Date:31st May 2012
Global Industrial automation market to
cross $200 billion in 2015, predicts IMS
IMS Research (acquired by IHS Inc) forecasts that the relative
strength of the U.S. and Chinese markets is to drive healthy
market growth of 9.5 percent in the global industrial automation
market to reach $159.8 billion in 2012. The global industrial
automation market is predicted to reach more than $200 billion
by 2015. Market growth will be sustained by healthy economies
worldwide this year, despite individual countries in Europe
slipping back into recession.
The other findings reported by IMS includes:
The key element in a country's GDP is the industrial automation
equipment which is purchased largely for manufacturing processes
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 percent 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 percent 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 percent
of the global market.
"Although China's forecast GDP growth of 8.2 percent
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."