Global DCS market expects healthy growth through 2007
Worldwide DCS market is expected to grow an average 6% between 2004 and 2009. (Illustration and data courtesy of ARC Advisory Group)
Dedham, MA —Healthy growth in the global distributed control systems (DCS) market is expected to continue through at least 2006-2007, a recent study from ARC Advisory Group reveals. DCS worldwide outlook market analysis and forecast through 2009 reports overall market growth of an average 6% between 2004 and 2009.
DCS market has been primarily buoyed by growth in developing countries such as China and India and by a slowdown in hardware price declines. Growth in China and India is compounded by the need for significant restructuring efforts in North American oil-and-gas and refining infrastructures as a result of an unprecedented hurricane season. Stronger, though moderate, growth in a previously depressed Japanese market is also having an impact.
“After years of decline in the hardware business, increased demand and overall market growth have resulted in a resurgence in hardware growth,” said Larry O’Brien, ARC research director and principal author of the study. “Hardware revenues for suppliers are expected to grow at the average annual rate of just over 4% through 2009, which is a big departure from the declines witnessed in the hardware business in recent years. Most DCS suppliers have retained key business elements of manufacturing and/or design of control hardware.”
Increased manufacturing capacity utilization in North American and Japan are contributing to the overall DCS market growth, while developing economies in China and India add significant amounts of capacity. Although Europe is experiencing a downturn, Japan is benefiting from a recovery in capacity utilization, with rates over 2 percentage points higher than average levels for 2000, marking five consecutive quarters of increase.
The oil-and-gas industry is expected to see the most growth in the DCS market through 2009, driven by increased investment in oil exploration and production in numerous areas around the globe. Investment in new production, compounded with the investment required in North America to reconstruct the damaged offshore industry, is also a major contributor to growth in this sector.
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—Control Engineering Daily News Desk
Jeanine Katzel, senior editor, email@example.com