Control Valves WW 10 Final

Control Valves
Worldwide Outlook
MARKET ANALYSIS AND FORECAST

THROUGH 2015
Project Team:
David Clayton
Wil Chin
Copyright  2011
ARC Advisory Group
All data contained in this report are proprietary to and copyrighted by ARC Advisory Group and
no part of it may be reproduced or published, orally or in written form, or distributed in either
original or reproduced form to anyone outside the client's internal organization within five (5)
years of the report date without prior written permission of ARC Advisory Group.
Market Forecast Updates

ARC has provided five year forecasts in order to show long-term trends in this marketplace. To-
day, however, the outlook for any market can dramatically change due to rapidly changing
technology and global economic conditions. ARC typically updates our long-term forecasts peri-
odically as required. Therefore, we recommend that clients obtain the latest market information
from ARC before making any important decisions. ARC does not recommend clients to use the
market forecast data beyond two years for future business planning.
Disclaimer
While every effort has been made to ensure the accuracy and the completeness of the information
presented in this report, ARC Advisory Group accepts no liability what so ever for consequences
of any actions taken upon the findings of the report.
Report Follow up Services

An ARC industry report, while comprehensive, cannot possibly answer every question or pro-
vide all information desired by each and every client. In order to ensure that our clients have
access to ARC's data base and consulting staff, we provide follow up services at cost. The goal of
this program is to provide clients with additional data and analysis which are of specific interest.
We hope that through the use of these services our clients will have the best possible information
for making decisions and developing strategies. Naturally, questions that are procedural, or in-
volve clarification of methodology or definitions, are welcome at no charge to subscribers.
Telephone us at 781-471-1000 or email at info@ARCweb.com and tell us the information you de-
sire. We will discuss your needs, call you back, tell you how much it will cost, and how long it
will take. Our fees for follow-up services will be at our cost for labor, plus expenses incurred. It
is recommended that clients seek a quote in advance.
Table of Contents
Executive Overview ................................................................................................................................... 6
Scope of Report Research ......................................................................................................................... 7
Standard Industry Code Classifications - Process Industries................................................ 14
Standard Industry Code Classifications - Discrete Industries .............................................. 15
Standard Industry Code Classifications - Service Industries ................................................ 16
Typical Questionnaire for Market Data Collection ................................................................. 17
Market Shares Analysis .......................................................................................................................... 21
Emerson Process Management .................................................................................................. 21
GE Energy ..................................................................................................................................... 21
Flowserve ...................................................................................................................................... 22
Nihon KOSO ................................................................................................................................ 23
SAMSON ...................................................................................................................................... 23
Metso ............................................................................................................................................. 24
CCI ................................................................................................................................................. 25
Tyco Flow Control ....................................................................................................................... 26
Yamatake ...................................................................................................................................... 27
Market Share Figures .............................................................................................................................. 29
Leading Suppliers of Control Valves ........................................................................................ 30
Leading Suppliers of Control Valves for North America ...................................................... 31
Leading Suppliers of Control Valves for EMEA ..................................................................... 32
Leading Suppliers of Control Valves for Asia ......................................................................... 33
Leading Suppliers of Control Valves for Latin America........................................................ 34
Leading Suppliers of Control Valves for Hardware Revenues ............................................. 35
Leading Suppliers of Control Valves for Service Revenues .................................................. 36
Leading Suppliers of Control Valves for Chemical ................................................................ 37
Leading Suppliers of Control Valves for Electric Power Generation ................................... 38
Leading Suppliers of Control Valves for Oil & Gas................................................................ 39
Leading Suppliers of Control Valves for Refining .................................................................. 40
Leading Suppliers of Control Valves for New Construction ................................................ 41
Leading Suppliers of Control Valves for Upgrade/Expansion ............................................ 42
Leading Suppliers of Control Valves for Replacement .......................................................... 43
Leading Suppliers of Control Valves for Valves ..................................................................... 44
Leading Suppliers of Control Valves Valves for Ball ............................................................. 45
Leading Suppliers of Control Valves Valves for Butterfly .................................................... 46
Leading Suppliers of Control Valves Valves for Globe ......................................................... 47
Leading Suppliers of Control Valves Valves for Plug ............................................................ 48
Leading Suppliers of Control Valves for Actuators................................................................ 49
Leading Suppliers of Control Valves for Positioners ............................................................. 50
Market Forecast Analysis........................................................................................................................ 52
Regional Overview ...................................................................................................................... 52
Vertical Industry Overview ....................................................................................................... 53
Automation Index ....................................................................................................................... 54
United States Automation Index ............................................................................................... 55
US Scenarios ................................................................................................................................. 58
Factors Contributing to Growth ................................................................................................ 59
Factors Inhibiting Growth .......................................................................................................... 64
Market Forecast Figures .......................................................................................................................... 67
Total Shipments of Control Valves ........................................................................................... 68
Total Shipments of Control Valves for North America.......................................................... 69
Total Shipments of Control Valves for EMEA......................................................................... 70
Total Shipments of Control Valves for Asia ............................................................................ 71
Total Shipments of Control Valves for Latin America ........................................................... 72
Total Shipments of Control Valves by World Region (5 year table) .................................... 73
Total Shipments of Control Valves by World Region (first/last year table) ....................... 74
Total Shipments of Control Valves by World Region (pie chart) ......................................... 75
Total Shipments of Control Valves by Revenue Category (5 year table)............................. 76
Total Shipments of Control Valves by Revenue Category (first/last year table) ............... 77
Total Shipments of Control Valves by Revenue Category(pie chart .................................... 78
Total Shipments of Control Valves by Industry (5 year table) .............................................. 79
Total Shipments of Control Valves by Industry (first/last year table) ............................... 80
Total Shipments of Control Valves by Sales Channel (5 year table) .................................... 81
Total Shipments of Control Valves by Sales Channel (first/last year table) ....................... 82
Total Shipments of Control Valves by Sales Channel (pie chart........................................... 83
Total Shipments of Control Valves by Project Type (5 year table) ...................................... 84
Total Shipments of Control Valves by Project Type (first/last year table).......................... 85
Total Shipments of Control Valves by Project Type (pie chart) ............................................ 86
Total Shipments of Control Valves by Component ................................................................ 87
Total Shipments of Control Valves for Valves by Body Type ............................................... 88
Total Shipments of Control Valves for Actuators by Type (5 year table) ............................ 89
Total Shipments of Control Valves for Actuators by Type (first/last year table) ............. 90
Total Shipments of Control Valves for Positioners by Type (5 year table).......................... 91
Total Shipments of Control Valves for Positioners by Type (first/last year table) ............ 92
Total Shipments of Control Valves for Positioners by Communication Protocol .............. 93
Total Shipments of Control Valves by Component ................................................................ 94
Total Shipments of Control Valves for Valves by Body Type ............................................... 95
Total Shipments of Control Valves for Actuators by Type (5 year table) ............................ 96
Total Shipments of Control Valves for Actuators by Type (first/last year table) .............. 97
Total Shipments of Control Valves for Positioners by Type (5 year table).......................... 98
Total Shipments of Control Valves for Positioners by Type (first/last year table) ............ 99
Total Shipments of Control Valves for Positioners by Communication Protocol ............ 100
Total Shipments of Control Valves by Component .............................................................. 101
Total Shipments of Control Valves for Valves by Body Type ............................................. 102
Total Shipments of Control Valves for Actuators by Type (5 year table) .......................... 103
Total Shipments of Control Valves for Actuators by Type (first/last year table) ............ 104
Total Shipments of Control Valves for Positioners by Type (5 year table)........................ 105
Total Shipments of Control Valves for Positioners by Type (first/last year table) .......... 106
Total Shipments of Control Valves for Positioners by Communication Protocol ............ 107
Total Shipments of Control Valves by Component (5 year table) ..................................... 111
Total Shipments of Control Valves by Component (first/last year table)......................... 112
Total Shipments of Control Valves by Component (pie chart ............................................ 113
Supplier Profiles .................................................................................................................................... 115
ABB .............................................................................................................................................. 116
AUMA ......................................................................................................................................... 119
Control Components Inc. ......................................................................................................... 123
Emerson Process Management ................................................................................................ 126
Flowserve .................................................................................................................................... 129
GE Energy ................................................................................................................................... 133
Invensys Operations Management ......................................................................................... 136
Kurimoto ..................................................................................................................................... 139
Metso ........................................................................................................................................... 141
Mokveld Valves ......................................................................................................................... 143
Nakakita Seisakusho ................................................................................................................. 146
Nihon KOSO .............................................................................................................................. 148
Rotork Controls.......................................................................................................................... 151
SAMSON .................................................................................................................................... 155
Siemens ....................................................................................................................................... 158
SPX Flow Technology ............................................................................................................... 161
Tyco Flow Control ..................................................................................................................... 163
Yamatake .................................................................................................................................... 166
Yokogawa Electric ..................................................................................................................... 170
Methodology ........................................................................................................................................... 173
Common Industry Abbreviations ....................................................................................................... 177
Primary Authors ..................................................................................................................................... 193
ARC Services........................................................................................................................................... 199
Control Valves Worldwide Outlook
Executive Overview
It appears 2010 will represent the low-point for control valve shipments
when we look back on the most recent global economic crisis. Although
orders increased for many control valve suppliers throughout 2010, ship-
ments were still down on the whole. This dichotomy between increasing
orders and decreasing shipments is attributable to a number of factors.
First off, much of the growth in new orders came from new projects in de-
veloping countries. As a result of the long time-frame of new projects, there
is often a lag of 6 to 12 months between a control valve supplier receiving
an order and actually shipping the valve. As a result of this lag, many con-
trol valve suppliers were not able to fully recognize the revenues associated
with their new orders received during 2010.
Another factor contributing to the dichotomy is the fact that most control
valve suppliers entered 2009 with a strong backlog of outstanding valve
orders. That meant that, for much of 2009, control valve suppliers were
able to continue shipping valve orders and recognizing the revenues for
these orders. Consequently, 2009 was not nearly as bad as one would ex-
pect from the precipitous drop-off of new valve orders. However, by the
beginning of 2010, many control valve suppliers had worked their way
through their pre-existing backlog and were left to depend largely on their
aftermarket business for valve shipments.
Although 2010 is expected to represent the low-point for the overall control
valve market in terms of shipments, the drop-off in valve shipments was
not felt uniformly across all the leading suppliers. Control valve suppliers
felt the effects of the global economic downturn on a different timeframe
depending on their split between new projects business and MRO business.
Those suppliers more active in new projects business fared well in 2009, in
many cases gaining market share as they fell back on their existing backlog,
but felt the worst of the recession during 2010 as a result of not being able
to fully recognize revenues associated with incoming orders. Those suppli-
ers more dependent on MRO activities, however, felt the worst of the global
recession during 2009, in many cases losing market share, as manufacturers
essentially put an immediate freeze on any non-essential MRO activities.
These same suppliers, however, have seen their valve shipments rebound
to growth more quickly in 2010 as a result of the quick turn-around neces-
sary for MRO activities. For this reason, ARC encourages clients to view
the most recent global economic recession as a two-year event when analyz-
ing its effects on the various control valve suppliers.
6 • Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only
Control Valve Worldwide Outlook
Scope of Report Research
This study is intended to serve as an effective planning guide for control

valve, actuator, and positioner (CVAP) suppliers and new entrants to the
business. By providing strategic market information, ARC studies aim to
assist suppliers to create business plans for marketing and development.
ARC studies also help end users make purchase decisions by providing an
in depth analysis of the CVAP market and its leading suppliers.
This study helps suppliers and users stay abreast of technological changes.
Control valves are at the heart of process optimization and
This study highlights key plant asset management strategies, and CVAP suppliers are
business and technology trends adapting technologies to new market requirements. ARC
in the CVAP business and
has conducted similar studies of the CVAP market for
provides strategic market
many years. The knowledge, experience, background, and
intelligence to assist suppliers in
contacts developed over the years help validate infor-
forecasting and planning.
mation, improve analysis, and contribute to accurate
forecasts.
Key Issues Researched

This study provides an in-depth analysis of the worldwide CVAP market-
place, including quantitative assessment of market size, segmentations, and
forecasts trends. ARC segments the market by product features, nature of
supply, regions, industries, distribution channels, and customer types. The
study also evaluates qualitative strategies of leading global suppliers to the
market.
This study will help answer many questions facing suppliers including:
• How large is the worldwide CVAP market?

• Who are the leading suppliers and what are their market shares?
• Which industries offer the greatest potential for growth?
• What are the short-term and long-term prospects for the
CVAP business?
• What major issues do CVAP suppliers face?
Market Size and Forecast Definitions

ARC derives market size figures from its extensive in-house databases and
in-depth interviews with leading suppliers. The base year market size, 2010
is defined in terms of shipments by industry participants, not by bookings
Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only • 7
or orders. Margins earned by distributors and other sales channels are ex-
cluded. Average selling price (ASP) reflects factory level
Five-year forecasts in this study
show long-term trends in the pricing. In an attempt to accurately reflect total global end
CVAP market. However, the user spend on control valves; ARC includes a category for
outlook for any business can “Third Party” Control Valves suppliers. Third Party Con-
dramatically change due to trol Valve suppliers is a an estimate on ARC’s part to
rapidly changing technology and
capture the business of non-traditional control valve sup-
the global economic
pliers who sell low-cost tier 1 control valve solutions to
environment. Therefore, we
customers. An example would be a large distributor for
recommend clients obtain the
latest updates from ARC before an on/off valve supplier who adds a positioner to an oth-
making any important decisions. erwise on/off valve and sells it as a control valve capable
of “rough” modulating control.
A combination of factors, including user projections of future demand and

ARC’s assessment of the growth potential for each segment form the basis
of ARC forecasts. Five-year forecasts in this study show long-term trends
in the CVAP market. However, the outlook for any business can dramati-
cally change due to rapidly changing technology and the global economic
environment. Therefore, we recommend clients obtain the latest updates
from ARC before making any important decisions.
Key Product Classifications and Market Segments

A control valve regulates the rate of fluid flow as the position of the valve
plug or disk is changed by an actuator. Control valves are used to maintain
a process variable as close as possible to the desired set point. Controller
set points are typically flow rate, pressure, and temperature. Product pa-
rameters, such as density, concentra-
Workstation tion, liquid level and others can also
be controlled with control valves.
Controller
A control valve installation consists of
Recorder
a valve body, actuator, positioner, and
Valve accessories. The body includes a bon-
Actuator
DP net assembly and trim parts. Its
Valve
Positioner design withstands fluid static pressure
Process
and differential pressure, allows fluid
flow, provides pipe-connecting ends,
Valve
Body and supports seating surfaces and a
Typical Control Valve Installation
valve closure member. Actuators are
pneumatic, hydraulic, or electrically
8• Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only
Included Excluded
All control valves sold, including Non-control valves, such as on/off

those packaged by third-party sup- valves, self-regulating valves,
pliers safety valves, and relief valves
Modulating actuators sold for use On/Off actuators

with control valves Modulating actuators sold for other pur-
poses including dampers,
louvers, and other final control ele-
ments
Positioners sold for use with control Positioners sold for other purposes
valves
Engineering, maintenance and train- Engineering services provided by sepa-

ing services provided by the control rate business units, other than control
valve business unit of suppliers valve business unit within a company,
as part of large turnkey projects
Accessories and spare parts sold by Handheld programming terminals and

suppliers for use with control valves, operator interface devices
including electro-pneumatic trans-
ducers
Software provided by the control

valve suppliers
Scope of CVAP Study by Product
powered devices that provide the force to open and close the valve. Posi-
tioners monitor and control true actuator movement to maintain a desired
set-point. Accessories include electro-pneumatic transducers, pressure
regulators, hand wheels, position indicators, and limit switches.
Classification by Hardware, Software, and Services

ARC segments the CVAP market by the nature of supply in terms of hard-
ware, software, and services. Hardware revenues include the CVAP
assembly as a whole; most notably valve bodies, valve actuators, valve po-
sitioners, and accessories. Hardware revenues also include valve actuators
or positioners shipped separately. Software refers to sizing, control, pro-
gramming, supervisory software, and custom software related to control
valve sales.
Suppliers provide project and maintenance services to manufacturers. This

allows manufacturers to focus on core competencies and look to suppliers
to assume single-point accountability to suit their needs and provide sup-
plier-initiated maintenance and upgrade programs to preserve their
investments. Project services include project engineering, application engi-
neering, application software development, and project management.
Maintenance services include installation, startup, and commissioning.
Maintenance services also include non-contract maintenance and opera-

tions services. Non-contract maintenance services include engineering,
programming, training, and network management. Operations services
include performance enhancement services.
Classification by Actuator Type

ARC has divided actuators into three main types: pneumatic, electric, and
other actuators. Pneumatic actuators are diaphragm or piston-based. Dia-
phragm-based actuators use air supply from controller or positioner, and
include various styles, such as direct acting, reverse acting, and reversible.
Piston-based actuators use high-pressure plant air, and are double acting, to
give maximum force in both directions. Electric actuators use an electric
motor and some form of gear reduction to move the valve. Other types of
actuators include hydraulic and electro hydraulic actuators.
Actuator Type Power Source Major Variants
Pneumatic Compressed Air/Gas Piston, Diaphragm, Vane
Electric Motors or Solenoids Single Phase, Three Phase
Remainder:
Hydraulic Compressed Cylinder, Rack & Pinion

Liquids
Mechanical Varies Levers, etc
Manual Human Power Hand wheels
Control Valve Actuators by Type
Classification by Positioner Type

ARC has segmented valve positioners into three main types: pneumatic,
electro pneumatic, and digital. Pneumatic positioners receive a pneumatic
signal and supply the valve actuator with the air pressure required to move
the valve to the desired position. Electro pneumatic positioners accept 4-20
mA as input signal and convert it to the required air pressure. Digital posi-
tioners have microprocessors that provide expanded functionality. Digital
positioners feature two-way digital communication that provides feed-
Pneumatic
back to a control or monitoring system on issues such as stem wear and
Electropneumatic other diagnostic tasks. They can also have advanced capabilities, such as
Digital embedded PID control.
Positioner Types
Digital Positioners by Communication Protocol
Digital positioners use HART, Foundation Fieldbus, Profibus, proprietary
digital, and “other” communication protocols. HART superimposes a serial
digital signal over a 4-20mA control signal to communicate with the micro-
processor embedded in the digital positioner. Bidirectional communication
is available using HART, without affecting the analog signal. HART can be
HART used in multi-drop applications as long as an analog signal is not used, but
is quite slow and typically not used in control applications
Fieldbus
Proprietary The general term "fieldbus" refers to all standard, multi-drop, multi-layered
Other Digital digital communication protocols. This category includes open digital
Communication communications, such as Profibus and Foundation Fieldbus.
Protocols
The “remainder” category predominantly consists of closed proprietary
digital protocols, such as Honeywell DE, Foxboro FoxCom, and Yokogawa
Brain. It also consists of protocols, such as ASI, Devicenet, Ethernet/IP, In-
terbus, Modbus, LonWorks, and other such protocols mostly used in the
discrete industries.
Classification by Sales Channel

ARC’s segmentation of distribution channels (or sellers) includes direct
sales, independent representatives, distributors, and internet sales. Direct
sales channels are sales made through a supplier’s in-house, permanent
sales staff. Independent representatives sell products from different com-
panies within an exclusive territory using their relations with customers.
Independent representatives do not stock products but sell on commission.
Distributors take ownership and stock, sell, and support a variety of prod-
ucts within a territory, such as control valves, temperature, pressure, flow,
level transmitters, and other measurement and control devices.
From a purchasing point of view, distributors who stock brands from com-
peting suppliers, and can help purchasers compare brands, are more
attractive. However, purchasers prefer to deal directly with suppliers when
they are able to negotiate more favorable terms, get a portion of the distrib-
utor’s margin, or maintain confidential custom design information by doing
so.
Direct Sales Distributors are keenly sensitive to unique market demands in

Representatives/Distributors their region. Some distributors package configured systems
with control components from several suppliers in a manner
Internet
similar to system integrators. Distributors design configured
Distribution Channels
systems when it helps them gain competitiveness or higher
margins.
Suppliers generally draw legal relationship agreements with distributors

and independent sales representatives for product sales. From the suppli-
er’s 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.
Key Industry Segments

Control valves find use in a variety of industries and applications, ranging
from process control to SIL-rated emergency shutdown valves for use in
safety systems. This study contains analysis of control valves in the process
and hybrid industries as listed in Figure 2-1.
Process industries are typically continuous markets, such as oil & gas and
chemicals, which use control valves extensively. The characteristic of these
industries is continuous material flow and fewer product variations.
Hybrid industries include industries that combine batch processes and dis-
crete applications, such as packaging. The main industries of this type are
pharmaceuticals & cosmetics, consumer packaged goods, and food & bev-
erage.
Key Currency Factors

To eliminate changes in market size due to ongoing currency variations,
ARC uses average exchange rates over a 12-month period running from
October 1 to September 30 for the leading currencies. Each year, ARC
updates the exchange rates used in our market analysis and
To eliminate changes in market
forecasts to portray the most realistic picture of the market
size due to ongoing currency
possible. When comparing ARC reports from different
variations, ARC uses average
exchange rates over a 12-month years, customers must take into account the ongoing
period running from October 1 changes in exchange rates that occur from year to year and
to September 30 for the leading use the exchange rates given in each study to convert back
currencies. to local currencies. All ARC forecasts are prepared in cur-
rent 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 (€) 0.754
Japan Yen (¥) 87.81
Average Currency Exchange Rates Used In ARC Market Studies
Key Regional Segments

Geographically, ARC has divided the marketplace into four major segmen-
tations: 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.
North America Europe
Asia
Latin
America
Geographic Segmentations
Figure 2-1
Standard Industry Code Classifications - Process Industries
Process Industries SIC Code NAICS Code NACE Code
Cement & Glass 32 327 26.1-26.8
Chemical (Including Petrochem- 28 (except 283 & 325 (except 24.1, 24.2, 24.3,
icals) 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 & Metals 10, 12, 14, 33 212 & 331 10.1-10.3, 12,
13.1-13.2 27.1-
27.5, 37.1
Oil & Gas (Exploration, Pro- 13, 46, 492 211, 213111, 11.1, 11.2,
duction, 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
Figure 2-2
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
3219, 3371,
Furniture & Wood Products 24, 25 20.1-20.5, 36.1
3372
3331 to 3333,
*Machinery 35 (except 357) 29.1-29.7
3335 and 3336
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."
Figure 2-3
Standard Industry Code Classifications - Service Industries
Service Industries SIC Code NAICS Code NACE Code
Retail - Food & Beverage 54 445 52.2
52, 53, 55, 56, 44 (except

Retail – Other 52 (except 52.2)
57, 58, 59 445), 45
Wholesale/Distributor - Food &

514 4224, 4228 51.3
Beverage
50, 51 (except 42 (except

Wholesale/Distributor - Other 51 (except 51.3)
514) 4224, 4228)
481, 482, 483, 60.2, 61.1-61.2,

Transportation & logistics 42, 44, 45, 47 484, 488, 492, 62.1-62.2, 63.1-
493 63.4, 64.1
Figure 2-4
Typical Questionnaire for Market Data Collection
Figure 2-4 (Continued)

Figure 2-4 (Continued)

Market Shares Analysis
For the reasons described in the previous section, comparing year-over-year

market share changes between 2009 and 2010 can be misleading in the con-
trol valve market. Because of the different timeframe for feeling the worst
of the global recession, and finally enjoying the recovery, across the key
control valve suppliers, ARC encourages clients to take a longer-term snap-
shot to get a more representative view on the market shares trends of the
key control valve supplies. Nevertheless, below you will find ARC’s analy-
sis of the key global control valve suppliers for calendar year 2010.
Emerson Process Management

Emerson Process Management is the leader in the global control valve mar-
ket, capturing nearly one quarter of the total market. With its wide
portfolio of offerings and strong distribution network, Emerson Process
Management has retained its top position and is the market leader in all
four world regions. The company has developed a strong dedicated sales
force and various Industry Solutions Groups. Emerson Process Manage-
ment’s strategy is to act as a single source supplier for all the process
control needs of its customers. By leveraging its broad line of field devices
including Fisher control valve products, Fieldbus, the DeltaV product line,
PlantWeb architecture, wireless solutions, and Asset Optimization tools,
Emerson Process Management has developed a strong marketing message
that resonates well with end-users.
Emerson Process Management is among those suppliers feeling the worst

of the most recent economic recession during 2010. With its significant
strength in new projects business, Emerson was able to gain market share
in 2009 as it continued to work through its backlog. Although the compa-
ny’s control valve orders rebounded back to growth during 2010, control
valve shipments were down. As a result, the company lost much of the
market share gains it had captured during 2009.
GE Energy
GE Energy is a leading manufacturer of highly engineered products and
services for the Energy industry. On February 1, 2011, GE Energy acquired
Dresser, Inc. for approximately $3 Billion. The deal included all of the
Dresser, Inc. businesses, including the Masoneilan product line, a provider
of control valves, positioners and actuators. Dresser serves customers in
the Oil & Gas, Refining, Petrochemical, Electric Power Generation, and
Natural Gas industries, as well as Chemicals, Pulp & Paper, and the Retail
Fuel Dispensing markets.
With estimated 2010 revenues exceeding $500 Million, the Masoneilan con-
trol valve product line is the second largest supplier to the global control
valve segment. The Masoneilan control valve product portfolio includes
final control elements for general service, as well as customized solutions
for severe service applications, and digital solutions that can communicate
with nearly any control system. In addition, GE recently introduced the
Masonielan Valscope Pro and ValVue OVD software diagnostic tools de-
signed to assess the health of both smart and "dumb" analog control valves.
Together, Masoneilan Valscope Pro and ValVue OVD diagnostic tools ena-
ble customers to evaluate and diagnose nearly the entire spectrum of
installed control valves still in service.
Flowserve
Flowserve is a leading manufacturer and aftermarket service provider of
comprehensive flow control products and systems. The company offers a
broad range of control valves and digital products, including Valtek, Logix,
Kammer, NAF, PMV, Durco, Worcester, Limitorque, and Edward.
Flowserve’s long-term growth strategy is to expand its customer base,

broaden its product offerings, and enter new markets or capture operating
synergies. As part of this strategy, the company recently announced it has
acquired Valbart Srl, a privately owned Italian manufacturer of trunnion-
mounted ball valves (TMBV) used primarily in the oil and gas industry.
Flowserve previously entered into a joint venture agreement with Valbart
in December 2009 focused on combining Valbart’s ball valve technology
with Flowserve’s high performance noise and cavitation-reducing trim de-
signs. The joint venture has since created a trunnion-mounted control ball
valve that is designed to deliver high performance.
Flowserve also acquired FEDD Wireless LLC, a small, privately owned

wireless data acquisition company in April 2011. FEDD manufactures solu-
tions for wireless data acquisition, transmission and integration for
industrial use. The company manufactures sensors, transmitters, receivers
and intelligent repeaters, providing a flexible wireless solution that inte-
grates with an existing instrumentation or control system or operates as a
stand-alone system. FEDD's wireless solutions are designed to offer an effi-
cient and economical means of monitoring equipment and processes in
tough industrial environments such as oil & gas, chemical processing, pow-
er generation, and related industries. The acquisition provides Flowserve a
proven wireless data acquisition technology for use in global industrial
markets, a key enabler for asset data management and optimization ser-
vices. Prior to the acquisition, Flowserve already used FEDD’s technology
as part of its Intelligent Process Solutions (IPS) family of products.
Nihon KOSO
Nihon KOSO is a leading supplier of control valves to the Japanese and
overseas markets. The company manufactures both linear and rotary type
control valves. Flow and temperature sensors are also in its product line.
Since its establishment in 1966, KOSO's product line has encompassed a
wide variety of control equipment. In the 21st century, KOSO is focusing
more on the CVAP business.
Nihon KOSO’s manufacturing operations
were severely impacted by the natural
Nihon KOSO’s manufacturing operations were
disasters that occurred in northeastern
Japan on March 11, 2011. severely impacted by the natural disasters that
occurred in northeastern Japan on March 11,
2011. The materials and products in KOSO’s factory located in the Fuku-
shima area were damaged due to effects of the earthquakes. Furthermore,
power was not available in the region for quite some time following the
earthquake. The infrastructure of the surrounding area was also signifi-
cantly impacted. KOSO was forced to delay control valve shipments as a
result of this situation.
Although Japan remains the company’s largest market, Nihon KOSO is ac-
tively investing in overseas markets. Selling through a business network of
service centers in North America, Europe, and the Middle East, exports
now account for a significant share of the company’s sales. Nihon KOSO
plans to continue establishing more service centers around the world.
SAMSON
In 2007, SAMSON celebrated its 100th year of supplying instrumentation
and controls. The company’s expertise extends from heating and air-
conditioning technology to industrial applications in the world’s largest
chemical and petrochemical plants. SAMSON’s specialty is the controlled
flow of vapors, gases, liquids, and chemicals. The company’s product line
comprises control valves for process engineering and building automation,
auxiliary equipment and systems; self operated regulators, and controllers
and automation systems.
SAMSON owes its strong global market position largely to its leading posi-
tion in the Western European valve market, particularly the German
chemical market. Proven low lifecycle cost of its products has provided
SAMSON with a large and loyal customer base for decades. SAMSON’s
long history and strong brand awareness throughout Western Europe, par-
ticularly Germany, practically ensures the company will continue to have a
strong local customer base going forward. The loyalty of SAMSON’s em-
ployees, whose average length of service exceeds 30 years, is another
strength enjoyed by the company. The ability for SAMSON to successfully
develop, and retain, highly skilled control valve specialists is key to the
company’s success.
Realizing the weakness inherent in its historical dependence on the Western

European market, SAMSON is making efforts to expand its global presence.
Of prime importance for the company is the export of SAMSON products
and expertise. SAMSON is particularly eager to increase its market pres-
ence throughout Asia, the Middle East, and North America. To achieve this
goal, SAMSON has developed a full product line that conforms to ANSI
and JIS standards. As a result of these efforts, SAMSON has enjoyed signif-
icant success in expanding its presence in international markets over the
past few years, especially in oil and gas applications and alternative ener-
gies like Ethanol, tar sands and bio fuels.
Metso
Metso is a global supplier of technology and services for the Mining, Con-
struction, Power Generation, Oil & Gas, Recycling, and Pulp & Paper
industries. Metso has three reporting segments: Mining and Construction
Technology, consisting of Services business line and Equipment and Sys-
tems business line, Energy and Environmental Technology, consisting of
Power, Automation and Recycling business lines and Paper and Fiber
Technology, consisting of Paper, Fiber and Tissue business lines.
Metso’s Automation business line specializes in process industry flow con-

trol solutions, automation and information management application
networks and systems as well as life cycle performance services. Its main
customers are Energy, Power, and Oil & Gas industries, as well as the Pulp
& Paper industry.
Metso has experienced significant success in recent years expanding its

presence in new geographic and vertical markets. Metso has had particular
success in Oil & Gas, Refining, and Petrochemical industries, where the ma-
jority of the business is coming from, via the Metso global project manage-
ment organization, and keeping the traditional relation with Pulp & Paper
industry. All these activities are supported by an increasing number of ser-
vice centers to reinforce local support to the end users.
CCI
Control Components Inc. (CCI) is owned by IMI plc, a British engineering

firm that offers services for several niche industries, including severe ser-
vice, fluid power, indoor climate control, beverage dispensers, and point-
of-purchase retail displays. IMI businesses share a common goal - to con-
vert industry knowledge and market insight into customized, design-
engineered solutions which create customer advantage and value. Close
customer relationships, strong positions in growing markets, and differen-
tiation through technological innovation or service are the defining
characteristics of all IMI businesses. As the world's leading provider of se-
vere service control valve solutions, CCI develops, designs and
manufactures a wide range of valves for use in the Electric Power, Oil &
Gas, and Pulp & Paper industries worldwide.
In October 2010, IMI plc agreed to acquire Zimmermann & Jansen (“Z&J”),
a leading engineering business specializing in severe service valves and
related flow control products, for an enterprise value of €135m. Founded in
Germany in 1877, Z&J is a respected manufacturer of critical process valve
solutions for severe applications, primarily focused in the Refining and Pet-
rochemical and Iron and Steel markets. Z&J has a global presence and
approximately 40 percent of Z&J’s sales are in emerging markets, including
Russia, India and China. Z&J also has a strong aftermarket business with
around two thirds of sales coming from refurbishment, replacement, parts
and service. Z&J has manufacturing facilities in Germany, US and South
Africa and a sales and procurement office in China. In calendar year 2009,
Z&J had sales of €125m and underlying operating profit (EBIT) of €15m.
Z&J will join IMI's Severe Service division, The acquisition of Z&J is highly
complementary, both in market terms, extending IMI's interests into down-
stream Oil and Gas (Refining and Petrochemical) and into Iron and Steel;
and in technology terms, with Z&J's highly acclaimed isolation valve tech-
nology a natural fit alongside the Truflo technology acquired in 2006. The
use of IMI's global sales and aftermarket infrastructure is expected to im-
prove Z&J's geographic penetration, in much the same way it has done for
the Truflo business.
Tyco Flow Control

Tyco Flow Control (TFC), a unit of Tyco International Ltd., is a leading
global manufacturer and marketer of valves and controls, water and envi-
ronmental systems, and heat management solutions to vital industries
including Energy, Power, Water, Mining, Chemical, Food & Beverage, and
Construction. TFC designs, manufactures, sells, and services valves, pipes,
fittings, valve automation, and heat tracing products for the Water &
Wastewater, Oil & Gas, Power, Mining, and other general process indus-
tries. The division operates with three lines of business: Tyco Valves &
Controls business focuses on flow management, Tyco Water & Environ-
mental Systems addresses water and environmental issues, while Tyco
Thermal Controls concentrates on heat management. At the core of all suc-
cesses is its ability to provide a suite of flow management, water,
environmental systems and heat management solutions.
TFC delivers an extensive suite of flow management solutions. Product-

offerings include ball valves, butterfly valves, control valves, check valves,
gate valves, globe valves, instrumentation, knife gate valves, pressure &
safety relief valves, rotary process valves, sampling valves, electric actua-
tors, pneumatic actuators, hydraulic actuators, actuator positioners and
actuator controls.
TFC’s control valve and associated products include Sempell Severe Service
used in power generation, as well as a range of rotary control valves used
for high performance throttling or on/off operation. TFC also offers one of
the most complete lines of pneumatic, hydraulic and electric quarter turn
actuators as well as positioners and controls.
TFC is also capable of offering customers aftermarket services, which in-

clude testing, asset management, value engineering, repair, spare parts,
retrofits, replacement upgrades, remanufacturing and final disposal. With
more than 100 sales offices and 50 service centers globally, TFC is commit-
ted to providing local expertise to customers anywhere in the world.
In December, 2009, Tyco International announced that its Flow Control

business had acquired two Brazilian valve companies in a move to expand
its product and service offerings in Brazil and South America. As part of
this transaction, Tyco Flow Control acquired Hiter Industria e Comercio de
Controle Termo-Hidraulico Ltda (Hiter), a leading privately-held Brazilian
valve manufacturer, and took full ownership of an existing joint venture
that Tyco Flow Control had with Valvulas Crosby Industria e Comercio
Ltda. The two businesses had combined revenues of approximately $66

million in 2008. These acquisitions represent an important step to further
strengthen Tyco’s Flow Control business in Brazil by allowing the company
to provide an expanded suite of products and services. These aquisitions
will enhance Tyco’s local manufacturing presence and service capabilities
in South America.
In March 2011, Tyco International announced it had signed a definitive

agreement to acquire a 75 percent equity stake in privately-held KEF Hold-
ings Ltd. for approximately $300 million in cash. Based in the United Arab
Emirates, KEF is a fully integrated valve manufacturer and one of the
world’s leading providers of steel castings to the oil and gas, chemical, min-
ing and power industries. This acquisition provides Tyco Flow Control
with a strategic manufacturing presence in the Middle East region while
broadening our product portfolio for customers around the world. The ac-
quisition enables Tyco to better serve customers doing business across the
region by drawing on the strengths and experience of the KEF team in the
areas of design, manufacturing and service. The move significantly en-
hances Tyco’s footprint in the region and provides the company with a
platform for future growth and expansion. KEF has 900 employees with
revenue expected to be approximately $140 million in the 2011 calendar
year. The business is 55 percent owned by Kottikollon who will retain a 25
percent equity stake in KEF following the close of the transaction. Dubai
International Capital (DIC) holds the remaining 45 percent of KEF and will
sell its interest in the business as part of this transaction.
Yamatake
With the celebration of the company’s 100th anniversary in 2006, Yamatake
announced a new Group philosophy, “to realize safety, comfort and ful-
fillment in people’s lives and contribute to the global environment through
‘human-centered automation.’” This philosophy indicates the new direc-
tion the company will use to develop its businesses for the next generation.
In addition, the company also created a new name, azbil (Automation Zone
Builder), to represent this new philosophy. azbil provides solutions for
process, building, and factory automation. With manufacturing facilities
worldwide supported by R&D centers, azbil is a pioneer in developing new
technologies in the field measurement and control market. Although the
Yamatake name is still in use, the company has announced it will formally
change its name to “Azbil”, to consolidate and strengthen the “azbil”
brand, on April 1, 2012. Along with the name change to Azbil Corporation,
the names of Group companies in Japan will also change; Yamatake Shokai
will become Azbil Trading, and Kimmon Manufacturing will become Azbil
Kimmon.
As the core of the azbil Group, rooted firmly in “measurement and control”
technologies, Yamatake pursues “human-centered automation,” which
aims to contribute to people’s safety, comfort and fulfillment as well as the
global environment. Yamatake provides solutions for process, building,
and factory automation. With worldwide manufacturing facilities support-
ed by R&D centers, Yamatake is a pioneer in developing new technologies
in the field measurement and control market. The company is expanding
its automation and controls sales globally.
Yamatake is focusing on developing markets in Asia to overcome sluggish

demand in Japan and for its future business growth. This includes the es-
tablishment of overseas affiliates in India, Brazil, China, and the
Philippines. While the company has set up subsidiaries in various Asian
countries, it has identified China, Korea, Taiwan, and Thailand as priority
markets for future growth.
To further promote its capabilities overseas, Yamatake has launched its

global azbil evolution program (AEP) aimed at the continuous enhance-
ment of the customers' entire operating plant systems (including control
valves, field instruments, distributed control systems, and operation sup-
port systems) in order to make the maximum use of existing systems. This
program supports long-term stable operation for existing plants by using
an incremental development approach, and is being offered to customers
worldwide. Existing plants which are using services of the azbil Group are
candidates for the program.
Market Share Figures
The following 21 pages contain the market share figures for the leading
suppliers by segmentation.
Market Shares Group Figure 3-1
Leading Suppliers of Control Valves

2010 = 5,091.0 Million US Dollars
Other = 14.7 %
Leading Suppliers of Control Valves for North America

Other = 9.9 %
Leading Suppliers of Control Valves for EMEA

Other = 13.0 %
Leading Suppliers of Control Valves for Asia

Other = 12.5 %
Leading Suppliers of Control Valves for Latin America

2010 = 258.4 Million US Dollars
Other = 10.5 %
Leading Suppliers of Control Valves for Hardware Revenues

Other = 15.6 %
Leading Suppliers of Control Valves for Service Revenues

Other = 8.3 %
Leading Suppliers of Control Valves for Chemical

Other = 13.2 %
Leading Suppliers of Control Valves for Electric Power

Other = 14.4 %
Leading Suppliers of Control Valves for Oil & Gas

Other = 12.4 %
Leading Suppliers of Control Valves for Refining

Other = 13.1 %
Leading Suppliers of Control Valves for New Construction

Other = 14.6 %
Leading Suppliers of Control Valves for Upgrade/Expansion

Other = 15.6 %
Leading Suppliers of Control Valves for Replacement

Other = 14.8 %
Leading Suppliers of Control Valves for Valves

Other = 9.9 %
Leading Suppliers of Control Valves Valves for Ball

Other = 7.7 %
Leading Suppliers of Control Valves Valves for Butterfly

Other = 9.7 %
Leading Suppliers of Control Valves Valves for Globe

Other = 9.6 %
Leading Suppliers of Control Valves Valves for Plug

Other = 5.8 %
Leading Suppliers of Control Valves for Actuators

Other = 5.4 %
Leading Suppliers of Control Valves for Positioners

Other = 8.2 %
Market Forecast Analysis
2010 was a difficult year for control valve shipments but the majority of
suppliers did see a rebound in new orders over the course of 2010, with a
corresponding increase in order backlogs. Based on the growth in incom-
ing orders for new project business, ARC expects a rebound to double-digit
growth for control valve shipments to many of the “hot” developing coun-
tries in 2011. ARC also expects many of the developed regions to rebound
back to healthy growth in 2011 as many suppliers have seen their aftermar-
ket business come back on line.
Regional Overview
Once again, developing countries such as the Middle East, China, Russia,
and India are expected to drive the majority of the global growth in control
valve shipments going forward. EPC backlogs have returned to near all-
time highs as they, once again, struggle to keep pace with increasing de-
mand from the Middle East and China. The Electric Power Industry in
China, in particular, is investing heavily, creating a lot of opportunities for
control valve suppliers. The ongoing need to replace its aging fleet of nu-
clear power plants is driving control valve investments in Russia, while
India’s need for a more stable power infrastructure to reduce brownouts is
driving its need for more control valves.
Ongoing financial instability continues to plague the European council.

There is currently a big debate on how the European council should deal
with the financial crisis in countries like Portugal,
Based on the growth in orders for new
Italy, Greece, and Spain (PIGS), which continue to
project business, ARC expects a rebound
to double-digit growth for control valve require financial support. This uncertainty is damp-
shipments to many of the “hot” ening manufacturers’ optimism throughout Europe,
developing countries in 2011. which is hindering control valve shipments to the
region.
The rebound in the Tar Sands projects in Canada is helping fuel a rebound
in control valve shipments to North America. Growth in aftermarket ser-
vices from North American manufacturers is further fueling growth in
North America control valve shipments.
ARC expects a strong rebound for control valve shipments to Latin Ameri-
ca in 2011. Latin America continues to invest in its Oil & Gas and
Petrochemical industry capacities while also seeing its Pulp & Paper indus-
try come back on line as a result of the current high pulp prices. Both of
these trends lend themselves to a strong rebound in control valve ship-
ments for 2011.
Vertical Industry Overview

The Pulp & Paper business is expected to grow well in 2011 due to the cost
of raw pulp being very high at the moment. Pulp mills worldwide are cur-
rently investing a lot into expanding their pulp capacity because of the high
raw pulp prices and the capacity reductions they all carried out over the
past several years. Unfortunately, this growth is expected to be short-lived.
Much of the growth in pulp & paper investments is coming from South Af-
rica and Russia.
The Oil & Gas boom is back on track. Finding new oil deposits is becoming
more difficult, and much of the new oil fields produce heavy oil instead
lighter sweet crude oil that increases refining cost due to emissions from its
large sulphur content and renders traditional refining methods ineffective.
This will increasingly spawn investment in new refineries to refine heavy
oil near heavy oil deposits in Canada, Latin America, and even in the ME.
At the same time, environmental concerns are increasing. This environ-
ment is creating a lot of opportunity for control valve suppliers in the Oil &
Gas industry. Oil & Gas companies are making product investments be-
cause the exploration is becoming more difficult than ever and they have to
make sure their refining processes fulfill legislative requirements. The re-
turn to growth in the Oil & Gas market is especially helpful for control
valve suppliers due to the industry’s need for specialty valves that can
handle very demanding environments. Although much of the growth in
Oil & Gas is coming from the Middle East, Shale Gas is a niche market ex-
periencing strong growth in the US and Europe.
Many Electric Power projects were postponed during the most recent glob-
al financial crisis but this business is bouncing back very fast. The rebound
to growth for the Electric Power industry is being aided by the fact that the
time from design to operation for utilities is relatively quick compared to
building a refinery. Regulated industries such as power and water utilities
must meet new regulations such as emissions standards quickly or be fined.
The Nuclear Power industry is an entirely different animal but a traditional
coal based power plant can get up and running in 2 years. Adding capacity
such as gas driven turbine generators projects can happen even quicker,
which is much quicker than a typical Greenfield Oil & Gas project.
The Chemicals (mostly Petrochemicals) business in the US and Western Eu-

rope is also experiencing a return to growth in 2011. After years of
delaying MRO projects, many chemical and petrochemical manufacturers
are now investing in repairing or upgrading their control valves to put
themselves in position to benefit from the eventual return in demand for
chemicals. The automotive industry’s return to growth is another factor
supporting growth in the global chemicals market.
Automation Index
The global automation index saw a sizeable jump in Q4 2010, generating a

value of 198; a twelve point increase over the Q3 2010 value of 186. The in-
dex continued to grow in Q1 2011, registering a value of 205; a seven point
increase from Q4 10. Although the glob-
al index is still expanding, it is growing
at a decreasing rate and only one region-
al index – Asia - witnessed growth in Q1
2011. This decreasing growth rate in the
global index is the result of stagnant first
quarter growth in the US index, a signifi-
cant decrease in the European index, and
strong growth in the Japanese index, as
first quarter growth was strong in Japan
Global Automation Index before the 3/11 crisis.
The growth from Q1 2010 to Q1 2011 is nearly 20 percent in the global and
US indices, 21 percent in the Asian index, and 14 percent in the European
index. Even though these numbers are encouraging, the double digit YoY
growth rates are more heavily influ-
enced by the weak 2010 results than
the strong showing in Q1 2011.
The quarterly rate of change in growth

declined in three of the four indices.
The global index grew four percent
from the previous quarter. The US
index was essentially flat, the Europe-
an index declined by four percent, and
the Asian index jumped twenty per-
cent since Q4 2010. It’s safe to say that
the global index would have declined
in Q1 2011 if the Japanese numbers were not as strong.
Looking forward, dark clouds seem to be forming once again, and the out-
look for the global automation market is not encouraging. Most
macroeconomic data in softening; there are renewed fears of a double dip
recession in the US; Europe’s sovereign debt issue is only getting worse and
demand, output, and GDP growth are all falling in Germany, which has
been the stick propping up the European economy in recent months; and
Japan is still struggling in the aftermath of the catastrophic earthquake and
tsunami that occurred in March, although news coming from Japan sug-
gests the manufacturing economy is recovering faster than initially thought.
United States Automation

Index
The US Automation Index gained
14 points in Q4 10 from its value
of 179 in Q3 10. This was the
largest quarterly gain in the US
index since the onset of the global
recession in 2008. Unfortunately,
the US automation market could
not maintain this momentum and
the index stumbled in the first
quarter of 2011, ending four con-
secutive quarters of growth.
Currently the index remains at 193, which is the same figure as Q4 2010.
The sharp deceleration in growth from Q4 10 to Q1 2011 is alarming, and
reinforces fears that the US may be headed back into recession. These fears
are stoked even further when other macroeconomic factors are taken into
consideration.
GDP growth in the US fell to a dis-

mal 0.4 percent (at an annualized
rate) in the first quarter of 2011. This
number was initially reported to be
1.8 percent, but was revised down-
ward on more than one occasion.
The large gap between the estimated
Q1 2011 GDP figure and the actual
growth rate is concerning and gives
some credence to those who say another recession is imminent. Currently

the advanced estimate for GDP growth in Q2 2011 predicts the US economy
will grow at an annualized rate of 1.3 percent. ARC predicts this number
will also be revised downwards.
The ISM Manufacturing PMI has been on a downward trend for several
months, and July was no exception. The
metric declined 4.4 points from June,
generating a value of 50.9. A value
above 50 indicates growth in the US
manufacturing sector, but it is growing
at a decreasing rate. Furthermore, the
manufacturing PMI is approaching the
“no-growth” level of 50 and it is a very
real possibility that the PMI will fall be-
low 50 in upcoming months, signaling a
contraction in US manufacturing. If this
Source: Bureau of Labor Statistics
trend continues, the adverse effects for
automation markets are clear, but it is
also sobering news for the US economy in general, because the strength of
the manufacturing sector in the latter half of 2010 was integral to ending the
recession. Without a strong manufacturing sector, the specter of a double-
dip recession increases dramatically. If a double-dip does occur, it will
send adverse ripple effects back into automation markets.
The unemployment rate in the US decreased slightly in July, but remains

above nine percent. The rate briefly dipped below nine percent in February
and March of 2011, before re-breaching the mark in April. July’s figure was
the first decline in the metric since March. The rate was 9.2 percent in June
and currently sits at 9.1 percent.
Employment in the manufacturing sector added 24,000 jobs in July. Nearly

all of this increase was in durable goods manufacturing, thanks in part to
fewer than normal seasonal layoff in the automotive/auto parts industries.
There was a 12,000 job increase in the seasonally adjusted employment fig-
ure for these industries. Manufacturing has added 289,000 jobs since its
most recent trough in December 2009, and durable goods manufacturing
has added 327,000 jobs during this period.
The Conference Board’s Consumer Confidence Index reported an uptick in

the confidence level of American consumers in July, but the metric has been
trending downwards for most of 2011. ARC expects further erosion in

consumer confidence numbers in upcoming
months, largely as a result from the way the
US government handled the recent debt ceil-
ing “crisis.” The issue was resolved
temporarily after several months of playing
political chicken, but the posturing, brinks-
manship, and apparent disregard for the
welfare of the economy in order to satisfy
partisan agendas has rattled consumer and
investor confidence (both foreign and do-
Source: The conference Board
mestic) in the US.
Many people believe the debt ceiling crisis could easily have been avoided
had the two parties cooperated with one another to reach a bipartisan
agreement. Instead, there was a political standoff and the American econ-
omy was essentially held hostage until the last possible minute in an effort
by policymakers to broker the best possible deal for their respective party.
This has led much of the public to believe that congress is primarily moti-
vated by partisan political agendas and
that party leaders are more interested
with defeating their political adversaries
than crafting effective legislation that
strengthens the US economy and increas-
es the welfare of the American public.
Standard & Poor’s seems to share a simi-

lar sentiment. On August, 5th, S&P
downgraded the US’s long-term sover-
eign debt credit rating to AA+ from AAA.
This is part of the explanation given for
the downgrade.
“The political brinksmanship of recent months highlights what we see as

America's governance and policymaking becoming less stable, less effec-
tive, and less predictable than what we previously believed. The statutory
debt ceiling and the threat of default have become political bargaining
chips in the debate over fiscal policy. Despite this year's wide-ranging de-
bate, in our view, the differences between political parties have proven to
be extraordinarily difficult to bridge, and, as we see it, the resulting agree-
ment fell well short of the comprehensive fiscal consolidation program that
some proponents had envisaged until quite recently. Republicans and

Democrats have only been able to agree to relatively modest savings on
discretionary spending while delegating to the Select Committee decisions
on more comprehensive measures. It appears that for now, new revenues
have dropped down on the menu of policy options. In addition, the plan
envisions only minor policy changes on Medicare and little change in other
entitlements, the containment of which we and most other independent
observers regard as key to long-term
fiscal sustainability.”
US Scenarios
ARC does not have an overly optimistic
perspective on the upcoming growth
prospects for the US automation market.
However, it is important to note that the
chart on the left depicts ARC’s estimated
growth rates on a quarterly basis, not at
an annualized rate. So the chart is not as
pessimistic as it may seem upon first
glance.
In the best case scenario, the US econo-

my will begin to strengthen in Q3 2011, energy prices will remain around
their current levels, and inflation will not become problematic over the
forecast period. This scenario also predicts strong demand from BRIC na-
tions, and an increasing percentage of automation equipment employed in
manufacturing processes. If all these conditions are met, ARC believes the
Automation Index will grow at an annualized rate of approximately two
percent in Q3 and Q4 2011, before accelerating to just above five percent in
2012.
Conversely, if the economy does not strengthen in upcoming quarters, if

there is another spike in energy prices, or if inflation increases quickly, the
US automation market may be in for another period of decline. In the
worst case scenario, ARC believes the US automation Index will decline at
an annualized rate of approximately 1.3 percent through the end of 2011,
and decrease at an accelerating rate through most of 2012.
In ARC’s scenario, we are predicting a decline in the index in Q2 2011, but

believe the market will return to growth in Q3. However, this growth will
be anemic through the rest of 2011, growing at an annualized rate of less
than one percent. ARC believes growth prospects will improve in 2012 and
the Automation Index will grow by more than two - but less than three -
percent. We believe the growth in the second half of 2012 will outpace
growth in the first half of the year.
Factors Contributing to Growth
The global manufacturing economy seems to be back on track with increas-

ing spending in just about all regions of the world. The second largest
economy in the world, China, continues to be a growth driver for the global
control valve market. China’s economic growth accelerated in the fourth
quarter of 2010 to 9.8 percent. The US emerged from the recession in 2010,
but its growth in GDP is modest due to a stubbornly high unemployment
rate, mixed consumer confidence, and rising prices for energy and food.
However, the high price of energy also spurs capital investment in both
conventional and alternative fuels.
ARC feels the economic recovery will continue into 2011, but risks are al-
ways present. High oil prices due to growing demand from emerging
nations and continuing political turmoil in the Middle East could upset
growth. US unemployment rates continue to be a deterring factor, as does
the European debt crisis. Due to the numerous risks still present and the
lag between orders and final shipment for new project business, short-term
prospects for the market range widely by region and industry. While most
sectors are expected to experience positive growth over the forecast period,
growth in the Oil & Gas and Electric Power markets will drive the overall
market growth positively in 2011 and beyond. A brief description of the
leading factors contributing to growth in the control valve market follows.
Long Term Supply and Demand for Oil

The price, availability, and demand for oil remain key factors in the overall
health of the global control valve market. Many major oil companies have
announced plans to increase capital spending in 2011. Chevron plans to
increase spending by $4.4 billion over 2010. Chevron is investing $22.6 bil-
lion in exploration and production activities, particularly in natural gas and
LNG projects and deepwater Gulf of Mexico production. The company’s
planned downstream investments are smaller, at $2.9 billion, but nonethe-
less represent a healthy expenditure. Many other large energy companies
are also predicting big increases in capital spending. According to Barclay’s
survey of capital expenditures in the oil & gas industry, global exploration
and production spending is expected to rise 11 percent in 2011, based on
the 402 companies polled. According to the survey, the biggest increases
will be in regions, such as Latin America, the Middle East, and Asia. Unlike
previous years, when national oil companies dominated spending, private
energy companies are expected to show the greatest increase in expendi-
tures, such as Chevron.
Oil prices continued their rapid rise until a 15 percent correction occurred
in May 2011. Both IEA and OPEC forecast that demand will increase in
2011 and with the current political turmoil in the Middle East, it is a fair bet
that prices will tend to stay where they are post-correction or begin to in-
crease again as the year goes on. Higher prices also mean more investment
in non-conventional energy sources, such as the tar sands. Production and
capital investment in the Canadian oil sands is expected to increase sub-
stantially in 2011, as the financial justification remains even post-correction.
The Increasing Need for Natural Gas as an Interim Step to

Reduce Carbon Footprint
The US is beginning to realize importance of using natural gas as a critical
element in the fight against global warming. Although solar, wind, and
nuclear power releases zero carbon emissions, they cannot provide enough
energy to put a significant dent in a reasonable amount of time to signifi-
cantly wean the US from massive use of coal-fired energy production. The
most recent climate change bill introduced to the US Senate recognizes the
role of clean natural gas in protecting the environment. If the government
provides incentives to spur the use of natural gas as an interim replacement
for coal, modernization of existing plants can be accomplished quickly driv-
ing the demand for natural gas control valves. The increasing demand for
natural gas will outstrip supply, necessitating the need to import liquefied
natural gas (LNG) and the construction of new offloading processing plants
and the need for even more control valves.
Emissions Regulations Due to Global Warming Shutters US

Refineries
Small, older US refineries have been closing due to loaming carbon emis-
sions regulations. The cost to upgrade older refineries is not economically
feasible due to the relatively low cost of oil. As more refineries close the
slack is expected to be filled by importing more refined products. Current-
ly, plans are underway to build new refineries close to the source of crude
oil. ARC expects new projects will grow in proportion to the shuttering of
US refineries, further increasing demand for control valves in the Middle
East.
Oil Sands Business Has Become Cost Justifiable Again

Estimates have identified the marginal cost for crude oil to encourage oil
production in the Canadian oil sands is roughly $70 per bbl and the OPEC’s
maximum oil price for maximizing spare production and refining capacity
is approximately $90 per bbl. At an average of $80 the oil sands projects
can be profitable. ARC expects investment in this segment to continue
growing during the forecast period, which will drive demand for control
valves to further improve efficiencies and the bottom line.
Developing Economies Still an Engine for Growth

Developing economies, such as the Middle East and China, are still the
primary growth engine for the global control valve marketplace. Emerging
economies, such as those in the BRIC (Brazil, Russia, India, and China)
countries, and the Middle East will continue to prop up the global control
valve market with increasing consumer demand from the growing global
middle class, a healthy lending environment for capital investments that
project solid returns, and the need for producing and saving energy to cope
with rapidly rising energy demands and costs across the globe.
The Electric Power Industry in China, in particular, is investing heavily,

creating a lot of opportunities for control valve suppliers. India is still in-
vesting heavily in basic infrastructure, particularly in the electric power
sector. Brazil will benefit from the upcoming 2014 FIFA World Cup, and
Rio de Janeiro was elected host city for the 2016 Olympic Games, both of
which will require tremendous infrastructure investments in roads, build-
ings, facilities, water & wastewater, and power.
Increasing Investments in Electric Power

Capital spending for power generation has grown substantially in the de-
veloping countries in recent years, especially in China, with high growth in
India expected in the near future. The rapid expansion of the Chinese
economy, especially in manufacturing, is in some cases limited by the
availability of power, so pressure to develop more generation capacity is
intense. This problem is magnified in India, where unreliable power infra-
structure often times affects manufacturing and has caused many
companies to build their own power generation facilities, creating substan-
tial demand from both public and private sources. Similar, but less intense
pressures are being felt in other emerging economies.
There has been much talk in the US about the modernization of the electri-
cal grid and the emergence of a new “smart grid.” Billions of dollars have
been included in the Obama stimulus package to implement new smart me-
ters and networks that will further increase Electric Power investments in
the US.
Other factors driving demand increased investments in Electric Power in-

clude:
• Increasing demand from India & China to support overall manufac-

turing growth
• Large-scale stimulus package in the US is increasing automation in-
vestments by providing necessary funding to transition to a smart
electrical grid
• Decreasing resistance to nuclear power from environmentalists and
the US government
• Years of underinvestment, due to lack of funds, are translating to
increased demand for automation now as the power companies are
once again profitable
Rising Investments in Infrastructure

During the past recession, a number of government initiated stimulus
packages have been implemented or initiated around the world to invest in
infrastructure. This will continue to have a significant impact during the
next five years.
Developing economies continue to need improvements in their infrastruc-

ture. Investments in roads, water & wastewater facilities, and power plants
will drive control valve investments from these industries as well as sup-
porting industries, such as metals & mining, cement & glass, and chemical.
In most developed countries, the infrastructures are crumbling in many in-

dustries, and facility upgrading investments were put on hold during the
past recession. Equipment in many of these facilities, such as control
valves, are obsolete or dated to a point that it cannot be maintained or fulfill
the requirements that many plants demand today, which can lead to severe
consequences not only for industry, but also for the public. Pipeline opera-
tions, power plants, and water & wastewater facilities provide some good
examples of the deteriorating automation infrastructure. Industry is aware
that significant investments must be made in the existing automation infra-
structure to get plants up-to-date. This of course could open up a
tremendous business opportunity for control valve suppliers.
Increasing Consumption from World’s Rising Middle Class

Until recently, the world's middle class was located in Western Europe,
North America, and Japan. Now a new global middle class is rising up
from poverty in emerging economies around the world. The rapidly ex-
panding middle class in Asia, Eastern Europe, and Latin America are
creating tremendous consumer demand. This offers enormous promise for
industries that provide their products and services to the burgeoning ranks
of new consumers. This new middle class is purchasing products across all
segments and more importantly products tailored to their tastes. The con-
sumption is expected to grow in areas ranging from consumer electronics to
food and beverages. As a result, a number of industries will benefit, which
will generate demand for more automation.
Expanding Requirements for Metals & Mining Resources

Increasing economic activities in Asia will again create heavy demand for
basic materials, such as steel and copper. Roads and buildings need to be
constructed at a quicker rate to meet demands for local expansion plans.
This will drive up demand for more metals, cement, and other materials.
Consequently, demand for control valves for the production and extraction
of all these materials will rise, as they are widely used in many applications
for these processing operations. In addition, rising commodity prices for
items such as copper, and the continuing surge in prices for items such as
iron ore, help shorten the ROI for automation investments in mining.
Manufacturer Labor Shortage

From the retiring wave of baby boomers in North America and Japan, to
the shortfall of qualified engineers in Asia and other parts of the world, the
labor shortage is the primary factor behind growth in demand for services.
There is a combination of an approaching mass
From the retiring wave of baby boomers exodus of skills from the industry with fewer
in North America and Japan, to the young people wanting to jump in, tainted by the
shortfall of qualified engineers in Asia
recent severe layoffs. At the same time, those re-
and other parts of the world, the labor
maining in the industry have had more
shortage is the primary factor behind
responsibilities added to their job descriptions,
growth in demand for services.
but still need to deploy more automation solu-
tions within their plants to improve their company’s performance. The loss
of knowledgeable in-house workers in the manufacturing companies leaves
the control valve suppliers to pick up the slack and provide an increasing
array of services across the lifecycle of control valves, from installation and
startup to aftermarket services.
Factors Inhibiting Growth

While ARC has already seen a return to growth in new valve orders during
2010, and expects to see a return to growth in control valve shipments in
2011, some obstacles may emerge, particularly the specter of another Euro-
pean debt crisis, the recovery of Japan’s economy and industrial sector in
the wake of the recent earthquake and tsunami, and sociopolitical unrest in
major oil-producing countries in the Middle East and Africa. Below is a
brief description of the leading factors inhibiting growth in the global con-
trol valve market over the forecast period.
Ongoing Economic Uncertainty

The lack of a clear-cut recovery in consumer demand and unemployment
rates to date has put a certain degree of uncertainty in all aspects of future
automation investments. Many local and state governments around the
world are struggling to make balanced operating budgets for their commu-
nity and trying to reduce spending on many fronts. It has become
increasingly clear that no region has escaped unscathed from the recent
global economic recession. Continued lackluster consumer demand has
reduced capital investments in several industries and this trend is likely to
continue until there are clear signs of a sustainable global economic recov-
ery.
Threat of Inflation
The potential for strong inflation is another factor that may inhibit future
economic growth. The infusion of significant money in the market to re-
vive the US economy depressing the US dollar, followed by an increasing
demand for commodities, energy, and oil, could drive up prices for most
basic goods and inflation. Rising energy and transportation costs have
driven up prices for food, adding another inflationary factor for consumers,
which is especially painful as there has not been a corresponding inflation
for wages. The fallout from rising inflation and the subsequent increase in
the interest rates can again weaken the economy.
Turmoil in the Middle East and North Africa

The world is patiently waiting for the eventual outcome of the Middle East
and North Africa turmoil, as well as any post bin Laden fallout. Instability,
civil wars and wars among neighboring nations can drive the world econ-
omy into a tail spin. Higher oil prices can severely put the brakes on
economic expansion in all nations and in all regions.
The pick-up in the global economy is being underpinned by strengthening

consumer confidence and a gradual improvement of the labor market in
developed nations. However, the impact of the recent surge in oil prices,
even with the recent correction to just under $100 per barrel, reduces
household purchasing power and could dampen the economic improve-
ment, especially if prices begin to rise again and are sustained for an
extended period.
Looming Debt Crisis over Developed Nations

The recent severe global economic slowdown has put uncertainty in all as-
pects of future economic activities. Many local and state governments
around the world are struggling to make balanced operating budgets for
their communityby reducing federal and state payrolls resulting in work-
force reductions further increasing the need for productivity increases to
stay ahead of the crisis. It has become increasingly clear that the global
macroeconomic effects of the financial market crisis have been extremely
serious. It is unclear to what extent the mounting governmental debts for
developed nations or the PIIGS country crisis would affect global economy.
Companies continue facing challenges to raise

Companies continue facing challenges productivity, lower product costs, reduce plant op-
to raise productivity, lower product
erating expenses, and increase return on investment
costs, reduce plant operating
(ROI) in order to compete in the recovering global
expenses, and increase return on
investment (ROI) in order to compete market. Consequently, capital investment activities
in the recovering global market. for control valves are returning across most indus-
tries. This will directly result in an increased use of
automation equipment across many industries, driving moderate market
growth in 2011 and beyond as automation lowers the costs and raises the
quality of their products.
Market Volatility
Market volatility causes disruptions to every industry. For instance, fluctu-
ations in the price of oil and commodities can fundamentally shift
operating and investment priorities. When the price of oil is too high, for
example, projects downstream in the chemical industry get delayed. And
when the price of oil is low, oil projects are held back. Over the past couple
of years ARC has witnessed a tremendous amount of volatility in the world
markets. As long as extreme market volatility remains, it will continue to
hinder global control valve market growth.
Market Forecast Figures
The following 46 pages contain market forecast figures and tables for the
five year period beginning with the base year of 2010 and ending with 2015.
Market Forecast Group Figure 4-1
Total Shipments of Control Valves

Figures in Millions of US Dollars, Total Market CAGR = 5.8%
Total Shipments of Control Valves for North America

Total Shipments of Control Valves for EMEA

Total Shipments of Control Valves for Asia

Total Shipments of Control Valves for Latin America

Total Shipments of Control Valves by World Region

Figures in Millions of US Dollars
World Region 2010 2011 2012 2013 2014 2015 CAGR

North America 1,299.1 1,351.1 1,418.6 1,465.4 1,509.4 1,539.6 3.5%
EMEA 1,790.8 1,902.2 2,041.0 2,162.2 2,282.3 2,401.1 6.0%
Asia 1,742.8 1,806.3 1,921.7 2,081.7 2,251.3 2,424.5 6.8%
Latin America 258.4 280.1 305.2 331.9 360.3 393.5 8.8%
Total 5,091.0 5,339.6 5,686.6 6,041.2 6,403.4 6,758.6 5.8%

World Region 2010 Revenues 2010 Revenues% 2015 Revenues 2015 Revenues% CAGR
North America 1,299.1 25.5% 1,539.6 22.8% 3.5%
EMEA 1,790.8 35.2% 2,401.1 35.5% 6.0%
Asia 1,742.8 34.2% 2,424.5 35.9% 6.8%
Latin America 258.4 5.1% 393.5 5.8% 8.8%
Total 5,091.0 100.0% 6,758.6 100.0% 5.8%
2010 = 5,091.0 Millions of US Dollars
Total Shipments of Control Valves by Revenue Category

Revenue Category 2010 2011 2012 2013 2014 2015 CAGR

Hardware Revenues 4,407.4 4,601.3 4,877.4 5,145.7 5,402.9 5,646.1 5.1%
Software Revenues 54.4 58.0 62.7 68.2 74.0 79.9 8.0%
Service Revenues 629.2 680.2 746.5 827.3 926.4 1,032.6 10.4%
Total 5,091.0 5,339.6 5,686.6 6,041.2 6,403.4 6,758.6 5.8%

Revenue Category 2010 Revenues 2010 Revenues% 2015 Revenues 2015 Revenues% CAGR
Hardware Revenues 4,407.4 86.6% 5,646.1 83.5% 5.1%
Software Revenues 54.4 1.1% 79.9 1.2% 8.0%
Service Revenues 629.2 12.4% 1,032.6 15.3% 10.4%
Total 5,091.0 100.0% 6,758.6 100.0% 5.8%
Total Shipments of Control Valves by Industry

Industry 2010 2011 2012 2013 2014 2015 CAGR

Cement & Glass 9.7 10.0 10.5 11.0 11.5 12.0 4.3%
Chemical 1,137.0 1,194.2 1,271.9 1,349.9 1,431.3 1,511.0 5.9%
Electric Power Generation 804.8 855.6 922.4 991.2 1,062.2 1,133.4 7.1%
Food & Beverage 171.5 177.3 185.8 194.1 202.7 210.7 4.2%
Mining & Metals 210.4 222.5 238.6 255.1 272.6 290.0 6.6%
Oil & Gas 1,137.0 1,204.1 1,293.1 1,384.2 1,480.6 1,577.1 6.8%
Pharmaceutical & Biotech 59.8 62.5 66.1 69.8 73.6 77.2 5.2%
Pulp & Paper 355.4 366.7 383.2 397.7 411.0 423.0 3.5%
Refining 607.9 630.5 663.1 695.0 727.6 758.3 4.5%
Water & Wastewater 113.0 118.8 126.8 134.8 143.2 151.5 6.0%
Other 484.6 498.4 519.8 540.2 561.0 579.9 3.7%
Total 5,091.0 5,340.6 5,681.4 6,023.1 6,377.1 6,724.1 5.7%
Total Shipments of Control Valves by Industry

Industry 2010 Revenues 2010 Revenues% 2015 Revenues 2015 Revenues% CAGR
Cement & Glass 9.7 0.2% 12.0 0.2% 4.3%
Chemical 1,137.0 22.3% 1,511.0 22.5% 5.9%
Electric Power Generation 804.8 15.8% 1,133.4 16.9% 7.1%
Food & Beverage 171.5 3.4% 210.7 3.1% 4.2%
Mining & Metals 210.4 4.1% 290.0 4.3% 6.6%
Oil & Gas 1,137.0 22.3% 1,577.1 23.5% 6.8%
Pharmaceutical & Biotech 59.8 1.2% 77.2 1.1% 5.2%
Pulp & Paper 355.4 7.0% 423.0 6.3% 3.5%
Refining 607.9 11.9% 758.3 11.3% 4.5%
Water & Wastewater 113.0 2.2% 151.5 2.3% 6.0%
Other 484.6 9.5% 579.9 8.6% 3.7%
Total 5,091.0 100.0% 6,724.1 100.0% 5.7%
Total Shipments of Control Valves by Sales Channel

Sales Channel 2010 2011 2012 2013 2014 2015 CAGR

Direct Sales 2,624.7 2,729.7 2,879.9 3,023.8 3,175.0 3,317.9 4.8%
Independent Reps/Distributors 2,453.4 2,588.3 2,769.5 2,952.3 3,144.2 3,332.9 6.3%
Internet 12.9 21.5 37.3 65.0 84.1 107.9 52.9%
Total 5,091.0 5,339.6 5,686.6 6,041.2 6,403.4 6,758.6 5.8%

Sales Channel 2010 Revenues 2010 Revenues% 2015 Revenues 2015 Revenues% CAGR
Direct Sales 2,624.7 51.6% 3,317.9 49.1% 4.8%
Independent Reps/Distributors 2,453.4 48.2% 3,332.9 49.3% 6.3%
Internet 12.9 0.3% 107.9 1.6% 52.9%
Total 5,091.0 100.0% 6,758.6 100.0% 5.8%
Total Shipments of Control Valves by Project Type

Project Type 2010 2011 2012 2013 2014 2015 CAGR

New Construction 2,076.5 2,190.7 2,350.6 2,515.1 2,678.6 2,842.0 6.5%
Upgrade/Expansion 1,392.2 1,454.9 1,542.2 1,627.0 1,716.5 1,802.3 5.3%
Replacement 1,537.8 1,607.0 1,703.4 1,805.6 1,913.9 2,019.2 5.6%
Other 84.6 87.1 90.5 93.5 94.4 95.1 2.4%
Total 5,091.0 5,339.6 5,686.6 6,041.2 6,403.4 6,758.6 5.8%

Project Type 2010 Revenues 2010 Revenues% 2015 Revenues 2015 Revenues% CAGR
New Construction 2,076.5 40.8% 2,842.0 42.0% 6.5%
Upgrade/Expansion 1,392.2 27.3% 1,802.3 26.7% 5.3%
Replacement 1,537.8 30.2% 2,019.2 29.9% 5.6%
Other 84.6 1.7% 95.1 1.4% 2.4%
Total 5,091.0 100.0% 6,758.6 100.0% 5.8%
Total Shipments of Control Valves by Component

Component 2010 2011 2012 2013 2014 2015 CAGR

Valves 3,340.0 3,480.2 3,678.6 3,880.9 4,094.4 4,299.1 5.2%
Actuators 688.0 719.0 762.1 804.0 848.3 890.7 5.3%
Positioners 755.5 819.8 905.8 996.4 1,084.1 1,176.2 9.3%
Accessories 307.5 320.6 340.1 359.8 376.6 392.6 5.0%
Total 5,091.0 5,339.6 5,686.6 6,041.2 6,403.4 6,758.6 5.8%
Total Shipments of Control Valves for Valves by Body Type

2010 2011 2012 2013 2014 2015 CAGR

Globe 1,716.8 1,792.3 1,908.8 2,023.3 2,144.7 2,262.7 5.7%
Gate 131.6 138.8 146.5 154.5 163.0 172.0 5.5%
Diaphragm 18.7 19.3 20.0 20.6 21.3 22.0 3.3%
Butterfly 600.9 630.9 668.8 705.5 747.9 785.3 5.5%
Ball 452.9 462.0 473.5 489.2 501.4 513.9 2.6%
Plug 290.7 303.4 320.1 339.3 359.4 379.2 5.5%
Other Valves 128.5 133.5 140.9 148.4 156.6 164.1 5.0%
Total 3,340.0 3,480.2 3,678.6 3,880.9 4,094.4 4,299.1 5.2%
Total Shipments of Control Valves for Actuators by Type

2010 2011 2012 2013 2014 2015 CAGR

Pneumatic Actuators 533.5 554.8 585.3 614.6 645.3 674.4 4.8%
Electric Actuators 117.1 125.3 135.3 145.5 156.4 167.3 7.4%
Other Actuators 37.4 38.9 41.5 44.0 46.5 49.0 5.5%
Total 688.0 719.0 762.1 804.0 848.3 890.7 5.3%

Figures in Thousands of Units
2010 2011 2012 2013 2014 2015 CAGR

Electric Actuators 92.2 99.1 107.8 115.8 124.3 132.7 7.6%
Other Actuators 20.4 21.1 22.1 23.0 24.0 24.9 4.1%
Total 848.3 877.9 921.8 962.4 1,004.8 1,044.9 4.3%
Total Shipments of Control Valves for Positioners by Type

2010 2011 2012 2013 2014 2015 CAGR

Pneumatic Positioners 58.1 53.6 52.0 50.4 48.9 47.5 -4.0%
Electropneumatic Positioners 142.1 131.4 127.6 124.1 120.6 117.0 -3.8%
Digital Positioners 555.3 634.7 726.2 821.9 914.6 1,011.8 12.7%
Total 755.5 819.8 905.8 996.4 1,084.1 1,176.2 9.3%

2010 2011 2012 2013 2014 2015 CAGR

Digital Positioners 762.9 876.7 1,008.8 1,144.6 1,272.0 1,405.5 13.0%
Total 1,175.7 1,263.8 1,383.9 1,508.4 1,624.6 1,746.4 8.2%
Total Shipments of Control Valves for Positioners by

2010 2011 2012 2013 2014 2015 CAGR

HART 454.5 520.4 575.0 615.3 649.1 681.6 8.4%
Fieldbuses 84.7 101.7 146.8 205.5 267.2 334.0 31.6%
Other Communication Protocols 216.3 197.7 184.0 175.6 167.8 160.7 -5.8%
Total 755.5 819.8 905.8 996.4 1,084.1 1,176.2 9.3%

Component 2010 Revenues 2010 Revenues% 2015 Revenues 2015 Revenues% CAGR
Valves 3,340.0 65.6% 4,299.1 63.6% 5.2%
Actuators 688.0 13.5% 890.7 13.2% 5.3%
Positioners 755.5 14.8% 1,176.2 17.4% 9.3%
Accessories 307.5 6.0% 392.6 5.8% 5.0%
Total 5,091.0 100.0% 6,758.6 100.0% 5.8%

2010 Revenues 2010 Revenues% 2015 Revenues 2015 Revenues% CAGR

Globe 1,716.8 51.4% 2,262.7 52.6% 5.7%
Gate 131.6 3.9% 172.0 4.0% 5.5%
Diaphragm 18.7 0.6% 22.0 0.5% 3.3%
Butterfly 600.9 18.0% 785.3 18.3% 5.5%
Ball 452.9 13.6% 513.9 12.0% 2.6%
Plug 290.7 8.7% 379.2 8.8% 5.5%
Other Valves 128.5 3.8% 164.1 3.8% 5.0%
Total 3,340.0 100.0% 4,299.1 100.0% 5.2%


Pneumatic Actuators 533.5 77.5% 674.4 75.7% 4.8%
Electric Actuators 117.1 17.0% 167.3 18.8% 7.4%
Other Actuators 37.4 5.4% 49.0 5.5% 5.5%
Total 688.0 100.0% 890.7 100.0% 5.3%

2010 Units 2010 Units% 2015 Units 2015 Units% CAGR

Pneumatic Actuators 735.7 86.7% 887.3 84.9% 3.8%
Electric Actuators 92.2 10.9% 132.7 12.7% 7.6%
Other Actuators 20.4 2.4% 24.9 2.4% 4.1%
Total 848.3 100.0% 1,044.9 100.0% 4.3%


Pneumatic Positioners 58.1 7.7% 47.5 4.0% -4.0%
Electropneumatic Positioners 142.1 18.8% 117.0 9.9% -3.8%
Digital Positioners 555.3 73.5% 1,011.8 86.0% 12.7%
Total 755.5 100.0% 1,176.2 100.0% 9.3%

2010 Units 2010 Units% 2015 Units 2015 Units% CAGR

Pneumatic Positioners 147.6 12.6% 120.9 6.9% -3.9%
Electropneumatic Positioners 265.2 22.6% 220.0 12.6% -3.7%
Digital Positioners 762.9 64.9% 1,405.5 80.5% 13.0%
Total 1,175.7 100.0% 1,746.4 100.0% 8.2%


HART 454.5 60.2% 681.6 57.9% 8.4%
Fieldbuses 84.7 11.2% 334.0 28.4% 31.6%
Other Communication Protocols 216.3 28.6% 160.7 13.7% -5.8%
Total 755.5 100.0% 1,176.2 100.0% 9.3%
2010 = 688.0 Millions of US Dollars
2010 = 848.3 Thousands of Units
2015 = 1,044.9 Thousands of Units
Average Selling Price of Control Valves by Component
Figures in US Dollars
Component 2010 2011 2012 2013 2014 2015 CAGR

Valves 4,464.0 4,516.1 4,567.9 4,633.8 4,700.6 4,768.8 1.3%
Actuators 811.1 818.9 826.7 835.5 844.3 852.4 1.0%
Positioners 642.6 648.6 654.6 660.6 667.3 673.5 0.9%
Accessories 660.5 658.9 659.4 658.1 656.1 651.4 -0.3%
Average 1,572.4 1,570.9 1,567.9 1,567.1 1,571.6 1,573.4 0.0%
Average Selling Price of Control Valves for Actuators by Type
2010 2011 2012 2013 2014 2015 CAGR

Electric Actuators 1,270.3 1,264.4 1,255.1 1,256.2 1,258.6 1,260.9 -0.1%
Other Actuators 1,839.3 1,845.5 1,873.3 1,908.1 1,940.2 1,967.0 1.4%
Average 811.1 818.9 826.7 835.5 844.3 852.4 1.0%
Average Selling Price of Control Valves for Positioners by Type
2010 2011 2012 2013 2014 2015 CAGR

Digital Positioners 728.0 724.0 719.9 718.1 719.0 719.9 -0.2%
Average 642.6 648.6 654.6 660.6 667.3 673.5 0.9%

Component 2010 2011 2012 2013 2014 2015 CAGR

Valves 748.2 770.6 805.3 837.5 871.0 901.5 3.8%
Actuators 848.3 877.9 921.8 962.4 1,004.8 1,044.9 4.3%
Positioners 1,175.7 1,263.8 1,383.9 1,508.4 1,624.6 1,746.4 8.2%
Accessories 465.6 486.6 515.7 546.7 574.0 602.7 5.3%
Total 3,237.7 3,399.0 3,626.8 3,855.1 4,074.4 4,295.6 5.8%

Component 2010 Units 2010 Units% 2015 Units 2015 Units% CAGR
Valves 748.2 23.1% 901.5 21.0% 3.8%
Actuators 848.3 26.2% 1,044.9 24.3% 4.3%
Positioners 1,175.7 36.3% 1,746.4 40.7% 8.2%
Accessories 465.6 14.4% 602.7 14.0% 5.3%
Total 3,237.7 100.0% 4,295.6 100.0% 5.8%
114• Copyright 2011 © ARC Advisory Group• ARCweb.com • For Internal Use Only
Supplier Profiles
The following pages provide profiles of the leading suppliers of control

valves to the worldwide market. These profiles analyze the total business
of each company as well as the control valve-related portion. Information
is provided regarding current model numbers, associated components,
communication protocols, and system-level offerings. Information on
served markets and alliances is also provided where appropriate. This in-
formation was derived from company annual reports and in-depth
discussions with senior company officials.
ABB
http://www.abb.com
Key Products
Contrac series continuous modulating electric actuators; UP & LP pneumat-
ic actuators; TZIDC series digital positioners; AV series analog positioners;
TEIP11 series Current to Pneumatic converters
Regions
North America; Europe; Middle East & Africa; Asia; Latin America
Description
ABB is one of the world’s largest automation suppliers with a presence in
over 100 countries. The company blends a product, system, and service
portfolio with end-user expertise to deliver automation and CPM solutions
across the full range of process and utility industries, with particular
strengths in the Chemical, Oil & Gas, Metals & Minerals, Pharmaceutical,
Pulp & Paper, and Power industries. ABB’s solutions cover a wide range of
functionality from order entry to delivery including information and
knowledge management, planning and scheduling, advanced control, en-
ergy management, asset optimization, product tracking, quality
management, inventory management, LIMS, and performance manage-
ment.
Effective January 2010, the business units previously in the Automation

Products and Robotics divisions were regrouped into two new divisions –
Discrete Automation and Motion, and Low Voltage Products. The Process
Automation division remains unchanged except for the addition of the in-
strumentation business from the Automation Products division. This move
strengthens the division’s process automation platform as instruments
measuring temperature, flow, and pressure and instruments controlling
final control elements are key to optimizing industrial processes.
The realignment of ABB’s businesses fits well with what is happening in the
automation marketplace today, particularly with the integration of the field
instrumentation business into the Process Automation business unit. ABB
has a strong portfolio of field devices and analytical equipment, and having
these businesses in the Process Automation business unit will foster closer
collaboration between intelligent field devices, plant asset management sys-
tems, and process automation systems.
In the past decade, ABB embarked on an update to its global valve automa-
tion product offerings. This involved divesting its control valve business to
focus on expanding its actuator and positioner line of products. The com-
pany now focuses on supplying electrical and pneumatic linear and part
turn actuators, digital and analog positioners, and I/P converters to the
control valve market. ABB offers a complete line of digital positioners with
FOUNDATION Fieldbus, PROFIBUS, and HART communication capabili-
ties.
All ABB actuators offer continuous control. The continuously operating

electrical actuators with stall-proof motors do not require torque; position
dependent or increased starting current protection. Electric linear actuators
of the LME... / RSD ... series are designed for operation of final control ele-
ments with linear movement. The actuator thrust rod transfers the force
directly to the final control element. Linear actuators of the RSDE… series
are designed for the use in hazardous areas. Electric part turn actuators of
the PME… / RHD… series are designed for operation of final control ele-
ments with rotary movement. Part turn actuators of the RHDE… series are
designed for use in hazardous areas. All actuators are controlled via varia-
ble frequency power electronics for rack or field mounting.
ABB’s TZIDC digital valve positioner is an all-round positioner designed to

work with every kind of control valve. Available for single- and double-
acting actuators the TZIDC can be easily fitted to any linear or rotary actua-
tor with ABB designed mounting hardware. The physical construction of
the TZIDC positioner is modular, allowing an extensive range of options
and features for customization. The TZIDC incorporates an ABB proprie-
tary adaptive control algorithm that permits real-time field optimization of
the positioner to overcome the effects of valve stiction. The AV series ana-
log positioners provide solutions for direct pneumatic input signals or 4-20
mA with fail safe or fail in place control options, these positioners offer
high air supply and air capacity output required for fast valve positioning.
Type UP Universal Pneumatic Rotary and LP Linear Pneumatic Actuators

regulate dampers, fan inlet vanes, lever-operated valves, turbine governors,
fluid drives and other final control elements. The control signals provide
modulating or on/off control to position devices through mechanical link-
age or by direct coupling. A comprehensive selection of control options are
available depending on the application requirement for safe operation of
the final control element, such as fail safe and fail in place action on loss of
power and signal.
ABB type TEIP11 I/P electropneumatic signal converter with various hous-
ing constructions is available for control room installation, field installation
or Din rail mounting. The signal conversion is based on standard 4-20 mA
current signals. Current signals are converted to pressure signals, typically
0.2...1 bar or 3...15 psi.
Partnerships and Acquisitions

Partnerships: SAP, Microsoft, IBM to provide a full range of computing
diagnostics, solution design, development, and integration services for
manufacturers
Acquisitions: Vectek/May, 2008; Ber-Mac Electrical and Instrumentation

Ltd/November, 2008; Kuhlman Electric Corporation /July 2008
Strengths and Challenges

Strengths: Broad portfolio of automation technologies and solutions;
Strong reputation and global base; Strong global support
Challenges: Maintaining its position among the leading global actuator and
positioner suppliers; expanding its PAM solution capabilities; Maintaining
pace of wireless product development, while broadening its product line to
cover the requirements of end users application
Key Industries
Chemicals; Electric Power, Pulp & Paper
AUMA
http://www.auma.com
Key Products
SA, AS, SG, GS, GF, LE electric actuators; AUMA MATIC, VARIOMATIC,
actuator controls, Generation .2
Regions
North America; Europe, Middle East & Africa; Asia
Description
The AUMA Group consists of GFC, SIPOS Aktorik, and Haselhofer. GFC
manufactures worm gears for the group. GFC started its production under
the name of Maschinenfabrik Pekrun in 1896. As early as 1908, the compa-
ny had grown to more than 600 employees. By 1927, the workforce had
increased to 1,200 employees. In 1949, the company was declared a state-
owned company (VEB). During the years, the VEB Getriebefabrik devel-
oped into the leading worm gear unit manufacturer in the Eastern
European economic area. GFC was acquired by AUMA Riester in 1991 to
become a core member of the AUMA Group.
In October 1999, AUMA acquired the Electric Actuators Division of Sie-

mens and became a member of the AUMA Group. To ensure continuity of
the business, AUMA acquired more than just documentation, software, and
production facilities; AUMA also acquired all the SIPOS employees with
their combined know-how and experience manufacturing electric actuators.
Haselhofer manufactures electric linear, part-turn and multi-turn actuators

for the automation of valves as well as actuator solutions for positioning
and modulating. In 1940, Emil Haselhofer began to develop and manufac-
ture gearboxes. As early as 1953, the company began manufacturing
electric actuators. Haselhofer eventually joined the AUMA group in Janu-
ary 2006.
The AUMA Group is among the leading manufacturers of electric actuators

worldwide. Electric actuators and associated equipment, such as gearbox-
es, is the company's sole business. AUMA manufactures its valve actuators
in Germany with subsidiaries located throughout Europe, North America,
and Asia. Additionally, AUMA has a network of representatives through-
out the world. Geographically, Europe remains the major market for
AUMA, although it has been gaining success in Asia. Key customers for
the company include the Water & Wastewater, Chemical, and Energy mar-
kets.
AUMA recently established new subsidiaries in the Middle East (Bahrain)

and Brazil. With 19 subsidiary operations, the new AUMA divisions in-
crease the company’s international workforce to over 1,900 people. Both
the Middle East and South America have previously been supported by
local AUMA representatives. Growth in demand for the company’s modu-
lar actuation technology in each region has led to investment in the new
facilities. AUMA already has a strong established user base in both regions
for its actuators across the power, water and oil & gas industries.
AUMATIC AM actuator controls are modular systems consisting of func-

tion modules, communication interfaces, and equipment elements for valve
automation, which can be set up without opening the actuator and control
housing. These controls help in diagnostics and fault corrections. All these
actuator controls are equipped with standard Fieldbus interfaces, primarily
Profibus, Interbus-S, and Modbus. AUMAMATIC AM controls are also
available in an explosion-proof version. AUMA’s SIMA master station al-
lows for the integration of actuators into a DCS system.
Electric multi-turn actuators by AUMA are used for the automation of gate
valves or globe valves. They are the most versatile products within the
AUMA family. AUMA has been supplying electric actuators to the Ship
Building industry for many years and has met the high requirements on
military ships. The electric valve actuators SV have been optimized for this
application.
Electric part-turn actuators by AUMA are used where an automatic, electri-

cally operated movement with a swing angle of less than 360 degrees has to
be implemented, as is the case for butterfly and ball valves. The further de-
velopment of the reliable SG .1 type range and its extension for the lower
torque ranges by the SG .3 type range, as well as the development of the
ASR type range with integral controls. VARIOMATIC offers customers a
multitude of possibilities to integrate actuators into the process control sys-
tem. Using AUMA’s electric actuators, adaptation to the requirements of
nearly every valve automation task is possible.
To perform linear movements, as in case of globe valves, the multi-turn ac-

tuator SA can be combined with the linear thrust unit LE, forming an
electric linear actuator. If a lever arrangement has to be operated, the linear
thrust unit can be mounted on a base. AUMA’s ALS actuator is designed

for use in applications requiring fail-safe functionality. In the case of a
power failure, valves utilizing the ALS actuator can be opened or closed by
spring action.
AUMA’s Generation .2, is designed to meet the increasing demands in all

types of process plants, from the Water industry and energy sector to the
Oil & Gas industry. The modular structure of Generation .2 provides a
combination of multi-turn actuators and appropriate actuator controls. Us-
ing standardized components, a customized solution can be developed for
valve applications. Enhanced functionality provided in the Generation .2
include extended lifetime, larger temperature range and improved corro-
sion protection. Benefits for demanding applications include a new coating
offering superior corrosion protection at highest mechanical resistance and
a version for modulating duty offers an extended speed range / improved
modulating accuracy.
In 2010, AUMA added asset management functionality in its Generation .2

actuators and controls. Integral controls for Generation .2 actuators are
equipped with Bluetooth interfaces. With the integration of torque, tem-
perature and vibration sensors, new intelligent diagnostic functions supply
significant actuator status information, such as torque characteristics which
can be captured at any time. Actuator feedback signals can be classified
according to NAMUR recommendation NE 107 and integrated into existing
Asset Management systems. In line with AUMA’s previous products, the
new controls are available with different fieldbus interfaces, including Pro-
fibus DP.
Increasing demand for valve and actuator information has led to AUMA’s
introduction of a single-mode Fiber Optic (FO) interface capable of support-
ing automation solutions with a range of up to 15km between field devices.
Adoption of fiber optics allows AUMA to provide data transmission over
large distances. Established multi-mode fiber optic technology supports
distances up to 2.5km. Ongoing R&D from AUMA has led to introduction
of a single-mode interface version with extended functionality and simpli-
fied handling. The initiative introduces a flexibility that caters to
applications requiring substantially greater distances between field devices.
FO cable checks are integrated into the comprehensive self-monitoring ca-
pability of AUMA’s new Generation .2 actuator controls. Signals are
transmitted to the control room in compliance with AUMA or NAMUR
classifications.

Partnerships: None relative to control valves
Acquisitions: Haselhofer Feinmechanik GmbH/January, 2006

Strengths: Strong presence in the global electric actuator market; Ability to
offer a full range of electric actuators, actuator controls, and valve gearbox-
es; Strong brand-name recognition
Challenges: Maintaining a leadership position and technological edge in

the electric valve actuator market; Dependence on OEM customers due to
the company's lack of a valve offering; Lack of service capabilities
Key Industries
Water & Wastewater, Chemicals, Oil & Gas
Control Components Inc.

http://www.ccivalve.com
Key Products
DRAG, QuickTrak
Regions
North America; Europe, Middle East & Africa; Asia
Description
Control Components Inc. (CCI) is owned by IMI plc, a British engineering
firm that offers services for several niche industries, including severe ser-
vice, fluid power, indoor climate control, beverage dispensers, and point-
of-purchase retail displays. IMI businesses share a common goal - to con-
vert industry knowledge and market insight into customized, design-
engineered solutions which create customer advantage and value. Close
customer relationships, strong positions in growing markets, and differen-
tiation through technological innovation or service are the defining
characteristics of all IMI businesses. As the world's leading provider of se-
vere service control valve solutions, CCI develops, designs and
manufactures a wide range of valves for use in the Electric Power, Oil &
Gas, and Pulp & Paper industries worldwide.
In October 2010, IMI plc agreed to acquire Zimmermann & Jansen (“Z&J”),
a leading engineering business specializing in severe service valves and
related flow control products, for an enterprise value of €135m. Founded in
Germany in 1877, Z&J is a respected manufacturer of critical process valve
solutions for severe applications, primarily focused in the Refining and Pet-
rochemical and Iron & Steel markets. Z&J has a global presence and
approximately 40 percent of Z&J’s sales are in emerging markets, including
Russia, India and China. Z&J also has a strong aftermarket business with
around two thirds of sales coming from refurbishment, replacement, parts
and service. Z&J has manufacturing facilities in Germany, US and South
Africa and a sales and procurement office in China. In calendar year 2009,
Z&J had sales of €125m and underlying operating profit (EBIT) of €15m.
Z&J has joined IMI's Severe Service division. The acquisition of Z&J is
highly complementary, both in market terms, extending IMI's interests into
downstream Oil & Gas (Refining and Petrochemical) and into Iron & Steel;
and in technology terms, with Z&J's highly acclaimed isolation valve tech-
nology a natural fit alongside the Truflo technology acquired in 2006. The
use of IMI's global sales and aftermarket infrastructure is expected to im-

prove Z&J's geographic penetration, in much the same way it has done for
the Truflo business.
CCI was created in 1961 by Richard Self, who started the company when he
saw a need for valves that could handle very high-pressure liquid hydro-
gen and oxygen. It was during his research that the right-angle tortuous
flow path of the CCI DRAG valve trim was conceived. Since 1967, the
company has forged a proven track record for solving customers' severe
service valve application problems with its patented DRAG technology.
CCI is a leading provider of severe-service control valves for high pressure

and high temperature applications. Since its inception, CCI has focused on
severe service applications. In addition to severe service valves, CCI manu-
factures actuators, silencers, and resistors used in coal, oil, gas, and nuclear
power plants. CCI products also have applications in the Hydrocarbon in-
dustries and Pulp & Paper plants.
With graduate engineers composing over one-third of its workforce, CCI

utilizes its resources not only in design engineering and technical support,
but also in sales, project management, quality assurance, procurement, and
manufacturing. The company has developed a global manufacturing and
service infrastructure with facilities in California, Switzerland, Sweden,
Austria, Japan, and South Korea.
Virtually every one of CCI’s valves is a custom solution designed for a spe-
cific industry and application. For fossil fuel-based power plants, CCI
provides valves for turbine bypass, feed water control, attemperator spray-
water control, de-aerator level control, and steam conditioning applications.
For nuclear power plants, CCI provides valves for feed water control,
chemical injection and temperature, pressure and level control applications.
For Combined Heat and Power (CHP) plants, CCI provides valves for main
and booster feed pump recirculation, feed water control, de-aerator level
control, soot blower control, turbine bypass and steam conditioning appli-
cations. For the Oil & Gas industry, CCI provides control valves for water
and gas injection, wellhead pressure control and methanol injection appli-
cations. Additionally, for general applications CCI provides gate, globe,
and check valves; single seated, three way and cage guided valves.
CCI has successfully completed the development of the adapters necessary

to fully utilize the technologies of handheld communicators and to interact
with the AMS environment, thereby obtaining HART certification for its
QuickTrak pneumatic digital valve controller. QuickTrak combines a mi-
croprocessor-based control system and a high capacity servo valve
positioning device to meet the high-performance requirements of turbine
bypass, compressor recycle, nuclear vent, and boiler control applications.
QuickTrack’s design eliminates the need for accessories, such as quick ex-
hausts, volume boosters, and connecting tubing. QuickTrak operates
without using a mechanical linkage, allowing it to be remotely mounted. .
CCI serves a worldwide industrial community with manufacturing facili-

ties in the US, Mexico, China, Switzerland, Sweden, Austria, the Czech
Republic, South Korea and Japan. CCI has sales and services offices with
direct employees located in over 15 countries. The company is represented
by local representative organizations in over 60 other countries.

Partnerships: None reported
Acquisitions: Truflo group/March, 2006; Zimmermann & Jansen/October,

2010

Strengths: Market leadership for severe service control valve applications;
Brand name recognition for severe service applications; Strong financial
position of its parent company, IMI
Challenges: Dependency on niche specialty high-end control valve applica-

tions; Inability to mass-produce its custom solutions; Relative high cost of
its custom solutions
Key Industries
Oil & Gas; Electric Power; Pulp & Paper
Emerson Process Management

http://www.emersonprocess.com/fisher
Key Products
easy-e, Vee-Ball, FIELDVUE, Baumann, Control-Disk Valve, POSI-SEAL,
4300 Series Wireless Position Monitors
Regions
North America; Latin America; EMEA; Asia
Description
Emerson Process Management designs, develops, and services products
that measure, analyze, control, and automate, process-related operations.
In addition to measurement, analytical, and control products, Emerson
provides consulting and engineering solutions for its industrial customers.
Emerson Process Management’s business is organized around the four

main areas of Systems and Solutions, Asset Optimization, Measurement
and Analytical, and Final Control Elements. Emerson’s Process Systems
and Solutions division includes their control systems platforms and global
product support services, project planning and execution and optimization
services. The Asset Optimization division includes the AMS Suite software
and comprehensive asset optimization services. The Measurement and
Analytical division includes Rosemount, Micro Motion, Rosemount Analyt-
ical, Daniel, Brooks, Mobrey, and Saab Rosemount. Final Control Elements
includes the Fisher Valves business, Fisher Regulators, and Valve Automa-
tion.
Emerson utilizes industry standards like HART, Foundation Fieldbus, and

FDT/DTM to integrate their intelligent field devices, control platforms and
asset software into a digital plant architecture called PlantWeb. Emerson
offers two primary digital automation platforms: Ovation, targeted to the
power and water market, and DeltaV, targeted to the industrial process
control market, including batch applications.
Emerson Process Management is the leader in the global control valve mar-
ket, capturing nearly one quarter of the total market. With its wide
portfolio of offerings and strong distribution network, Emerson Process
Management has retained its top position and is the market leader in all
four world regions. The company has developed a strong dedicated sales
force and various Industry Solutions Groups. Emerson Process Manage-
ment’s strategy is to act as a single source supplier for all the process con-
trol needs of its customers. By leveraging its broad line of field devices
including Fisher control valve products, Fieldbus, the DeltaV product line,
PlantWeb architecture, wireless solutions, and Asset Optimization tools,
Emerson Process Management has developed a strong marketing message
that resonates well with end-users.
In October 2009, Emerson Process Management acquired Missouri City,

Texas-based EIM Controls Inc., a manufacturer of valve actuators. EIM
Controls joined the company’s Valve Automation division, expanding Em-
erson’s electric actuator portfolio, while strengthening the company’s
applications for FOUNDATION fieldbus and other major bus protocols.
EIM Controls brought to Valve Automation a well-known reputation for
reliability and an extensive product line that complements Emerson’s
PlantWeb digital plant architecture.
Emerson Process Management is actively establishing long-term agree-

ments with foundries in various geographical regions to protect the
company’s needed capacity and lead times. Despite the fact that much of
the company’s current demand is covered by existing agreements, Emerson
Process Management continues to monitor the state of the industry and is
continually evaluating remaining available foundries. To ensure strong
global delivery and service capabilities, Emerson Process Management has
invested heavily in its manufacturing and project engineering capabilities
throughout the globe, with a particular focus in high-growth markets, such
as China, India, Russia, and the Middle East and Africa region. Some key
examples of their recent investments include Emerson Process Manage-
ment’s project and applications engineering center in Chennai, India and
the recent expansion of manufacturing plants in Asia and other regions.
In the Middle East, Emerson has expanded its plant capacity and capability
in Dubai, and has multiple Service Centers across the region close to the
customers. At the same time, Emerson Process Management continues to
invest in the developed markets, and recently dedicated its new Technolo-
gy Center in the US to support research and development of new control
valve technologies. The new facility will house the industry’s largest lab
capable of testing valves for large, high pressure applications.
As a global company, Emerson Process Management applies consistent

standards to its global engineering and manufacturing organizations. The
company designs its new control valve products to meet both existing and
emerging standards, with a particular focus on European standards. Emer-

son Process Management is also actively participating in worldwide
standards activities, which gives the company strong insight into which
emerging standards will be ratified.

Partnerships: None to report relevant to control valves
Acquisitions: TopWorx/July 08; EIM Controls/October 09

Strengths: Ability to integrate its strong control valve offerings with its
AMS software and the DeltaV control system through Foundation Fieldbus
to significantly rescue maintenance costs and process variability; The com-
pany's technology leadership, excellent global execution and service
capabilities, and strong distribution and manufacturing capacity world-
wide; Emerson's ability to engage manufacturers in the early stages of
projects creates more business opportunities
Challenges: Responding successfully to the market trend toward more field

device companies joining forces with leading control system suppliers to
develop a single-source automation solution to compete against PlantWeb;
Responding successfully to the ongoing global shift in control valve growth
from North America, where Emerson Process Management’s strongest cus-
tomer base resides, to emerging markets in EMEA and Asia; Successfully
leveraging wireless technology in its control valve offerings
Key Industries
Oil & Gas, Refining; Electric Power
Flowserve
http://www.flowserve.com/Products/Valves/
Key Products
Valtek; Logix; Kammer; NAF; PMV; Durco; Worcester; Limitorque, and
Edward brands
Regions
North America; Europe; Middle East & Africa; Asia; China; Latin America;
India; Japan
Description
Flowserve is a leading manufacturer and aftermarket service provider of
comprehensive flow control products and systems. Flowserve continues to
expand its presence supporting infrastructure initiatives around the world.
Its dedicated and focused workforce of more than 15,000 associates is locat-
ed in more than 55 countries. Flowserve continues to develop and
manufacture precision-engineered flow control equipment — primarily
pumps, valves, and seals — for critical service applications in the Oil & Gas,
Power Generation, Chemical, Water, and general industry markets. This
strategy emphasizes industry diversity and geographic breadth to mitigate
the impact of normal economic downturns in any one of the industries or
parts of the world the company serves. Flowserve's valve business offers a
broad range of control valves and digital products, including Valtek, Logix,
Kammer, NAF, PMV, Durco, Worcester, Limitorque, and Edward.
The company’s long-term growth strategy is to expand its customer base,

broaden its product offerings, and enter new markets or capture operating
synergies. As part of this strategy, the company recently announced it has
acquired Valbart Srl, a privately owned Italian manufacturer of trunnion-
mounted ball valves (TMBV) used primarily in the Oil & Gas industry.
Flowserve previously entered into a joint venture agreement with Valbart
in December 2009 focused on combining Valbart’s ball valve technology
with Flowserve’s high performance noise and cavitation-reducing trim de-
signs. The joint venture has since created a trunnion-mounted control ball
valve that is designed to deliver high performance.
Flowserve also acquired FEDD Wireless LLC, a small, privately owned

wireless data acquisition company in April 2011. FEDD manufactures solu-
tions for wireless data acquisition, transmission and integration for
industrial use. The company manufactures sensors, transmitters, receivers
and intelligent repeaters, providing a flexible wireless solution that inte-

grates with an existing instrumentation or control system or operates as a
stand-alone system. FEDD's wireless solutions are designed to offer an effi-
cient and economical means of monitoring equipment and processes in
tough industrial environments such as Oil & Gas, Chemical Processing,
Power Generation, and related industries. The acquisition provides Flows-
erve a proven wireless data acquisition technology for use in global
industrial markets, a key enabler for asset data management and optimiza-
tion services. Prior to the acquisition, Flowserve already used FEDD’s
technology as part of its Intelligent Process Solutions (IPS) family of prod-
ucts.
New and expanded product offerings for the control valve market include
Flowserve's ValveSight and Logix MD digital positioners. ValveSight is a
diagnostic solution for control valves that can be seamlessly integrated into
a host control and/or plant asset management system. The power of
ValveSight is the intelligent diagnostic engine -- which detects an emerging
condition in the valve, actuator, positioner, and control signal -- that may
indicate a performance, safety, or environmental problem. ValveSight ad-
vises which corrective actions to take to prevent a failure.
Flowserve recently unveiled its next-generation intelligent control system

to improve plant reliability and increase uptimes. The StarPac 3 is a com-
plete valve-process controller that can help customers save money by
improving system performance at a lower cost than conventional systems.
Flowserve expanded its high pressure drop technological product offering

for applications requiring anti-noise and anti-cavitation devices, including
Stealth, MegaStream, TigerTooth, ChannelStream, and Multi-Z.
The backbone of Flowserve’s global manufacturing and service platform

remains its Quick Response Centers (QRCs). Now totaling more than 150
QRCs worldwide, Flowserve opened new or expanded facilities in India,
Russia, Norway, Malaysia, New Zealand, Canada, and The Middle East, as
well as other strategically important markets.
Flowserve’s most recent new facility announcement is for a mechanical seal

and valve facility in Dammam, the capital of the Eastern Province of Saudi
Arabia, in co-operation with the Abahsain Group. The Abahsain Group
and Flowserve enjoy a 40-year business relationship, and their latest ven-
ture in the Kingdom exemplifies both companies' commitment to the
Kingdom's growth and development. The joint venture includes the local
manufacturing of control valves, ball valves, plug valves, butterfly valves
and electric and pneumatic actuators for the Oil & Gas, Petrochemical,
Power, and Water industries. Once completed, the 10,000 square-meter
plant will produce flow-control equipment that will meet the highest indus-
try standards. It is also expected to enhance existing capabilities for the
manufacture of complete mechanical seals as well as facilitate their service,
repair and refurbishment.

Partnerships: Honeywell/ PKS Advantage partnership initiative; Yokoga-
wa/Development and delivery of open and interoperable plant asset
management solutions by providing smooth integration and interoperabil-
ity between Flowserve’s control valves and Yokogawa's CENTUM series
production control and PRM asset management systems; SUFA Technology
Industry Co. Ltd. / manufacture of civilian nuclear safety related valve
products for the China Power market; S&A Abahsain Co. Ltd./ to manufac-
ture control valves, automated 1/4-turn valves, and electric and pneumatic
actuators for the Oil & Gas, Petrochemical, Power, and Water industries.
Acquisitions: April 2011: FEDD Wireless LLC, a small, privately owned

wireless data acquisition company based in Houston, Texas; July 1010: Val-
bart Sr manufacturer of trunnion control ball valves; April 2009: Flowserve
acquired Calder AG, a Swiss Company, to expand the products and ad-
vanced technologies it offers to the growing global desalination markets.

Strengths: Flowserve’s “Run it right” marketing message is a strong sell for
MRO & projects and it resonates well with maintenance personnel; Ability
to offer the most user friendly diagnostic software and digital positioners
on the market; Broad portfolio of control valve solutions including control
valves well known for being robust enough to handle the extremely high
pressure drops typically encountered in Oil & Gas applications and for hav-
ing the exotic alloys that can handle corrosive media typically encountered
in chemical applications
Challenges: Convince market of benefits to partner with Flowserve which

focuses on the final control element, the control valve; also, that Flowserve
offers market breakthrough capability with diagnostic software for preven-
tative maintenance; Flowserve offers complete range of all types of control
products for all general service and critical service applications.
Key Vertical Industries

Chemical; Oil & Gas; Electric Power
GE Energy
http://www.ge-energy.com/
Key Products
Masoneilan Control Valves and Pneumatic Actuators
Regions
North America; Latin America; Europe; Middle East; Africa; Asia
Description
GE Energy is a leading manufacturer of highly engineered products and
services for the Energy industry. On February 1, 2011, GE Energy acquired
Dresser, Inc. for approximately $3 Billion. The deal included all of the
Dresser, Inc. businesses, including the Masoneilan product line, a provider
of control valves, positioners and actuators. Dresser serves customers in
the Oil & Gas, Refining, Petrochemical, Electric Power Generation, and
Natural Gas industries, as well as Chemicals, Pulp & Paper, and the Retail
Fuel Dispensing markets.
With estimated 2010 revenues exceeding $500 Million, the Masoneilan con-
trol valve product line is the second largest supplier to the global control
valve segment. The Masoneilan control valve product portfolio includes
final control elements for general service, as well as customized solutions
for severe service applications, and digital solutions that can communicate
with nearly any control system. In addition, GE recently introduced the
Masoneilan Valscope Pro and ValVue OVD software diagnostic tools de-
signed to assess the health of both smart and "dumb" analog control valves.
Together, Masoneilan Valscope Pro and ValVue OVD diagnostic tools ena-
ble customers to evaluate and diagnose nearly the entire spectrum of
installed control valves still in service.
Masoneilan control valve solutions are built on field-proven technical ex-

pertise in process control applications to assist customers in the effective
implementation of high efficiency and high process yield plants. The focus
of this strategy is to be among the best control valve solutions suppliers in
the industry, providing customers with flexible and advanced solutions
and services. This includes final control elements for general service, as
well as engineered solutions for severe service applications, and digital so-
lutions which are designed with smart product intelligence to communicate
with nearly any control system. Masoneilan control valves successfully
brings together its considerable resources of final control elements and ap-
plications expertise to gain a deep understanding of customers’ specific re-

quirements and deliver innovative solutions to meet its customer’s key
needs.
GE’s Masoneilan control valve product line continues to focus on serving

the global Energy industries with emphasis on customer satisfaction, integ-
rity, responsiveness, technical innovation, and operational excellence as the
key pillars and foundation. GE offers a wide product solution and service
portfolio that now includes Consolidated Pressure Relief Valves, Ma-
soneilan Control Valves, Roots Blowers & Meters, and it provides
integrated support services using a global network of direct and 3rd party
business partners to meet growing customer needs.
GE’s Masoneilan control valve product focus continues to align closely with
industry trends and customer demands and requirements. As a result,
much of the emphasis over the last few years has focused on highly engi-
neered solutions providing more value-added benefits for customers. This
includes severe service valves operating at higher pressures, higher tem-
peratures, larger pressure drops, faster response rates, cryogenic
temperatures, harsher environments, and more corrosive and erosive con-
ditions. GE’s Masoneilan control valve solutions address various valve
functional challenges resulting from these operating conditions, including
anti-cavitation, noise reduction, flashing, erosion, and steam conditioning
solutions. In addition, the adoption rate for digital communications and
functionality continued to increase around the world, prompting invest-
ment in the development of new and enhanced solutions for both HART
and Foundation Fieldbus applications. This includes the extension of the
Masoneilan SVI II AP smart digital positioner and controller product line
into the Safety System market in the form of the SVI II ESD (Emergency
Shutdown). The SVI II ESD is SIL3 certified per IEC61508. The unique de-
sign of this device provides the ability to remain live during and after a
shutdown (loss of power), which enables the device to capture the shut-
down event signature for subsequent trouble-shooting and analysis. Under
normal operating conditions, the SVI II ESD provides online partial stroke
testing (PST) functionality to meet safety system integrity and reliability
requirements.

Partnerships: Yokogawa - development and marketing of Foundation
Fieldbus positioners, integrated systems, and management tools; Honey-
well - development of integrated process solutions.
Acquisitions: None to report.

Strengths: In depth experience, knowledge, and technology in the design,
application, production, and support of control valves, actuators, process
control instrumentation, regulators, and liquid level transmitters and con-
trollers; Ability to provide customers flexible, quality solutions at
competitive prices and deliveries; Broad portfolio of control valve products
and services, including severe service valves and robust digital instrumen-
tation; Open and neutral digital product functionality offering customers
flexibility in control systems and field instrumentation selection; Global
presence in all major locations, providing 24/7 coverage using a network of
factory-certified repair and service centers.
Challenges: Globalization of customers and industry segments; Increasing

complexity and diversity of customer requirements and applications; In-
creasing regional and local standards and regulations for mechanical and
electrical components and complete equipment.

Refining; Chemicals; Electric Power; Oil & Gas
Invensys Operations Management

http://www.iom.invensys.com
Key Products
Foxboro and Eckardt brands
Regions
North America; Europe, Middle East & Africa; Asia; Latin America
Description
Invensys Operations Management is a global solution provider to industrial
companies, addressing elements of operations from the plant level – device,
control, safety and optimization –to complete Collaborative Production
Management (CPM) and Operations Management solutions at the business
level. Over the past decade, the company grew through a series of major
acquisitions and mergers. To leverage resources, technologies and other
synergies among its plant-centric focused organizations, Invensys recently
integrated its three industrial automation businesses (Invensys Process Sys-
tems, Wonderware, and Eurotherm) into a single division, Invensys
Operations Management. This decision has been driven by the conver-
gence of technologies that enable manufacturers to optimize their
operations, the opportunity to create a continuum of solutions and services
for the whole industrial market, and the potential for cost savings from
common sales and marketing, delivery and back office functions.
Brand name solutions offered by Invensys Operations Management include

Foxboro field devices and control systems, Triconex safety systems, SimSci-
Esscor simulation and optimization applications, and Avantis enterprise
asset management. Wonderware software transforms data into vital plant
information to enable our customers to keep operations synchronized with
business objectives. Eurotherm provides control and automation solutions
to help customers meet statutory regulations, and IMServ carbon and ener-
gy solutions improve energy efficiency, cut costs and help to make
businesses sustainable. Tying these systems and solutions together is the
company's InFusion system.
Although Invensys sold the majority of its control valve business to Flows-
erve in 2002, the company did hold on to its Eckardt and Foxboro valve
positioner businesses. The company’s suite of valve positioners covers a
variety of application demands. From traditional pneumatics to digital
models with advanced and premium diagnostics, Foxboro Eckardt posi-

tioners offer reliability and performance drawn from decades of experience.
In 2009, Invensys Operations Management announced it had joined other
key suppliers to enlarge the scope of the EDDL Cooperation Team and be-
come part of the FDI Cooperation.
Foxboro Eckardt positioners are designed to operate pneumatic valve actu-

ators. These instruments feature solid-state sensing and control circuitry.
Advantages of the Foxboro Eckardt line of valve positioners include their
modular structure, upgradable electronics, easy installation and startup;
IP66, NEMA 4X, and explosion-proof Class 1, Division 1 enclosures; and up
to 60 percent less air consumption than conventional electro-pneumatic po-
sitioners.
The company’s digital series positioners are composed of solid-state control

circuitry with HART, FoxCom, FOUNDATION fieldbus H1, or PROFIBUS-
PA digital communications capability. Invensys prides itself in the ease
and intuitive nature of its valve positioner configuration and startup proce-
dures. Each digital positioner can be configured locally without additional
tools, and all advanced diagnostic data is saved in the positioner with five-
year storage capacity.
Designed to operate linear or rotary pneumatic valve actuators, the SRI

Foxboro Eckardt series positioners belong to a product family with a prov-
en history and tradition of high reliability in 4-20 mA analog control. The
Foxboro Eckardt analog positioners offer reliable mechanisms for control
and modularity for additional features such as feedback signal or limit
switches. Each unit comes with a pneumatic test signal mechanism to help
in the troubleshooting of valve actuators.
The SRP series positioner can be used for controlling pneumatic valve actu-
ators with a pneumatic control signal. The pneumatic series positioners
offer independent adjustment of zero and stroke range, along with adjusta-
ble amplification and damping effects, the user is granted full access of
desired control characteristics.
Invensys also offers Partial Stroke Test (PST) solutions to help operators
identify the troubleshooting function of ESD valves. The test can be easily
executed using the FDT-DTM-based configuration and diagnostic IOM Par-
tial Stroke Testing solution tool: VALcare. The valve diagnostic software is
available as Device Type Manager (DTM) for integration into control sys-
tems based on the Field Device Tool (FDT) technology such as the Foxboro
I/A Series System. It is designed to support methods for evaluation of the
valve health, operation and configuration. The certified DTMs support the
communication protocols HART, Profibus PA, FOUNDATION Fieldbus
(FF) and FoxCom.

Partnerships: Motorola’s PartnerSelect program provides easier access to
its vast majority of private wireless voice and emergency communications
networks used at process manufacturing sites, and it allows Invensys to
focus on integration and services; Invensys’ partnership with Cognizant
provides access to Cognizant’s business system expertise; Pepperl+Fuchs;
PAS Integrity .
Acquisitions: Skelta/April 2010

Strengths: Strong brand-name recognition in several vertical industries;
Broad portfolio of automation products and solutions; The company's client
engagement approach, which leverages its in-depth domain expertise
Challenges: Regaining lost share in the valve positioner market; New

product development; Ensuring cost effectiveness on large project bids
Key Industries
Oil & Gas; Electric Power, HPI, Chemicals
Kurimoto
http://www.kurimoto.co.jp/english/index.htm
Key Products
Motoyama Control Valve Series 3306 L/M; 3802; 3803; 3804; 3805; 3883;
3889; 2992; 3993
Regions
Asia
Description
In 1909, Kurimoto, Ltd. began operations as a manufacturer of cast iron
pipes for water and gas mains. The company soon began to diversify into
other fields, serving the industrial sector in a multitude of ways. The major
divisions of Kurimoto now provide ductile iron pipes, steel structures,
plant equipment and engineering services, valves, plastic products, and
construction materials. Eleven factories located throughout Japan comprise
the company's industrial base, which, together with 30 subsidiary compa-
nies, make up the Kurimoto group employing about 3,400 people.
Motoyama is Kurimoto’s key subsidiary for control valves. Motoyama

manufactures globe-type control valves, butterfly valves, eccentric rotating
plug valves, ultra clean valves, safety & relief valves, and steam traps. Mo-
toyama derives most of it revenues from the Japanese chemicals and
semiconductors markets. The company is also active in Asia-Pacific
through a network of overseas representatives in countries, such as Korea,
Taiwan, Thailand, Malaysia, Singapore, and Indonesia. Direct sales make
up the bulk of control valve sales for the company.
Although globe valves represent the majority of control valves sales for Mo-
toyama, the company is also engaged in the manufacture of angle,
butterfly, and anti-corrosive valves. Motoyama’s globe-type control valves
are particularly well suited for high viscosity, high differential pressure
slurries and liquids. The company’s angle valves are designed for use in
various fluid conditions, such as high temperature, high pressure, high dif-
ferential pressure, extremely low temperature, and low noise in various
industries, such as Power, Chemical, and water process plants. Motoya-
ma’s range of dust-free control valves find application in gas processing,
semiconductor manufacturing and other production lines where cleanliness
is essential.

Partnerships: Crosby Valve/Safety Relief Valves
Acquisitions: None relevant to control valves

Strengths: Strong presence in the Japanese control valve market, especially
the Japanese Chemical market; Proven track record of successfully complet-
ing large-scale projects
Challenges: Expanding beyond its traditional customer base in Japan; Di-

versifying itself beyond the Chemicals industry, which is currently
experiencing extreme difficulties
Key Industries
Chemical; Oil & Gas; Electric Power; Water & Wastewater
Metso
http://www.metso.com/automation
Key Products
Metso's iCV (intelligent Control Valves) comprise world leading rotary con-
trol valves from Neles, Jamesbury and Mapag specialized in eccentric plug,
V-port segment, high performance triple eccentric disc, and revolutionary
rotary globe technology with embedded intelligence provided by ND9000
valve controller.
Regions
North America; Europe, Middle East & Africa; Asia; South America
Description
Metso is a global supplier of technology and services for the Mining, Con-
struction, Power Generation, Oil & Gas, Recycling, and Pulp & Paper
industries. Metso has three reporting segments: Mining and Construction
Technology, consisting of Services business line and Equipment and Sys-
tems business line, Energy and Environmental Technology, consisting of
Power, Automation and Recycling business lines and Paper and Fiber
Technology, consisting of Paper, Fiber and Tissue business lines.
Metso’s Automation business line specializes in process industry flow con-

trol solutions, automation and information management application
networks and systems as well as life cycle performance services. Its main
customers are Energy, Power, and Oil & Gas industries, as well as the Pulp
& Paper industry.
Metso has experienced significant success in recent years expanding its

presence in new geographic and vertical markets. Metso has had particular
success in Oil & Gas, Refining, and Petrochemical industries, where the ma-
jority of the business is coming from, via the Metso global project
management organization, and keeping the traditional relation with Pulp &
Paper industry. All these activities are supported by an increasing number
of service centers to reinforce local support to the end users.
Metso has made significant investments in its control valve manufacturing

capacities during the global financial crisis. As a result, the company’s
manufacturing capacity is as strong as it’s ever been. In particular, Metso is
ramping up its manufacturing capacity in China. Metso’s new manufactur-
ing site in China was fully completed last March and the company is
already planning to increase its manufacturing capabilities in China to meet

increasing demand. Metso also made significant investment in its control
valve manufacturing capabilities in Helsinki. The company recently
opened a new factory in Helsinki and moved its manufacturing operations
to the new factory earlier this year in a phased approach to guarantee it was
able to continue to meet its shipping requirements.
Metso is also investing in its aftermarket service capabilities in the Middle

East. Metso is beginning to move its own people into Qatar to improve the
company’s local aftermarket service capabilities. The company also has
similar plans for Saudi Arabia and Abu Dhabi. Metso has not yet devel-
oped any direct manufacturing capabilities in the Middle East, but
continues to focus on improving its aftermarket service capabilities in the
region. Metso is also increasing its local presence in North Africa.
Metso's iCV offering was developed to meet the most challenging industry
requirements in terms of HSE, reliable operation, production efficiency and
profitability of end users. It brings state-of-the-art control valve perfor-
mance with a full transparency to the valve operation as selection is based
on application know-how.

Partnerships: Honeywell/PKS Advantage Program; Yokogawa/Vigilant
Integration Partners (VIP) Initiative; ABB/Oil & Gas Partnership; Rock-
well/Encompass partner; GE Intelligent Platforms/ Reseller of Metso
FieldCare Device Asset Management Solution.
Acquisitions: MAPAG Valves GmbH/May 2008

Strengths: Large installed base and application knowledge in the Pulp &
Paper and Hydrocarbon processing industries; Strong participation in con-
trol system integration programs, such as Honeywell’s PKS Advantage
Program and Yokogawa’s VIP program; ABB/Oil & Gas Partnership ;
Rockwell/Encompass; Relationships with other valve manufacturers for
the sale of its digital positioners as an OEM product.
Challenges: Lack of transmitter & flow meter offerings

Oil and Gas, Petrochemical, Chemicals; Refining; Pulp & Paper
Mokveld Valves
http://www.mokveld.com/
Key Products
Axial control, on-off, check, surge relief and choke valves.
Angle choke valves, subsea Axial control valves and High Integrity Pres-
sure Protection Systems.
Regions
North America; Europe, Middle East & Africa; Asia; Latin America, CIS
Description
Mokveld Valves offers expertise and engineered valve systems for critical
control and safety applications in the Oil & Gas industry. The company’s
clients include the international Oil & Gas exploration and production
companies, large transmission pipeline and distribution grid operators, and
the engineering and contracting firms active in the Oil & Gas industry.
With a staff of over 300, Mokveld continues to grow.
Mokveld’s Research & Development department is equipped with state of

the art facilities and tools including: 3D computer aided design (CAD), 3D
finite element stress modeling (FEA), and computational fluid dynamics
modeling (CFX). The company aims to continuously improve its existing
products while developing new innovative products.
Mokveld’s policy is to manufacture all valves within strict quality stand-

ards. All valves manufactured by the company are subjected to body and
seat tests prior to shipment. Mokveld’s Quality Assurance department
takes full responsibility to ensure that all applicable customer contractual
requirements are fulfilled. Mokveld’s quality assurance program includes
all stages of sales, engineering, procurement and manufacturing.
Mokveld's quality system is in full compliance with ISO 9001 and API Q1
and has been audited and approved by all major oil & gas companies, engi-
neering contractors, and inspection authorities.
Mokveld’s valves help users in the Oil & Gas industry increase safety, low-
er emissions, lower noise levels, and increase efficiency and availability in
the field of production, treatment, and transmission of natural gas and
crude oil. Mokveld specializes in fast acting high reliability shut-off valves
for both upstream, transmission and downstream applications. The high
reliability of the Mokveld pressure balanced axial flow valve is reflected in
third party reports regarding the failure rate (both safe failures and danger-
ous failures) and the Probability of Failure on Demand (PFD) of its valve /
actuator assembly.
In close cooperation with the subsea integrators - Oceaneering, FMC and

Aker Solutions - Mokveld has developed and successfully qualified an 8” /
API 5.000 subsea axial control valve. The qualification program included
an API 6A PR2 test, endurance testing with 500.000 cycles and hyperbaric
testing simulating seabed conditions. Mokveld has already delivered two
valves for the Ormen Lange Subsea Compression and the Åsgard Mini-
mum Flow Qualification Projects for severe service anti-surge control
applications. The qualified axial valve design is suitable for subsea anti-
surge and separator control applications. In addition the valve design can
be used for subsea HIPPS applications as per API RP170.
Mokveld manufactures a complete assembly of valve / actuator, and if re-

quired, a pressure switch which is certified in accordance with DIN 3381 /
EN 14382. In these standards, the SSV is considered one functional unit
consisting of sensor / valve / actuator.
Mokveld’s axial flow valve design includes a streamlined flow path

through the full-port expanded body, which avoids turbulence and pre-
vents erosion and vibration. Mokveld has developed its Total Velocity
Management intelligent valve design that carefully manages fluid velocity
in all areas of the valve. The inherent capacity of Mokveld’s axial valve is
higher than a conventional globe valve, which enables the selection of
smaller valve size. Alternatively the higher capacity can be used to mini-
mize pressure loss. Accurate control is possible (also with minimum
opening) because of the pressure-balanced trim and full surround flow.
Small, spring-opposed actuators can be selected for large valve sizes. High
inherent capacity and accurate control features make the valve suitable for
applications that require high turndown providing one-valve solution for
the full process envelope. Streamlined flow path avoids turbulence and
therefore energy conversion in the valve body itself. The one-piece valve
body also provides 20 to 70 percent weight reduction compared to globe
valves. This feature is even more attractive combined with spring-opposed
actuators.
In addition to axial control valves, Mokveld is also experienced in provid-

ing ‘Engineered Valve Solutions’ complete with controls for a wide range of
high demanding applications. The control systems are designed in compli-
ance with customer specifications, to fulfill the functionality as required for

specific applications. This can be related to response times, failure modes,
instrument air or gas conditioning etc. In the case of a complete HIPPS-
system, the company’s solution includes Initiators (transmitters), Logic
Solvers, and Final Elements (valve/actuators). The Safety Integrity Level
(SIL) of the total system is verified by an independent Third Party.
Mokveld’s axial flow shut-off valve complete with the Mokveld spring re-
turn piston actuator was the first valve to receive TÜV Certification for use
as a Final Element in a Safety Instrumented System in compliance with
IEC61508, up to Safety Integrity Level SIL3.

Partnerships: Oceaneering, FMC and Aker Solutions for the development
of an 8” / API 5.000 subsea axial control valve.
Acquisitions: None to report

Strengths: In-depth knowledge of the processes and operating practices
utilized in the Oil & Gas industry; Familiarity with international standards
and design practices; Strong after sales and service capabilities; Custom
made solutions, Large valve sizes and high pressure ratings.
Challenges: Expanding beyond its traditional customer base in the Oil &
Gas industry; Lack of a true control system offering; Lack of asset manage-
ment solutions
Key Industries
Oil & Gas
Nakakita Seisakusho
http://www.nakakita-s.co.jp/
Key Products
Control valves, cylinder valve, regulating valves, solenoid valves, safety
valves, butterfly valves, Valve remote control system and Level gauging
system.
Regions
Asia
Description
Nakakita Seisakusho manufactures and sells valves and remote control sys-
tems for ships and power plants. Its products include automatic control
valves used in power plants, butterfly valves, valve remote control system
comprising cargo and ballast line control, remote level indication equip-
ment, and warning equipments for ships.
Established in 1930 to produce automatic control valves, the company has

continued to focus on the marine business as a total package supplier for
valves and remote control system. Besides the marine market, Electric
Power, Petrochemical, and Onshore industries are other areas of key focus
for Nakakita Seisakusho.
Though Nakakita’s main market continues to be Japan, the company is ac-

tively expanding into overseas markets. The majority of sales for Nakakita
go through the company’s direct sales force, but its distributor channel may
be gaining importance as the company attempts to increase its export sales.
Nakakita Seisakusho manufactures control valves, cylinder valve, regulat-

ing valves, solenoid valves, safety valves, and butterfly valves. The
company offers valves for use in a wide range of applications, including
high pressure, high temperature applications, cryogenic service, nuclear
applications, and pressure and temperature control of super-heated steam.
The majority of Nakakita Seisakusho’s valve business comes from new con-
struction projects in Japan, China, and the rest of Asia.
Nakakita’s special purpose control valves cater to high pressure, high tem-
perature, cryogenic service, nuclear, and steam conditioning applications.
The company’s pneumatic actuators comprise diaphragm and piston-
cylinder types; however, hydraulic and electric actuators are also available.

Partnerships: None Reported
Acquisitions: None Reported

Strengths: Large, loyal, customer base in Japan; Ability to offer solutions
for high temperature, pressure and cryogenic applications, General maker
of fluid control system with a central focus on valves;
Challenges: Successfully expanding beyond its traditional customer base in

Japan; Diversifying its customer base beyond its traditional customers in
the Marine industry;
Key Industries
Marine; Chemicals; Onshore; Electric Power
Nihon KOSO
http://www.koso.co.jp/en
Key Products
200, 300, 400, 500, 600, 700 Series
Regions
Asia; North America; Europe; Middle East; Africa; Latin America
Description
Nihon KOSO is a leading supplier of control valves to the Japanese and
overseas markets. The company manufactures both linear and rotary type
control valves. Flow and temperature sensors are also in its product line.
Since its establishment in 1966, KOSO's product line has encompassed a
wide variety of control equipment. In the 21st century, KOSO is focusing
more on the CVAP business.
Nihon KOSO’s manufacturing operations were severely impacted by the

natural disasters that occurred in northeastern Japan on March 11, 2011.
The materials and products in KOSO’s factory located in the Fukushima
area were damaged due to effects of the earthquakes. Furthermore, power
was not available in the region for quite some time following the earth-
quake. The infrastructure of the surrounding area was also significantly
impacted. KOSO was forced to delay control valve shipments as a result of
this situation.
Although Japan remains the company’s largest market, Nihon KOSO is ac-
tively investing in overseas markets. Selling through a business network of
service centers in North America, Europe, and the Middle East, exports
now account for a significant share of the company’s sales. Nihon KOSO
plans to continue establishing more service centers around the world.
Nihon KOSO relies heavily on partnerships with its customers as the major-
ity of the company’s sales go directly to end-users through its direct sales
force. While being well known for success in general applications, KOSO is
also successful in high temperature, high pressure applications exceeding
1000 degrees Fahrenheit or 2500 psi.
KOSO manufactures a broad range of control valves meeting all kinds of

requirements. KOSO offers valves with a trim made of cemented carbide
such as tungsten carbide, which enables the company to manufacture the
valves with long life and long reliability. KOSO also has a cladding tech-
nique to be applied to the castings manufactured in KOSO’s own foundries
in India and China.
Globe-style valves represent nearly one-half of the company's control valve

revenues. In severe service applications involving high temperature and
high differential pressure, KOSO's multi-stage trim is designed to provide
accurate control and long life, free from cavitation, erosion, and noise prob-
lems, whether the fluid is compressive or non-compressive. This Series'
improved durability allows maintenance cost reduction and system simpli-
fication. The improved durability of this Series also allows manufacturers
to avoid ancillary products such as diffusers and silencers, thereby helping
reduce overall equipment cost.
Ball-style valves also represent a significant portion of KOSO’s control

valve business. The company’s 210C: Concentric Segmental Ball Valves
(FLOWMAX C/Wafer) series is a concentric segmental ball valve for modu-
lating application. The valve’s V-notch cut at the disc increases rangeability
and creates a shearing effect by disc and seal ring. This rangeability makes
this valve suitable for large rangeability service including control of fluids
with fiber and/or slurry. The company’s 230C: Concentric Segmental Ball
Valves are the same as the 210C series except that the stem penetrates the
body and is supported by double gland packing. The stem's blow-out force
is set off in this construction, making it suitable to heavier services such as
high pressure, high temperature service because of heat expansion insula-
tion design stem. In addition, KOSO offers its Series 210E, Eccentric
Segmented Ball Valves, enabling it to cater to a wide range of modulating
applications.
Both pneumatic and electric actuators are available from KOSO. KOSO’s
pneumatic diaphragm actuators are compact, light, multi-spring actuators.
KOSO also offers electropneumatic and pneumatic positioners. The com-
pany’s EP1000 electropneumatic positioners comply with FF/HART
standards. With this Series, digital calibration provides easy and accurate
adjustments for inherent response characteristics, zero/span, etc. The unit
is mountable on both spring-return and double-acting actuators for either
rotary or linear action. Furthermore, KOSO offers its self-contained, elec-
tro-hydraulic actuators from Rexa and M-Mac. These airless units provide
the power and speed of hydraulics with the reliability and resolution of
CPU-mounted controllers in a compact, self-contained unit.

Partnerships: None relevant to control valves.
Acquisitions: Rexa/August 1993; Hammel Dahl/July 2002; M-Mac Actua-

tors/January 2007;Kent Introl/July 2005; Kent Introl Private/July 2005

Strengths: Strong presence in Japan’s Pulp & Paper, Mining & Metals, and
Chemical industries; strong relationships with existing customers; Ability
to provide control valves for a broad range of applications
Challenges: Successfully expanding its market presence beyond the Japa-

nese market; Increasing brand awareness; Increasing its service capabilities
Key Industries
Chemical; Oil & Gas; Refining
Rotork Controls
http://www.rotork.com
Key Products
IQ; IQT; A; AWT; Q; ROM; RBM; RCEL; CP; GP; GH; P; H; RP; RH; R; LP;
LH; SKILMATIC; EH; CVA; GPSA; LA; SM; PAKSCAN
Regions
North America; South America; Europe; Middle East; Africa; Asia, Austral-
asia.
Description
Rotork is a leading supplier of heavy-duty electric actuators, fluid power
actuators, manual valve gearboxes, mounting kits and accessories. Its RPC
(Rotork Process Controls) division provides process control actuators. Ro-
tork Controls maintains a presence in the US through a network of
factories, offices and agents. In addition, Rotork has an Electrics and Fluid
Power production facility in Rochester, New York. This facility deals with
inquiries for electric and fluid power actuators and systems received from
Rotork’s network of distributors. The production center is fully equipped
to design and fabricate appropriate actuation packages, while providing
support for service, spare parts, and maintenance. Rotork also has offices
and representatives located throughout Europe, North and South America,
Africa, Asia, Australia, and the Middle East.
Rotork’s strategy in recent years has focused on opportunities to leverage

its leadership position in heavy duty electric actuation into other closely
associated areas of valve automation. Key programs in this strategy in-
clude development of new products and control systems, marketing
initiatives, creating service revenue opportunities, and driving cost reduc-
tions relating to these businesses. The most important current product
initiative for the company is the launch of its range of actuators, the CVA,
aimed at the process control market.
The Rotork CVA range of actuators provides continuous, repeatable modu-

lating control with a programmable fail to position option. Operating on an
industry-standard 4-20mA control signal or digital bus, the CVA provides
high resolution repeatability and low hysteresis, making it suitable for de-
manding applications. CVA actuators are available for the direct-drive
actuation of linear or quarter-turn control valves. Mechanical features of
the CVA include Rotork’s ‘double-sealed’ enclosure, whereby internal elec-
trical components are protected from the effects of the operating atmos-
phere. The IP68 dust tight, watertight and temporarily submersible (7
meters, 72 hours) enclosure is universal to all models in the CVA range, in-
cluding those with hazardous area approvals.
The CVA utilizes a new variant of Rotork’s ‘non-intrusive’ communication

technology for actuator programming and adjustment. Actuator set-up and
configuration is performed using a Bluetooth enabled PDA or PC running
Rotork Enlight software which is freely downloadable from the Rotork
website. Every CVA incorporates an onboard data logger, enabling opera-
tional data such as valve torque profiles, dwell times, actuator events and
statistics to be downloaded for detailed investigation and diagnosis. After
analysis, any required configuration changes can be uploaded into to the
actuator.
Digital control bus connectivity options for the CVA initially include Hart,
Profibus and Foundation Fieldbus protocols, , which , as well as the normal
control communications capability provides the CVA an increased ability to
dovetail into existing asset management systems. The all-electric CVA de-
sign also simplifies the process of retrofitting actuators onto existing valves.
Rotork’s specialist Site Services organization is available on a global basis to
provide comprehensive support in these areas, from advice and surveys to
installation and commissioning.
Rotork’s broad offering of actuators target valve, sluice gate, and damper
applications, and they use a unique double-sealed enclosure designed to
improve reliability in harsh environments. Rotork’s actuator product line
focuses on all size valves with diameters of ½ inch to 48 inches or larger for
use in the Oil & Gas, Power, and Water & Wastewater industries.
In these sectors Rotork has pioneered intelligent electric actuation with non-
intrusive data communication for commissioning, data logging and diag-
nostics. Rotork’s Pakscan two-wire digital bus control system is entirely
dedicated to the valve actuation operating environment, and as such has
become widely specified. Starting with site trials in 2009, Rotork has ex-
tended the capabilities of its Pakscan digital control system with the
addition of a wireless option. The modular nature of the latest Rotork
Pakscan P3 master station now allows manufacturers to have the choice of a
fully wired loop for control and monitoring, a fully wireless control and
monitoring system or wired control with wireless monitoring.
Utilizing the internationally accepted 2.4GHz frequency the Pakscan P3

wireless network card gives manufacturers access to all the standard data
available from the wired Pakscan system, together with the diagnostic and
asset management information stored by Rotork actuator data logger and
configuration files. It allows easy extraction of these files, which up until
now have only been downloadable locally, using hand held tools. The
wireless system also increases the available actuator count of each master
station to 300, and has a line-of-site operating range of approximately 70
meters indoors and 1000 meters outdoors. The use of meshing and repeat-
ers further increases the range to individual field units.
To provide robust on-site communications, the wireless option operates a

meshing system which will ensure that all nodes have the facility of at least
two routes back to the master station. If the normal traffic route is blocked,
the network will find another way to route the messages. This self-healing
network complements the loop-back capabilities of the established Pakscan
two-wire loop, and therefore makes it an ideal addition to the Pakscan
range. Along with the existing in-built security features of the Pakscan P3
system, the security of data over the air is ensured by using encryption fa-
cilities. Pakscan P3 wireless offers simple access to asset management
information. Built in web pages make it possible to extract actuator data
logger and configuration files from the control room.
In 2010, Rotork announced the acquisition of Ralph A. Hiller Company Inc.

(Hiller), a designer and manufacturer of nuclear actuators and distributor
of related products based in Pittsburgh, Pennsylvania, United States. The
total consideration for the acquisition of the entire issued share capital and
facility of Hiller is $7.8 million payable in cash. Hiller’s financial year end
accounts for the year ended 30 September 2009 showed turnover ofUS$14.6
million and profit before tax of US$421,000. Hiller, who designs and manu-
factures pneumatic and hydraulic nuclear actuators, sits within Rotork’s
Fluid Systems division and provides the group with a range of additional
complementary nuclear products which will be sold through existing sales
channels and Rotork’s worldwide network of sales offices. This acquisition
supports Rotork’s strategy of expanding its nuclear capabilities.

Partnerships: None relevant to control valves
Acquisitions: Remote Control Sweden AB (RCS)/January, 2008; FLOW-

QUIP CONTROLS/December, 2009; Ralph A. Hiller Company Inc./May
2010

Strengths: Strong product knowledge of electric, hydraulic, pneumatic,
electro hydraulic actuators, and gear boxes; Strong position in the global
valve actuator market; Ability to work with any valve vendor or OEM
without prejudice
Challenges: Maintaining a leadership position and technological edge in

the valve actuator market; Improving its brand-name awareness as a pro-
cess control actuator supplier; Lack of a valve offering, which largely limits
its business to OEMs.
Key Industries
Oil & Gas; Refining; Electric Power; Chemical; Water & Wastewater; Re-
newable Energy
SAMSON
http://www.samson.de/enindex.htm
Key Products
Valve Series 240, 250, 280, V2001, Smart valve controller series 3730
Regions
EMEA, Asia
Description
In 2007, SAMSON celebrated its 100th year of supplying instrumentation
and controls. The company’s expertise extends from heating and air-
conditioning technology to industrial applications in the world’s largest
chemical and petrochemical plants. SAMSON’s specialty is the controlled
flow of vapors, gases, liquids, and chemicals. The company’s product line
comprises control valves for process engineering and building automation,
auxiliary equipment and systems; self operated regulators, and controllers
and automation systems.
Although SAMSON is typically associated with the German market, the

company has established a strong global presence consisting of 50 mostly
independent subsidiaries and over 120 representatives or sales offices.
Production facilities, which develop and produce special products for re-
gional markets, are located in several European countries, as well as in
Japan, China, India, and the US.
SAMSON’s equipment is sold worldwide to producers of plastics, chemi-

cals, pharmaceuticals, food, petroleum products, and paper. The company
feels its experience gathered over almost a century is a key differentiator for
the company and forms a solid basis to provide solutions for any challeng-
ing application. SAMSON feels the cooperation of its Research and
Development, Design and Production departments, practical engineering
and the company’s continuous dialog with customers are other key differ-
entiators between itself and its competitors.
SAMSON owes its strong global market position largely to its leading posi-
tion in the Western European valve market, particularly the German
chemical market. Proven low lifecycle cost of its products has provided
SAMSON with a large and loyal customer base for decades. SAMSON’s
long history and strong brand awareness throughout Western Europe, par-
ticularly Germany, practically ensures the company will continue to have a
strong local customer base going forward. The loyalty of SAMSON’s em-
ployees, whose average length of service exceeds 30 years, is another
strength enjoyed by the company. The ability for SAMSON to successfully
develop, and retain, highly skilled control valve specialists is key to the
company’s success.
Realizing the weakness inherent in its historical dependence on the Western

European market, SAMSON is making efforts to expand its global presence.
Of prime importance for the company is the export of SAMSON products
and expertise. SAMSON is particularly eager to increase its market pres-
ence throughout Asia, the Middle East, and North America. To achieve this
goal, SAMSON has developed a full product line that conforms to ANSI
and JIS standards. As a result of these efforts, SAMSON has enjoyed signif-
icant success in expanding its presence in international markets over the
past few years, especially in oil and gas applications and alternative ener-
gies like Ethanol, tar sands and bio fuels.
To further expand its presence in other markets, most notably Asia, SAM-
SON has adopted a strategy of being “close at hand for customers across
the world”. To achieve this, SAMSON has established manufacturing op-
erations in China, France, India, Italy, Turkey, and the US, and valve
service centers in Europe, America, and Asia in the proximity to key-
accounts. SAMSON recently established new production facilities in India,
significantly increasing the company’s capacity. Although the Chemical
industry and the Oil & Gas market have been ordering large quantities of
SAMSON control equipment through German engineering companies for
years, the company has put itself in a better position by offering complete
solutions as a Main Valve Vendor in co-operation with its group members
AIR TORQUE, LEUSCH, Pfeifer, Samsomatic, STARLINE, and VETEC.
In recent years SAMSON has instituted a strategy to establish strategic alli-

ances with companies that best complement its product range. SAMSON
has formed affiliations with a series of companies also active in the field of
valve engineering, but specializing in the production of different valves
from those manufactured at SAMSON’s facilities.

Partnerships: AIR TORQUE/Pneumatic actuators Double acting and
Spring Return; LEUSCH/Butterfly valves & ball valves; PFA and PTFE-
lined globe valves; SAMSOMATIC/Solenoid valves and limit switches;
STARLINE /Forged steel ball valves; VETEC Ventiltechnik/Rotary plug

valves
Acquisitions: None relevant to control valves

Strengths: Strong domain expertise; Innovative products; Strict quality
standards; large and loyal customer base
Challenges: Continuing to expand its presence beyond its traditional West-

ern European markets; Lack of transmitter and flowmeter products; Lack of
control system offerings for industrial applications
Key Industries
Chemical; Semiconductors; Food & Beverage; Machinery Manufacturing;
Mining & Metals; Oil & Gas; Refining; Plastic & Rubber; Pharmaceuticals &
Biotech; Textiles
Siemens
http://www.ad.siemens.com
Key Products
SIPART
Regions
EMEA, North America, Asia
Description
Siemens AG, headquartered in Munich, Germany, is a major global auto-
mation supplier with activities focused on the areas of industrial and
infrastructure, energy, and healthcare. In fiscal year 2010 (ended Septem-
ber 30), the company had 405,000 employees in 190 countries and revenue
from continuing operations of €76 billion, roughly the same as the previous
year. In 2008, Siemens regrouped its business into three operating sectors:
Industry, Energy, and Healthcare. The Industry sector and its products and
solutions address industry customers, and it is made up of six divisions:
Industry Automation, Drive Technologies, Building Technologies, OSRAM,
Industry Solutions, and Mobility.
The range of offerings at the Industry Automation and Drive Technologies

divisions extends from standard products to system solutions for energy
and automation technologies used in the manufacturing and processing
industries. These divisions are responsible for the design and production of
a wide range of industrial automation products, including PLC, CNC, DCS,
industrial PC, electric drives, as well as an array of supporting software and
peripheral products, including low voltage products, communications
products, and programming and operational software. Drive Technologies
offers products and solutions for industry ranging from motors and electric
drives to mechanical components including gearboxes.
The Building Technologies division bundles Siemens’ offerings for building

security, automation, and operation – both as a service provider and a
manufacturer of products and systems. Osram’s product portfolio includes
lamps and optoelectronic semiconductor light sources, such as light-
emitting diodes, related electronic control systems, and light management
systems. The Industry Solutions division is a systems and solutions inte-
grator for the industrial plant market, covering everything from planning to
construction and operation. The Mobility division networks a wide array
of transportation systems to move people and goods efficiently.
The Energy sector primarily addresses energy providers, but also industrial
customers, particularly in the Oil & Gas industry. The Fossil Power Gener-
ation division offers highly efficient products and solutions for power
generation based on fossil fuels. Offerings range from individual gas and
steam turbines and generators to power plant construction on a turnkey
basis. The Renewable Energy division bundles Siemens’ activities in the
wind energy market. The Oil & Gas division offers products and solutions
for the extraction, transport and conversion of oil and gas. The Power
Transmission division is a leading supplier of products and solutions in the
high-voltage field. The specialties of the Power Distribution division range
from solutions for the automation of power grids to products like medium-
voltage switchgear and components.
Siemens’ SIPART PS2 valve positioners find use on linear and rotary con-
trol valves and single & double acting actuators. Built-in LCD and three
push buttons enable local operation of this device. SIMATIC PDM software
enables remote control and monitoring by a PC or laptop. In addition to its
SIPART positioners, Siemens supports Moore Products’ positioners.

Partnerships: : eMeter for the sale and implementation of eMeter’s Ener-
gyIP meter data management software; Fluor Corporation for risk
minimization and the acceleration of planning and implementation pro-
cesses for major projects; CADCenter BV, for PLM Software solutions
Acquisitions: Elan Software Systems SA/April 09; innotec GmbH/August

08; Bridges Electric/January 07.

Strengths: The company's ability to mass produce control-related hard-
ware in a highly profitable fashion; Broad automation portfolio; Strong
global presence including the developing markets of India, China, and Rus-
sia.
Challenges: Growing its installed base outside of its traditional European

market in North America, Asia, and Latin America; Maintain its strong po-
sition in the developing markets of China, India, and Russia; Successfully
maintain a technological edge in the intelligent valve positioner market

Aerospace & Defense; Automotive; Cement & Glass; Chemical; Household
& Personal Goods; Electronics & Electrical; Semiconductors; Food & Bever-
age; Machinery; Medical Products; Mining & Metals; Oil & Gas; Refining;
Plastic & Rubber; Pharmaceutical & Biotech; Electric Power; Pulp & Paper;
Textiles; Water & Wastewater.
SPX Flow Technology

http://www.spxft.com/
Key Products
APV, Lightnin, Bran+Luebbe, Hankison, Copes-Vulcan, Airpel, GD Engi-
neering, M&J Valve, Plenty Filters, Plenty Process Filtration brands
Regions
North America; Europe, Middle East & Africa; Asia; China; Latin America;
India
Description
SPX Corporation has aligned the company around three dynamic and stra-
tegic global growth markets: global infrastructure, process equipment, and
diagnostic tools. To expand its global footprint, SPX has undertaken sever-
al significant acquisitions and divested some non-core businesses. To
continue global growth, SPX is also better leveraging distribution channels,
increasing new product development efforts, introducing a broader array of
environmentally friendly solutions, and identifying strategic acquisitions to
build on existing core businesses. As of December 31, 2010, SPX Corpora-
tion had approximately 15,500 employees, and reported revenues were $4.9
billion.
The SPX Flow Technology segment designs, manufactures and markets

products and solutions that are used to process or transport fluids, remove
moisture and contaminants from air as well as solutions and products that
are used in heat transfer applications. Flow Technology focuses on innova-
tive, highly-engineered new product introductions and expansion from
products to systems and services in order to create total customer solutions.
Its primary products include high-integrity pumps, valves, heat exchang-
ers, fluid mixers, agitators, metering systems, filters, process systems and
dehydration equipment.

Partnerships: None reported
Acquisitions: APV/October, 2007, Gerstenberg Schröder/ February, 2010

Strengths: Diverse product portfolio; increased technical capabilities
through acquisition and expanded global presence by region; robust inno-
vation and new product development platform
Challenges: Lack of brand awareness as a leading global supplier of con-

trol valves; Lack of control system and PAM offerings
Key Industries
Food & Beverage, Chemical; Water & Wastewater; Mining & Metals; Ship
Building; Pulp & Paper; Oil & Gas; Electric Power
Tyco Flow Control

http://www.tycoflowcontrol.com
Key Products
Control valve offerings include: control valves (Keystone, Sempell, KTM,
Vanessa), actuators (Keystone, Morin, Biffi), and associated controls (West-
lock, Biffi, Avid)
Regions
North America; Latin America; Europe, Middle East & Africa; Asia-Pacific
Description
Tyco International (NYSE: TYC), founded in 1960, is a diversified, global
company that provides vital products and services to customers in more
than 60 countries. Tyco is a leading provider of security products and ser-
vices, fire protection and detection products and services, valves and
controls, and other industrial products.
Tyco Flow Control (TFC), a unit of Tyco International Ltd., is a leading

global manufacturer and marketer of valves and controls, water and envi-
ronmental systems, and heat management solutions to vital industries
including Energy, Power, Water, Mining, Chemical, Food & Beverage, and
Construction.
TFC designs, manufactures, sells, and services valves, pipes, fittings, valve
automation, and heat tracing products for the Water & Wastewater, Oil &
Gas, Power, Mining, and other general process industries. The division op-
erates with three lines of business: Tyco Valves & Controls business focuses
on flow management; Tyco Water & Environmental Systems addresses wa-
ter and environmental issues; while Tyco Thermal Controls concentrates on
heat management. At the core of all successes is its ability to provide a
suite of flow management, water, environmental systems and heat man-
agement solutions.
TFC delivers an extensive suite of flow management solutions. Product-

offerings include ball valves, butterfly valves, control valves, check valves,
gate valves, globe valves, instrumentation, knife gate valves, pressure and
safety relief valves, rotary process valves, sampling valves, electric actua-
tors, pneumatic actuators, hydraulic actuators, actuator positioners and
actuator controls.
TFC’s control valve and associated products include Sempell Severe Service
used in power generation, as well as a range of rotary control valves used
for high performance throttling or on/off operation. TFC also offers one of
the most complete lines of pneumatic, hydraulic and electric quarter turn
actuators as well as positioners and controls.
TFC is also capable of offering customers aftermarket services, which in-

clude testing, asset management, value engineering, repair, spare parts,
retrofits, replacement upgrades, remanufacturing and final disposal. With
more than 100 sales offices and 50 service centers globally, TFC is commit-
ted to providing local expertise to customers anywhere in the world.
In December, 2009, Tyco International announced that its Flow Control

business had acquired two Brazilian valve companies in a move to expand
its product and service offerings in Brazil and South America. As part of
this transaction, Tyco Flow Control acquired Hiter Industria e Comercio de
Controle Termo-Hidraulico Ltda (Hiter), a leading privately-held Brazilian
valve manufacturer, and took full ownership of an existing joint venture
that Tyco Flow Control had with Valvulas Crosby Industria e Comercio
Ltda. The two businesses had combined revenues of approximately $66
million in 2008. These acquisitions represent an important step to further
strengthen Tyco’s Flow Control business in Brazil by allowing the company
to provide an expanded suite of products and services. These acquisitions
will enhance Tyco’s local manufacturing presence and service capabilities
in South America.
In March 2011, Tyco International announced it had signed a definitive

agreement to acquire a 75 percent equity stake in privately-held KEF Hold-
ings Ltd. for approximately $300 million in cash. Based in the United Arab
Emirates, KEF is a fully integrated valve manufacturer and one of the
world’s leading providers of steel castings to the Oil & Gas, Chemical, Min-
ing, and Power industries. This acquisition provides Tyco Flow Control
with a strategic manufacturing presence in the Middle East region while
broadening our product portfolio for customers around the world. The ac-
quisition enables Tyco to better serve customers doing business across the
region by drawing on the strengths and experience of the KEF team in the
areas of design, manufacturing and service. The move significantly en-
hances Tyco’s footprint in the region and provides the company with a
platform for future growth and expansion. KEF has 900 employees with
revenue expected to be approximately $140 million in the 2011 calendar
year. The business is 55 percent owned by Kottikollon who will retain a 25
percent equity stake in KEF following the close of the transaction. Dubai
International Capital (DIC) holds the remaining 45 percent of KEF and will
sell its interest in the business as part of this transaction.
In June 2010, Tyco Flow Control opened its Advanced Nuclear Testing &
Development Facility, one of the largest testing facilities of this type in the
world, in Mansfield, Massachusetts. The $25 million facility provides cut-
ting-edge testing and manufacturing capabilities and is designed to help
meet the world’s growing nuclear power generation needs. Tyco Flow
Control’s investment in this facility helps ensure the company’s ability to
provide a full range of critical flow control safety-related products. Prod-
ucts manufactured at the facility include: main steam safety valves,
pressurizer safety valves and relief valves; and services, including engineer-
ing, design, inspection, machining and testing. The facility’s advanced
technology includes a range of steam test facilities that can test the full line
of pressure relief products on steam, air and liquid. In addition, the facili-
ty’s testing capabilities enable Tyco Flow Control engineers to perform
testing for other manufacturers who lack equivalent ASME Nuclear Com-
ponent Certifications.

Acquisitions: March 2011: KEF Holdings; December 2009: Tyco Flow Con-
trol acquired the Brazilian control valve supplier Hiter along with the
existing joint venture Tyco Flow Control had with Valvulas Crosby Indus-
tria e Comercio Ltda.

Strengths: Highly-recognized brand names with deep industry experience;
Broad portfolio of highly engineered valves, actuators, controls and associ-
ated services; Sales & service locations across the globe; Strong global
project execution capability.
Challenges: Successfully consolidating its broad portfolio of control valve

products; Establishing synergy between its many valve companies; Com-
peting successfully against companies more well-known in the Control
Valve market
Key Industries
Power, Oil & Gas, Chemicals, Mining, Food & Beverage, Water &
Wastewater, Process Industries
Yamatake
http://www.yamatake.com
Key Products
AGVB, AGVM, ADVB, ADVM, AVP300 series, AVP200 series, AVP100 se-
ries, AVP80 series, HAF, HAH, HLS, HLC, VBL, SVX, VFR, VSM, VST;
Control Valve Maintenance Support System Valstaff
Regions
Asia
Description
With the celebration of the company’s 100th anniversary in 2006, Yamatake
announced a new Group philosophy, “to realize safety, comfort and ful-
fillment in people’s lives and contribute to the global environment through
‘human-centered automation.’” This philosophy indicates the new direc-
tion the company will use to develop its businesses for the next generation.
In addition, the company also created a new name, azbil (Automation Zone
Builder), to represent this new philosophy. azbil provides solutions for
process, building, and factory automation. With manufacturing facilities
worldwide supported by R&D centers, azbil is a pioneer in developing new
technologies in the field measurement and control market. Although the
Yamatake name is still in use, the company has announced it will formally
change its name to “Azbil”, to consolidate and strengthen the “azbil”
brand, on April 1, 2012. Along with the name change to Azbil Corporation,
the names of Group companies in Japan will also change; Yamatake Shokai
will become Azbil Trading, and Kimmon Manufacturing will become Azbil
Kimmon.
As the core of the azbil Group, rooted firmly in “measurement and control”
technologies, Yamatake pursues “human-centered automation,” which
aims to contribute to people’s safety, comfort and fulfillment as well as the
global environment. Yamatake provides solutions for process, building,
and factory automation. With worldwide manufacturing facilities support-
ed by R&D centers, Yamatake is a pioneer in developing new technologies
in the field measurement and control market. The company is expanding
its automation and controls sales globally.
Yamatake is focusing on developing markets in Asia to overcome sluggish

demand in Japan and for its future business growth. This includes the es-
tablishment of overseas affiliates in India, Brazil, China, and the
Philippines. While the company has set up subsidiaries in various Asian

countries, it has identified China, Korea, Taiwan, and Thailand as priority
markets for future growth.
To further promote its capabilities overseas, Yamatake has launched its

global azbil evolution program (AEP) aimed at the continuous enhance-
ment of the customers' entire operating plant systems (including control
valves, field instruments, distributed control systems, and operation sup-
port systems) in order to make the maximum use of existing systems. This
program supports long-term stable operation for existing plants by using
an incremental development approach, and is being offered to customers
worldwide. Existing plants which are using services of the azbil Group are
candidates for the program.
To support long-term stable operation for customers, Yamatake has already

opened valve maintenance centers that provide control valve maintenance
services in China, Thailand, and Taiwan. In addition to existing affiliates in
China, South Korea, and ASEAN-member countries, the Asia Solutions
Center has been established in Thailand as a pioneer provider of system
solution services worldwide, enhancing support for Asia customers. Yama-
take is planning to increase its personnel to 300 in the next 4 years for Asian
affiliates that offer maintenance services. In addition, the company estab-
lished a Middle-East office 2 years ago, an Abu Dhabi office last year, and
an affiliate in India this April. A new affiliate will be established in Brazil
this summer. In addition, to increase business opportunities for Yamatake
personnel to have contact directly with major overseas customers, Yama-
take will beef up its face-to-face business with major oil suppliers in the
Middle East, and try to increase its sales horizontally by sharing best prac-
tices with major local companies. With these measures, Yamatake aims to
double its overseas sales in industrial markets to 30 billion yen by 2013.
Yamatake has more than six decades of experience in valve manufacturing.

The company pioneered microprocessor-based valve positioners and later
developed one of the market’s first Fieldbus valve positioners with diag-
nostic capabilities.
With one of Asia-Pacific's largest valve manufacturing facilities in Shonan,

near Tokyo, Yamatake is in a position to provide a broad range of control
valves. Yamatake’s CVAP product portfolio comprises single seated
valves, cage-type and double seated valves, angle type valves, eccentric ro-
tary, butterfly and three-way valves, special purpose valves, motorized
valves, pneumatic actuators, positioners, and accessories. Yamatake’s main

control valve products, such as model AGVB/AGVM single seated valves
and smart valve positioners, are delivered from the Dalian factory.
In May, 2011, Yamatake announced its InnovativeField Organizer, a device

management system which, when used with HART and FOUNDATION
fieldbus compliant related products, can achieve more efficient instrumen-
tation maintenance, improving plant safety and productivity.
InnovativeField Organizer executes integrated monitoring, diagnostics, and
settings adjustment for the numerous control valves and measuring devices
used in a production facility, such as an oil refinery or a chemical plant,
particularly in process automation. Working with related products, Inno-
vativeField Organizer provides the following benefits.
• Shorten the time required for routine maintenance by improving the

efficiency of field device inspection such as loop checks before plant
startup.
• Minimize losses caused by device failure for providing real-time re-
ports on device status.
• Ensure that maintenance expenditures are appropriate by continuous
monitoring of trends in field device status.
• Unify the interfaces for device adjustment and configuration by
FDT/DTM technology.
• Effective maintenance for control valves.

Acquisitions: BioVigilant Systems / May, 2009; Kimmon Manufacturing /

April, 2008

Strengths: Expertise in systems integration and applications for a variety
of industrial processes; Ability to conduct total turnkey solution with a
broad range of industrial automation products; Strong presence, installed
base, and customer loyalty in its home market of Japan
Challenges: Expanding its market presence beyond its local market of Ja-
pan; Becoming a single source vendor for its customers; Diversifying itself
beyond its traditional customer base in the Chemicals and Petrochemicals
industries
Key Industries
Chemical; Refining
Yokogawa Electric
http://www.yokogawa.com
Key Products
YVP110, PK200, ValveNavi
Regions
North America; Europe, Middle East & Africa; Asia; Latin America
Description
Yokogawa Corporation, founded in 1915, is a global manufacturer and
supplier of instrumentation, process control and automation solutions. The
company maintains one of the most diversified product portfolios in the
process measurement and control business worldwide. The bulk of Yoko-
gawa's automation business consists of process automation systems and
related services. Yokogawa is also one of the world's leading suppliers of
process field instrumentation, including pressure transmitters, temperature
transmitters, flowmeters, and recorders. Other major segments of Yoko-
gawa's business include test and measurement equipment and aerospace
products.
Yokogawa operates through three main divisions: Industrial Automation,

Measurement, and New and other businesses. The Industrial Automation
Business Division offers analytical instrument products, control systems,
data acquisition systems, field instruments, and safety shutdown manage-
ment systems.
Yokogawa has come a long way in making its message clear to the world of
process automation. To make customers aware of Yokogawa’s focus on
system reliability, security, dependability, and robustness, the company ran
two full-scale global marketing campaigns, one dubbed “Vigilance” stating
Yokogawa’s commitment, and the other called “VigilantPlant” to define the
customer’s ideal plant.
VigilantPlant is Yokogawa’s automation concept aiming to overcome cus-

tomer’s challenges and to help customers achieve safe, reliable, and
profitable operations. Together with customers, the company tries to build
an open environment that helps customers to be watchful and attentive so
that their business can respond to change quickly and efficiently delivering
non-stop production, while confidently expanding their capabilities into the
future. Both Vigilance and VigilantPlant campaigns created a unified mes-
sage for the company and customers, which helped to expand awareness of
the company’s brand and corporate philosophy. Through those activities,
Yokogawa successfully communicates their vision of reliability and quality
to the worldwide market.
In February 2010, Yokogawa announced the release of its VigilantPlant Ser-

vices, the first-ever comprehensive package of automation service solutions
that help manufacturers achieve safe, environmentally friendly, and profit-
able plant operations in line with the Yokogawa VigilantPlant concept. The
company’s reorganization of its operational and consulting services busi-
ness under the VigilantPlant Services name is based on the belief that
manufacturers require a comprehensive package of services and solutions
to support their continuous improvement activities throughout the plant
lifecycle. There are three basic types of VigilantPlant Services:
• Opportunity Identification Services

• Solution Implementation Services
• Lifecycle Effectiveness Services™
Yokogawa’s VigilantPlant Services go beyond the scope of conventional

consultation services to address the sustainability of improvement initia-
tives. The program includes the actual training of customer engineers in
understanding the methodology behind these improvements. Yokogawa
also pays careful attention to the quality and reliability of its automation
platforms. Toward this end, Yokogawa has implemented a variety of quali-
ty management measures in our VigilantPlant Services.
• VigilantPlant Services Benefits

• Compliance with HSE standards
• Maximum asset availability
• Optimal plant productivity
Yokogawa has more than 40 years experience in the development, design

and manufacture of valve positioners and converters. The company’s
YVP110 Advanced Valve Positioner is a digital valve control device that
controls valve pneumatic actuators in response to commands from a
fieldbus control system. The device is designed to minimize transmission
lag, improve valve characteristics and response, and reduce flow-pressure
variation effects by utilizing the benefits of the FOUNDATION fieldbus
protocol and the company’s ValveNavi software tool.
ValveNavi is a utility program that helps users interactively set up, tune,
and maintain the YVP110 fieldbus positioners. This software runs under
MS Windows and communicates with the YVP110 over a Fieldbus network.
ValveNavi is also available as application software for Plant Resource Man-
ager (PRM). Using ValveNavi, all required parameter settings, such as
actuator type selection, auto-tuning selection, and zero/span adjustment,
can be done via a computer. A Setup Wizard is available for first-time us-
ers who wish to be guided through the basic setup procedures one step at a
time. ValveNavi applications include configuration, calibration, trend dis-
play, diagnostics, file management, and report generation.
The Model PK200 Current-to-Pneumatic Converter is used mostly to actu-

ate diaphragm operated valves, air cylinder operated valves, power
cylinders or other terminal elements. Beside these, it is used as a simple
signal converter in hybrid instrumentation comprising electronic and
pneumatic instruments.

Partnerships: Shell Global Solutions to co-develop advanced process con-
trol solutions using Shell’s APC technologies; Gas Arabian Services joint
venture in Saudi Arabia ; Flowserve, Dresser Masoneilan, Samson, and
Metso as vigilant integration partners.
Acquisitions: Analytical Specialties/ April 08

Strengths: Strong position in domestic and Asian markets; The company’s
position as a leading supporter of digital fieldbus control systems and FDT;
Plant Resource Manager (PRM) and Fieldmate; VigilantPlan's success in
making the company's message clear to the world of process automation
Challenges: Maintaining a balance between core products and the new

products required to reach the goals laid out in the company's detailed
roadmaps; Lack of valve and actuator products to offer; Sustaining the con-
sistent growth rate necessary for the company to reach its stated goal of
becoming the number one supplier for the process automation marketplace
worldwide by 2010
Key Industries
Chemical; Oil & Gas; Electric Power
Appendix A
Appendix A:
Methodology
Over the past two decades, ARC Advisory Group has become the leader in
providing in-depth and accurate market intelligence for the industrial au-
tomation marketplace. From the beginning, our corporate goal has been
total client satisfaction. We have continuously strived to refine and im-
prove 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 mar-
ket 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 market-
place.
ARC uses a five step approach to conduct global market research for the
industrial automation marketplace. 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 con-
tains a brief description of how we conduct each of these five steps.
Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only • A-173
Appendix A
Step 1: Client Inputs and Secondary Search

ARC started this 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 a proprietary database on the industrial automation mar-
ketplace. This database provides our staff with a solid base to start their
research project. The database includes the following information on sev-
eral thousand companies:
• Annual Reports
• 10K and other Financial Reports
• Client Lists
• Price Lists
• Published Secondary Data on Companies and Products
• Market Size and Forecast Data
• Market and Technology Trend Data
Literature Search and Review

ARC subscribes to over 150 magazines and newspapers covering a wide
range of topics relevant to the industrial automation community, as well as
an extensive library of directories and books. We are on the news and
product release mailing lists of every key user and supplier in the market-
place today. We sort and file important news and articles for future use.
We research and analyze our in-house database and the prominent publica-
tions relevant to this study to identify:
• Issues of interest pertaining to the study

• Product and technology trends in the industry
• Changing user needs
• Manufacturer's products and key individuals within the study's scope
Sales and Financial Literature Requests

ARC requests capability brochures, catalogs, data sheets, application notes,
and price lists from all known or potential manufacturers and suppliers of
products pertinent to a study. We also request the following financial re-
ports when needed:
• Annual reports
• 10K statements
A-174 • Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only
Appendix A
• Prospectus and investment analyses
Our studies evolve rather than being forced. This assures you that the re-
sults are accurate, up-to-date, and meaningful.
Step 2: Identify Key Issues

After discussions with clients and a careful review of all secondary infor-
mation, ARC developed a list of key issues concerning both users and
suppliers. In terms of elapsed time, ARC spent several weeks discussing
issues pertinent to this study with the leading suppliers. We also capital-
ized on information contained in our previous market research reports and
seminars on process control.
Step 3: Gather Primary Data

Supplier Survey and Interviews
First, we conducted a top down analysis of the leading suppliers' products
and various businesses in order to get a better understanding of the global
business environment. Then we conducted telephone interviews with key
individuals at all major suppliers. Where possible or necessary, we inter-
viewed more than one person at each company to verify the accuracy of the
information. We interviewed individuals typically engaged in one of the
following functions at these companies:
• Product management
• Marketing management
• Product planning
• Sales management
Automation Profiles of the Leading Edge OEMs and

Manufacturing Companies
ARC has compiled automation profiles of the leading edge OEMs and
manufacturing companies. Some highlights of the information that is in-
cluded in these profiles are:
• Plant automation budget of the company and how it is likely to change

over the next five years.
• Open systems implementation plans and preferences of the company.
• What the top automation priorities are for the company and what por-
tion of the budget is likely to be spent on control systems, sensors,
computers, software, and systems integration.
Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only • A-175
Appendix A
• Enterprise-wide integration plans and strategies of the company by ge-

ographic region.
• Company preferences for different types of control systems, computers
and software.
Step 4: Data Analysis
We organized and entered all gathered data into a computer database. The
data was 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 prepared preliminary market forecasts.

At this time, we considered many alternative scenarios and tested them
against some key criteria. Finally, we chose the most accurate scenario.
Step 5: Prepare Final Report

After finalizing market forecasts, we drew charts and graphs to get further
insight into user needs and wants. We spent a considerable amount of time
and effort to draw conclusions and sort out long-term trends from fads. Fi-
nally, after we considered many different strategic alternatives, we
developed recommendations for the industry participants.
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 the industrial automation marketplace.
• Our staff members do all our research work. The ARC staff has first-
hand industry knowledge and experience. Our staff's average level of
industry experience is over twenty years.
• ARC actively solicits inputs from suppliers and users throughout the
duration of a project.
• Our experienced staff conducts all interviews - not someone with abso-
lutely no knowledge of the industry.
• 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 automat-
ed resources.
A-176 • Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only
Appendix B
Appendix B:
Common Industry Abbreviations
3PL 3rd Party Logistic

3PP 3rd Party Parts Provider
3PS 3rd Party Service Provider
4GL Fourth Generation Language
A/D Analog-to-Digital
ABC Activity Based Costing
ACM Abnormal Condition Management
ActiveX Object-Oriented programming language for Internet
ADR Automatic Device Replacement
AEC Architect, Engineer & Constructor Firm
AEGIS Abnormal Event Guidance Information System
AERS Adverse Event Reporting System
AGC Automatic Guidance Control
AGV Automated Guided Vehicle
AI Artificial Intelligence
AIM Asset Information Management
ALM Asset Lifecycle Management
AnIML Analytical Information Markup Language
ANSI American National Standards Institute
APC Advanced Process Control
APEC Asia-Pacific Economic Cooperation
API Active Pharmaceutical Ingredient
API Application Program Interface
APM Analytics and Performance Management
APO Advanced Planning & Optimization
Applet Small Software Application or Component
APQP Advanced Product Quality Planning
APS Advanced Planning & Scheduling
AS/RS Automatic Storage & Retrieval System
ASIC Application Specific Integrated Circuit
ASM Abnormal Situation Management
ASN Advanced Ship Notice
ASP Application Service Provider OR Average Selling Price
ATA American Trucking Association
ATF Alcohol, Tobacco, & Firearms
ATP Available-to-Promise
Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only • B-177
Appendix B
AVL Approved Vendor List

B2B Business-to-Business
B2C Business-to-Consumer
B2MML Business-to-Manufacturing Markup Language
BAPI Business Object APIs
BAS Building Automation System
BI Business Intelligence
BOD Business Object Document (OAGi)
BOL Bill of Lading
BOM Bill of Material
BOOT Build, Own, Operate, Transfer
BPA Business Process Automation
BPE Business Process Engineering
BPEL4WS Business Process Execution Language for Web Services
BPM Business Process Management
BPO Business Process Outsourcing
BPR Business Process Reengineering
BPS Best Practice Sharing
BTF Build to Forecast
BTO Build to Order
C++ Object Oriented Programming Language
CAD Computer Aided Design
CAGR Compound Annual Growth Rate
CALM Collaborative Asset Lifecycle Management
CAM Computer Aided Manufacturing
CAN Controller Area Network
CapEx Capital Expenditure
CAPA Corrective and Preventative Action
CAPP Computer Aided Process Planning
CAS Collaborative Automation System
CASE Computer Aided Software Engineering
CBM Condition-Based Maintenance
CBP Customs and Border Protection
CCM Critical Condition Management
CDAS Collaborative Discrete Automation System
CDDI Copper Distributed Data Interchange
CDM Clinical Data Management
CDSCO India’s Central Drugs Standard Control Organization
CD-ROM Compact Disk, Read Only Memory
CDV Committee Draft Vote
B-178 • Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only
Appendix B
CEMS Continuous Emissions Monitoring System

CENELEC Committée de European de Normalization Electrotechnique
CEO Chief Executive Officer
CFM Continuous Flow Manufacturing
CFO Chief Financial Officer
CFR Code of Federal Regulations
cGMP Current Good Manufacturing Practices
CIDX Chemical Industry Data Exchange
CIM Computer Integrated Manufacturing
CIO Chief Information Officer
C-I-O Collaboration, Integration, Optimization
CIP Control & Information Protocol OR Common Industrial Protocol
CISC Complex Instruction Set Computing
CLN Collaborative Logistics Network
CLR Common Language Runtime
CM Condition Monitoring
CM&C Cell Monitoring & Control
CMM Collaborative Manufacturing Management
CMMS Computerized Maintenance Management Systems
CMO Contract Manufacturing Organization
CMS Carrier Managed Shipment
CNC Computer Numerical Control
COM Component Object Model OR Collaborative Operations Management
Component Software Object containing Data and Method
CORBA Common Object Request Broker Architecture
COSE Common Open Software Environment
COTS Commercial Off-the-Shelf
CPAC Center for Process Analytical Chemistry
CPAS Collaborative Process Automation System
CPFR Collaborative Planning, Forecasting, & Replenishment
CPG Consumer Packaged Goods
CPI Chemical Process Industry OR Continuous Process Improvement
CPM Collaborative Production Management
CPN Collaborative Partner Network
CPS Collaborative Planning & Scheduling
CPU Central Processing Unit
CRAMS Contract Research Manufacturing Services
CRM Customer Relationship Management
CRO Contract Research Organization
CROMERRR Cross-Media Electronic Reporting & Record-keeping Ruling
Appendix B
CRP Capacity Requirements Planning

CSA Canadian Standards Association
CSI Current Source Inverter OR Container Security Initiative
CTMS Clinical Trials Management System
CTO Chief Technical Officer
CTP Capable-to-Promise
CTPAT Customs-Trade Partnership Against Terrorism
CVN Collaborative Value Network
DAS Data Acquisition System
DC Distribution Center
DCE Distributed Computing Environment
DCOM Distributed Component Object Model
DCS Distributed Control System
DD Device Description
DDE Dynamic Data Exchange
DDL Device Description Language
DE Digitally Enhanced
DES Discrete Event Simulation
DFM Design for Manufacturing
DHCP Dynamic Host Configuration Protocol
DIN Deutsches Institut Normung
DLL Dynamic Link Library
DM Demand Management
DMAIC Define, Measure, Analyze, Improve, Control
DNA Microsoft's Distributed iNternet Architecture
DNS Domain Name Service
DOD U.S. Department of Defense
DOE Design of Experiments
DOE U.S. Department of Energy
DOI Desktop Office Integration
DOS Disk Operating System
DP Differential Pressure OR Demand Planning
DQM Data Quality Management
DRAM Dynamic Random Access Memory
DRP Distribution Resource Planning
DSD Direct Store Delivery
DSP Digital Signal Processor OR Digital Signal Processing
DSS Decision Support System
DSSS Direct Sequence Spread Spectrum
DTD Document Type Definition
Appendix B
DTM Device Type Manager

DVD Digital Versatile Disc
EAI Enterprise Application Integration
EAM Enterprise Asset Management
EBIT Earning Before Interest & Taxes
EBR Electronic Batch Record
EC Electronic Commerce OR European Commission
ECM Electronic Content Management
ECN Engineering Change Notice
ECO Engineering Change Order
ECR Efficient Consumer Response OR Engineering Change Request
eCRM Electronic Customer Relationship Management
EDD Electronic Device Description
EDDL Electronic Device Description Language
EDI Electronic Data Interchange
EDM Electronic Data Management OR Electrical Discharge Machine
EEMUA Engineering Equipment & Material Users Associations
EFSA European Food Safety Authority
EI Enterprise Integration
EJB Enterprise Java Beans
EL Electroluminescence
ELV End of Life Vehicle
EMEA European Medicines Agency
EMEA Europe, Middle East, Africa
EMI Electro Magnetic Interference
EMS Energy Management System
EOS Economy of Scale
EPA U.S. Environmental Protection Agency
EPC Electronic Product Code OR Engineer, Procure, and Construct
EPRI Electric Power Research Institute
ERES Electronic Records & Electronic Signatures
ERP Enterprise Resource Planning
ESD Emergency Shut Down System
EU European Union
EVA Economic Value Added
FBAT Food Bio-security Action Team
FBD Function Block Diagram
FBWA Fixed Broadband Wireless Access
FCC U.S. Federal Communications Commission
FCS Field Control System
Appendix B
FDA U.S. Food & Drug Administration

FDC Factory Data Collection OR Fault Detection and Classification
FDDI Fiber Distributed Data Interchange
FDR Faulty Device Replacement
FDT Field Device Tool
FF Fieldbus Foundation
FFB Flexible Function Block
FHSS Frequency-hopping Spread Spectrum
FIP Factory Instrumentation Protocol
FMEA Failure Mode & Effect Analysis
FMP Flexible Manufacturing Plant
FMS Factory Management System OR Factory Message Specification
FSAT Field System Assessment Tool
FSEM Field System Evaluation Matrix
FTC Federal Trade Commission
FTP File Transfer Protocol
GAMP Good Automated Manufacturing Practices
GC Gas Chromatography
GCI Green Chemistry Institute
GCP Good Clinical Practices
GDP Gross Domestic Product
GDS Global Data Synchronization
GEMS Global Enterprisewide Management System
GERM Good Electronic Records Management
GIS Geographic Information Services
GLN Global Location Number
GLS Global Logistics Systems
GMC General Motion Control
GMP Good Manufacturing Practice
GOSIP Government Systems Interconnect Protocol
GP Gauge Pressure
GPS Global Positioning System
GSM Global System for Mobile
GTIN Global Trade Item Number
GTM Global Trade Management
GUI Graphical User Interface
HACCP Hazard Analysis Critical Control Point
HAL Hardware Abstraction Layer
HART Highway Addressable Remote Transducer
HAZOP Hazard & Operability
Appendix B
HCF HART Communication Foundation

HDLC High Level Data Link Control
HIPAA Health Insurance Portability & Accountability Act
HIPPS High Integrity Pressure Protection System
HMI Human Machine Interface
HPI Hydrocarbon Processing Industry
HR Human Resources
HSE High Speed Ethernet
HTML HyperText Markup Language
HTS Harmonized Tariff Schedule
HTTP HyperText Transport Protocol
HVAC Heating, Ventilating, Air Conditioning
I/O Input/Output
IA Industrial Automation
IC Integrated Circuit
ICH International Conference on Harmonisation
IDE Integrated Development Environment
IDEA Industry Data Exchange
IEC International Electrotechnical Commission
IEEE Institute for Electrical & Electronic Engineers
IQ Installation Qualification
IVRS Interactive Voice Response System
IOp Interoperability
IP Internet Protocol OR Intellectual Property
IPO Initial Public Offer
IR Infrared
IRT Isochronous Real-time
ISA Instrumentation, Systems, and Automation Society
ISM Industrial Scientific & Medical OR Industrial Scientific & Medical RF Bands
ISO International Standards Organization
ISP InterOperable Systems Project
ISV Independent Software Vendor
IT Information Technology
ITAR International Traffic in Arms Reglations
ITEAM Enterprise Asset Management for Information Technology
ITRAM Information Technology & Remote Asset Management
J2EE Java 2 Enterprise Edition
JAVA Object-Oriented programming language for Internet
JCAF Java Control & Automation Framework
JEIDA Japan Electric Industry Development Association
Appendix B
JEIF Japan Electrical Industrial Federation

JEMA Japan Electrical Manufacturers’ Association
JEMIMA Japan Electrical Measuring Instruments Manufacturers’ Association
JISC Japanese Industrial Standards Committee
JIT Just-in-Time
JV Joint Venture
JVM Java Virtual Machine
KCM Knowledge and Content Management
KPI Key Performance Indicator
LAN Local Area Network
LAS Link Active Scheduling
LCD Liquid Crystal Display
LCL Less than Container Load
LD Ladder Diagram
LES Logistics Execution System
LIFO Last In, First Out
LIMS Laboratory Information Management System
LOB Line of Business
LOC Letter of Credit
LSI Large Scale Integration
LSP Logistics Service Provider
LTL Less Than Truckload
LVC Logistics Visibility and Control
M&A Mergers & Acquisitions
M2M Machine-to-Machine
MAC Medium Access Control
MAM Mobilized Asset Management
MAN Metropolitan Area Network
MBWA Mobile Broadband Wireless Access
MCBF Mean Cycles Before Failure
MEMS Micro-Electro-Mechanical Systems
MES Manufacturing Execution System
MHCS Material Handling Control System
MIB Management Information Base
MIMOSA Machinery Information Management Open Systems Alliance
MIPS Millions of Instructions Per Second
MIS Management Information System
MLC Multi-Loop Controller
MMS Manufacturing Message Specification
MOC Management of Change
Appendix B
MOM Manufacturing Operations Management

MPC Modular Platform Component
MPS Manufacturing Performance Services
MPU Microprocessor Unit
MRM Mobile Resource Management
MRO Maintenance, Repair & Operations
MRP Manufacturing Resource Planning OR Materials Resource Planning
MSDS Material Safety Data Sheets
MSPC Multivariate Statistical Process Control
MTBF Mean Time Between Failure
MTBR Mean Time Before Repair
MTO Make to Order
MTTR Mean Time to Repair
MVC Multivariable Predictive Control
MVS Machine Vision System
NABP National Boards of Pharmacy (US)
NAFTA North American Free Trade Association
NAICS North American Industry Classification System
NAMUR Normal Ausschultz Fur Messung Und Regelung
NC Network Computer (Internet) OR Numerical Control
NCR Non Conformance Report
NEMA National Electrical Manufacturers’ Association
NeSSI New Sampling Sensor Initiative
NHTSA National Highway Transportation Safety Authority
NIST National Institute of Standards and Technology
NN Neural Network
NPDI New Product Development & Introduction
NSF National Science Foundation
OAGi Open Applications Group, Inc.
OAGIS Open Applications Group Integration Specification
OASIS Organization for Advancement of Structured Information Standards
OCS Open Control System
OCX OLE Custom Control
ODA OPC for Data Access
ODBC Open Database Connectivity
ODVA Open DeviceNet Vendors Association
OEE Overall Equipment Effectiveness
OEM Original Equipment Manufacturer
OI Operator Interface
OLAP On-line Analytical Processing
Appendix B
OLE Object Linking and Embedding

OM Operations Management
OMAC Organization for Machine Automation and Control
OMG Object Management Group
OMP Operations Management Platform
OMS Order Management System
OO Object-oriented (Analysis, Design or Programming)
OPC OLE for Process Control
OpX Operational Excellence
OQ Operational Qualification
OS Operating System
OSC Operation Safe Commerce
OSF Open Software Foundation
OSHA Occupational Safety & Health Administration
OSI Open Systems Interconnect
OTC Over-the Counter
P&ID Piping & Instrumentation Diagram OR Process & Instrumentation Diagram
P&L Profit and Loss
P2B Plant to Business OR Production to Business
P2D Plant to Design OR Production to Design
PAC Programmable Automation Controller
PAM Plant Asset Management
PAS Process Automation System
PAT Process Analytical Technology
PC Personal Computer
PCA Principle Component Analysis
PCB Printed Circuit Board
PCM Predictive Condition Monitoring
PCS Process Control System
PD Positive Displacement
PDA Personal Digital Assistant
PDM Project Data Management
PDXI Process Data Exchange Institute
PES Process Electrochemical Systems
PET Process Engineering Tools
PFC Procedure Function Chart
PID Proportional Integral Derivative
PIM Plant Information Management
PIMS Process Information Management System
PIP Partner Interface Process
Appendix B
PLC Programmable Logic Controller

PLM Product Lifecycle Management
PLS Partial Least Squares
PM Preventive Maintenance OR Production Management
PM&C Process Monitoring & Control
PMD Programmable Message Display
PNO PROFIBUS User Organization
PO Purchase Order
POM Perfect Order Metric
POMS Packaging Operations Management System
POSIX Portable Operating System Interface
PP Production Planning
PPP Point-to-Point Protocol
PPt Performance Personalization Tool
PSI Pounds per Square Inch
PSM Process Safety Management OR Product Service Management
PSO Process Simulation & Optimization
PTO PROFIBUS Trade Organization
PTP Profitable-to-Promise
PWM Pulse Width Modulation
QA Quality Assurance
QbD Quality by Design
QC Quality Control
QM Quality Management
QMS Quality Management System
QR Quick Response
R&D Research & Development
R2R Run-to-Run
RCM Reliability Centered Maintenance
RDBMS Relational Database Management System
RFC Remote Function Call
RFDC Radio Frequency Data Communications/Collection
RFI Radio Frequency Interference OR Request for Information
RFID Radio Frequency Identification
RFP Request for Proposal
RFQ Request for Quote
RLL Relay Ladder Logic
ROA Return on Assets
ROHS Restriction of Hazardous Substances
ROI Return on Investment
Appendix B
ROM Read Only Memory

ROV Remote Operated Vehicle (Subsea)
RP Replenishment Planning
RPC Remote Procedure Call
RPM Real-time Performance Management
RPO Real-time Process Optimization
RT Real-time
RTD Resistance Temperature Detector
RTO Real-time Optimization
RTOS Real-time Operating System
RTU Remote Terminal Unit
RTX Real-time Extension
S&OP Sales & Operations Planning
S/W Software
SaaS Software as a Service
SAFE Secure Access for Everyone
SAM Sensor Actuator Manager
SAMA Scientific Apparatus Makers Association
SBA Service Based Architecture
SBI Service Based Infrastructure
SCADA Supervisory Control and Data Acquisition
SCC Supply Chain Connectivity
SCE Supply Chain Execution
SCEM Supply Chain Event Management
SCM Supply Chain Management
SC-ON Supply Chain Operating Network
SCOR Supply Chain Operations Reference
SCP Supply Chain Planning
SCPC Supply Chain Planning and Collaboration
SCPM Supply Chain Process Management
SCpM Supply Chain Performance Management
SDC Smart Device Configurator
SDLC Synchronous Data Link Control
SDMS Scientific Data Management System
SEC Statistical Equipment Control OR Securities & Exchange Commission
SEM Strategic Enterprise Management
Sercos Serial Real-time Communication System
SFA Sales Force Automation
SFC Shop Floor Control OR Sequential Function Chart
SI Systems Integrator OR Systems Integration
Appendix B
SIC Standard Industrial Classification

SIL Safety Integrity Level
SIS Safety Instrumented System OR Short-Interval-Scheduling
SKU Stock Keeping Units
SLA Service Level Agreement
SLC Single Loop Controller
SLDC Single Loop Digital Control
SLIP Serial Line IP
SmallTalk Object Oriented Programming Language
SMB Small to Medium Businesses
SME Small & Mid-sized Enterprises
SMP Symmetrical Multiprocessing
SMT Surface Mount Technology
SNMP Simple Network Management Protocol
SNTP Simple Network Time Protocol
SOA Service-Oriented Architecture
SOAP Simple Object Access Protocol
SOC System on Chip
SoftLogic PC-based Logic Control
SOP Standard Operation Procedure
SOX Sarbanes Oxley
SP50 Standards & Practice Committee No. 50 (ISA)
SPC Statistical Process Control
SQC Statistical Quality Control
SQL Structured Query Language
SRM Supplier Relationship Management
SRT Soft Real-time
SSH Secure Shell
SSL Secure Socket Layer
SSOP Standard Sanitary Operating Procedures
SST Smart & Secure Tradelanes
SVG Scalable Vector Graphic
T/C Thermocouple
TAV Total Asset Visibility
TBP Transaction Based Payments
TCO Total Cost of Ownership
TCP/IP Transmission Control Protocol / Internet Protocol
TCT Total Cycle Time
TEAM Total Enterprise Asset Management
TIE Technical Information Exchange
Appendix B
TL Truckload
TM Transportation Management
TMS Transportation Management System
TOP Technical and Office Protocol
TPM Total Productive Maintenance
TQC Total Quality Control
TQM Total Quality Management
TREAD Transportation Recall Enhancement Accountability and Documentation Act
TÜV Technischer Überwachungs Verein (Technical Inspection Association)
TVO Total Value of Ownership
UA Unified Architecture
UAF Unified Application Framework
UCC Uniform Code Council
UDDI Universal Description, Discover, and Integration
UEM Unified Enterprise Management
UFF Unified Field Framework
UHF Ultra High Frequency
UID Universal Identification
UL Underwriters Laboratories
UML Unified Modeling Language
UPC Uniform Product Code
UPNP Universal Plug & Play
URL Uniform Resource Locator (Internet)
USB Universal Serial Bus
USDA United States Department of Agriculture
UV Ultraviolet
VAN Value Added Network
VAR Value Added Reseller
VAS Value Added Services
VBX Visual Basic custom control
VCI Value Chain Initiative
VDU Visual Display Unit
VFD Variable Frequency Drive
VICS Voluntary Inter-Industry Commerce Standard Committee
VLSI Very Large Scale Integration
VMI Vendor Managed Inventory
VoIP Voice Over Internet Protocol
VPN Virtual Private Network
VSD Variable Speed Drive
VVI Variable Voltage Inverter
Appendix B
VVVF Variable Voltage, Variable Frequency

W3C World Wide Web Consortium
WABI Windows Application Binary Interface
WAH Web Application Hosting
WAN Wide Area Network
WBF World Batch Forum
WCO World Customs Organization
WEEE Waste Electrical & Electronic Equipment
WFOE Wholly Foreign Owned Enterprise
WINS Windows Internet Naming Service
WIP Work in Process
WLAN Wireless Local Area Network
WM Warehouse Management
WMS Warehouse Management System
WOSA Windows Open Systems Architecture
WPAN Wireless Personal Area Network
WPMF Work Process Management Facility
WSDL Web Services Description Language
WSN Wireless Sensor Network
WTO World Trade Organization
WWRE Worldwide Retail Exchange
WWW World Wide Web (Internet)
XML eXtensible Markup Language
Appendix C
C-192 • Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only
Appendix C
Primary Authors
Many individuals from ARC contributed to the completion of this market research report. In ad-
dition, 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 do-
main information pertaining to this report's topic. If you wish to speak with them, please arrange
this through your ARC client manager.
Copyright 2011 © ARC Advisory Group • ARCweb.com • For Internal Use Only • C-193
Appendix C
Market Analysis and Forecast
THOUGHT LEADERS FOR MANUFACTURING & SUPPLY CHAIN
Lead ARC Consultant Biography

David Clayton
Senior Analyst
ARC Advisory Group
781-471-1132
dclayton@arcweb.com
Research Areas of Expertise

David’s focus areas include Control Valves, Actuators, &
Positioners (CVAP); Plant Asset Management (PAM); Building Automation Systems (BAS);
and Field Devices.
Responsibilities and Experience

David has been with ARC for more than 13 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 dis-
tributed 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 com-
ponents 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

• Plant Asset Management Worldwide Outlook
• Building Automation Systems Worldwide Outlook
• Building Automation Systems North American Outlook
• Chemical Industry Plant-Level Expenditures Outlook
• 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
3 ALLIED DRIVE DEDHAM MA 02026 USA T: 781-471-1000 F: 781-471-1100 arcweb.com

Appendix C
• 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
• 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
• Control Valve Strategies
• Variable Speed Drive Strategies
• Digital Positioners Help Manufacturers Manage Changing Workforce Dynamics
• Globalization Requires a New Look at Regional Standards and Common Practices
• AHR Expo Highlights Strategies for Real-time Connectivity in Building Automation
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 Manu-
facturing 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, opera-
tional performance, total cost of ownership, project time-to-benefit, and shareholder value.
Market Analysis and Forecast
THOUGHT LEADERS FOR MANUFACTURING & SUPPLY CHAIN
Peer ARC Consultant Biography

Wil Chin
Research Director
ARC Advisory Group
781-471-1161
wchin@arcweb.com
Research Areas of Expertise

Wil’s focus areas include Process Measurement Technologies, Plant Asset Management,
Field Systems (Flow, Level Pressure, and Temperature), Wireless Field Devices, Field Device
Communication Protocols, Inventory, Tank Management, Blending Systems, and Laboratory
Information Management Systems.
Responsibilities and Experience

Wil has nearly 30 years experience in the areas of sales management, product marketing, and
engineering experience in industrial field instruments that utilize a vast array of technologies
including magnetic, coriolis, radar, capacitance, vortex, vibration, DP and ultrasonic.
Before joining ARC, Wil spent 10 years at Krohne Inc., where he held the position of Vice
President of Sales. Wil was responsible for the sales of flow and level instrumentation in
North America as well as developing business alliances with suppliers and users. At
Krohne, he also held positions where he provided strategic product planning and technical
support for Magnetic, Coriolis, Variable Area, and Ultrasonic Flowmeters. Prior to that, Wil
spent 10 years at The Foxboro Company where he held positions of Senior Product Specialist
and Development Engineer. Wil also held engineering positions at BIF, a Unit of General
Signal, and Stone & Webster Engineering.
Education
Wil holds an AS in Mechanical Power Engineering from Wentworth Institute, a BS in Me-
chanical Engineering from Northeastern University, and an MBA from Bryant College.
ARC Research Reports and Publications

• Field Device Technology Collaboration the Hallmark of Interkama 2007
• Adopting Diagnostic-Rich Certified SIS Devices Increases Safety and Reduces TCO
3 ALLIED DRIVE DEDHAM MA 02026 USA T: 781-471-1000 F: 781-471-1100 arcweb.com

Appendix C
• Field Systems Strategies

• Pressure Transmitter Worldwide Outlook
• Plant Asset Management & Condition Monitoring Worldwide Outlook
• Ultrasonic Flowmeter Worldwide Outlook
• Coriolis Flowmeter Worldwide Outlook
• Magnetic Flowmeter Worldwide Outlook
• Temperature Transmitter Worldwide Outlook
• Trends in Process Field Device Automation
• FDT Gaining the Attention of Users and Suppliers
• Preserving HART Field Device Investments Reduces Cost of PAS Migration
• Need for Business Knowledge Transforms the Role of Field Devices
Other Published Work

• Hydrocarbon Processing, Leverage LIMS Intelligence to Improve OpX
• Petro Industry News, The Changing Personality of Flowmeters
About ARC Advisory Group

Founded in 1986, ARC Advisory Group has grown to become the Thought Leader in Manu-
facturing 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, opera-
tional performance, total cost of ownership, project time-to-benefit, and shareholder value.
ARC Services
ARC Services
Thank you for purchasing ARC Advisory Group’s Global Outlook Study.
The material was planned and prepared to help save you time and money
with your research. ARC is well known for providing the highest quality
and most accurate market intelligence products and services. Since 1986,
ARC Advisory Group has provided products & services to hundreds of cli-
ents, ranging from start-up firms to Fortune 100 companies.
Our analysts follow technology and industry events on a daily basis. They
have a broad range of expertise in such areas as e-business, enterprise ap-
plications, integration strategies, and industrial automation, including;
control systems, drives, sensors, actuators, networks, computers, software,
and services.
ARC maintains one of the most in-depth databases in the world on technol-
ogies, 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.
Our list of available products and services continue to expand as ARC con-
tinues to invest in new technologies and resources to meet the demands of
our customers. For more details about ARC Advisory Group and how we
can further assist you, please contact one of our regional offices nearest you
or visit our website: www.arcweb.com.
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.
Market Intelligence Services

The rapid pace of business today creates a constant demand for fresh mar-
ket intelligence. ARC is the premier provider of worldwide market
ARC Services
analysis, forecasts, and strategic reports for a wide range of e-business, en-
terprise application, and automation solutions. ARC’s market outlook
studies are known for the most comprehensive assessment of the market-
place, including market shares of the leading suppliers and a five year
forecast for key market segments.
Investor Information Services

Each year ARC analysts write unbiased reviews of hundreds of software
and solution providers around the world. This market intelligence, cou-
pled with private discussions with our experienced analysts, provides
invaluable insight to our financial clients.
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 in-
vestment firms completes our offering, providing you with a full range of
due diligence and partner search services.
Partner Search Services

Finding the right partner in a new application area or in a country or region
you are not familiar with can be a very time consuming and challenging
task. With an extensive network of industry contacts, we can assist you in
identifying dependable strategic partners.
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 cor-
porate 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.

Control Valves WW 10 Final

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Control Valves WW 10 Final

Uploaded by

Copyright:

Available Formats

Control Valves

MARKET ANALYSIS AND FORECAST

Market Forecast Updates

Report Follow up Services

Scope of Report Research

This study is intended to serve as an effective planning guide for control

Key Issues Researched

• How large is the worldwide CVAP market?

Market Size and Forecast Definitions

A combination of factors, including user projections of future demand and

Key Product Classifications and Market Segments

All control valves sold, including Non-control valves, such as on/off

Modulating actuators sold for use On/Off actuators

Engineering, maintenance and train- Engineering services provided by sepa-

Accessories and spare parts sold by Handheld programming terminals and

Software provided by the control

Scope of CVAP Study by Product

Classification by Hardware, Software, and Services

Suppliers provide project and maintenance services to manufacturers. This

Maintenance services also include non-contract maintenance and opera-

Classification by Actuator Type

Actuator Type Power Source Major Variants

Pneumatic Compressed Air/Gas Piston, Diaphragm, Vane

Electric Motors or Solenoids Single Phase, Three Phase

Hydraulic Compressed Cylinder, Rack & Pinion

Mechanical Varies Levers, etc

Manual Human Power Hand wheels

Control Valve Actuators by Type

Classification by Positioner Type

Classification by Sales Channel

Direct Sales Distributors are keenly sensitive to unique market demands in

Suppliers generally draw legal relationship agreements with distributors

Key Industry Segments

Key Currency Factors

European Union Euro (€) 0.754

Japan Yen (¥) 87.81

Average Currency Exchange Rates Used In ARC Market Studies

Key Regional Segments

North America Europe

Process Industries SIC Code NAICS Code NACE Code

Cement & Glass 32 327 26.1-26.8

Electric Power Generation 491 (except 22111 35.1.1

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

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

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

Discrete Industries SIC Code NAICS Code NACE Code

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

336 (except 34.1-34.3, 35.4-

Building Automation 15, 3534, 3564 3334 45.3

335, 3341, 30.0,

Semiconductors 3674 3344 24.61

Fabricated Metal Products 34 332 28.1-28.7

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

Service Industries SIC Code NAICS Code NACE Code

Retail - Food & Beverage 54 445 52.2

52, 53, 55, 56, 44 (except

Wholesale/Distributor - Food &