According to IMS Research, Austin, the relative strength of the U.S. and Chinese markets is forecast to spur 9.5% growth in the global industrial automation market, to reach $159.8 billion in 2012 and more than $200 billion by 2015. Industrial automation equipment is purchased largely for manufacturing processes — a key factor in a country’s GDP and a general indicator of economic health. Machinery production output drives demand for nearly half of the total industrial automation equipment market. Early indicators for global first quarter machinery production output point to slowed growth in most regions, with the exception of the U.S. market.
“Several countries in Europe have slipped back into recession in 2012 and with the potential of Greece exiting the Eurozone, European markets are plagued by uncertainty and instability,” says Sarah Sultan, research analyst. “Though austerity measures in Europe and the U.S. have impacted public investment into automation equipment, large declines in these markets are unlikely, as most investment in industrial automation comes from the private sector.”
The U.S. economy has improved substantially and both machinery production and end equipment markets are performing well in early 2012. Machinery production in the U.S. had a very strong first quarter with approximately 8% growth, compared to first quarter 2011.
“Combined, the Americas and Asia Pacific regions account for 65% of the global market for industrial automation electronics,” explains Sultan. “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, accounting for nearly 40% of the global market. Although China’s forecast GDP growth of 8.2% in 2012 is the slowest 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.”For more detailed information, visit imsresearch.com.