Asia’s rapid growth offers opportunities for drives, PLCs and industrial PCs

ARC report focuses on acceleration of consumer needs balanced with efficiency, environmental issues

01/11/2013


Three new studies authored by the ARC Advisory Group focus on the continued manufacturing growth in Asia, and the region’s need for technology in three key areas: low-power AC drives, PLCs and industrial growth.

With energy efficiency and the environment as key issues, ARC projects an annual growth of 9% a year through 2016. “Most of the Asian countries are growing at a GDP rate of above 6%. The domestic demand-driven economies of China, India, Indonesia, and others have become the destination of choice for major global companies,” the report states. “Automotive, electric power generation, food & beverage, machinery, and other infrastructure related sectors have been the key drivers for low power AC drives growth in the region.”

“New construction activities during 2013 and beyond in Asian countries such as China and India, and the trend towards intelligent buildings, are further demand drivers for additional automation solutions and low power AC drives in mature markets,” said G. Ganapathiraman, country manager for ARC Advisory Group India, and author of the report.

Asia also is the leading market for global PLC and PLC-based PACs, with 38.5% of the world sales. “ARC expects the top five growth industries in Asia to be machinery, automotive, food & beverage, metals & mining, and electronics & electrical in that order, with associated increases in PLC revenues,” the report states. “The power generation industry is also expected to grow at a high rate throughout the forecast period and this augurs well for the growth of the PLC market.”

Ganapathiraman also authored the study, which shows Asia’s sales in the PLC/PAC market will top $4.6 billion by 2016. “Emerging economies, such as India and China will continue to be a growth engine for PLC and PLC-based PAC suppliers as they pursue expansion and improvement of internal infrastructure and manufacturing operations to meet increasing domestic demands, as well as to increase energy efficiency and the quality of their processes,” he said.

China’s economic growth rate continues to be higher than in developed regions, which is fueling optimism that its industrial PC market will continue to expand.

Citing the World Bank projections that China’s economy will grow by 8.4% in 2013, ARC estimates the industrial PC market will grow by 9.4% annually through 2016.

“One of the biggest end user trends impacting the IPC market could be called ’intelligent manufacturing,’ ” the report states. “This trend is driven by the rapidly growing amounts of data generated by industrial applications, both in engineering and in operations. While some of these data are generated to document processes to meet regulatory requirements, many users are using data to optimize running processes in real-time or for process simulation and operator training.

“End user challenges include reducing operating cost, reducing time-to-market while remaining agile, and responding quickly to changes in the marketplace. To overcome these challenges industrial companies are turning to IPC suppliers who have a pulse on the market, understand local needs, and provide customization.” 

“IPC suppliers in China can exploit this growth opportunity by providing one-stop, comprehensive solutions, which are customized to local needs,” said David Cao, country manager for ARC China.

Details on all three reports can be found at www.arcweb.com/market-studies.



No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
Water use efficiency: Diminishing water quality, escalating costs; Lowering building energy use; Power for fire pumps
Building envelope and integration; Manufacturing industrial Q&A; NFPA 99; Testing fire systems
Labs and research facilities: Q&A with the experts; Water heating systems; Smart building integration; 40 Under 40 winners
Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Protecting standby generators for mission critical facilities; Selecting energy-efficient transformers; Integrating power monitoring systems; Mitigating harmonics in electrical systems
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.