Asia shows healthy momentum

Recent reports on the future of the automation market in Asia indicate robust growth in both the discrete and process industries. ARC’s research reports on the Asian manufacturing market this year shows that China continues to be the primary country driving automation market growth, while India is also providing increasingly bright prospects for automation. In most Asian countries end users continue to build new infrastructure, expand their manufacturing base, and modernize many existing plants which have less sophisticated or limited automation.

On March 21, ARC reported that China’s DCS Market is expected to grow at a CAGR of nearly 14 percent between 2005 and 2010, taking strength from year-on-year 10 percent GDP growth as increased consumer demand and foreign direct investment continue to propel the growth of China’s manufacturing industry. China’s desire to become a worldclass industrial giant is also reflected in their refining projects, which typically incorporate the latest automation systems and technologies. This is evidenced in the increased implementation of fieldbus technology. China currently has the two largest fieldbus installations in the world, Shanghai SECCO and CSPC Nanhai, and other refining projects are expected to make the country the world’s biggest test bed of fieldbus technology, according to ARC.

In another press release on July 19, ARC reported that India’s PLC market reached close to $150 million in 2005 and is expected to grow at an astounding CAGR of 19.2 percent over the next five years. According to the automation research group, investments in most vertical industries including automotive, construction, chemical & petrochemical, electric power, food & beverage, metals, oil & gas, and pharmaceutical are growing at lightening speed. The increasing demand for a wide range of goods is driving the growth of these industries, and the future outlook for both process and discrete industries in the country is expected to remain optimistic.

Many companies have also reported increased growth in the region for their businesses. Helmut Gierse, President of the Siemens Automation and Drives Group, told the press in Frankfurt, Germany on March 9 that the leader in their regional performance is Asia-Pacific,which grew in volume by approximately 31 per cent, achieving an increase well above the overall level of market growth, and it remains the number one growth driver in the group’s business.

Further evidence of regional growth is found in recent strategic moves by two other industry giants in Southeast Asia. In Singapore, Rockwell Automation opened an Asia Pacific Business Center in May while GE Energy’s optimization and control business announced the opening of a Customer Application Center, a 15,000-square-foot facility that provides customers with custom product training and hands-on operation of plant asset management equipment and control system software.

All signs are positive and with globalization as the main driver, together with the sheer size of the automation and controls market in Asia, the potential for further growth looks unlimited.