Product category:
Process Controllers: PAC, PLC, Loop control
News Release from: ARC Advisory Group | Subject: China PLC market
Edited by the Processingtalk Editorial
Team on 17 December 2007
China PLC market to experience strong
growth
Buoyant foreign direct investment flowing into China, accompanied by rising consumer demand, is propelling the country's manufacturing sector, which in turn is driving the PLC market in China
The favourable business environment in China is providing ample investment opportunities for manufacturers from all around the world to set up facilities there The Chinese market for PLCs is expected to grow at a compounded annual growth rate (CAGR) of 12.4% over the next five years
This article was originally published on Processingtalk on 21 Nov 2003 at 8.00am (UK)
Related stories
Pharmaceuticals needs new manufacturing systems
ARC Pharmaceutical industry plant-level expenditures worldwide outlook report: many drug manufacturers are ill prepared for the coming pressures, they need to shorten development times
Ultrasonic Flowmeter Worldwide Outlook
The world market for ultrasonic flowmeters is expected to grow at a Compound Annual Growth Rate of 7.9 percent over the next five years, arising from their adoption for custody transfer measurement
The market was close to USD750 million in 2006 and is forecasted to be over USD1.3 billion in 2011, according to a new ARC Advisory Group study "Programmable Logic Controllers Outlook for China".
Global economic integration and increasing domestic demand largely contribute to the emergence of China as the world's manufacturing hub.
The fiercely competitive market and the need to improve productivity are driving manufacturers to think strategically and increase their investments in new technologies.
Further reading
The value of Profibus in the Process Industries
ARC reports that the value proposition of Profibus lies in its ability to address the needs of multiple manufacturing domains, running on a common communication layer
Impact of Katrina on US Oil and Gas Industry
A special report titled "Impact of Hurricane Katrina on US Oil and Gas Industry Will be Lasting" by Russ Novak and Larry O'Brien has been published by the ARC Advisory Group
"The manufacturing sector is searching for sustainable competitive advantages through continuous productivity improvements, which will lead to the application of plant level automation across all vertical industries in a major way.
These developments will spur the growth of the PLC market in China," according to Senior Analyst Himanshu Shah, co-author of the study.
China is poised to become the world's third biggest economy in 2007.
For the automation business, China is still the largest growth market and will remain so for the next several years.
Even more impressive than the overall economic expansion is the high growth in fixed asset investments, which are the main indicators for State funded or aided spending on additional manufacturing capacity.
China also continues to attract huge amounts of foreign direct investment.
The Chinese economic growth trajectory continues unabated.
The manufacturing industry is buoyant and intensely competitive.
Manufacturers increasingly rely on automation to gain competitive advantages and improve profitability as they do in the global marketplace.
Automation investments by manufacturers are on the rise, and that bodes well for automation suppliers.
Suppliers, however, need to follow well-planned strategies to outperform market growth and gain market share, even during boom periods.
Himanshu Shah adds, "Suppliers in China are adopting strategies, such as including CPM in their solution portfolios, fostering and expanding strategic relationships with OEMs, pricing their products competitively, and others, to exploit the growing opportunities".
The "Programmable Logic Controller Outlook for China" study addresses the expanding role of PLCs and also identifies overall PLC trends in products, platforms, market sectors, and application segments where large investments take place.
• ARC Advisory Group: contact details and other news
• Email this article to a colleague
• Register for the free Processingtalk email newsletter
• Processingtalk Home Page
Search the Pro-Talk network of sites
