Demand for Industrial Controls in China to Grow Nearly 14% Annually

Demand for industrial controls in China is projected to rise 13.6 percent annually through 2015 to 259 billion yuan.  Gains will be supported by increases in durable goods output, as well as by expanding investment in key industries such as chemicals, utilities and construction.  Demand growth will also be aided by continuing product development and technological advances in solid-state controls that will enable end users to improve their productivity.  However, gains will be restrained by competition from personal computers programmed to perform control-related functions.  These and other trends, including market share and product segmentation, are presented in Industrial Controls in China, a new study from the Beijing office of The Freedonia Group, Inc., a Cleveland-based industry research firm.

Demand for advanced control products is expected to continue to rise faster than demand for conventional controls, as the advanced types provide superior performance and production capabilities.  As these products become more technologically intricate, demand for systems integration services and industrial control software will grow rapidly.  Adjustable speed drive controls will remain the largest advanced industrial control product segment, primarily bolstered by the superior energy conservation performance they provide.  Demand for special-purpose controls is expected to continue to outpace that for general-purpose products through 2015, benefiting from the application-specific nature of these devices that allows them to sell at higher prices than general-purpose controls.

Durable goods industries accounted for the largest share of demand in 2010, making up 78 percent of the total.  Industrial controls are especially utilized by electrical and electronic equipment and machinery manufacturers.  Original equipment manufacturer (OEM) applications are expected to provide better prospects for growth than maintenance/repair/operations (MRO) applications, benefiting from solid advances in durable goods manufacturing output in China.  Electrical and electronic equipment is expected to be the fastest growing market for industrial controls through 2015, supported by strong increases in manufacturing output, as well as rising use of control devices in electrical and electronic equipment.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.