VDC Research Group

Industrial Automation and

Control Practice

Market Research Proposal

INDUSTRIAL NETWORKING
2008 GLOBAL MARKET INTELLIGENCE SERVICE

WIRELESS & WIRELINE INFRASTRUCTURE:

NETWORKING COMPONENTS
INTERCONNECT PRODUCTS
NETWORK MANAGEMENT SOFTWARE

OCTOBER 2007

Industrial Networking: 2008 Global Market Intelligence Service

Industrial Networking: 2008 Global Market Intelligence Service

The need to meet global regulatory standards, local feature set requirements and key customer one-off
configurations is putting enormous pressure on every segment of the manufacturing economy. Inefficiencies in
cost and performance abound in the sheer amount of variables that must be managed inside ever-compressing
cycle times. In order to meet regulatory, general market and key customer requirements, production managers
need an increasing volume of accurate, relevant, real-time data.
The operative words are accurate and relevant for more real-time data alone will not enable better process
control, equipment management, or ultimately, higher quality and lower cost output. Rather, the key to enabling
reliability and relevance is networking. A non-networked operation can lead to inconsistent, uneven, and even
inaccurate data collection. Thus, the trend of interconnecting systems, equipment, machinery, and devices within
an industrial operation through a networked infrastructure is a growing one. The documented benefits are
considerable.
VDC previous research projected a 26.2% compound annual growth rate (CAGR) for industrial networking
infrastructure products over five years through 2011. More industrial operators understand that point-to-point hard
wiring is expensive to install, time-consuming to troubleshoot, and hard to modify and turning to a networkenabled operation eases the burden.
Despite the high growth outlook, however, hype and legitimate questions surround the industrial networking
industry. How long can the market sustain this strong growth? Which technical factors and purchasing conditions
will influence the health of the industrial networking infrastructure market? How can stakeholders best position
themselves to stay competitive? Product suppliers need reliable information not unsubstantiated claims in
order to make sound business decisions. VDCs Industrial Networking: 2008 Global Market Intelligence Service
will answer these questions and more with a year-round analysis of the industrial networking product, industry,
competitive, and user landscape. The service, consisting of multiple focused reports underpinned with full access
to the analysts throughout the year, will contain the following types of analyses:

In-depth analysis of global market opportunity for wireless and wireline industrial networking infrastructure,
including detailed definition and segmentation of the potential applications, by region;

Conservative regional market penetration models, adoption rates, estimates and forecasts for wireless and
wireline industrial networking infrastructure in a wide range of applications;

User requirements of wireless and wireline industrial networking infrastructure products, including product and
vendor selection criteria, performance features, etc.;

Detailed channel analysis of the wireless and wireline industrial networking infrastructure market, including
the leading and emerging participants, sales organizations and customer classes;

Industry structure and competitive analysis of wireless and wireline industrial networking infrastructure
suppliers, including market share, position, direction and profiles;

Discussion of key challenges, mandates, standards, forces and trends driving market demand for and
resistance to wireless and wireline industrial networking infrastructure; and

Suggestions and recommendations of action for suppliers and stakeholders in the market.
SERVICE YEAR
January-December 2008
For More Information Contact:
Research Analysts

Account Representatives

Jim Taylor | jimt@vdcresearch.com | x: 125

Tim Shea | tims@vdcresearch.com | x: 119

Chris Rezendes | cjr@vdcresearch.com | x: 120

Tim Callahan | timc@vdcresearch.com | x:113

VDC Research Group | 508.653.9000

Proposal: Industrial Networking: 2008 Global Market Intelligence Service

RESEARCH SCHEDULE
RESEARCH VOLUMES
PACKAGING MATRIX
Americas

EMEA

Asia-Pacific

All Regions

Wireless Industrial Networking

Volume 1A

Volume 1B

Volume 1C

Volume 1

Wireline Industrial Networking

Volume 2A

Volume 2B

Volume 2C

Volume 2

All Product Segments

Volume A

Volume B

Volume C

Complete Service

STUDY PUBLICATION DATE

ACTUAL MARKET SIZE

SUPPLIER SHARE

FORECAST MARKET SIZE

Service Year 2008

2007

2007

2008-2012

MODULES INCLUDED IN EACH VOLUME

User requirements: User perceptions, technology trends, installation trends, spending trends, certification and
ratings, problems and solutions, selection criteria, information sources. Also, includes an executive summary,
scope and methodology, and observations and requirements.
Supply-side analysis: Market segmentation, 2007 unit and revenue shipment actuals (where applicable); 20082012 estimates and forecasts for networking infrastructure products by product types, network types, industries,
and distribution channels, competitive analysis, vendor profiles, industry structure, and product and technology
descriptions and trends. Also, includes an executive summary, scope and methodology, observations and
requirements.
Channel analysis: Demographics, business models, vendor relations, perspectives and strategic issues. Also,
includes an executive summary, scope and methodology, and observations and requirements.
Year-End Overview: Provides an end of year overview all modules and industry direction and technology
coverage. Also, includes an executive summary, scope and methodology, observations and requirements,
industry structure, and product and technology descriptions and trends.
SCHEDULE
Research Launch ......................................................................................................................... January 2008
Project Status Reports .......................................................................... Every month, starting in January 2008
User Requirements Module ............................................................................................................... April 2008
Interim findings for Supply-Side Analysis Module............................................................................. June 2008
Supply-Side Analysis Module.............................................................................................................. July 2008
Channel Analysis Module............................................................................................................. October 2008
Year-End Overview ...................................................................................................................November 2008
Global Market Overview* ..........................................................................................................December 2008
Executive presentation............................................................................ At sponsors discretion and schedule
* Includes regional roll-ups and only available to the purchasers of all three regional reports of either wireless or wireline

VDC Research Group | 508.653.9000

Industrial Networking: 2008 Global Market Intelligence Service

RESEARCH COVERAGE

PRODUCT COVERAGE
[INCLUDING BUT NOT LIMITED TO]:

Wireless Infrastructure Products

Networking Components
o access points, antennas, bridges,
gateways, hubs, modems,
multiplexers, repeaters, routers,
servers, switches, transceivers
Network Management Software
Wireline Infrastructure Products
Networking Components
o bridges, fiber optic transceivers,
gateways, hubs, modems,
multiplexers, routers, servers,
switches
Industrial-Grade Interconnect Products
o connectors, cables and cordsets,
distribution boxes
Network Management Software

NETWORK COVERAGE
[INCLUDING BUT NOT LIMITED TO]:

Wireless Networks
IEEE 802.11a,b,g,n,
IEEE 802.15.4/ZigBee,
Bluetooth,
Proprietary 5 GHz, 2.5 GHz, 800/900 MHz,
Other proprietary
Wireline Networks
ControlNet,
DeviceNet,

VDC Research Group | 508.653.9000

Ethernet,
Foundation Fieldbus,
LonWorks,
Modbus,
Profibus,
Proprietary,
SONET/SDH

INDUSTRY COVERAGE
[INCLUDING BUT NOT LIMITED TO]:

Automotive
Chemical
Consumer
Energy
Food and Beverage
Manufacturing
Military/Aerospace
Oil and Gas/Petrochemical
Pharmaceutical
Plastics
Pulp and Paper
Textile
Water/Wastewater

GEOGRAPHICAL COVERAGE
Americas (North, Central and South America)
EMEA (Europe, Middle East and Africa)
Asia Pacific

Proposal: Industrial Networking: 2008 Global Market Intelligence Service

PROCESS AND METHODOLOGY

VDC relies heavily on our own primary research, reinforced with information from secondary sources where
appropriate. For this research study, VDC will use the following methodology:
INFRASTRUCTURE AND TOOLS

Market segmentation and definitions for wireless and wireline industrial networking infrastructure products.

Technical value chain incorporating definitions of devices, components, systems, etc.

Industry structure/commercial value-chain highlighting supplier position, direction and relationships.

Telephone survey tools to drive in-depth telephone interviews with key contacts in all stakeholder
communities see Primary Research table below.

Survey target databases including VDC proprietary sources, research program sponsors, and industryspecific third parties (trade publications, Web sites, conferences, etc.).

Market opportunity screening framework analyzing the most attractive and challenging applications, vertical
markets and product segments.

PRIMARY RESEARCH

Target Communities
Phone or On-Site
Interviews
Web/E-mail Surveys

Approximate
Sample Size

Suppliers: networking components

Approx. 100

Suppliers: interconnect products

Approx. 30

Suppliers: network management software

Approx. 20

Distributors, End Users, OEMs, Systems Integrators

Approx. 100

End Users, OEMs, Systems Integrators

Targeting > 10,000 qualified contacts

SECONDARY RESEARCH

Review of VDC proprietary databases covering the global markets for wireless and wireline industrial
networking infrastructure products.

Analysis of wireless and wireline industrial networking infrastructure supplier financial reports from public and
private financial databases.

Internet searches to gather information on wireless and wireline industrial networking infrastructure supplier
corporate background information, core offering specifications, target market case studies, technical and
commercial partnerships.

Trade press research from sources such as Control Design, Control Engineering, Industrial Ethernet,
Industrial Networking, etc.

Reference of proceedings and notes from a number of other sources industry associations, standards
bodies, independent consultancies, academic institutions, government agencies, and consortia.

ANALYSIS METHODS

Market penetration scenarios, estimates and forecasts are built using supplier shipment analysis and user
budgets, recent installations, and future purchasing plans.

Data is verified via primary and secondary research within the same target communities and companies.

Supplier share and position analyses are derived directly from structured, in-depth interviews of leading and
emerging suppliers of wireless and wireline industrial networking infrastructure products.

Customer requirements and preferences are focused on product and supplier selection criteria.

VDC Research Group | 508.653.9000

Industrial Networking: 2008 Global Market Intelligence Service

RESEARCH TEAM

James Taylor, Research Director

Jim has more than 25 years experience in market research consulting, conducting and managing research
studies on electronic, control, computing and communications technology for industrial automation,
military/aerospace, and medical markets. Jim has been the lead analyst and project manager for every VDC
market research program in the fields of automation, control, test and instrumentation during the last 16
years.
Recently, Jim and his team have been increasing their coverage of control and monitoring network
technologies. This work has included multiple studies on next-generation device level and supervisory control
networks, as well as industrial networking technologies and wireless networks in factory automation. Safety
buses/networks have been included in several of these studies. During his tenure with VDC, Jim has worked
with virtually every major vendor of automation, control, sensing and related products.
Prior to entering market research consulting, Jim held management positions in engineering, marketing, and
programs at Autonetics, Kearfott, and Raytheon.
Jim has BS and MS degrees in electrical engineering from UCLA, and an MBA from Boston University.

Robert Torres, Research Associate

Robert is working on the 3rd edition of VDCs Industrial Wireless Monitoring & Control Products for Discrete
and Process Manufacturing. In this project Robert is responsible for deployment of data collection, working
closely with practice director Jim Taylor to quantitatively and qualitatively assess market demand for industrial
wireless monitoring and control products. Robert is supporting the Industrial Automation practice group by
researching customer requirements, key technical requirements, industry structure, and requirements for
market and channel development. Prior to joining VDC, Robert worked at a market research firm Scottsdale,
Arizona studying global 3rd generation cellular deployment.
Robert holds a B.S. in Business Administration from Arizona State University. During his time in
college he competed on a nationally ranked debate team.

Christopher J. Rezendes, Executive Vice President

Chris has 16 years experience in industrial technology market research and consulting. He has more than 11
years experience in senior management and leadership positions at a number of IT systems and professional
services organizations.
Chris has advised many of the largest and most respected companies in industrial and information technology
industries worldwide. He has also worked with many of the most successful private equity and venture capital
firms in the Americas and Europe. His work with the financial services community includes proprietary
engagements with many of the leading investment banking firms in the world.
Chris is a graduate of Harvard University.

VDC Research Group | 508.653.9000

ORDER FORM
(CIRCLE YOUR SELECTIONS)
INDUSTRIAL NETWORKING:
2008 GLOBAL MARKET
INTELLIGENCE SERVICE*

AMERICAS

EMEA

ASIA-PACIFIC

GLOBAL

STANDARD
PUBLICATION FEE

STANDARD
PUBLICATION FEE

STANDARD
PUBLICATION FEE

STANDARD
PUBLICATION FEE

Wireless Industrial Networking

$5,420

$5,420

$5,420

$13,950

Wireline Industrial Networking

$5,420

$5,420

$5,420

$13,950

All Product Segments

$9,300

$9,300

$9,300

$25,000

Enterprise License:
Provides the right to post purchased research on portal/corporate network for sharing within organization.

TOTAL

25% of total fees

* All reports delivered as PDF File by E-Mail

** Global Market Overview available only to purchasers of all three regional volumes

Subtotal

MA Companies add 5% tax

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