The Chinese distributed control system (DCS) markets has been steadily growing since 2003, and this trend is likely to get stronger as factory automation increases due to China's flourishing economy and the Government's firm support of industrial automation.
New analysis from Frost & Sullivan (industrialautomation.frost.com) Chinese DCS Markets, finds that market earned revenues of $866.7 million in 2006 and estimates this to reach $1,800.0 million in 2013 due to the development of end-user markets.
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Since the tenth five-year plan, the Chinese Central Government has been encouraging manufacturers to facilitate industrialization with advanced IT. For executing the policy, the Minister of Science and Technology organized an institution to promote the informatization of manufacturing. With the Governments' strong support, an increasing number of DCS that are designed with IT features is used for the industrial informatization, thereby stirring growth in the Chinese DCS market.
"Moreover, due to the low cost of labor and operations, improving quality of education, positive Governmental policies of FDI, and large demand of various products, a growing number of global manufacturers have expanded their manufacturing to China," remarks Frost & Sullivan Research Manager, David Ren. "The continuous investments of these manufacturers for establishing plants facilitate the consumption of DCSs"
The Chinese DCS market can benefit a great deal from investment upsurge in various industries, particularly petroleum, natural gas, power generation and other industries that generate a large amount of projects. Most of these new projects are larger in scale and more advanced in technology. This has brought about various market opportunities.
Industries across several verticals are essentially demanding total automation to increase the productivity and get higher return of investment (RoI). Having obtained tremendous progress in speed, reliability, functions, and communications, DCS plays an important role in meeting these demands, which are expected to strongly increase its consumption in the Chinese market.
Additionally, old basic facilities and factories need to be upgraded to enhance working efficiency. Hence, manufacturers are deploying DCS to improve the overall equipment effectiveness and provide real-time performance management.
"However, due to increasing competition, Chinese DCS suppliers must strive to build strong and lasting relationships with OEMs and develop new products with more features, functionality, and better performance and design solutions for specific industries," explains Ren. "By improving the price/performance ratio, these suppliers can expect to retain and expand their presence in this highly competitive space."
DCS manufacturers can highly benefit by fostering an in-depth understanding of customers' specific requirements. By developing products for specific applications and designing complete solutions for many end-user industries, they are likely to maintain a grip in this competitive market.
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