Ethernet market growing in Asia Pacific region

According to IMS Research, the adoption of Ethernet in the Asia Pacific region is growing faster than in either EMEA or the Americas. Worldwide, Ethernet-based technologies will account for over 26% of all new networked nodes connected in industry in 2015.

01/25/2012


IMS Research LogoUse of Ethernet-based technologies in industrial communications will grow faster than use of fieldbus, especially in the Asia-Pacific region; according to a new report from IMS Research. This is largely driven by the need to improve efficiency as currency and wage pressures sound warning bells, threatening the cost advantage that has fueled the meteoric growth of manufacturing in the region.

The report was compiled from data collected during the second half of 2011, including input from the many specialist industrial reports published by IMS Research. Overall, 16 industrial product types were analysed for networking connectivity, with many segmentations, including by region: EMEA, Americas and Asia Pacific. The worldwide growth in the installation of new Ethernet based nodes was forecast to be 13% CAGR from 2010 to 2015; regional growth rates were 11% in EMEA, 10.4% in the Americas, 18.6% in Asia Pacific.

“The faster growth in the Asia Pacific region is not unexpected”, commented John Morse, the senior analyst who wrote the report, “However, the rate of growth seems to be gathering pace in the recovery from the 2008/9 recession”. Morse noted that the competitive advantage countries in the region have enjoyed for decades was under threat by saying, “The Asia-Pacific growth rate is high despite the pressure on local manufacturing costs from increasing wages in the growing economies of Asia, most notably China. In addition, the demand for products from both America and Europe is currently slowing, adding an additional threat to the economies of scale needed to maintain profitability. I am aware of some Western companies that are considering bringing manufacturing facilities back home, citing that the cost advantages of outsourcing have been substantially reduced in recent times.”

Morse added, “The market in Japan is somewhat different and has been much slower to adopt Ethernet-based communication technologies in industry. Even there, this is changing with the introduction of CC-Link IE, a Gigabit technology form Mitsubishi Electric; and with extensive promotion by other organizations including ODVA and Profibus International promoting Ethernet/IP and PROFINET respectively."

IMS Research

www.imsresearch.com



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
World-class maintenance: The three keys to success - Deploy people, process and technology; 2016 Lubrication Guide; Why hydraulic systems get hot
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me