Growth in Asia: DCS market thrives on manufacturing investments
Strong economic activity in Asia is spurring growth in manufacturing and, in turn, in automation, according to a recent study from ARC Advisory Group
ARC Advisory Group. Specifically, the Asian market for distributed control systems (DCS) is expected to increase at a compounded annual growth rate (CAGR) of 9% over the next five years, says the report. In Asia, large greenfield projects are translating to large investments in many industries, including chemical, electric power, oil and gas, and refining industries.
Report authors Larry O’Brien, ARC research director, and S.R. Venkatapathy, senior analyst, say that robust demand, massive investments and increasing affluence result in “a cycle of wealth creation,” and that Asia is experiencing this transformation. “Large greenfield projects,” they go on, “are the flavor in Asia and the scale of plants in chemical, electric power, oil and gas, and refinery industries is leaning towards catering to global demand, in addition to local consumption.”
The trends are positive, the report says. Growth in the manufacturing industry is leading to a thriving Asian DCS market as manufacturers realize that high productivity and quality are necessary to compete globally and take steps to embrace current technologies.
The report analysis singles out the electric power industry and the batch control segment of the market as experiencing the greatest growth. The electric power industry, it says, will remain the largest business for DCS over the next five years. Coal-fired plants are emerging as the biggest user of DCS in China, India, and Southeast Asia. In the next five years, says the study, China will account for the addition of some 25,000 MW of generating capacity and India will add more than 50,000 MW.
According to ARC Advisory Group analysts, the DCS-based batch control system market will also increase significantly. Changing lifestyles and increasing affluence are contributing to growth in the food and beverage and pharmaceutical industries in Asia. These industries typically use highly regulated processes and validation procedures to comply with local and international regulations and standards—activities that result in widespread use of batch control systems that provide the impetus for growth of the DCS-based batch control system market.
—Edited by Jeanine Katzel , Control Engineering senior editor