China’s PLC market will see moderate recovery

The PLC market in China is expected to recover from a recent downward spiral as more domestic suppliers begin to emerge, particularly in the micro PLC market, according to ARC Advisory Group.

10/21/2013


China’s economic growth is at a critical juncture. After 30 years of high-octane growth, it is seeing a comparative slowdown due to internal and external pressures. The macroeconomic data released from the China State Statistics Bureau showed the declining GDP growth rate — 7.8 percent in 2012, lower than 9.2 percent of 2011. This is the slowest China GDP YoY growth in the past 13 years. 

The market trend of PLC and PLC-based PACs in China shows a high correlation with the macroeconomic scenario.  In 2012, China’s PLC and PLC-based PAC market seems to have declined significantly. But this is a natural fallout; when industrial growth is lackluster, the demand for automation reduces.   

Projected forecast for the PLC market in China from 2012 to 2017. Courtesy: ARC Advisory GroupARC Advisory Group’s report, “PLC and PLC-based PACs for China Market Research Study” states that the PLC market in China is experiencing fierce competition and this trend will not change in the short-term. Almost all global PLC suppliers have forayed into the China market, and domestic players are emerging, especially in the micro PLC market. According to David Cao, Country Manager, ARC Advisory Group China, and author of this study, “To succeed in the competitive marketplace, suppliers must differentiate themselves and continue to offer increasing value propositions to end users and OEMs and respond with agility to market dynamics. This is especially important because the market is expected to grow steadily during the forecast period and beyond as users in many industries have recognized that increased automation is vital for increasing productivity, efficiency, and energy conservation.”

China’s PLC market will continue to grow across main industry verticals

From a short-term perspective, ARC believes that China will see a slight recovery in 2013; from the medium and long-term perspective, China’s PLC and PLC-based PAC’s market, which experienced strong growth during the past years, is expected to grow at a modest pace. ARC believes that some of the industries, including oil & gas, automotive, food & beverage, pharmaceutical & biotech, and infrastructure will have better market performance in the next five years—and this bodes well for China’s PLC market.  

- Edited by CFE Media. See more Control Engineering discrete manufacturing stories.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
Control Engineering Leaders Under 40 identifies and gives recognition to young engineers who...
Learn more about methods used to ensure that the integration between the safety system and the process control...
Adding industrial toughness and reliability to Ethernet eGuide
Technological advances like multiple-in-multiple-out (MIMO) transmitting and receiving
Virtualization advice: 4 ways splitting servers can help manufacturing; Efficient motion controls; Fill the brain drain; Learn from the HART Plant of the Year
Two sides to process safety: Combining human and technical factors in your program; Preparing HMI graphics for migrations; Mechatronics and safety; Engineers' Choice Awards
Detecting security breaches: Forensic invenstigations depend on knowing your networks inside and out; Wireless workers; Opening robotic control; Product exclusive: Robust encoders
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
News and comments from Control Engineering process industries editor, Peter Welander.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
Anthony Baker is a fictitious aggregation of experts from Callisto Integration, providing manufacturing consulting and systems integration.
Integrator Guide

Integrator Guide

Search the online Automation Integrator Guide
 

Create New Listing

Visit the System Integrators page to view past winners of Control Engineering's System Integrator of the Year Award and learn how to enter the competition. You will also find more information on system integrators and Control System Integrators Association.

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.