02 Jul 2012
Global industrial automation to grow 9.5%
The relative strength of the US and Chinese markets is forecast to ‘drive’ healthy market growth of 9.5% in the global industrial automation market this year, reaching $159.8 billion, according to IMS Research (www.
Sarah Sultan, research analyst at IMS Research, said: “Several countries in Europe have slipped back into recession in 2012, and with the potential of Greece exiting the euro-zone, European markets have continued to be plagued by uncertainty and instability.
“Although austerity measures in Europe and in the USA have ‘impacted’ public investment in automation equipment, large declines in these markets are unlikely, as most of the investment in industrial automation comes from the private sector.”
The US economy has improved substantially since last year, with both machinery production and ‘end’ equipment markets performing well. Machinery production in the USA had a very strong first quarter, with approximately 8% growth, compared to the first quarter of 2011. The Americas region, comprising both North and South America, is poised for strong growth in industrial automation equipment in 2012.
Ms Sultan added: “Combined, the Americas and Asia Pacific regions account for 65% of the global market for industrial automation electronics. Asia is the largest consumer of industrial automation products, and the relative strength of its economy in 2012 is predicted to lead to spending of $64 billion, which represents nearly 40% of the global market.
"Although China’s forecast GDP growth of 8.2% in 2012 is the slowest it’s been in years, activity is expected to pick up in the second half of 2012 due to a recovery in Europe and increased governmental policies influencing industrial automation in China. Resurgence in the Chinese economy will also influence Latin America, which has slowed recently due to a strong reliance on investment from China.”