b'12American Journal of Transportation ajot.comWarehouse automation services market to double by 2025Inanewreportontheware- thehighscomingaroundthe5-,10- houseautomationservicemarket,and15-yearmarks,correspondingto researchcompanyInteractAnalysistimes when parts are likely to require hasrevealedthatsoaringgrowthinreplacement, and computers and con-the warehouse automation equipmenttrol equipment to need upgrading.marketiscausingparallelgrowthIn 2020, on-site service in vari-in the market for service contracts ous incarnations - site visits to iden-worth $4.3bn in 2020 and projected totify and repair problems, preventiveSAVE SAVEgrow to $8.7bn by 2025. maintenancevisits,andthedeploy- TIME & MONEYInteractAnalysissresearchpre- mentbyOEMsoftechniciansto dicts that the global market for servic- sitesonafull-orpart-timebasis ing of installed automation equipment accounted for 40% of service rev-willseeyear-on-yeardouble-digitenues. Upgrade services (moderniza-growth up to 2025, when revenues willtion or alteration of existing systems, top $8.7bn. This will be a stable andnot replacement) accounted for 22%, lucrative market for OEMs and inte- and remote services, where custom- DIRECT ACCESSTRADING INBULK, BREAK BULK,SEAMLESS SUPPLY INTO ALL OF NORTHOVER 50 GLOBALLIQUID & CHAIN WITH A grators,affordinghigherprofitmar- ers have telephone hotline access toAMERICA MARKETS SPECIAL CARGO CONNECTED NETWORKgins than equipment sales. Currently,support,19%.Thatfigureof19% asignificantnumberofend-usersbelies the fact that basic hotline ser- SIMPLE. carry out service and maintenance in- vice packages have a very high take-house or use a third party. And thereup among end-users, some 80-90%. arealsocustomerswhoconsideritAdditionally,on-siteserviceswillCOMPETITIVE. cost-effective to leave their machinerybecomemoreprevalentasautoma-un-serviced.Interact Analysissworktion solutions get more sophisticated. CONNECTED.shows that the growing complexity ofJason dePreaux, principal analyst equipment and rising pressure to avoidatInteract Analysissays:In2020, machinery down-time, will mean that80%oftherevenuesfromautoma-OEMsandintegratorswillsignifi- tion machinery service contracts wereEUROPE U.S. MID-WESTcantly grow their share of the servicesgenerated in the Americas and in theTO SPECIAL CARGOTOmarket in the next five years. EMEA (Europe, the Middle East, andU.S. MID-WEST ICON/BADGE NORTH AFRICAThe research shows that the poten- Africa) region. Historically, there has tial revenue generated from offering aalways been a much higher adoption lifetime service contract to an automa- rate of service arrangements in those tionprojectisroughlyequivalenttotwo regions than there has been in theSHIP WITH US TODAYthe original cost of the project. So, inAsia Pacific (APAC) regiondue to broad brush terms, a whole-life servicelower labour costs in Asia, expecta-contract could double the original rev- tions for maintenance to be included enue from the sale of the machinery.in the project sale, and robust in-house Furthermore, the research shows peaksservicecapabilitiesbylargeeCom-and troughs in the service cycle, withmerce companies.'