Distributed control market eyes strong growth
By Staff -- Plant Engineering, 12/1/2005
The Distributed Control Systems market, primarily buoyed by growth in developing countries such as China and India and a slowdown in hardware price declines, has experienced healthy growth between 2003 and 2004. This growth is expected to continue through at least the 2006-2007 time frame, resulting in overall market growth of 6% between 2004 and 2009, according to a new ARC Advisory Group study, "DCS Worldwide Outlook Market Analysis and Forecast Through 2009" (www.arcweb.com/res/dcsww).
Growth in China and India is compounded by the fact that significant restructuring efforts will need to be made in the North American oil & gas and refining infrastructure in the wake of an unprecedented hurricane season, as well as a return to stronger, albeit moderate growth, in the previously depressed Japanese DCS market.
"After years of decline in the hardware business, increased demand and overall market growth have resulted in a resurgence in hardware growth. Hardware revenues for suppliers are expected to grow at the average annual rate of just over 4% through 2009, which is a big departure from the declines witnessed in the hardware business in recent years. Most DCS suppliers have retained key business elements of manufacturing and/or design of control hardware," said ARC Research Director Larry O'Brien.
