows Internet Explorer browser. All interfaces in the system
run in the browser.

The “Embedded Component Architecture” or ECA, is touted by Siemens as a

major differentiator for the SPPA-T3000. The company claims use of a single
set of objects eliminates the need to synchronize data between applications
common in other DCS products. Likewise, engineering configuration is
maintained consistent because it is localized in a single server, with remote
access available via the Internet.

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Figure – Siemens SPPA-T3000 Technical Differentiation

Siemens SPPA solutions are grouped in several branded categories. These

are:
 SPPA-T3000 – Power Plant Automation
 SPPA-R3000 – Turbine Controls
Purchased by ABB

 SPPA-D3000 – Monitoring & Diagnostics (analytics) Suite

 SPPA-P3000 – Optimization (availability, efficiency, emissions, etc.)
 SPPA-M3000 – Energy Management (fleet management)
 SPPA-E3000 – Electrical Solutions
 SPPA-S3000 – Simulator
 SPPA-I3000 – Instrumentation and Field Device Solutions

The SPPA and PCS7 share a common control hardware platform based on
standard SIMATIC Controllers, including the modular 412, 414, 416, and 417
Automation Systems (AS). In accordance with their functionalities, the
modular automation systems can be classified into standard, fault-tolerant
and safety-related automation systems. Embedded control systems are
available for distributed installation close to the plant, for package units and
for plants with large distributed infrastructure.

ET200M is the primary IO offering and can be placed in hazardous areas,

including Class 1 Division 2. Failsafe versions are TÜV-approved and can be
used for SIL 3 applications with the integrated safety system controllers. The
IO is designed to support distributed architectures natively (remote IO). The
HART IO module provides redundancy capability for the ET 200M
distributed IO station. This has a high channel density (64-channel digital
modules), supports the connection of HART field devices and is integrated

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into the asset management system of Simatic PCS 7. The interface module
offers high-accuracy time stamping for recording the SOE (sequence of
events) and supports operation of up to 12 IO modules in one ET 200M
device. The ET 200S Series IO is designed for motor control, starter control,
and pneumatic valve control applications. The ET 200iSP suitable for gas and
dust atmospheres according to the ATEX directive 94/9/EU can be installed
directly in the Ex zones 1, 2, 21 or 22 as well as in non-hazardous areas. The
new failsafe ET 200iSP components enable the implementation of
applications such as ESD (Emergency Shut Down) or Fire & Gas equipment,
without the use of additional external Ex barriers, up to SIL 3.

Application and integration of the new Siemens cloud solution

“Mindsphere” to the power generation industry is evolving now. To date
Mindsphere has mainly been applied in manufacturing vertical industries.

Partnerships: SAP

Acquisitions: None to report

Purchased by ABB

Strengths and Challenges

Strengths: Siemens’ strengths comes from the unique breadth and depth of
its portfolio of products and services spanning the full range of power
generation, transmission, and distribution. The power plant automation
business benefits from a large “captive” market in service to new Siemens
turbines and turnkey power plants.

Challenges: Siemens primary challenge is growing its installed base outside

of its traditional European market. In North America the company has had
only limited success. The power plant automation business is overshadowed
(in terms of revenue) by the Siemens OEM businesses for gas steam, and
wind turbines, and for major electrical equipment. Outside of the power
vertical, much of their automation equipment hardware portfolio is sold into
other vertical industries as well such as automotive, food, beverage, and
pharmaceutical. These industries, rather than power generation, tend to
drive the product development direction.

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SMAR

http://www.smar.com

Key Products
System 302

Description
SMAR’s System 302 is installed around the world. Sales of the System 302
DCS are driven by the company’s strength in field devices, fieldbus
implementation, and application expertise for areas such as sugar refining
and fermentation. With System 302, control distribution, system
configuration, asset and industrial network management and system
documentation are all available in one integrated control system. The system
is interoperable with all major network protocols including Foundation
Fieldbus, Profibus PA, and HART.
Purchased by ABB

In order to make the engineering process more efficient, System 302 offers a
large template library for equipment and control strategies. In addition,
users may perform both interlocking and continuous control in the same
environment.

System 302 takes full advantage of additional information supplied by

today’s powerful digital protocols. Besides connectivity with conventional,
4-20 mA and discrete signals, it provides information regarding status,
diagnostics, configuration, calibration and other non-control data. This
enables advanced functions, like Plant Asset Management, to significantly
reduce process variations and maintenance costs.

With System 302, the transmission of digital signals is safe, because of data
validation procedures. The digital networks have EMI/RFI immunity,
meeting strict international standards. Status information related to
measurement and variables assist operators and engineers throughout the
process to make safer decisions.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study
Purchased by ABB

System 302 Structure

Digital communication also permits access to multiple variables. Each

System 302 operational station is capable of obtaining information from any
of the devices, including identification number (ID), tag, range setting,
construction materials, calibration data, among others, directly from the
single database embedded in the basic system architecture. Data validation
is an essential part of the standard defined for each digital protocol. An
online status summary of process parameters is shown on the screen of
System 302 operational stations, including information concerning quality
and limits. Then, when a condition is identified, it is possible to make a
detailed and precise identification by using engineering tools. This includes
identifying possible configuration errors, as well as strict performance
verification. Such detailed status information enables a better understanding
how the automation system is responding.

DFI302 controllers utilize the Hot Standby redundancy strategy. With this
approach, the Primary Controller executes all tasks and the Secondary
Controller, in continuous synchronization with the Primary Controller, is
ready to take over the entire process in case of a primary device failure. The

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

exchange of functions between both controllers is carried out smoothly and

automatically.

Redundancy is dealt with at several levels in the System 302 architecture,

enabling the system to operate in a truly redundant and transparent way:

 In the HSE configurator and host;

 In the OPC servers – redundancy supervision for any OPC client;
 In the DFI302 controllers – complete task redundancy, on field network
database and communication channels, including the following
functions:
 Function blocks, including the flexible FFB with Ladder Logic
 Access to conventional I/O points
 H1 and HSE FOUNDATION fieldbus control links
 Link Active Scheduler (LAS on the H1 FOUNDATION fieldbus channels)
 Modbus gateway
 Four H1 FOUNDATION fieldbus ports
Purchased by ABB

Partnerships and Acquisitions

Partnerships: SMAR has developed partnerships with Beijing Huakong
Technology, Endress+Hauser, Metso, and Rockwell Automation.

Acquisitions: None to report.

Strengths and Challenges

Strengths: SMAR has expertise in field networks services and products that
help their clients improving their process and achieve financial benefits.
System 302 is an integrated solution for process control and management
system based on open and scalable technologies offer a powerful choice in
digital control systems. SMAR continues to increase its resources in markets
outside their strong regions in order to support fast-growing industries and
emerging markets.

Challenges: As a relatively small niche supplier, SMAR’s challenge

continues to be expanding beyond its regional base, and expansion beyond
its traditional vertical industries represents another major challenge.

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Valmet

http://www.valmet.com/automation
http://www.valmet.com/products/automation/valmet-dna-dcs/

Key Products
Valmet DNA; maxDNA

DCS Description
Valmet is the leading global developer and supplier of technologies,
automation, and services for the pulp, paper, and energy industries.
Valmet’s services cover everything from maintenance outsourcing to mill
and plant improvements and spare parts. The strong technology offering
includes pulp mills, tissue, board and paper production lines, as well as
power plants for bio-energy production. Valmet’s advanced automation
solutions range from single measurements to mill-wide turnkey automation
projects.
Purchased by ABB

Valmet’s original process automation system was Damatic, the last

incarnation of which was Damatic XDi. The latest automation system
version is Valmet DNA, which was released in 2011. Valmet DNA is a single
automation system for all functions – process, machine, drive, and quality
controls. The integrated system platform provides seamless data flow
between various DCS augmenting functionalities and a full range of control
solutions, including quality and turbine controls. Valmet offers a
comprehensive application compatibility and upgrade path for the installed
base of previous generation systems and a global service network.

Valmet acquired the MAX control systems division of Leeds & Northrup in
the United States in 2000. Valmet has since migrated MAX to its own
maxDNA platform, enabling a seamless migration path from older maxDNA
systems. maxDNA is primarily sold to the electric power industry.

Valmet DNA is a single system for all control, information management, and
communication purposes. It offers tools for all layers of a production
organization, from process operators to production decision makers. Valmet
DNA combines the machine, process, quality, and drive and turbine controls,
as well as information management solutions into one seamless network of
applications.

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Valmet DNA has gained popularity in PLC migration cases, because it is

scalable from a few I/O to a large system having tens of thousands I/O. The
name-based communication allows an easy way to expand the system
without additional links. Drawing from Valmet’s process industry
background, Valmet DNA provides innovative solutions for process control,
including a full range of embedded optimization tools, such as fuzzy logic
and model predictive control (MPC). In addition, the system seamlessly
combines the most demanding process (DCS), machine (MCS), quality (QCS),
drive control, and turbine control solutions with a wide range of field buses
and interfaces to third- party systems. Valmet DNA enables a scalable
approach, from a limited number I/O mini system to a large-scale mill
network, providing an open platform of automation and information
applications.

The Valmet ACN I/O family combines features of centralized and

distributed I/O in one compact design. Offering higher density packaging,
measurement accuracy, and HART support, ACN I/O is fully compatible
with earlier Valmet ACN controllers. The latest member of ACN controller
Purchased by ABB

family, ACN MR, is a compact, rail-mounted controller suitable for both

centralized and distributed solutions.

The Extended System Bus concept enables cost effective, geographically

distributed wireless control solutions. The entire ACN family shares the
same tools and diagnostics, eliminating the need to learn and support several
systems. Fast execution cycles ensure powerful performance for the most
demanding applications. The system network architecture is typically a
turbo ring fast-switched Ethernet, with layered security, firewall, antivirus,
and secure perimeter network (DMZ) solutions. High availability and a high
safety level are achieved by integrated Safety Instrumented Systems.

Partnerships and Acquisitions

Key Partnerships: BHEL; JV with Guodian Nanjing Automation Co. Ltd.

Key Acquisitions: Metso’s Process Automation Systems business (2015)

Strengths and Challenges

Strengths: Valmet integrates market leading pulp, paper, and energy
process equipment, automation, and services offerings with the specific focus
on taking customers’ performance forward. Large installed base and
application knowledge in the pulp, paper, energy, marine, industries;

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

knowhow on analyzing and monitoring the performance of industrial

processes and identifying the associated maintenance and improvement
opportunities; ability to offer a comprehensive solution quality management
and control, analyzer and performance optimization solutions along with
their DCS offerings

Challenges: Need to diversify its installed base; lack of transmitter &

flowmeter offerings; increasing its presence in high growth market areas, as
well as developing product offering for these markets
Purchased by ABB

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Yokogawa

http://www.yokogawa.com
http://www.yokogawa.com/solutions/products-platforms/control-system/distributed-
control-systems-dcs/

Key Products
CENTUM, ProSafe-RS, STARDOM

DCS Description
The CENTUM series has historically been the centerpiece of Yokogawa’s
DCS business. Yokogawa introduced the CENTUM in 1975 and has
continually updated and enhanced this product while maintaining the high
process control availability, high system performance, and backward
compatibility with previous versions that remain hallmarks of the CENTUM
brand.
Purchased by ABB

CENTUM VP, the latest product in the CENTUM series, is the cornerstone of
Yokogawa’s VigilantPlant initiative. CENTUM VP consists of a high
performance HMI, high availability process controller, and the highly
reliable Vnet/IP real-time control network. To ensure stable plant
operations, CENTUM process controllers since 1993 employ a dual
redundant pair and spare architecture. The controllers support field device
communications protocols, such as FOUNDATION fieldbus and PROFIBUS,
and field wireless networks based on the ISA100 international standard.
Vnet/IP is a fully redundant 1 gigabit Ethernet control network that allows
the real-time exchange of large amounts of data.

CENTUM VP R6 brings the concepts of smart engineering, advanced

operations, system agility, and plant sustainability. With R6, plant operators
can be assured of an optimum engineering environment spanning the entire
plant lifecycle, from plant design and the engineering and installation of
systems and devices to the start-up of production, maintenance, and
renovation.

CENTUM VP R6 features an expansion of Yokogawa’s I/O lineup and

introduces crucial new control system components. With R6, Yokogawa
provides N-IO (Network I/O), a smart configurable I/O device that has a
reduced footprint, lowers marshalling costs, and remote installation with
Intrinsic Safety.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

In addition, the Automation Design Suite, Yokogawa's new engineering

environment, retains the entire engineering history of a plant, from the
design phase through to commissioning and operation, ensuring an up-to-
date knowledge of the plant whenever an upgrade or expansion involving
changes to plant hardware and software is undertaken.

Furthermore, Yokogawa strives to provide optimum control system security

solutions, starting with the development of secure instruments and systems,
and extending to the provision of operational support services. The
company’s CENTUM controllers have ISASecure Embedded Device Security
Assurance certification from the ISA Security Compliance Institute.

Complementary to its CENTUM systems, Yokogawa supplies FAST/TOOLS,

an advanced and highly reliable enterprise supervisory control and data
acquisition solution. With the introduction of a remote gateway server,
FAST/TOOLS has become an integrated automation solution that provides
functions for seamless communication with CENTUM VP, allowing variable
data and function block data to be read and assigned by FAST/TOOLS.
Purchased by ABB

This enables companies to move to a globally integrated operations

management solution in which multiple autonomous production locations
are controlled by CENTUM systems. The enterprise edition of FAST/TOOLS
satisfies the requirements for a unified user and engineering environment
across distributed applications and for connectivity via low-bandwidth
networks with a variety of DCS and devices, such as STARDOM RTUs with
autonomous capabilities.

STARDOM controllers support FOUNDATION fieldbus, PROFIBUS, HART,

Modbus, and DNP3 field network connectivity at the upper systems level,
and the utilization of satellite, General Packet Radio Service, and other types
of low-bandwidth communications with automatic network fail-over
functions, it is possible to deliver fit-for-purpose solutions for virtually any
production information management application.

Partnerships and Acquisitions

Key Partnerships: Intel Security; HIRSCHMANN; MTL Instruments;
Pepperl+Fuchs

Key Acquisitions: None to report

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Strengths and Challenges

Strengths:

 High availability and unsurpassed reliability, as proven by the fact that

the same CENTUM series DCSs have long been bringing satisfaction to
various industrial sectors and have been especially well received by oil
and gas majors, including supermajors

 Extensive migration scenarios provided for seamless integration of DCSs

of different generations

 Long-term lifecycle support committed by the company

Challenges:

Yokogawa is committed to further develop technically and commercially competitive

products to help power companies in the world increase the value of their plants.
Purchased by ABB

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Purchased by ABB

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Appendix A:
Standard Market Segmentations

This report is intended to serve as a planning guide for current product or

service providers as well as companies considering entry into this
marketplace. It has been prepared specifically to provide strategic
information to industry executives responsible for planning, marketing,
sales, and development of their company’s offerings. All market data is
provided in U.S. dollars.

Key Issues Researched

This study explores several key issues which include:

 Market size and growth potential?

 North America, EMEA, Asia, and Latin America regional analysis.
 Forecast by region.
Purchased by ABB

 Supplier market shares by region.

 Markets by select industries?
 Vertical markets offering the greatest growth opportunities?
 Market analysis based on supplier interviews and end user surveys.
 What are the market trends?
 Strategic issues confronting suppliers face now and future issues?
 Successful strategies in the business?
 Profiles of leading suppliers

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Key Regional Segments

Geographically, ARC has divided the marketplace into four major

segmentations: North America, Latin America, EMEA, and Asia. North
America consists of the United States and Canada. Latin America is
comprised of Central America, Mexico, and South America. EMEA consists
of Western Europe, Eastern Europe, CIS, Africa, and the Middle East. Asia
consists of Japan, China, India, Taiwan, South East Asia, Korea, and
Australia.
Purchased by ABB

Geographic Segmentations

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Key Currency Factors

To eliminate changes in market size due to ongoing currency variations,

ARC uses average exchange rates over a 12-month period for the leading
currencies. Each year, ARC updates the exchange rates used in our market
analysis and forecasts to portray the most realistic picture of the market
possible. When comparing ARC reports from different years, customers
must take into account the ongoing changes in exchange rates that occur
from year to year and use the exchange rates given in each study to convert
back to local currencies. All ARC forecasts are prepared in current US
dollars and are based on the assumption that the current inflation rate of
approximately 3 percent will continue throughout the period covered by
this report.

Exchange Rate
National Currency National Currency units
Country (Abbreviation) per US Dollar ($)

European Union Euro (€) 0.91

Purchased by ABB

Japan Yen (¥) 121.00

Brazil 'BRL (Brazilian Real) 3.39

Russia Ruble (RUB) 61.85

India INR (₹) 63.56

China RMB (￥) 6.29

Average Currency Exchange Rates Used in ARC Market Studies

Key Industry Segments

Industrial markets are typically classified into process, discrete, and service
industries. This report analyzes a selected number of industries defined in
in Figures A-1 through A-4. (See figures for a detailed list of standard
industry codes).

Shipments by Distribution Channel

Distribution channels (or sales channels) primarily include the suppliers’

sales staff, referred to as the “direct sales” channel; “distributors” that
stock, sell, and support products; and “independent representatives” that

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

do not stock products, but sell on commission. ARC combines independent

representatives and distributors into a single reporting category.

Distributors usually stock product along with a variety of other products

for sale within a territory. Distribution channels do not use, change, or
modify the product, though they may package it with other products or
brand label it. Suppliers generally sign legal relationship agreements with
distributors and independent sales representatives for product sales. From
the supplier point of view, these channels are more effective for small or
widely dispersed accounts when direct sales cannot be justified
economically. Conversely, suppliers use direct sales for large or captive
accounts.

From the purchasers’ point of view, distributors that stock brands from
competing suppliers can help them compare brands and are more
attractive. Many suppliers, however, prohibit their distributors from
carrying competing product lines in exchange for an exclusive selling
territory. Purchasers prefer to deal directly with suppliers when they can
Purchased by ABB

negotiate more favorable terms (which may impact a portion of the

distributor’s margin), or maintain confidential custom design information.
End users appreciate qualified advice for complex products, so
independent representatives also have a role to play.

Distributors are keenly sensitive to the unique market demands in their

region. Some package configured systems with control components from
several suppliers in a manner similar to system integrators. They do so
when it helps them be competitive or achieve higher margins. Large
foreign suppliers and small domestic suppliers rely on distributors and
independent representatives for their established client base and
geographical coverage; but sell direct to large OEMs. Large domestic
suppliers usually sell direct to large OEMs.

Shipments by Customer Type

Customers either use the product as is, or modify it and add value, either
by using it as a component in another product or by configuring it into a
system along with other products. The customer types (or purchasers) that
make up a market are the consumers or “end users” of the product, original
equipment manufacturers (OEMs), and system integrators (SIs). OEMs
incorporate the product as a part of the equipment they produce and sell,
while SIs add value by integrating the product with other components,

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

software, wiring, application engineering and domain knowledge to create

systems for their clients. All distribution channels sell to one or more of
these customer types.

System integrators leverage their application and integration expertise to

add value to end users. To add further value, they also take single-point
responsibility for overall system performance. Suppliers also depend on
system integrators to smooth out fluctuations in demand for project
services. These factors ensure that system integrators also have a role to
play, and more so when applications are complex or when products need
programming or configuring to suit an application.

Shipments by Machinery Segments

Market data in this report may include segmentation by machinery

applications. ARC's machinery segmentation differs slightly from the
parameters of NAICS 333. Figure A-5 provides a comprehensive list of
machinery segments along with a brief description of the types of process
Purchased by ABB

performed by machinery in each sector.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure A-1
Standard Industry Code Classifications - Process Industries

Process Industries SIC Code NAICS Code NACE Code

Cement & Glass 32 327 26.1-26.8

Chemical (Including 28 (except 283 & 325 (except 24.1, 24.2, 24.3,
Petrochemicals) 284) 3254 and 3256) 24.5, 24.6, 24.7

Electric Power Generation 491 (except 22111 35.1.1

4911), 4931

Electric Power T&D 4911 2211 (except 35.1.2, 35.1.3

22111)

Food & Beverage 20, 21 311, 312 15.1-15.9, 16.0

Mining 10, 12, 14 212 10.1-10.3, 12,

13.1-13.2

Metals 33 331 27.1-27.5, 37.1

Purchased by ABB

Oil & Gas (Exploration, 13, 46, 492 211, 213111, 11.1, 11.2,
Production, and Pipelines) 213112, 486, 40.2, 60.3
2212

Refining 29 324 23.1, 23.2

Pharmaceutical & Biotech 283, 284 3254, 3256 24.4, 24.5

Pulp & Paper 26 322 21.1, 21.2

Textiles 22 313, 314 17.1-17.7

Water & Wastewater 494, 495 2213 41, 90

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Figure A-2
Standard Industry Code Classifications - Discrete Industries

Discrete Industries SIC Code NAICS Code NACE Code

3364 and
Aerospace & Defense 372 & 376 35.3
336992

Apparel, Footwear & leather 315, 316 18.1-18.3, 19.2-

23, 31
products 19.3

336 (except 34.1-34.3, 35.4-

Automotive 371, 375, 379
3364) 35.5

Building Automation 15, 3534, 3564 3334 45.3

335, 3341, 30.0,

Electronics & Electrical 36 (except 3674) 3342, 3343, 32.1-32.3, 31.1-
3346 31.6

Semiconductors 3674 3344 24.61

Fabricated Metal Products 34 332 28.1-28.7

Purchased by ABB

3219, 3371,
Furniture & Wood Products 24, 25 20.1-20.5, 36.1
3372

3331 to 3333,
*Machinery 35 (except 357) 3335, 3336, 29.1-29.7
3339

Medical Products 384, 385 3391 33.1

Plastic & Rubber Products 30 326 25.1, 25.2

Printing & Publishing 27 511, 323 22.1-22.3

3345, 3379,
381, 382, 386, 33.2-33.5, 36.2-
Other Discrete 3399, 336999,
387, 39 36.6
3365 to 336991

*"While most machinery manufacturers fall under this segment, there is also a large quantity
of OEM equipment that ARC accounts for within the respective end user industries, which is
excluded from the Machinery Industry. For example, controllers purchased as OEM
components for food processing or food packaging machinery is included in the figure for the
food & beverage industry and is not included in Machinery."

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure A-3
Standard Industry Code Classifications - Service Industries

Service Industries SIC Code NAICS Code NACE Code

Retail - Food & Beverage 54 445 52.2

Retail – Other 52, 53, 55, 56, 57, 44 (except 52 (except

58, 59 445), 45 52.2)

Wholesale/Distributor - Food 514 4224, 4228 51.3

& Beverage

Wholesale/Distributor - Other 50, 51 (except 514) 42 (except 51 (except

4224, 4228) 51.3)

Transportation & logistics 42, 44, 45, 47 481, 482, 483, 60.2, 61.1-
484, 488, 492, 61.2, 62.1-
493 62.2, 63.1-
63.4, 64.1
Purchased by ABB

Architectural, Engineering, 871 5413 74.2

and Related Services

Waste Management and 490 562 36, 37, 38, &

Remediation Services 39

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Figure A-4
Standard Industry Code Classifications
Construction/Infrastructure Industries

Service Industries SIC Code NAICS Code NACE Code

Buildings 15 236 41 (Except 41.1)

Heavy and Civil Engineering 1629 237 (Except 42 (Except 42.1)

(Including Airports, Seaports, Dams, 2371, 2372 &
& Railroads) 2373)

Utilities 1623 2371 35

Land Development 6552 2372 41.1

Roadways and Bridges 1611 2373 42.1

Building Equipment Contractors 1711, 1731, 2382 43

1791, 1796, &
Purchased by ABB

1799

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Figure A-5
Standard Machinery Classifications
Machinery Segment Definition

Surface and underground mining machinery and equipment used for

extracting and processing minerals. Crushing, pulverizing and
Mining
screening machinery. Manufacturing drills and other mining
machinery. Mineral processing machinery

Rotary oil and gas field drilling machinery and equipment. Field
Oil & Gas Field production machinery, field drilling machinery, rotary oil & gas field
drilling machinery, and portable drilling rigs.

The segment includes all facets of food & beverage processing prior
Food & Beverage to packaging, such as mixing, blending, fermentation, baking and
dispensing equipment.

Machinery to manufacture of semiconductors, LEDs, and

photovoltaic. This includes wafer manufacturing/processing, fab
facilities equipment, mask/reticle equipment, surface
conditioning/clean and dry, resist processing equipment, expose and
Semiconductor write, etch equipment, ion implant equipment, sputter equipment,
thermal processing equipment, chemical mechanical planarization,
chemical vapor deposition, inspection measurement, assembly and
Purchased by ABB

packaging equipment, SOC & logic test equipment, memory test

equipment, handlers, probe equipment.

Manufacturing of passive electronic components (capacitor,

resistors, and inductors) is segmented into a front end and back end
processes. The back end processes include test, measurement, and
Electronics
packaging machinery. Machinery included in this sector includes
manufacturing of discrete electronic components and printed circuit
boards, as well as final assembly.

Saw mill and wood-working machinery (except handheld), such as

Lumber & Wood circular, routers, and band sawing equipment, planning machinery,
and sanding machinery. Lumber mills.

Chippers, stationary, Envelope making machinery, fourdrinier

machinery, log debarking machinery, and log splitters. Paper and
Pulp & Paper paperboard machinery for corrugating, cutting and folding, die-
cutting, bag making, paper making machinery, box making, pulp
making, paperboard molding, and sandpaper.

Plastics and rubber products making machinery, such as plastics

compression, extrusion and injection molding machinery and
Plastics & Rubber
equipment, and tire building and recapping machinery and
equipment.

Machinery for making thread, yarn, and fiber. Textile printing is

Textile
included.

HVAC (heating, ventilation, and air conditioning) is the technology of

indoor and vehicular environmental comfort. HVAC systems design
is based on the principles of thermodynamics, fluid mechanics, and
HVAC Equipment
heat transfer. Refrigeration is included – sometimes abbreviated
with HVAC&R or HVACR. Cooling towers, chillers, heat recovery,
ventilation, refrigeration.

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Machinery Segment Definition

Metal cutting machine tools. Gear cutting machines, grinding,

polishing, buffing, honing, & lapping machines, lathes, milling
Metal Cutting
machines, machining centers, multifunction, station type machines
and boring/drilling machines.

Metal forming machine tools (except hand tools), such as punching,

Metal Forming sheering, bending, forming, pressing, forging and die-casting
machines.

Rolling mill machinery and processing equipment for metal

production, such as cold forming mills, structural mills, and finishing
equipment. Includes bar mills, billet mills, blooming and slabbing
Rolling Mill mills, cleaning lines, electrolytic (rolling mill equipment), and Cold
forming type mills. Galvanizing lines, hot strip mill machinery, mill
tables, picklers and pickling lines, pipe and tube mills, plate rolling
mill machinery, rod mills, and tube mill machinery.

Compressor, pump, Includes subassemblies of pumps, compressors, and blowers/fans

blower/fan that are integrated as subsystems in a larger piece of equipment.

An escalator is a moving staircase – a conveyor transport device for

carrying people between floors of a building. An elevator is defined
as a platform or compartment housed in a shaft for raising and
Elevator, Escalator, &
lowering people or things to different floors or levels. Automated
Door
Purchased by ABB

doors consist of a system with an electro-mechanical operator and

microprocessor controller. Components consist of a motor and a
drive system linked to a fully integrated digital controller.

Material handling equipment relates to the movement, storage,

control, and protection of materials, goods, and products throughout
the process of manufacturing, distribution, consumption, and
Material Handling disposal. It is the mechanical equipment involved in the complete
system. Material handling equipment is generally separated into
four main categories: storage and handling, engineered systems,
industrial trucks, and bulk material handling.

Crane - a machine for lifting and lowering a load suspended by a

hook or hooks. Cranes are driven manually, by power, or by a
Crane, Hoist & combination of both. Hoist - a machinery unit that is used for lifting
Monorail or lowering a freely suspended (unguided) load. Hoists may be
integral to a crane or mounted in affixed position, permanently or
temporarily. Hoists may be hand-operated, air, or electric powered.

Printing (except textile) and bookbinding machinery and equipment,

such as printing presses, typesetting machinery, and bindery
machinery. Bindery machinery, bookbinding machines, collating
machinery for printing and bookbinding, digital printing presses,
Printing electrotyping machinery, flexographic printing presses, gravure
printing presses, letterpress printing presses, linotype machines,
lithographic printing presses, newspaper inserting equipment, offset
printing presses, photoengraving machinery), printing plate
engraving machinery, stitchers and trimmers.

Converting refers to processes that are part of the web forming line,
for example, applying a coating of adhesive to paper, or laminating
Converting pressure-sensitive label stock to backing material. Printing on
corrugated board, tissue, packaging film and label material is
another large converting application. Machinery that takes parent

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Machinery Segment Definition

rolls material performs functions such as perforating, embossing,
slitting and rewinding into smaller components. Bag machines for
example “convert” parent rolls of polymer film into consumer-sized
rolls of garbage bags with sealed ends and integral pull ties at the
open ends.

Machinery used to package products. The following types of

equipment are included: filling and form/fill/seal machinery; labeling
and coding equipment; cartooning, thermoforming, bottling,
Packaging capping, labeling wrapping, bundling and palletizing machinery;
other types of packaging equipment (such as accumulators, collators
and feeders), cartoning, case loading equipment, case packing, and
check weight machinery.

Industrial Robots are available in numerous configurations almost all

Robotics of which fall into one of six categories. They are: articulated,
cartesian/gantry, cylindrical, parallel/delta, SCARA, and spherical.

There are two aspects under this classification. ARC includes

Glass, Ceramic & machinery that mixes materials, fires, and applies any type of
Stone coating or paint. All machinery used to drill, grind, polish, cut
ceramics, glass, and stone.

This includes all machinery that cannot be classified in any other

Other
Purchased by ABB

category.

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Appendix B:
Research Methodology

Over the past two decades, ARC Advisory Group has become the leader in
providing in-depth and accurate market intelligence for the industrial
automation marketplace. From the beginning, our corporate goal has been
total client satisfaction. We have continuously strived to refine and
improve our vision of future plant automation systems. To meet the
growing need for global market intelligence, we have recently expanded
our services to cover the international marketplace.

ARC’s research database is based on thousands of user surveys, telephone

interviews, plant visits, and in-depth profiles of hundreds of suppliers and
users. Our extensive network of industry contacts has been an invaluable
asset in filtering out long-term trends from fads. Our consultants are
skilled in analyzing and forecasting the impact of new technology and
products on plant automation systems. We systematically study each
Purchased by ABB

market segment before developing specific recommendations for our

clients.

ARC consultants follow technology and industry events on a daily basis,

and have a broad range of expertise in all areas of industrial automation,
including sensors, control systems, networks, computers, software, and
services. We are experienced in working with all types of manufacturing
processes including continuous, batch, discrete repetitive, and job shop.

Each year, ARC consultants attend the most important trade shows around
the world. In addition, ARC consultants attend press conferences held by
most major suppliers and review hundreds of news releases each year.
ARC consultants then sort out real and long lasting trends in the
marketplace.

ARC uses a five step approach to conduct global market research for our
target markets and industries. This approach provides our staff with a
solid framework to formulate meaningful strategies for our clients. You
can be assured that we give all areas of the study a considerable amount of
time and thought before moving on to the next step. The following
contains a brief description of how we conduct each of these five steps.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Step 1: Client Inputs and Secondary Search

ARC starts a project by inviting inputs from our primary clients and
researching all secondary sources of information. Key secondary sources
researched include the following.

ARC Database
ARC maintains an extensive database for our target markets and industries.
This database provides our staff with a solid base to start their research
project. The database includes the following information on several
thousand companies:

Annual Reports
10K and other Financial Reports
Client Lists
Published Secondary Data on Companies and Products
Market Size and Forecast Data for the past decade or longer
 Market and Technology Trend Data
Purchased by ABB

Literature Search and Review

ARC subscribes to a wide range of sources of information related to our
target markets including an extensive library of directories and books. We
are on the news and product release mailing lists of most major users and
suppliers of technology. We have been publishing important industry
information on our website for the past decade or longer. We research and
analyze our in-house database and the prominent sources relevant to the
research project to identify:

Issues of interest pertaining to the subject matter

Product and technology trends in the industry
Changing user needs
 Key products and applications within the project scope

Our studies evolve rather than being forced. This assures you that the
results are accurate, up-to-date, and meaningful.

Step 2: Identify Key Issues

After discussions with clients and a careful review of all secondary

information, ARC develops a list of key issues concerning both users and

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

suppliers. We also leverage on information contained in our previous

market research reports and surveys.

Step 3: Conduct Primary Research

Supplier Survey and Interviews

Next we conduct telephone interviews with key individuals at all major
suppliers. Where possible or necessary, we interview more than one
person at each company to verify the accuracy of the information. We
typically interview individuals engaged in one of the following functions at
these companies: product or marketing management.

We also conduct a top down analysis of the leading suppliers' products and
various businesses in order to get a better understanding of the global
business environment and revenues.

Profiles of the Leading Suppliers

Purchased by ABB

ARC also compiles brief profiles of most major solution suppliers. Some
highlights of the information that is included in these profiles are:

 Key products related to the subject solution

 Brief description
 Partnerships and acquisitions
 Strengths and challenges
 Target industries

ARC typically spend several weeks discussing issues pertinent to subject

matter with the leading suppliers and other related parties.

Step 4: Data Analysis

Next we organize and enter all gathered quantitative data into a
spreadsheet or database. The data is verified, sorted and cross-tabulated in
numerous ways to filter out industry trends and answers to the key issues
identified earlier.

After analyzing all market data, we prepare preliminary market forecasts.

At this time, we consider many alternative scenarios and test them against
some key criteria. We finally choose the most likely scenario.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

Step 5: Prepare Final Report

After finalizing market forecasts, we draw charts and graphs to get further
insight into user needs and trends. We typically spend a considerable
amount of time and effort to draw conclusions and sort out long-term
trends from fads. We typically consider many different strategic
alternatives before developing recommendations for the industry
participants.

We finally write the report summary, factors contributing or inhibiting the

growth and the strategies for success in the business.

Benefits of ARC's Methodology

Key benefits of ARC's methodology in conducting market research are:

This is a proven approach and is designed specifically to conduct global

market research for technology solutions for industry and
infrastructure markets.
Purchased by ABB

Our full-time staff members do all our research work. The ARC staff has
first-hand industry knowledge and experience.
ARC project manager works with our staff members around the world to
learn about local suppliers and market trends.
We actively solicit inputs from suppliers and users throughout the duration
of a project.
We encourage independent thinking by our staff members.
We can identify key individuals for interviews quickly and accurately
through our extensive network of industry contacts and data base.
 We can complete each task very efficiently through our use of many
automated resources.

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Primary Authors

Many individuals from ARC contributed to the completion of this market research report. In
addition, we wish to acknowledge the cooperation from the many suppliers to this market as
well as the information that end users provided in the creation of this report.

The following biographies are provided so that you will know the key individuals with the
domain information pertaining to this report's topic. If you wish to speak with them, please
arrange this through your ARC client manager.
Purchased by ABB

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 Distributed Control Systems for Electric Power Generation Global Market Research Study
Purchased by ABB

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THOUGHT LEADERS FOR MANUFACTURING & SUPPLY CHAIN

Lead ARC Analyst Biography

Harry Forbes
Research Director
ARC Advisory Group
781-471-1115
[email protected]

Research Areas of Expertise

Harry’s focus areas include Industrial Networks, Wireless Networks, the
electric power industry, industrial utilities, and DCS.

Responsibilities and Experience

Purchased by ABB

Harry leads the Network research team at ARC. This team executes ARC’s
research into Fieldbus, industrial Ethernet and industrial wireless
networking markets. Harry is also responsible for ARC engagements in
Power Generation, Power Transmission and Distribution, and Energy
Management. Harry has led engagements at ARC on behalf of clients who
are leading suppliers and end users of both industrial networking and power
equipment.

Harry has over 25 years of experience in manufacturing and automation.

Prior to joining ARC, Harry held a number of marketing, sales, and
engineering assignments at various units of Invensys, including product
management responsibility for Advanced Control software products and
Operator Training Simulation products.

Harry has also worked as a process performance engineer and an automation

engineer for Detroit Edison, where his assignments included work in both
fossil and nuclear generating stations.

Education
Harry holds an MBA from the Ross School of Business at the University of Michigan in
Ann Arbor, Michigan and a BSEE from Tufts University in Medford, Massachusetts.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

ARC Research Reports and Publications

 Ethernet at the Device Level Market Outlook Report
 Wireless Devices in Process Manufacturing Market Outlook Report
 Industrial Ethernet Infrastructure Market Outlook Report
 Bluetooth to Get New Low Power Option
 High Hopes for Low PAN
 Schneider Electric Makes Waves with ODVA
 Connecting the Dots with Wireless Networks
 Honeywell Highlights Growth, New Technology in EMEA Region
 Dust Networks Moves “Down” the Wireless Sensor Value Chain
 ISA SP100 Draws Proposals and Interest to Industrial Wireless
 Wireless Sensors - Performing without a Net
 Coping with Higher-Priced Energy
 Nuclear Batteries for Wireless Sensors
 ZigBee in a Nutshell - Is It Suited for Industrial Applications?
 Z-Wave and ZigBee - Competitors or Not?
 Hanover Fair Mood Is Upbeat, but Offers Few Surprising Innovations
Purchased by ABB

 Symposium Highlights Industrial Ethernet Value, Direction

 Will Cogeneration Go Micro?
 Not Your Father's EPRI
 New Life for Old Nukes
 Differing Views of Wireless LANs
 Ethernet Devices Power Up
 Getting Physical with Industrial Ethernet
 Recent Industrial Ethernet Offerings Bypass IP
 RFID: A Considerable Speck
 IEEE 1451 – Less Is More
 Managing Industrial Ethernet Networks
 Plant Utilities: The Morning After
 Wireless I/O: The Electrician’s Radio
 US Blackout: Don't Believe Promises Made in the Dark

About ARC Advisory Group

Founded in 1986, ARC Advisory Group has grown to become the Thought
Leader in Manufacturing and Supply Chain solutions. For even your most
complex business issues, our analysts have the expert industry knowledge
and firsthand experience to help you find the best answer. We focus on
simple, yet critical goals: improving your return on assets, operational
performance, total cost of ownership, project time-to-benefit, and
shareholder value.

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THOUGHT LEADERS FOR MANUFACTURING & SUPPLY CHAIN

Peer ARC Consultant Biography

David Clayton
Research Director
ARC Advisory Group
781-471-1132
[email protected]

Research Areas of Expertise

David’s focus areas include Control Valves, Actuators, & Positioners (CVAP);
Distributed Control Systems (DCS), Process Safety Systems; and Field
Devices.
Purchased by ABB

Responsibilities and Experience

David has been with ARC for more than 20 years. Prior to ARC, David
worked for more than three years as a component and systems analyst with
The Foxboro Company. During this time, David evaluated electronic
components and systems, performed failure analysis, generated analytical
reports, created component specifications and conducted customer
presentations of the company's Intelligent Automation (I/A) Series and
Spectrum 200 distributed control systems. As a component and systems
analyst, David played a key role in the quality assurance of many I/A and
Spectrum 200 distributed control systems and components requested for use
in Foxboro products.

Education
David is a graduate of Northeastern University with a BS in Electrical
Engineering.

ARC Research Reports and Publications

 Distributed Control Systems Worldwide Outlook
 Process Safety Systems Worldwide Outlook
 Plant Asset Management Worldwide Outlook
 Building Automation Systems Worldwide Outlook
 Building Automation Systems North American Outlook
 Chemical Industry Plant-Level Expenditures Outlook

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

 Oil & Gas Industry Plant-Level Expenditures Outlook

 Pharmaceutical Industry Plant-Level Expenditures Outlook
 AC Drives Worldwide Outlook
 AC Drives North America Outlook
 AC Drives China Outlook
 AC Drives Southeast Asia Outlook
 AC Drives India Outlook
 Control Valve Worldwide Outlook
 Control Valve North America Outlook
 Control Valve China Outlook
 Control Valve Southeast Asia Outlook
 Control Valve India Outlook
 Valve Actuator Worldwide Outlook
 Valve Actuator North American Outlook
 Magnetic Flowmeter Worldwide Outlook
 Coriolis Flowmeter Worldwide Outlook
 Ultrasonic Flowmeter Worldwide Outlook
Purchased by ABB

 Vortex Flowmeter Worldwide Outlook

 Pressure Transmitter Worldwide Outlook
 Web Sales for Automation Worldwide Outlook
 Comprehensive Facilities Management Strategies Using Integrated
Building Automation Systems
 Strategies to Drive Manufacturing Efficiency to the Production Floor
 Digital Positioners Help Manufacturers Manage Changing Workforce
Dynamics
 Globalization Requires a New Look at Regional Standards and Common
Practices

Other Published Work

 Ultrasonic Flowmeters Get the Nod, Control

About ARC Advisory Group

Founded in 1986, ARC Advisory Group has grown to become the Thought
Leader in Manufacturing and Supply Chain solutions. For even your most
complex business issues, our analysts have the expert industry knowledge
and firsthand experience to help you find the best answer. We focus on
simple, yet critical goals: improving your return on assets, operational
performance, total cost of ownership, project time-to-benefit, and
shareholder value.

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

ARC Services

Thank you for purchasing ARC Advisory Group’s Global Outlook Study.
The study was prepared to help you save time and money with your
business planning activities. ARC strives to provide the highest quality and
most accurate market intelligence products and services. Since 1986, ARC
Advisory Group has provided products & services to hundreds of clients,
ranging from start-up firms to Fortune 100 companies.

Our analysts follow technology and industry events on a daily basis. Our
coverage of technology and trends extends from business systems to
product and asset lifecycle management, supply chain management,
operations management, energy optimization and all types of automation
systems. Our analysts and consultants have the industry knowledge and
the first-hand experience to help our clients find the best answers to the
complex business issues facing organizations today.
Purchased by ABB

ARC maintains one of the most in-depth databases in the world on

technologies, standards, and the products and capabilities of hundreds of
automation and software companies. This database is based on thousands
of interviews, user surveys, and company visits. Our global network of
industry contacts is an invaluable asset in discerning long-term trends from
fads.

Continuous Advisory Services

ARC’s Advisory Services deliver a comprehensive portfolio of knowledge-

based products and services that keep you ahead of the latest developments
in enterprise applications, IT, and plant systems. Our analysts sift through
the clamor of the market hype delivering clear, concise, supplier-neutral
summaries of key events and technologies. A low client to analyst ratio
ensures quick direct access to those who can provide the intelligence you
need.

Solution and Supplier Selection Services

Making strategic decisions is a difficult, time consuming and costly process.

ARC delivers STAR (Solutions That Accelerate Results), a service designed
to guide, educate and logically drive a team to a valuable consensus. The
service delivers a process and necessary research, stepping your team

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 Distributed Control Systems for Electric Power Generation Global Market Research Study

through the various phases in making a decision. The process is completely

documented

Market Intelligence & Rapid Analysis (MIRA) Tool

Market Research is only valuable if it can be properly interpreted and

understood. That is where ARC's MIRA (Market Intelligence and Rapid
Analysis) tools come in. Delivered as an annual service, MIRA is an
automated Microsoft Excel environment, hosting research information in an
environment that makes it easy to slice, dice and analyze.

Investor Information Services

Each year ARC analysts write unbiased reviews of hundreds of software

and solution providers around the world. This market intelligence,
coupled with private discussions with our experienced analysts, provides
invaluable insight to our financial clients.
Purchased by ABB

Merger & Acquisition Services

Our independent, objective, and knowledgeable analysts can assist in the

evaluation of your M&A initiatives, providing market intelligence that is
often unavailable to your in-house staff. Our partnership with several
investment firms completes our offering, providing you with a full range of
due diligence and partner search services.

Strategy Forums
Each year ARC hosts a number of forums and conferences in major cities
around the world. These forums provide an excellent opportunity for
corporate executives to network with their peers and gather industry
intelligence to fine tune their strategic vision for the future.

Consulting Services

At times, you may have an immediate need for personal intelligence. Our
consulting services provide you with the opportunity of applying ARC’s
demonstrated experience in the collection and synthesis of information into
knowledge to meet your specific needs.

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