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China PLC Market

By Design World Staff | December 13, 2007

Dedham, Massachusetts — 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 Programmable Logic Controller (PLC) market in China.  The China market for PLCs is expected to grow at a compounded annual growth rate (CAGR) of 12.4% over the next five years.  The market was close to $750 million in 2006 and is forecasted to be over $1.3 billion in 2011, according to a new ARC Advisory Group study “Programmable Logic Controllers Outlook for China”. www.arcweb.com/res/plc-chi

China Still Going Strong
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.

Supplier Strategies
China’s economic growth trajectory is 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.”

www.arcweb.com

.: Design World :.

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Filed Under: Motion control • motor controls, ELECTRONICS • ELECTRICAL, PLCs + PACs

 

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