Strength in U.S., China drives growth in industrial automation

IMS report finds global market will top $200 billion by 2015

05/31/2012


The relative strength of the U.S. and Chinese markets is forecast  to drive healthy market growth of 9.5% in the global industrial automation market to reach $159.8 billion in 2012, according to IMS Research, recently acquired by IHS Inc. The global industrial automation market is predicted to reach more than $200 billion by 2015. Market growth will be buoyed by healthy economies worldwide this year, despite individual countries in Europe slipping back into recession.

Industrial automation equipment is purchased largely for manufacturing processes, which is a key element in a country’s GDP and is generally indicative of economic health. Machinery production output drives demand for nearly half of the total industrial automation equipment market. Early indicators for first quarter machinery production output show slowed growth in most regions, with the exception of the U.S. market.

“Several countries in Europe have slipped back into recession in 2012 and with the potential of Greece exiting the Eurozone, European markets have continued to be plagued by uncertainty and instability,” says Sarah Sultan, research analyst at IMS Research. “Though austerity measures in Europe and in the U.S. have impacted public investment into automation equipment, large declines in these markets are unlikely as most investment in industrial automation comes from the private sector.”

The U.S. economy has improved substantially, and both machinery production and end equipment markets are performing well in the beginning of the year. Machinery production in the U.S. had a very strong first quarter with approximately 8% growth, compared to the first quarter of 2011. The Americas region in total comprised of North and South America, is poised for strong growth in industrial automation equipment in 2012, and performed the best in the first quarter according to quarterly equipment trackers with positive growth across several equipment types compared to the first quarter of 2011.

“Combined, the Americas and Asia Pacific regions account for 65% of the global market for industrial automation electronics,” Sultan adds. “Asia is the largest consumer of industrial automation products, and the relative strength of its economy in 2012 is predicted to lead to spending of $64 billion, which represents nearly 40% of the global market.

“Although China’s forecast GDP growth of 8.2% in 2012 is the slowest it’s been in years, activity is expected to pick up in the second half of 2012 due to a recovery in Europe and increased governmental policies influencing industrial automation in China. Resurgence in the Chinese economy will also influence Latin America, which has slowed recently due to a strong reliance on investment from China.” 



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...
Hannover Messe 2016: Taking hold of the future - Partner Country status spotlights U.S. manufacturing; Honoring manufacturing excellence: The 2015 Product of the Year Winners
Inside IIoT: How technology, strategy can improve your operation; Dry media or web scrubber?; Six steps to design a PM program
World-class manufacturing: A recipe for success: Finding the right mix for a salad dressing line; 2015 Salary Survey: Manufacturing slump dims enthusiasm
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
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Warehouse winter comfort: The HTHV solution; Cooling with natural gas; Plastics industry booming
Managing automation upgrades, retrofits; Making technical, business sense; Ensuring network cyber security
Designing generator systems; Using online commissioning tools; Selective coordination best practices

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.
click me