Market Horizons™ Report
Real-time Automation & Controls (RTAC) in the North
American Water/Wastewater Utilities Marketplace (2003-2007)
PART FIVE
Supplier Environment
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About This Report
InfoNetrix LLC, an independent technical research and consulting firm
specialized in utility automation and information technology (Utility Automation/IT)
markets conducted the research for this report. InfoNetrix reports are available
for subscription by any and all interested parties, foreign and domestic (except as
prohibited by law), in accordance with the pricing and terms set forth in the
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This report addresses Real-time Automation & Controls (RTAC) in the North
American Water/Wastewater Utilities Marketplace. Other reports in the Market
Horizons™ Series provide similar analyses of Real-time Automation & Controls
(RTAC) in the North American Electric Utilities Marketplace and Geospatial &
Field Automation Solutions (GFAS) in the North American Utilities Marketplace.
Please visit www.InfoNetrix.com for more information about these and other
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General Information & Notifications
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COUNTRY OF ORIGIN
United States of America
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Research Standards & Methodology
The preparation of this report follows generally accepted standards of market
research practice and is based on principles of truthfulness and professionalism. A
reasonable and prudent effort has been made to ensure that factors and
circumstances having a material impact on any decision-making process derived
from, or impacted by, this report are included in the analyses and recommendations.
The representations of industry and market data and portrayals of the business
environment are based on market research conducted by experienced professionals
with broad knowledge and experience in the markets addressed.
The information upon which the findings and analyses contained in this report are
based was obtained through a combination of telephone interviews with key
suppliers and consultants and other individuals with extensive market knowledge
and experience, augmented by survey with a cross section of utility managers and
ongoing interactive research with over 1,000 utilities annually. Each telephone
interview/survey was guided by a specially designed questionnaire to obtain
pertinent data, insights and market perspectives. These interviews were augmented
by secondary research across a wide range of reliable public and proprietary
information sources pertinent to the study.
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Research Reliability & Acceptance
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precision. However, there will undoubtedly be differences between the findings presented and
actual results for various reasons and, because future events and circumstances frequently do
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For these and other reasons (including, but not necessarily limited to human error,
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resulting data will most likely not be completely accurate in all respects. Moreover, the forecasts
presented herein reflect judgments made as of the period during which this report was prepared.
As such, some aspects can be expected to change as a result of numerous direct and indirect
factors, which are beyond the scope of this report to accurately predict. For example, it assumes
that current events will continue to have the same effect on the marketplace in the future and
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Market Horizons™ Report Contents
1.
2.
3.
4.
Executive Market Summary
Marketplace Characteristics
Market Drivers, Issues & Trends
Market Analysis & Future Outlook
5. Supplier Environment
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WWMS-RTAC Supplier Environment
•
•
•
•
•
•
Supplier Groups & Characteristics
Supplier Leadership Qualities
Principal WWMS-RTAC Suppliers
Top Suppliers by Category
Supplier Dynamics
Competitive Threats & Vulnerabilities
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Supplier Groups & Characteristics
•
There are 4 main types WWMS-RTAC suppliers:
1. SCADA System Suppliers - Suppliers of supervisory control and
data acquisition systems for Water Supply & Distribution and
Wastewater Collection & Treatment
2. Process Automation System (PAS) Suppliers - Suppliers of
Water Purification Plant and Wastewater Treatment Plant process
measurement, monitoring & controls.
3. Hybrid System Suppliers - Suppliers of combined SCADA and
PAS systems, whether or not fully integrated
4. Field Data Device (FDD) Suppliers - Suppliers of Remote
Terminal Units (RTUs), Programmable Logic Controllers (PLCs)
and Distributed Control System (DCS) nodes for SCADA and/or
PAS applications.
•
•
SCADA/PAS/Hybrid suppliers are relatively few & stable
FDD suppliers are diverse and rapidly expanding
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Supplier Leadership Qualities
1. Market Tenure, Stability & Reputation
•
•
•
Frequent and consistent market participation
Sound financially and organizationally qualified
Widely respected by customers; suppliers; other participants
2. Product Suitability & Performance
•
•
•
Addresses current and emerging market needs & applications
Meets/exceeds required performance specifications
Compliance with contemporary performance standards
3. Geographical/Market Presence
•
•
Broad availability of company/product information
Easy access to information, staff & other resources
4. Propriety of Business Practices
•
•
Compliance with competitive and general business ethics
Follows, engages in and develops industry best practices
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Supplier Leadership Qualities (Cont’d)
5. Technological Insights & Direction
•
•
•
Innovative solutions to technical challenges
Sets the pace for advancing state-of-the-art
Participates in and makes tangible technological contributions to:
•
•
•
Professional Associations
Conferences, Exhibitions & Symposia
Local/Regional/National/International Standards
Organizations/Forums
6. Financial Performance Factors
•
•
Maintains a significant and consistent share of target markets
Historical record of increased sales and profits
Market Leadership is not measured exclusively by sales and
market shares; it is a combination of these and other factors!
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Principal WWMS-RTAC Suppliers
System Solutions & Field Data Devices
WWMS-RTAC SUPPLIER
SCADA
PAS
HYBRID
RTU
PLC
DCS
ABB






Bristol-Babcock






Control Microsystems






Emerson Power & Utility Solutions






GE-Industrial (GE-Fanuc)






Honeywell






HSQ Technology






Invensys (Foxboro)






Motorola






Opto-22



Rockwell (Allen-Bradley)






Schneider Electric (Square D, Modicon, etc.)






Siemens






Systems Integrated






Telvent






TESCO






Transdyn






US Filter






 = Dominant Area
 = Participation Area
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Principal WWMS-RTAC Suppliers (Cont’d)
Consulting Engineering Firms
•
•
•
•
•
•
•
•
•
•
•
Black & Veatch
CDM (Camp-Dresser-McKee)
CH2M-Hill
CTE (Consoer-Townsend-Envirodyne) Engineers
EMA
Hazen & Sawyer
Malcolm Pirnie
MWH (Montgomery-Watson-Harza) Engineers
RM Parsons
Roy Weston (Weston Solutions)
Westin Engineering
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WWMS-RTAC Supplier Leadership
•
Top 5* Suppliers (Key Market Strengths)
1.
2.
3.
4.
5.
•
Rockwell/Allen-Bradley (Systems & FDDs)
Emerson Power & Utility Solutions (Systems)
ABB (Systems)
Schneider Electric (FDDs)
Bristol Babcock (Systems & FDDs)
* Leadership ranking determined by multiple criteria as detailed earlier in this
section.
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Top Suppliers by Category
System Solution Providers
•
Leading SCADA Suppliers





•
Leading PAS Suppliers






•
ABB
Bristol Babcock
Rockwell (Allen-Bradley)
Transdyne
Telvent
ABB
Bristol Babcock
Emerson Power & Utility Solutions
Rockwell (Allen-Bradley)
Invensys (Foxboro)
Honeywell
Leading Hybrid Suppliers




ABB
Bristol Babcock
Emerson Power & Utility Solutions
Transdyne
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Top Suppliers by Category
Field Data Device (FDD) Suppliers
• Leading Suppliers of RTUs (& RTU-like) Devices




Control Microsystems
Motorola
Rockwell (Allen-Bradley)
Telvent
• Leading Suppliers of PLCs (& PLC-like) Devices




GE-Industrial (GE-Fanuc)
Rockwell (Allen-Bradley)
Schneider Group (Square D, Modicon etc.)
Siemens
• Leading Suppliers of DCS (& DCS-like) Devices




Bristol Babcock
Emerson Power & Utility Solutions (Westinghouse)
Honeywell
Invensys (Foxboro)
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Supplier Dynamics
SCADA/PAS Solutions
• SCADA/PAS Supplier Outlook (2003-2007)
 Potential sale of Rockwell/A-B and/or Invensys/Foxboro; not
apparent but both remain possible
 Bristol Babcock is no longer actively for sale
 GE recently reorganized its business into 11 divisions;
potentially more consolidation affecting GE-Fanuc &
Intellution (currently under GE Consumer & Industrial
Division) possible
 Siemens is poised to make significant acquisitions; Foxboro
is rumored to be a high prioritytarget
 Schneider expected to initiate pro-active moves within the
Water/Wastewater sector in 2004-2007
 Emerson expected to gain increasing momentum as
Westinghouse acquisition is fully absorbed
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Supplier Dynamics (Cont’d)
Field Data Devices (FDDs)
• FDD Supplier Outlook (2003-2007)
 Expect continued trend toward increased use of
PLCs, gradually displacing more RTUs and DCS
nodes
 Rockwell/Allen-Bradley will continue to dominate
the PLC business, but expect some encroachment
from low-cost sources (e.g., Automation Direct) to
impact low-end units priced ≤$1,000
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Competitive Threats & Vulnerabilities
Supplier Consolidation & New Entrants
• Supplier Consolidation
 Ongoing supplier consolidation, especially among 2nd- & 3rd-tier
system suppliers and commodity FDD suppliers
• New Entrants
 Expect new entrants from outside North America
• Activity slowed in 2002-2003 due to weak market and poor
regional economic conditions
• Weak US dollar creating lucrative takeover scenarios
• Global market strategies of major environmental firms have lost
some traction due to backlash from failed privatization projects
 Expect new entrants from other market areas
• New regulatory and legislative compliance mandates will strain
ability of smaller suppliers to meet market requirements
• RTAC will become much more closely related to IT on business,
technological and organizational levels, creating opportunities for
new entrants from other market areas
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Competitive Threats & Vulnerabilities (Cont’d)
In-sourcing & Outsourcing Forces
• In-sourcing
 Users are becoming more capable of self-automating
 Between 10 & 20% of host system procurements are
internally integrated (i.e., no turnkey supplier selection)
• Outsourcing
 User demands for more holistic product/service sets will
drive outsourcing on multiple levels:
• Engineering Specification & Procurement
• System Integration, Installation & Testing
• Maintenance, Training & Support
 Consulting engineering firms are consolidating, creating
more robust outsource capabilities attractive to utilities
 Strong supplier-consultant relationships are vitally important
 Supplier solutions expected to work right out of the box
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Competitive Threats & Vulnerabilities (Cont’d)
Business & Technological Challenges
• Security & IT: Utilities likely to look to stable, vertically
integrated suppliers to meet increasingly rigorous security and
IT mandates including:
 AGA-12 (Data Encryption/Authentication)
 GASB 34 (Asset Reporting)
 Sarbanes-Oxley (Financial Reporting)
• Legacy Base: Utilities resist change and may even stay with
inferior technology to avoid it. Suppliers must sell benefits; not
features!
• Legislative Initiatives: Clean Water Act and Safe Drinking
Water Act set high standards that demand high levels of
expenditures, but suppliers must show utilities how to budget
and justify automation expenditures on a business case basis
• If utility infrastructure investment remains flat for the period
2000-2019, there will be a $120+ billion payment gap for both
clean water and drinking water (i.e., each).
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