Frost & Sullivan: Eastern European Automation and Control Solutions Market Develops Adhering to EU Standards

LONDON, December 21 - Eastern Europe offers significant new growth opportunities for the
automation and control solutions (ACSs) market as industrial activity in
Western Europe has reached maturity. European Union accession has generated
investments in the new Eastern European member states, since the end users
are obliged to accomplish new European standards.

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New analysis from Frost & Sullivan
(www.industrialautomation.frost.com), Automation and Control Solutions
Market in Eastern Europe, finds that the market earned revenues of $597.8
million in 2008, and estimates this to reach $844.9 million in 2015. The
end-user segments covered in this research service are power, chemicals, oil
and gas, food and beverage, pharmaceuticals, pulp and paper, water and
wastewater and others such as metals and mining, cement, glass and textiles.

"The foremost priority of end users has been to invest in the development
of their existing automation and control solutions," says Frost & Sullivan
Research Analyst Katarzyna Owczarczyk. "This is to fulfil the new European
standards imposed on the region since accession to the EU."

Several end-user companies need to adhere to regulations set by
organisations such as the Occupational Safety and Health Administration
(OSHA), registration, evaluation, authorisation and restriction of chemicals
(REACH), Environmental Protection Agency (EPA) and Food and Drug
Administration (FDA). ACS manufacturers are making considerable effort to
adhere to these regulations and serve their respective end-user industries.
European Union and other individual bodies are initiating regional projects
in various sectors to help participants specify and design the right
structure of production under the laws and limitations imposed.

The most significant challenge in the Eastern European ACSs market is the
need to provide solutions with greater compatibility. In the former communist
countries in this region, almost all the privatised old factories have
outdated technology that needs to be modernised.

"The primary demand of Eastern European end users is to refurbish
existing ACS with the latest technology," explains Owczarczyk. "Compatibility
concerns have been the main reason for delayed adoption of automation."

Accordingly, manufacturers must provide automation systems that are
compatible with the existing plant installations. This would instil
confidence among the end users, and urge them to invest in automation.

Designing compatible automation solutions is lucrative for end users as
it enables the use of a wider range of products from different producers,
fulfilling all the needs of customers. Standardisation also contributes to
time and cost savings related to service and employee training.

"Manufacturers should/will continue to benefit from historical capital
and resource expenditures through the efficient use of existing
instrumentation," concludes Owczarczyk. "ACS manufacturers should aim to
provide systems with open architecture and a high level of compatibility to
instil confidence among end users, motivating them to invest in automation."

If you are interested in more information about this study, please send
an e-mail to Joanna Lewandowska, Corporate Communications, at
joanna.lewandowska@frost.com, with your full name, company name, title,
telephone number, company e-mail address, company website, city, state and
country.

Automation and Control Solutions Market in Eastern Europe is part of the
Industrial Automation & Process Control Growth Partnership Services
programme, which also includes research in the following markets: Automation
and Control Solutions Market in Eastern Europe, EMEA Automation and Control
Solution Services Market, World Programmable Logic Controllers Factbook,
World Supervisory Control and Data Acquisition, and World Distributed Control
System (DCS) Market. All research services included in subscriptions provide
detailed market opportunities and industry trends that have been evaluated
following extensive interviews with market participants.

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    Automation and Control Solutions Market in Eastern Europe
    M427

    Contact:
    Joanna Lewandowska
    Corporate Communications - Europe
    P: +48-22-390-41-46
    E: joanna.lewandowska@frost.com

www.frost.com

Joanna Lewandowska of Frost & Sullivan Corporate Communications — Europe, +48 22-390-41-46, joanna.lewandowska at frost.com