Industrial automation electronics equipment market set to surpass pre-recession levels in 2011
IMS Research upgraded its forecast for a growth of almost 13 percent for 2011 in the Industrial automation electronics equipment (IAEE) market.
Following initial reports of a strong first quarter for industrial automation electronics equipment (IAEE), IMS Research has upgraded its forecast to 12.9% market growth in 2011. The global IAEE market is now projected to be worth $97 billion in 2011, according to a new report, “The World Market for Industrial Automation Electronics Equipment” from IMS Research.
Growth in the IAEE market relies heavily on machinery production, which reportedly performed exceptionally well last year. “Initial indicators show that the strength in machinery production during 2010 has continued into 2011, and the outlook remains positive,” says IMS Research market analyst Andrew Robertson. The strongest performances will again come from Eastern Europe and China, leading to global growth of 9.8% for machinery production during the year.”
In contrast, key process equipment markets dependent upon capital investment declined in 2010, due to continued tight lending conditions. In addition, order books were strong on entering the downturn, creating a lag in recovery. However, IMS Research’s latest quarterly service indicates an impressive first quarter, suggesting that capital expenditure levels will be strong in 2011.
With good opportunities from machinery production and capital investment, this year is predicted to be a peak growth year for the market. In 2011, the IAEE market is forecast to grow more than double the historic annual average of 6.2%.
- Edited by Chris Vavra, Control Engineering, www.controleng.com