Robust growth seen for China pressure transmitter market

Heavy investment in key industry sectors where pressure transmitters are used will contribute to continued robust growth of the pressure transmitter market in China, a recent ARC Advisory Group study shows.

05/19/2005


Heavy investment in key industry sectors where pressure transmitters are used will contribute to continued robust growth of the pressure transmitter market in China, a recent ARC Advisory Group study shows. The China market is expected to increase at a compound annual growth rate (CAGR) of 11.4% over the next five years, says the report, moving from $135 million in 2004 to more than $231 million in 2009.

instrumentation
A recent ARC Advisory Group study forecasts continued robust growth of the pressure transmitter market in China. (Data and illustration courtesy of ARC Advisory Group.)

According to “ Pressure Transmitter Outlook for China ,” the demand for pressure transmitters in China remains strong, as efforts to build infrastructure and a manufacturing base continue. Strongest growth is expected early in the outlook period as China prepares to host the 2008 Olympic games. Field Systems Analyst Paula Hollywood, the study’s principal author, says, “The product mix of pressure transmitters is changing as conventional transmitters slowly give way to more intelligent devices. This trend is expected to continue as China transforms itself from a big manufacturing country to a strong one.”

The study points out that most opportunities in China are greenfield projects. Unencumbered by legacy systems, it says, those involved in projects are open to installing state-of-the-art automation products and systems. Manufacturers are recognizing the value of adopting new technologies, such as digital communication protocols and asset management solutions and are implementing them, the report states, noting that the increased use of digital communication is one factor brightening the market for pressure transmitters.

The China pressure transmitter market is extremely price sensitive, the study indicates. However, the government has acknowledged its intent to become a more efficient producer over the next 20 years and is advocating use of high technology to achieve that goal. Manufacturers may need to undergo a cultural change, the report speculates, to accept that increased functionality and intelligence come at a higher price. The challenge for suppliers will be to strike a balance between price and intelligence, says the report. To make it more attractive for foreign process automation suppliers to produce the latest generation of pressure transmitters and other products in the country, it suggests, the Chinese government must rigorously tighten the protection of intellectual property.

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





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