World Manufacturing Process Management (MPM) Markets

Transcription

1 World Manufacturing Process Management (MPM) Markets 1

2 Market Drivers for the MPM Market Cost savings Aging workforce Product to market faster 95 0 System upgrade Globalization of manufacturing Integrating information 85 Key: Least Important = 0 Most Important = 100 This chart illustrates the importance of the major market drivers, with 100 being the most important and 0 being the least important. Listed below is a brief discussion of each market driver. Cost Savings: Reducing manufacturing costs is a major driver in the industry. End users can reduce costs by limiting the number of engineers in the process because the software is smarter and it can take what has been developed and modify it. If something is changed in the process it is also possible to evaluate the effect it will have in the factory, providing cost savings. Product to Market Faster: MPM allows end users to get their product to market faster this is the considered the second most important driver. This driver is also closely related to the first driver. Integrating Information: MPM allows end users to integrate information from several platforms. Some end users have their information located across several different systems, which can slow production time. In some instances employees within a single organization do not know who the proper contact is when they require key data. MPM helps eliminate this challenge by integrating the information on a single system. Globalization of Manufacturing: Since manufacturing has become a global process MPM allows manufacturers from around the world to view the manufacturing process at different facilities. The impact of this driver is average but it is anticipated that its importance will increase during the forecast period. System Upgrades: Several companies developed in-house products years ago because their were no off-the-shelf products that were worth their merit. Since a lot of these tools are outdated it has forced some end users to purchase MPM. It is anticipated that this driver will increase its importance over the forecast period as more systems become obsolete. Aging Workforce: This driver is closely related to system upgrades. With a lot of personnel retiring or expected to retire over the next 10 years, several end users prefer to purchase off the shelf software because they realize some of their employees that developed in-house tools may not be around much longer. In order to avoid this challenge several end users are looking to purchase MPM. 2

3 Market Drivers for the MPM Market MPM Market: Market Drivers Ranked in Order of Impact (World), Rank Driver 1-3 Years 4-6 Years 7-10 Years 1 Cost savings High High High 2 Product to market faster High High High 3 Integrating information Medium Medium High 4 Globalization of manufacturing Medium Medium Medium 5 System upgrade Low Medium Medium 6 Aging workforce Low Low Medium Source: Frost & Sullivan This chart illustrates the impact of the major drivers over time. Cost Savings: It is anticipated that cost saving will be the primary market driver for end-users over the next 10 years. Its impact is expected to remain high because this will be the primary reason why end-users will purchase MPM software. Product to Market Faster: The impact of this driver is expected to remain high during the forecast period. Getting products to market fast can determine the competitive landscape in several end-user industries. The impact of this driver over time is projected to remain high. Integrating Information: This driver is expected to have a medium impact over the first part of the forecast period. Near the end of the forecast period it is expected that need for greater integration will increase, thus making this driver more important. Globalization of Manufacturing: The impact of this driver is expected to remain steady throughout the forecast period. Its impact ranks a medium because the other drivers have a stronger impact on the MPM market. System Upgrades: This driver is expected to have a medium impact over the first part of the forecast period. Near the end of the forecast period it is expected that more system upgrades will take place giving this driver a stronger impact over time. Aging Workforce: This driver currently has a low impact. As more baby boomers retire it is anticipated this driver impact will increase over time. 3

4 Market Restraints for the MPM Market Lack of awareness Funding for MPM 75 0 Limited number of vendors Severe recession in electronics industry Key: Least Important = 0 Most Important = 100 This chart illustrates the importance of the major market restraints, with 100 being the most important and 0 being the least important. Listed below is a brief discussion of each market restraint. Lack of Awareness: There is a lack of awareness of MPM products. First-tier end users are becoming more familiar with the product but second and third-tier end users are not fully aware of MPM. As the product grows in its life cycle it is expected that this will be less of a restraint. Limited Number of Vendors: The market is not well served with a limited number of vendors. It is difficult for the 3 major companies to target all of the end-users in the industry. As more vendors enter this market it is anticipated that the market will better served and more end users will be aware of MPM. Severe Recession in the Electronics Industry: The electronics industry has a lot of great potential for MPM, but the current economic downturn has restricted growth. For the short-term there is no new groundbreaking application that is anticipated to help fuel growth in this sector. However the long-term prospects look bright with next generation of cell phones and recordable DVD players. Lack of Funding for MPM: Several organizations are not familiar with MPM and they have not allocated resources for funding MPM projects. This has restricted growth of MPM with some companies. As end users become more aware it is expected that more organizations will set aside funds for MPM projects. 4

5 Market Restraints for the MPM Market MPM Market: Market Restraints Ranked in Order of Impact (World), Rank Restraint 1-3 Years 4-6 Years 7-10 Years 1 Lack of awareness High High Medium 2 Limited number of vendors High Medium Medium 3 Severe recession in the electronics industry High Medium Low 4 Funding for MPM Medium Medium Low Source: Frost & Sullivan This chart illustrates the impact of the major restraints over time. Lack of awareness: The impact of lack of awareness for MPM is high. It is anticipated that the impact of this restraint will weaken near the end of the forecast period. Limited number of vendors: Currently the limited number of vendors ranks as a high restraint. It is anticipated during the middle and the end of the forecast period an increasing number of companies will enter this market making this less of a restraint and helping to ease the impact of the first restraint. Severe recession in the electronics industry: The current impact of the electronics downturn is high on the MPM market. In 2000, several electronic manufacturing companies upgraded their manufacturing facilities at record levels. However, in 2001there are several idle SMT lines in the electronics industry. It is projected the impact of this restraint will weaken during the middle part of the forecast period and continue to weaken over the last half of the forecast period as more electronic manufacturing companies purchase new manufacturing equipment. Funding for MPM: As more end-users become familiar with MPM software, they will allocate more funding for it during the forecast period. 5

6 Impact of Third Party Vendors MPM Market: Competitive Impact of Third Party Vendors for Hardware Vendor Supplied Software Manufacturers New Entrants High Threat Suppliers Medium Bargaining Power Degree of Competition Medium Intensity Buyers Medium Bargaining Power Substitutes Very High Threat Source: Frost & Sullivan The drivers listed earlier when combined drive the fundamental business of the MPM market, which is for more customers to use third party software instead of software supplied by hardware vendors. This chart illustrates the impact that third party software manufacturers will have on hardware manufacturers supplied software. Currently the threat is very high for equipment supplied software manufacturers that there will be substitute products from third party vendors. As the third party MPM market grows, it is expected that there will be an increasing number of new entrants in the market making the market more competitive for hardware manufacturers. Since MPM is a new product the bargaining power for both the supplier and end-user ranks a medium impact. Currently these trends have created a medium intensity in competition with third party supplied software compared to hardware vendor supplied. 6

7 MPM Market Total MPM Market: Revenue Forecasts (World), Revenue Revenues Growth Rate Year ($ Million) (%) , , , , , , CAGR: 33.2% Note: All figures are rounded; the base year is Source: Frost & Sullivan The MPM market is a small segment, however the industry is in the growth stage of its product life cycle. This has contributed to the high growth rates because it is a new product despite the economic downturn that has effected several manufacturing industries in 2001 and As the market matures during its life cycle it is anticipated that the growth rates will decline but remain at healthy double digit growth rates for several years. During the first half of the forecast period, it is anticipated that the automotive industry will be the primary sector pushing demand for MPM software. During the second half of the forecast period it is projected that the electronics industry will help drive growth as newer generation of cell phones are introduced along with advanced consumer electronic products. 7

8 MPM Market MPM Market: Percent of Revenues by Product Type (World), Software Services Maintenance Year (%) (%) (%) Note: All figures are rounded; the base year is Source: Frost & Sullivan Services and maintenance has great potential in the MPM market. As MPM starts to integrate different products into a cohesive system the demand for services, maintenance and the specialists knowledge will increase. Examples of this could be the CAM market, which had a 15 year maintenance stream or the PDM market that had high revenues from services. 8

9 MPM Market Total MPM Market: Percentage of Revenues by Product Type (World), 2001 Services 51% Maintenance 9% Software 40% Note: All figures are rounded. Source: Frost & Sullivan 9

10 MPM Market Total MPM Market: Percentage of Revenues by Product Type (World), 2011 Services 49% Maintenance 15% Software 36% Note: All figures are rounded. Source: Frost & Sullivan 10

11 MPM Software Market Total MPM Software Market: Revenue Forecasts (World), Revenue Revenues Growth Rate Year ($ Million) (%) CAGR: 31.7% Note: All figures are rounded; the base year is Source: Frost & Sullivan 11

12 MPM Software Market Total MPM Software Market: Product Realization Out of Total Market Revenues (World), Market Size ($ Million) MPM Software Market Value Total MPM Market Value Note: All figures are rounded. Source: Frost & Sullivan 12

13 MPM Services Market T otal MPM Services Market: Revenue Forecasts (World), Revenue Revenues Growth Rate Y ear ($ Million) (% ) , , , CAGR: 32.6% Note: All figures are rounded; the base year is Source: Frost & Sullivan 13

14 MPM Services Market Total MPM Services Market: Product Realization Out of Total Market Revenues (World), Market Size ($ Million) MPM Services Market Value Total MPM Market Value Note: All figures are rounded. Source: Frost & Sullivan 14

15 MPM Maintenance Market T otal MPM Maintenance Market: Revenue Forecasts ( World), Revenue Revenues Growth Rate Y ear ($ M illion) (% ) CAGR: 40.1% Note: All figures are rounded; the base year is Source: Frost & Sullivan 15

16 MPM Maintenance Market Total MPM Maintenance Market: Product Realization Out of Total Market Revenues (World), Market Size ($ Million) MPM Maintenance Market Value Total MPM Market Value Note: All figures are rounded. Source: Frost & Sullivan 16

17 End User MPM Market MPM Market: Percentage of Revenues by End User Industry (World), Automotive Aerospace Electronics Other Discrete Year (%) (%) (%) (%) Key: Electronics = Electronics PCB Assembly Note: All figures are rounded; the base year is Source: Frost & Sullivan The electronics sector offers solid growth opportunities in the MPM market. Unfortunately the economic downturn had a major negative impact on the industry for the short-term. Since there is no new ground breaking technology that is expected to have an immediate impact it is anticipated that the electronics industry will not experience a quick recovery. It is projected that around 2005 as newer generation of cell phones and new electronic devices are introduced, it will help push demand. It is also expected that several electronics manufacturers that invested in capital equipment in 2000 will purchase new machines in 2005, this will further help increase demand of MPM products during the forecast period. For the short-term the aerospace industry provides solid growth opportunities in the MPM market. The aerospace and automotive industry are typically the technology leaders but the aerospace is typically not a high-volume leader for products. The automotive industry is a market that provides steady revenues for the short and longterm. The other discrete industry: Some examples of markets that fall under this category are machine tooling manufacturing, heavy equipment manufacturing, lawnmowers and tractor manufacturing, etc. The largest segment in the other market is the machine tooling market. 17

18 MPM End User Market Total MPM Market: Percentage of Revenues by End User Industry (World), 2001 Electronics PCB Assembly 14% Other Discrete 28% Aerospace 21% Automotive 37% Note: All figures are rounded. Source: Frost & Sullivan 18

19 MPM End User Market Total MPM Market: Percentage of Revenues by End User Industry (World), 2011 Electronics PCB Assembly 37% Other Discrete 14% Aerospace 11% Automotive 38% Note: All figures are rounded. Source: Frost & Sullivan 19

20 Automotive MPM Market Total MPM Automotive Market: Revenue Forecasts (World), Revenue Revenues Growth Rate Year ($ Million) (%) , CAGR: 33.8% Note: All figures are rounded; the base year is Source: Frost & Sullivan 20

21 Automotive MPM Market Total MPM Automotive Market: End User Realization Out of Total Market Revenues (World), Market Size ($ Million) MPM Automotive Market Value Total MPM Market Value Note: All figures are rounded. Source: Frost & Sullivan 21

22 Aerospace MPM Market Total MPM Aerospace Market: Revenue Forecasts (World), Revenue Revenues Growth Rate Year ($ Million) (%) CAGR: 24.9% Note: All figures are rounded; the base year is Source: Frost & Sullivan 22

23 Aerospace MPM Market Total MPM Aerospace Market: End User Realization Out of Total Market Revenues (World), Market Size ($ Million) MPM Aerospace Market Value Total MPM Market Value Note: All figures are rounded. Source: Frost & Sullivan 23

24 Electronics MPM Market Total MPM Electronics PCB Assembly Market: Revenue Forecasts (World), Revenue Revenues Growth Rate Year ($ Million) (%) , CAGR: 46.6% Note: All figures are rounded; the base year is Source: Frost & Sullivan 24

25 Electronics MPM Market Total MPM Electronics PCB Assembly Market: End User Realization Out of Total Market Revenues (World), Market Size ($ Million) MPM Electronics Market Value Total MPM Market Value Note: All figures are rounded. Source: Frost & Sullivan 25

26 Discrete MPM Market Total MPM Market for Other Discrete End-Users: Revenue Forecasts (World), Revenue Revenues Growth Rate Year ($ Million) (%) CAGR: 23.9% Note: All figures are rounded; the base year is Source: Frost & Sullivan 26

27 Discrete MPM Market Total MPM Market for Other Discrete Industries: End User Realization Out of Total Market Revenues (World), Market Size ($ Million) MPM Discrete Market Value Total MPM Market Value Note: All figures are rounded. Source: Frost & Sullivan 27

28 MPM Market Competitive Landscape Market Top MPM Manufacturers Auto, Aero/Def, Discrete 1.Tecnomatix, 2. Delmia, 3. EDS Electronics PCB Assembly 1.Tecnomatix, 2. Aegis, 3.Valor, 4. Genrad This slide illustrates who the top MPM manufacturers are in their respective industries. The market rankings are based on revenues. Tecnomatix and Delmia are the major players in the automotive, aerospace/defense and discrete markets. These industries were combined because there is no major changes in the major competitors. The major MPM manufacturers in the electronics industry is different than the other markets. This is why the electronics industry has its own segment. 28

29 Surface Mount Technology Breakdown 29

30 MPM SMT Market Total Surface Mount Technology Lines: Percent of Software (World), 2001 In-house Third Party Total (%) (%) North America Europe Pacific Rim Rest of World Note: All Figures are rounded; the base year is Source: Frost & Sullivan This chart illustrates the percentage of third party vendor software compared to in-house software. This figure represents the total install based for SMT lines. This figure also shows the large market potential in the SMT industry for MPM third party software. For new sales of SMT equipment there is an increasing trend to use third party software because it is more compatible across different platforms unlike in-house supplied software. 30

31 MPM SMT Market Total Surface Mount Technology Lines: Percent of Installed Base (World), 2001 OEM EMS Total (%) (%) North America Europe Pacific Rim Rest of World Note: All Figures are rounded; the base year is Source: Frost & Sullivan 31

32 MPM SMT Market Total Surface Mount Technology Lines: Percent of Installed Base of Surface Mount Technology Equipment (World), 2001 Placement Screen Printer Soldering Inspection Cleaning Total (%) (%) (%) (%) (%) North America Europe Pacific Rim Rest of World Note: All Figures are rounded; the base year is Source: Frost & Sullivan 32

33 MPM SMT Market Geographic Region Major SMT Equipment Vendors North America Assembleon, Fuji, Siemens, Universal Asia Pacific Fuji, Juki, Panasonic, Sanyo, Yamaha Europe Assembleon, Fuji, Siemens This slide illustrates the major SMT equipment vendors in the key geographic regions of the world. Although third party software is currently a majority of the current installed base in the electronics industry, there is a trend in North America to use more third party supplied software. To help push this trend is the increased use of contract manufacturers in the electronics industry. They are the ones that are pushing for more compatibility. In Asia, especially Japan, the primary trend is to use the software supplied by the hardware vendors. However, this trend is projected to change during the forecast period. 33