New segment reporting effective 2017 In 2016, Beijer Electronics featured the major realignment of its business that began at the beginning of the year. The partnership agreement with Mitsubishi Electric terminated at year-end 2015. The Finnish and Baltic operations were also divested at the beginning of the year. In total, this meant a sales loss of some 170 MSEK.
Automation solutions consist of control and drive systems, as well as operator panels (HMI). Control systems and HMIs are like electronic brains that digitally control, monitor and check machinery and processes. Beijer Electronics has a broad selection of proprietary operator panels and Internet tools consisting of software and hardware, supplemented by third-party control and drive systems. Various research reports estimate the global market value at 20-25 billion SEK. Estimated yearly growth is some 3-5%. The primary driver is rapidly increasing content of software solutions tracking the evolution of the Internet of Things and greater demand for smart automation. Beijer Electronics' estimated market share is some 3%.
Beijer Electronics reaches end-users of automation solutions through a combination of channels. System integrators and OEMs (original equipment manufacturers) use solutions either themselves, or embed them in their own. Brand label customers sell Beijer Electronics’ products and solutions under their own branding. A network of distributors on selected markets complements Beijer Electronics’ own sales resources and direct sales. Beijer Electronics provides servicing and support on local markets.
Automation solutions are utilized across a raft of segments and applications. The largest segment is manufacturing, which largely utilizes off-the-shelf products. Other segments like oil & gas, as well as marine & offshore often operate in exposed, harsh environments that create very specific and challenging demands for solutions to be robust and sustainable. Beijer Electronics is at the leading edge in terms of robust operator terminals and solutions. In segments like building automation, water & waste water, special, customer-specific products and application solutions are critical.
Beijer Electronics sells solutions globally to a total of some 4,500 customers of varying sizes. The ten largest customers generated 22% of sales in 2016. The Nordics represented 32% of sales, the rest of Europe 23%, the Americas 23%, Asia 21% and the rest of the world, 1%.