From 2003-08, China will double in size as a market for programmable logic controllers, which run automated factory equipment, according to a study from ARC Advisory Group
ARC of Dedham, Mass., said the Chinese market for PLCs will reach a compounded annual growth rate of 14.1 percent a year over the five-year period — even taking into account a decline in PLC prices. The market was about $370 million in 2003, ARC said.
Factories in China are using export revenues to invest in new technology. ARC said China's automation sector has grown by more than 20 percent a year.
ARC senior analyst Himanshu Shah said several factors are driving the Chinese PLC market. Power from the Three Gorges and Yellow River generation projects will ease energy constraints for further manufacturing growth. The outsourcing trend by multinational corporations setting up China production also fuels automation. And a surge in engineering education will support broader understanding of machine controls, while the booming machine tool market will continue to gobble up more PLCs, Shah said.
The report is called “Programmable Logic Controller Outlook for China.”
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