Industrial Ethernet is increasing strongly in China's booming sectors

IMS Research report indicates that industrial Ethernet growth in China depends on strength of various vertical sectors. The market grew 20%, 2009 to 2010, IMS said.

05/27/2011


The market for Ethernet infrastructure components in Chinese industry is set to grow strongly, but the opportunity will vary with the strength of the vertical sector.

According to a newly published report, “The Chinese market for industrial Networking and Ethernet” from IMS Research, nearly $120 million of industrial Ethernet infrastructure components were sold in China in 2009 and growing with estimated 20 percent more in 2010. “The Chinese market is still far from saturation compared with the industrialized world as a whole," comments analyst Alex Hong. “With many new plants and projects started recently, the demand for Ethernet components will continue to grow explosively.”

The vertical industry sector is important when projecting growth prospects. More than 30 percent of the revenues in China are coming from the power and energy industries. Chinese Government policy, such as the Strong and Smart Grid Plan and strong support for renewable energy development, helps rapid growth in this industry sector. Transport and traffic is also an important vertical sector, the stimulation plan for infrastructure construction still having an effect on sales of industrial Ethernet components.

The success of vendors of these components will reportedly depend on the sectors they best serve. Vendors with a focus in electric power generation and transmission or in transportation will win large revenues, if they keep in mind that the Chinese market, as always, is very price-conscious.

Oil and gas could also be an apparent interesting sector in the future. Although it is considered to be virgin territory for industrial Ethernet components in China, with a relatively small user base, potential market growth is very promising. However, certification is important in these applications, which may prove an obstacle for the Ethernet vendors in this market.

www.imsresearch.com

- Edited by Chris Vavra, Control Engineering, www.controleng.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...
IIoT grows up; Six ways to lower IIoT costs; Six mobile safety strategies; 2017 Salary Survey
2016 Top Plant; 2016 Best Practices on manufacturing progress, efficiency, safety
2016 Product of the Year; Diagnose bearing failures; Asset performance management; Testing dust collector performance measures
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
What controller fits your application; Permanent magnet motors; Chemical manufacturer tames alarm management; Taking steps in a new direction
Tying a microgrid to the smart grid; Paralleling generator systems; Previewing NEC 2017 changes
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.
Motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on preventing compressed air leaks and centrifugal air compressor basics and best practices for the "fifth utility" in manufacturing plants.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
click me