Robust growth expected in Chinese DCS market

Robust growth is expected for the DCS market in China, according to a new ARC Advisory Group study. The market, set at $531 million in 2003, is forecast to reach $1.07 billion by 2008, for a 15.1% compounded annual growth rate (CAGR) over the next first years.

01/22/2004



Robust growth is expected for the DCS market in China, according to a new ARC Advisory Group study. The market, set at $531 million in 2003, is forecast to reach $1.07 billion by 2008, for a 15.1% compounded annual growth rate (CAGR) over the next five years. With the fastest growing economy in the world, China is experiencing massive investments in new projects and plant upgrades in almost all process industry segments. It is emerging as a destination of choice for global manufacturers.

This condition "naturally creates tremendous growth opportunities for the Distributed Control Systems market, making China the major opportunity for process automation supplies," observes Larry O’Brien, ARC research director and co-author of ARCs "DCS Out-look for China." The power industry continues to contribute the major share of DCS reve-nues in China and this trend will continue, the study shows. However, industries such as oil & gas and petrochemicals hold excellent growth prospects that are defined in the study.

China is emerging as the fastest growing economy in the world, driven by demand from almost a quarter of a billion people for a range of basic industrial products, capital equipment, consumer durables, and more. Global manufacturing companies wanting to access this marketplace have created world-class production facilities in China, observes O’Brien. "These companies are implementing state-of-the-art distribution control systems that go beyond the benefits of China’s location (low labor costs) and provide sustainable competitive advantages."

Despite these obvious opportunities, there are challenges, the study reports. The marketplace was intensely competitive in 2003. Global DCS suppliers face competition from home-grown Chinese suppliers able to offer equipment at competitive prices because of open standards and similar factors. For more information on the study, click here .

—Jeanine Katzel, senior editor, Control Engineering, jkatzel@reedbusiness.com





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