Frost & Sullivan: Industrial Ethernet Market's Prospects Looks Up as Process Industries Make a Beeline for Centralised Networks

LONDON, December 2 - Process industries have begun to acutely feel the need to reduce plant
downtime through real-time knowledge sharing and high-speed communication
protocol. They require intelligent devices that extend location-independent
control over other automation components to facilitate rapid information
recovery and immediate response as well as optimise asset utilisation of the
plant.

(Logo: www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)

However, implementing sophisticated information systems entails the
deployment of a vast array of devices across the plant, which, in turn,
necessitates seamless data flow across different modules of the process
infrastructure — right from low-level field devices to business-level
decision-making systems. This complex connectivity can be simplified by using
a high-speed open system and a central network, such as the industrial
Ethernet, which assures complete transparency in operation.

New analysis from Frost & Sullivan
(www.industrialautomation.frost.com), Strategic Analysis of European
Industrial Ethernet Market, finds that market is expected to earn revenues of
US$307.12 million by 2015. The study provides deep insights into different
industrial Ethernet protocol such as Modbus transmission control
protocol/Internet protocol (TCP/IP), Profinet, Ethernet IP, EtherCAT,
Ethernet PowerLink and other protocols.

As centralised networks are the order of the day, industrial Ethernet
service and device providers will be hoping to generate handsome revenues
because the prognostic capability of their devices is ideal to provide a
centralised communication link to all process and control system components.

"Ethernet devices used for either enterprise application or production
process work with the same technology and hence, offer the benefits of
working on a common and shared platform," says Frost & Sullivan Research
Analyst Khadambari Shanbagarman. "This creates the flexibility of sharing the
network, lowering additional expenses and reducing unwanted cabling."

This flexibility also helps convey field-level data to the business
application, enabling the close functioning of the plant, which, in turn,
eases workforces' operations. In fact, Ethernet devices greatly emphasise the
need for predictive maintenance capability, which provides great workforce
mobility in large plants.

Further, industrial Ethernet allows the system to be connected to the
plants' intranet, where information from various plants can be accessed
across different facilities and information can be quickly transmitted even
across diverse geographies. This indicates that the Ethernet set up helps in
a seamless connectivity across all parts of the plant network and the
real-time information is made readily available to the user.

Despite their obvious advantages, end users are willing to employ
industrial Ethernet technologies only in their new projects or in Greenfield
applications. The global economic downturn and the consequent credit crunch
has resulted in fewer investments in industrial Ethernet for
retrofits/existing projects.

End-user segments such as oil and gas and chemicals have been
traditionally slow adopters of new technologies such as Ethernet because of
the technology's lack of a proven track record.

Nevertheless, end users' low awareness about the technology can be
remedied once suppliers launch education campaigns about the technicalities
and long-term benefits of using Ethernet. The price issue can also be
resolved once suppliers achieve economies of scale.

"The commonly available protocols such as Modbus TCP/IP and Ethernet IP
are available at competitive prices due to the extensive usage of these
devices on factory floors," notes Shanbagarman. "In the case of deterministic
protocols such as EtherCAT and Ethernet PowerLink, the costs of devices
decrease once the actuator sensor interface (ASI) and field programmable gate
array (FPGA) prices are reduced, making them affordable to more customers."

If you are interested in more information about this study, please, then
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.

Strategic Analysis of European Industrial Ethernet Market is part of the
Industrial Automation & Process Control Growth Partnership Service program,
which also includes research in the following markets: European fieldbus
market, world distributed control systems market and world programmable
logical controller fact book. All research services included in subscriptions
provide detailed market opportunities and industry trends that have been
evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to
accelerate growth and achieve best-in-class positions in growth, innovation
and leadership. The company's Growth Partnership Service provides the CEO and
the CEO's Growth Team with disciplined research and best practice models to
drive the generation, evaluation and implementation of powerful growth
strategies. Frost & Sullivan leverages over 45 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 40 offices on six continents. To join our Growth Partnership,
please visit www.frost.com

    Strategic Analysis of European Industrial Ethernet Market
    M492

    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