News | May 7, 2001

HMI market grows while PLC suppliers trump the independents

Source: ARC Advisory Group
The global Human Machine Interface (HMI) Software market, which exceeded $461 million in 2000, will reach almost $741 million by the end of 2005, growing at a Compound Annual Growth Rate (CAGR) of 9.9 percent, according to a newly revised study by ARC Advisory Group, "Human Machine Interface Software Worldwide Outlook, Market Analysis & Forecast Through 2005."

Buying components vs. a control system
The "Control System" buying pattern and new technology adoption is causing titanic shifts among suppliers in the HMI market. "One-stop-shop" packages offered by the PLC companies are causing pain among most independents. Users are buying their HMI as a bundled component of their control system, which includes the PLC. Further market dynamics are generated as OEMs find creating their own focused HMI is a cost effective alternative by using Visual Basic with software component products.

HMI software shifts towards thin-client
"As HMI software is shifting from stand-alone computing towards client-server architecture, demand for the ability to view and/or control a process via the Internet or plant-wide intranets is increasing dramatically." according to ARC Senior Analyst and study author, Craig Resnick (cresnick@arcweb.com). Battling for revenue growth, some HMI software suppliers are successfully implementing a variety of effective strategic offerings, ranging from standard web browsers on the client side to thin-client HMI terminal services software using Microsoft Windows 2000 server technology. Resnick continued, "This is creating HMI "Thin-Client" products where one can view and/or control a process from a computer without an HMI supplier's software loaded into the client device."

Windows CE begins to take hold
Windows CE is a platform for HMI software suppliers to target because it provides manufacturers with an open alternative to existing proprietary low-end flat panel displays and dedicated operator interface terminals. HMI software suppliers can offer a scaleable set of options by embracing CE on the low end. Traditionally, these low-end proprietary products were difficult to customize, and often presented a different Graphical User Interface (GUI) than the Windows-based technologies afforded. Although CE-based applications are not as fully functional as their Windows 2000-based or embedded NT counterparts, low-end systems will play an important role in embedded operator interface applications. Since HMI software is predominately based on Windows operating systems, users can achieve a high degree of integration with other office productivity tools with which they are already familiar. Leveraging common interfaces, such as COM/DCOM and ActiveX, users, system integrators and machine builders can easily link process and manufacturing data into their existing Windows-based software packages.

HMI software to remain a critical component for manufacturing
The "sensor-to-boardroom" demands of collaborative manufacturing require, amongst many other things, seamless integration of automation and enterprise computing. HMI suppliers, either through acquisition or strategic partnerships with companies in enterprise computing, are providing solutions that ease those integration challenges. HMI software will continue to serve as a centralized system for coordinating different aspects of the manufacturing process. Due to the strategic role played by HMI software, users and hardware suppliers are looking to HMI systems as the tool for plant wide information collection and integration.

ARC Advisory Group provides strategic planning and technology assessment services to leading manufacturing companies, utilities, and global logistics providers, as well as to software and solution suppliers worldwide. From Global 1000 companies to small start-up firms, ARC has the strategic knowledge needed to succeed in today's technology driven economy. Further information can be obtained from Maryanne Flynn at ARC, Three Allied Drive, Dedham, MA 02026, 781-471-1160, Fax 781-471-1060, E-mail mflynn@arcweb.com, Web ARCweb.com.

Source: ARC Advisory Group

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