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
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.